Volume 5, Issue 4, August 2019, Page: 67-72
Predictive Modeling of the Brand Equity: Analysis Based on Multiple Logistic Regression and Backward Stepwise Model Selection Methods
Gehan Shanmuganathan Dhameeth, Business and Economics Department, Wells College, Aurora, New York, USA
Received: Jul. 31, 2019;       Accepted: Aug. 26, 2019;       Published: Sep. 10, 2019
DOI: 10.11648/j.ijdsa.20190504.13      View  13      Downloads  4
Abstract
Brands play a significant role at the point of consumer purchases decisions. Brand managers make all the efforts to induce consumers to purchase their brands and increase eventual brand associations for long-term profits. This paper focuses on how different generations, especially the Millennial and the Baby boomers, behave towards brands based on organizations’ brand building efforts to create Brand Equity (BE) using a predictive model. Prior research has not been successful to provide a detailed understanding of generations and their potential brand behavior in a predictive perspective. In this article, author used a predictive model of the brand behavior of different generations using a Multiple Logistic Regression (MLR) method. In addition, it is determined how the predictor variables (awareness, recall, relate, purchase, knowledge, trials, association, recommendations, salience, imagery, performance, feelings, judgement, and resonance) influence the response variable, brand equity, to predict brand equity in these two audiences. In this study, the author administered an online survey using Survey Monkey to reach local (US) and international college/university respondents (n=267) age 18 years and above. The survey was administered using a questionnaire (46 data points). In the analysis process, the author developed a Multiple Logistic Regression (MLR) model, tested the model error, predicted the brand equity of generations, and determined the best model with parsimonious number of predictor variables using the Backward Stepwise Method (AIC). The analysis suggested the model to be reliable model with a 100% prediction of the brand equity (BE) with a mean value of 1. Given the predictors, the model correctly predicted 63% respondents, millennial and baby boomers, to be associated with brand equity and 35% respondents to be otherwise, while the Best Model based on the Backward Stepwise Selection Method (BSSM) using Step AIC function, suggested thirteen out of fourteen predetermined predictors included in the model to predict Brand Equity (BE). In the results generated, the AIC value indicated was 106.
Keywords
Brand Equity, Millennials, Multiple Logistic Regression, Best Model Selection
To cite this article
Gehan Shanmuganathan Dhameeth, Predictive Modeling of the Brand Equity: Analysis Based on Multiple Logistic Regression and Backward Stepwise Model Selection Methods, International Journal of Data Science and Analysis. Vol. 5, No. 4, 2019, pp. 67-72. doi: 10.11648/j.ijdsa.20190504.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Balaji K. V., V., & Indradevi, R. (2015). A Study of The Presence Of Subclinical Narcissistic Tendencies Among Millennial Generation Adults In A Private University. Global Management Review, 10 (1), 1-8.
[2]
Barber, N., Dodd, T., & Ghiselli, R. (2008). Capturing the Younger Wine Consumer. Journal of Wine Research, 19 (2), 123-141. doi: 10.1080/09571260802622225.
[3]
Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand Experience: What Is It? How Is It Measured? Does It Affect Loyalty? Journal of Marketing, 73 (3), 52-68. doi: 10.1509/jmkg.73.3.52.
[4]
Bucic, T., Harris, J., & Arli, D. (2012). Ethical Consumers Among the Millennials: A Cross-National Study. Journal of Business Ethics, 110 (1), 113-131. doi: 10.1007/s10551-011-1151-z.
[5]
DeVaney, S. A. (2015). Understanding the Millennial Generation. Journal of Financial Service Professionals, 69 (6), 11-14.
[6]
Doster, L. (2013). Millennial teens design and redesign themselves in online social networks. Journal of Consumer Behaviour, 12 (4), 267-279. doi: 10.1002/cb.1407.
[7]
Eastman, J. K., Iyer, R., & Thomas, S. P. (2013). The Impact of Status Consumption On Shopping Styles: An Exploratory Look At The Millennial Generation. Marketing Management Journal, 23 (1), 57-73.
[8]
Garvey, A. M., Germann, F., & Bolton, L. E. (2016). Performance Brand Placebos: How Brands Improve Performance and Consumers Take the Credit. Journal of Consumer Research, 42 (6), 931-951. doi: 10.1093/jcr/ucv094.
[9]
Howe, N., & Strauss, W. (2000). Millennials rising: the next great generation. New York: Vintage Books.
