Impact of product differentiation, marketing investments and brand equity on pricing strategies

Purpose – This paper aims to show the effect of brand equity, marketing investment and product differentiation on price in small and medium enterprises (SMEs), multinational companies (MNCs) and retailers (private labels). Academics have been researching brand equity, return on investment and effect...

Full description

Bibliographic Details
Main Authors: Davcik, N., Sharma, Piyush
Format: Journal Article
Published: Emerald 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/8263
_version_ 1848745604278124544
author Davcik, N.
Sharma, Piyush
author_facet Davcik, N.
Sharma, Piyush
author_sort Davcik, N.
building Curtin Institutional Repository
collection Online Access
description Purpose – This paper aims to show the effect of brand equity, marketing investment and product differentiation on price in small and medium enterprises (SMEs), multinational companies (MNCs) and retailers (private labels). Academics have been researching brand equity, return on investment and effects of product differentiation for many years, but there has been little work that has taken a holistic view. Design/methodology/approach – The author studied an aggregate data set for 735 fast-moving consumer goods (FMCG) brands, taken from Nielsen (10,282 households). Regression analysis was used in the first step, a cluster analysis in the second step of modeling procedure. Findings – The study suggests that brand equity, marketing investment and product differentiation are closely associated with price. Using a cluster analysis, the authors found that the premium price is significantly associated with product differentiation based on innovation and company type. Practical implications – The managerial implications of the models estimated by regression analysis are discussed as well as the results of the cluster analysis and possible research enhancements. Originality/value – The role of the value in brand performance output has not been investigated in the financial context, only in consumer or marketing mix context. Little is known about how price strategy depends on brand equity, product innovation activities or marketing investments intended to improve brand performance, neither how this strategy improves brand performance among different players in the market (retailers, SMEs and MNCs).
first_indexed 2025-11-14T06:20:00Z
format Journal Article
id curtin-20.500.11937-8263
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T06:20:00Z
publishDate 2015
publisher Emerald
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-82632020-07-22T03:53:26Z Impact of product differentiation, marketing investments and brand equity on pricing strategies Davcik, N. Sharma, Piyush Food products Branding Purpose – This paper aims to show the effect of brand equity, marketing investment and product differentiation on price in small and medium enterprises (SMEs), multinational companies (MNCs) and retailers (private labels). Academics have been researching brand equity, return on investment and effects of product differentiation for many years, but there has been little work that has taken a holistic view. Design/methodology/approach – The author studied an aggregate data set for 735 fast-moving consumer goods (FMCG) brands, taken from Nielsen (10,282 households). Regression analysis was used in the first step, a cluster analysis in the second step of modeling procedure. Findings – The study suggests that brand equity, marketing investment and product differentiation are closely associated with price. Using a cluster analysis, the authors found that the premium price is significantly associated with product differentiation based on innovation and company type. Practical implications – The managerial implications of the models estimated by regression analysis are discussed as well as the results of the cluster analysis and possible research enhancements. Originality/value – The role of the value in brand performance output has not been investigated in the financial context, only in consumer or marketing mix context. Little is known about how price strategy depends on brand equity, product innovation activities or marketing investments intended to improve brand performance, neither how this strategy improves brand performance among different players in the market (retailers, SMEs and MNCs). 2015 Journal Article http://hdl.handle.net/20.500.11937/8263 10.1108/EJM-03-2014-0150 Emerald fulltext
spellingShingle Food products
Branding
Davcik, N.
Sharma, Piyush
Impact of product differentiation, marketing investments and brand equity on pricing strategies
title Impact of product differentiation, marketing investments and brand equity on pricing strategies
title_full Impact of product differentiation, marketing investments and brand equity on pricing strategies
title_fullStr Impact of product differentiation, marketing investments and brand equity on pricing strategies
title_full_unstemmed Impact of product differentiation, marketing investments and brand equity on pricing strategies
title_short Impact of product differentiation, marketing investments and brand equity on pricing strategies
title_sort impact of product differentiation, marketing investments and brand equity on pricing strategies
topic Food products
Branding
url http://hdl.handle.net/20.500.11937/8263