Footnote:
In: Journal of Marketing Research, vol. L (June 2013), 399-415
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 30, 2013 erstellt
Description:
This study examines brand dispersion — variance in brand ratings across consumers — and its role in the translation of brand assets into firm value. Dispersion captures the covert heterogeneity in evaluations of brands among consumers who like or dislike the brands, which would affect an investor's decision to buy or sell a stock. The higher the dispersion, the more inconsistent and polarized cross-consumer ratings of the brands. Multiple analyses — from simple, model-free to time-series models — on 730,818 brand-day observations provide robust evidence that changes in brand dispersion matter for stock prices. Brand dispersion has Januslike effects: it harms returns but reduces firm risk. Further, downside dispersion has a stronger impact on abnormal returns than upside dispersion, indicating an asymmetry in brand dispersion's effects. Moreover, dispersion tempers the risk-reduction benefits of higher brand rating in both short and long runs. Without modeling dispersion, brand rating's impact on firm value can be over- or under-estimated. Managers should consider dispersion a vital brand-management metric and add this metric to the brand-performance dashboard