Nipo's brand monitor and how advertising works

Date of publication: June 15, 1991

Company: NIPO


In this paper we go into the relations between Quality of Advertising, Brand Awareness, Perceived Quality and finally Brand Loyalty, on the basis of the large number of studies we did in this field. Our empirical evidence shows that advertising can produce brand awareness which is a necessary but of course not sufficient condition to have (a lot of) loyal buyers. A simple model is sufficient to describe these causal relations. We based on the strong empirical relationship between Brand Awareness and Brand Loyalty we further more derive the Brand Value Index. This shows both the value of the brand and functions as an overall measurement of advertising and other marketing effects.

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