Various brand value research studies have been carried out in consumer markets to determine the premium that people will pay for brands over and above a base line. Measuring brand value and assessing the value of intangibles by asking consumers to separate out the brand and place a monetary value on it is difficult because this is not what we do in the real world. In fact, most consumers, when asked to place a monetary value on brands, are in denial about paying a premium just for the name. That is for all the other mugs, not for me.
That said, when people are asked in brand value surveys to place a monetary value on a car (the same car is used in the photographs but different badges are superimposed on the bonnet to suggest it is a different brand) the Volkswagen brand is seen to be worth more than that of Ford while the Mercedes brand has a value above both. In each case, the brand is seen to be worth around 10 per cent of the retail value of the car.
