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Brand Management: Comparative vs. Holistic Methods

To enhance the brand equity of a company, it is a good idea to use Comparative and Holistic methods as a way to assess the outcome of the brand.

Comparative Methods uses experiments to examine consumer attitudes and behavior toward a brand to assess benefits arising from having high awareness and strong, favorable, and unique brand associations.

There are three different types of methods that can be used; it only depends on brand usage for marketing purposes. The three types are as follow:

  • Brand-Based: is used to assess the response between the difference of those who are told about a brand and those who are not told of the brand name.

  • Marketing based: is used to assess the response when the marketing of a brand has changed. 

  • Conjoint Analysis: is used to assess how the brand name and other features interact to influence the choice.  

Holistic Methods place an overall value on the brand in either abstract utility or concrete financial terms to determine a unique contribution.

These methods have ways of determining the financial value and the utility value of the brand. These consist of:

  • Residual approaches this measures the value of the brand by subtracting consumer’s preferences for the brand from their overall brand preference

  • Valuation approaches this will place the final value on the brand equity for accounting purposes, mergers, and acquisitions.

Both of these methods are effective despite focusing on different items. The comparative purposes will concentrate on measuring brand equity through the response done by the consumer while the holistic way will take the approach and measure of customer preference. However, comparative and holistic can be used to determine ROI.

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