When brand equity is measured using stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets, the method is:
A)financial value.
B)market value.
C)revenue premium.
D)consumer value.

Question

Quizplus · Accepted Answer

The method described is market value, which involves estimating the value of a brand by evaluating the premium price that it can command and subtracting the value of its physical assets. This approach reflects the perceived value of a brand in the market and its potential to generate future profits, making it a useful measure of brand equity. Financial value refers to the monetary value of a brand's assets and liabilities on a balance sheet, while revenue premium and consumer value are not specific methods for measuring brand equity.

When Brand Equity Is Measured Using Stock Valuation with an Estimate