Management Information Systems Commons^™

Constructing An Index For Brand Equity: A Hospital Example, Yu-Che Wang, Kuei-Chu Hsu, Sheng-Hsun Hsu, J.J. Po-An Hsieh

Computer Information Systems Faculty Publications

If two hospitals are providing identical services in all respects, except for the brand name, why are customers willing to pay more for one hospital than the other? That is, the brand name is not just a name, but a name that contains value (brand equity). Brand equity is the value that the brand name endows to the product, such that consumers are willing to pay a premium price for products with the particular brand name. Accordingly, a company needs to manage its brand carefully so that its brand equity does not depreciate. Although measuring brand equity is important, managers …