Valuing brand equity of a geographic region

Brailsford, Tim, Dash, Stephen, Hutchinson, Marion, Pappu, Ravi and Ritchie, Brent W. (2009) Valuing brand equity of a geographic region. Tourism Analysis, 14 6: 765-779. doi:10.3727/108354210X12645141401188


Author Brailsford, Tim
Dash, Stephen
Hutchinson, Marion
Pappu, Ravi
Ritchie, Brent W.
Title Valuing brand equity of a geographic region
Journal name Tourism Analysis   Check publisher's open access policy
ISSN 1083-5423
Publication date 2009
Year available 2009
Sub-type Article (original research)
DOI 10.3727/108354210X12645141401188
Volume 14
Issue 6
Start page 765
End page 779
Total pages 15
Editor Geoffrey I. Crouch
Muzaffer Uysal
Place of publication USA
Publisher Cognizant Communication Corp
Collection year 2010
Language eng
Subject C1
9001 Financial Services
9003 Tourism
910403 Marketing
150201 Finance
150603 Tourism Management
1505 Marketing
Abstract There is much anecdotal evidence and academic argument that the location of a business influences its value. That is, some businesses appear to be worth more than others because of their location. This is particularly so in the tourism industry. Within the domain of the destination literature, many factors can be posited on why business valuation varies, ranging from access to markets, availability of labor, climate, and surrounding services. Given that business value is such a fundamental principle that underpins the viability of the tourist industry through its relationship with pricing, business acquisition, and investment, it is surprising that scant research has sought to quantify the relative premium associated with geographic locations. This study proposes a novel way in which to estimate geographic brand premium. Specifically, the approach translates valuation techniques from financial economics to quantify the incremental value derived from businesses operating in a particular geographic region, and produces a geographic brand premium. The article applies the technique to a well-known tourist destination in Australia, and the results are consistent with a positive value of brand equity in the key industries and are of a plausible order of magnitude. The article carries strong implications for business and tourism operators in terms of valuation, pricing, and investment, but more generally, the approach is potentially useful to local authorities and business associations when deciding how much resource and effort should be devoted to brand protection.
Keyword brand equity
brand valuation
market-based valuation
branding geographic regions
Q-Index Code C1
Q-Index Status Confirmed Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2010 Higher Education Research Data Collection
UQ Business School Publications
 
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Created: Tue, 27 Apr 2010, 09:14:53 EST by Karen Morgan on behalf of UQ Business School