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Journal of the Operational Research Society

, Volume 61, Issue 2, pp 284–293 | Cite as

Measuring brand equity in the car market: a hedonic price analysis

  • G BaltasEmail author
  • C Saridakis
Case-Oriented Paper

Abstract

This paper designs and implements a hedonic model to investigate brand-name effects in the car market. The proposed model provides considerable empirical evidence in support of model-name premia, after controlling for observed product differentiation. Such premia incorporate not only manufacturer equity but also effects that are specific to individual models. The estimated price premia are remarkably intuitive and consistent across carmakers and models. The results yield important implications for brand and range management in the car market and suggest directions for future research.

Keywords

car market brand equity price premium marketing 

Notes

Acknowledgements

We thank the editorial team of the Greek edition of Top Gear, two anonymous JORS reviewers and several professionals in this field for their valuable suggestions. The views expressed are those of the authors, who are also responsible for any errors.

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Copyright information

© Palgrave Macmillan 2009

Authors and Affiliations

  1. 1.Athens University of Economics & BusinessAthensGreece

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