1 Brand Equity and Market-based Assets of Professional Service Firms

ABSTRACT. The concept of brand equity has received most attention in the context of fast-moving-consumer-goods marketing yet the concept is just as, if not more, important to professional services marketers. This paper explains the distinct nature of market-based assets, such as brand equity, in professional service industries. THE VALUE OF BRAND EQUITY To a large extent interest in brand equity has been confined to the fast-moving-consumer-goods context. Indeed, when one thinks brand it is names such as Coca-Cola, Marlboro, and Dove, which come to mind, rather than great service brand names such as Young & Rubicam or Dun & Bradstreet. But professional service companies can also own market-based intangible assets and they are likely to make up a greater proportion of the firm's asset base than that of manufacturing firms. This paper sets out to discuss the unique nature of such assets in this context. The concept of brand equity has been receiving considerable academic and practitioner attention of late. The rise in interest can be traced to a series of takeovers and valuations during the late 1980s which recognised the staggering values which brand names can reach. In 1987 Grand Metropolitan announced that half a billio