Companies need to measure brand equity to make the best tactical and strategic decisions related to this intangible asset. Therefore, this paper develops a measure of brand equity using a formative approach. Unlike previous research, this study proposes a second-order formative model and empirically validates this in two countries, Spain and the United Kingdom. With this aim, in addition to carrying out an individual analysis for each country, the measurement invariance is assessed following the recent procedure suggested by Diamantopoulos and Papadopoulos (2010). Results show that brand equity construct is characterised by some variations in its composition in the countries analysed.
Bibliographical noteCUADERNOS DE GESTION is an open access journal which means that all content is freely available without charge to the user or his/her institution. The contents are subject to CC license (by-nc-nd), not allowing the commercial use of the original work or the generation of derivative works.
- Brand equity
- Formative measurement models
- Measurement invariance
- United kingdom