[10]
Kakati, R. P., & Choudhury, S. (2013). Measuring Customer-Based Brand Equity Through Brand Building Blocks for Durables. IUP Journal of Brand Management, 10 (2), 24-41.
[11]
Kapferer, J.-N. 2005. The new strategic brand management. London: Kogan-Page.
[12]
Kaplan Thaler, L., and R. Koval. 2003. Bang! Getting your message heard in a noisy world. New York: Currency.
[13]
Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15 (2/3), 139-155.doi: 10.1080/13527260902757530.
[14]
Keller, K. L., Heckler, S. E., & Houston, M. J. (1998). The Effects of Brand Name Suggestiveness on Advertising Recall. Journal of Marketing, 62 (1), 48-57.
[15]
Kellison, T. B., Yu Kyoum, K., & Magnusen, M. J. (2013). The Work Attitudes of Millennials in Collegiate Recreational Sports. Journal of Park & Recreation Administration, 31 (1), 78-97.
[16]
Labrecque, L. I., Krishen, A. S., & Grzeskowiak, S. (2011). Exploring social motivations for brand loyalty: Conformity versus escapism. Journal of Brand Management, 18 (7), 457-472. doi: 10.1057/bm.2011.12.
[17]
Lambert-Pandraud, R., & Laurent, G. (2010). Why Do Older Consumers Buy Older Brands? The Role of Attachment and Declining Innovativeness. Journal of Marketing, 74 (5), 104-121. doi: 10.1509/jmkg.74.5.104.
[18]
Lam, S. K., Ahearne, M., Hu, Y., & Schillewaert, N. (2010). Resistance to Brand Switching When a Radically New Brand Is Introduced: A Social Identity Theory Perspective. Journal of Marketing, 74 (6), 128-146. doi: 10.1509/jmkg.74.6.128.
[19]
Liu-Thompkins, 2013, Y., & Tam, L. (2013). Not All Repeat Customers Are the Same: Designing Effective Cross-Selling Promotion on the Basis of Attitudinal Loyalty and Habit. Journal of Marketing, 77 (5), 21-36.
[20]
Lotfizadeh, F., & Lotfizadeh, F. (2015). Comparing High-involvement and Low-involvement Products: Brand Perspective. International Journal of Management, Accounting & Economics, 2 (5), 404-413.
[21]
Maity, M., & Gupta, S. (2016). Mediating Effect of Loyalty Program Membership on the Relationship Between Advertising Effectiveness and Brand Loyalty. Journal of Marketing Theory & Practice, 24 (4), 462-481. doi: 10.1080/10696679.2016.1205450.
[22]
Mostert, P. G., Petzer, D. J., & Weideman, A. (2016). The interrelationships between customer satisfaction, brand loyalty and relationship intentions of Generation Y consumers towards smart phone brands. South African Journal of Business Management, 47 (3), 25-34.
[23]
Putre, L. (2013). The March of the Millennials. H&HN: Hospitals & Health Networks, 87 (9), 38-42.
[24]
Raut, U. R. (2015). A Study on Brand Loyalty and Its Association with Demographics of Consumers: Evidence from the Cellphone Market of India. IUP Journal of Brand Management, 12 (3), 30-44.
[25]
Saddlemyer, J., & Bruyneel, S. (2016). Brand Logo Salience as a Signal of Brand Status. Advances In Consumer Research, 44607-608.
[26]
Smith K. (2016) Digital marketing strategies that Millennials find appealing, motivating, or just annoying. Journal of Strategic Marketing [serial online]. October 2011; 19 (6): 489-499. Available from: Business Source Premier, Ipswich, MA. Accessed May 25, 2017.
[27]
Solomon, M. (2016). 2015 Is the Year of The Millennial Customer: 5 Key Traits These 80 Million Consumers Share.
[28]
Stocchi, L., Driesener, C., & Nenycz-Thiel, M. (2015). Brand image and brand loyalty: Do they show the same deviations from a common underlying pattern? Journal of Consumer Behaviour, 14 (5), 317-324. doi: 10.1002/cb.1522.
[29]
Von Freymann, J. W. (2006). Age and Generational Cohort Effects in Store Assessments and Choice: A Case Study. Marketing Management Journal, 16 (2), 203-222.
[30]
Yu-Ping, C., Nelson, L. D., & Ming, H. (2015). From "Where" to "What": Distributed Representations of Brand Associations in the Human Brain. Journal of Marketing Research (JMR), 52 (4), 453-466. doi: 10.1509/jmr.14.0606.
Browse journals by subject