Though marketers have since long understood the importance of brands, few efforts have been made to measure the actual value of brands, say directors David Court and Andrew Parsons, principal Antony Freeling, and consultant Mark Leiter in the McKinsey Quarterly.
Through a research done amongst 5000 customers by McKinsey & Company, the authors conclude that the brand was responsible for key factor behind the decision to purchase. At average, brands were responsible for 18 per cent of the total purchase decision. The importance for brands was lowest for electronic computers in the US market where the brand contributed only three per cent to the total purchase decision. But the brand, in the same product category, in the European market contributed 39 per cent to the total purchase decision.
Moreover, in two-thirds of the cases revealed a brand loyal segment