Abstract
There are two major trends in the literature regarding the evaluation of a company’s brand equity: the customer-based brand equity and the financial approach. However, the resulting findings point out that the “consumer” approach is difficult to generalize for a population as a whole and that the “financial” approach is incomplete. (Aaker, 1996; Ailawadi et al., 2003; Keller, 1993; Simon and Sullivan, 1993). A new living conceptualization of brand equity is proposed to address these shortcomings. An algorithm has been developed to measure brand equity. The algorithm captures and analyzes all of the tweets (8,500,000) from 23 of the companies included in the Dow Jones Index over an eight-month period. The results show that the living approach of brand equity is correlated with the different rankings of brands carried out by marketing agencies. Some indicators also have a significant correlation with the company’s stock market performance. As a result, a new valid measure of a brand’s living equity was born, covering both the consumer and financial perspectives at the same time. Managerial recommendations are also discussed.
Keywords: brand equity; social networks; measure of brand equity; stock market
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