Brand valuation of ICT products: The case of Thailand

Abstract

Purpose The paper aims to adopt the hedonic price approach to quantify the brand equity of information and communication technology (ICT) products, narrowed down to laptop computers, laser printers, liquid crystal display computer screens, and mobile phones. Design/methodology/approach The hedonic price model features the list price as the dependent variable of the regression, whilst the measurable attributes of the product and brand dummies are on the right-hand side. Additionally, the model can be adjusted to measure brand effects on profit margins as well. Findings In most of the price and log price models, brand dummies are significant, and positively linked to the consumers' willingness to pay. Nevertheless, amongst the four ICT products in this study, only the laptop brands show positive values. Negative but significant brand dummies suggest that brands are undoubtedly important; however, other features exhibit higher value to consumers. Research limitations/implications As is the case with other financial approaches to valuing brands, the results do not explain how to exploit those values; rather, it identifies the brand's position as measured against other brands. Practical implications Negative brand premiums imply that brand loyalty is not strong in the market, and that the opportunity exists for a new brand's penetration. The construction of brand premium rankings should prove beneficial to firms who wish to evaluate their current position against other competitors. Regarding the products' features, the results suggest that consumers generally focus their decision to purchase a particular brand on its basic or core features. Originality/value The paper proposes another approach to assessing brand equity, namely, in terms of both price and profit margin premiums. Though imperfect, the hedonic methodology is relatively simple and relies on available secondary data. © 2010 Emerald Group Publishing Limited. All rights reserved.