Abstract
Abstract
This paper presents a simple arithmetical formulation linking brand equity to brand value. The proposed equation, V = P₀ × (1 + kE), provides a transparent bridge between perceptual constructs and financial outcomes. While the model offers intuitive appeal and managerial usability, it rests on simplifying assumptions that limit its applicability in complex market conditions. The paper derives the equation from first principles, demonstrates its interpretative value, and critically examines three real-world limitations: non-linear returns to equity, the possibility of negative brand equity, and contextual variability across markets and time. The discussion positions the equation as a conceptual and pedagogical tool rather than a comprehensive valuation framework, aligning with contemporary perspectives in brand valuation literature (Keller, 2013; Interbrand, 2023).
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@article{Roy2026Simple,
title = {A Simple Linear Bridge Between Brand Equity and Brand Value: Derivation and Limitations},
author = {Amit Roy and Dr. Chandibai Postangbam},
journal = {International Journal of Drug Delivery Technology},
year = {2026},
doi = {10.25258/ijddt.16.57s.16},
url = {https://doi.org/10.25258/ijddt.16.57s.16}
}
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