Marketing investment and intangible brand capital
Bronnenberg,B.J.J.A.M. Dubé,Jean-pierre Syverson,Chad
Bronnenberg,B.J.J.A.M.
Dubé,Jean-pierre
Syverson,Chad
Abstract
We present several empirical facts about trends in marketing investment in the US. We also present estimates of the private value of brands to firms and aggregate intangible brand capital stocks created by these investments. These investments include the creation and maintenance of a brand name and all its corresponding brand elements (e.g., awareness, reputation, image, etc.), along with the investments in the labor force used to manage and oversee the branding. We then discuss the private benefits to firms from their advertising and the established academic wisdom for the striking magnitude of marketing outlays. Finally, we explore the welfare implications of investments in brand capital.
Description
Date
2022-06
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity, D33 - Factor Income Distribution, E22 - Investment ; Capital ; Intangible Capital ; Capacity, E23 - Production, G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity, M31 - Marketing, M37 - Advertising
Citation
Bronnenberg, B J J A M, Dubé, J & Syverson, C 2022, 'Marketing investment and intangible brand capital', Journal of Economic Perspectives, vol. 36, no. 3, pp. 53-74. https://doi.org/10.1257/jep.36.3.53