Calculate Brand Equity for the same company you did the CLV calculation for (Assignment 1).
The Brand Equity Calculation will be for Delta Airlines!
Please watch the recording in which the Application Assignment 2 is explained.
The Slides for the Assignment have been attached.
Please submit the Brand Equity Calculation.
I'll also be adding the CLV Calculation for Delta to work off of.
Application Assignment 2
Calculate Brand Equity for the same company you did the CLV calculation for (Assignment 1).
Use at least 2 methods for your calculations. If the results are different, explain and justify the difference.
Mention and justify your assumptions.
Application Assignment 2
Bonus question (optional): Do you think you can use CLV to calculate Brand Equity? How?
Measuring Brand Equity
Gauging brand equity
Cost approach
Market approach
Financial approach
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The cost approach
• The cost approach calculates brand equity by examining the costs of developing the brand, such as marketing research, brand design, communication, management, and legal costs. The cost method can hinge on the historical costs of creating the brand, which include an estimate of all relevant brand-building expenditures; alternatively, it can be based on the brand’s replacement cost—the monetary expense of rebuilding the brand—at the time of valuation.
The market approach
• The market approach estimates brand equity by measuring the difference between the sales revenues from a branded offering against those of an identical unbranded offering, adjusted for the expense of building the brand. Assessing the value of the Morton Salt brand, for example, would entail comparing the sales revenues generated by the Morton product with the sales revenues generated by its generic equivalent—regular salt—minus the cost of building and managing the brand.
The financial approach
• The financial approach evaluates brand equity as the net present value (NPV) of a brand’s future earnings and usually encompasses three key steps: computing the company’s future cash flow, estimating the brand’s contribution to the company’s future cash flow, and adjusting this cash flow using a risk factor that accounts for the volatility of the earnings that are attributable to the brand.
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Evolving Strategies in Branding: The Role of Digital Personalization, Storytelling, and Sustainability in Consumer Loyalty
In a further digitized marketplace, branding has become a diversely strategic role beyond visual identity. Consumers today expect brands to represent their values, communicate authentically, and cultivate long-term emotional attachment. With shifting platforms and social conscience reframing expectations among consumers, companies have had to reposition how they build brand awareness and affinity. At its foundation are three new approaches to branding: digital personalization, sustainability-driven branding, and narrative-driven personal branding. All have revealed potential for building long-term customer relationships. However, few works have examined how these methods function synergistically within modern branding efforts. This proposal thus explores modern academic articles and offers an avenue for research examining the interaction between digital personalization and sustainability within Gen Z consumers' brand loyalty.
Concise Literature Review
Over the past five years, scholarly works have emphasized that personalized online marketing is significant in establishing relationships between brands and consumers. Saputra et al. (2024) applied a mixed-methods approach, studying consumers' behavior online and identified that personalization contributes to an emotional attachment towards brands. Quantitatively, evidence from their research depicted a strong association between personalized online initiatives and consumer loyalty, and qualitatively, interviews revealed that consumers value brands that listen and deliver on their preferences. If executed transparently and respectfully, personalized marketing was found to build strong brand trust and create higher advocacy rates.
Rochefort and Ndlovu (2024) also came to similar conclusions with their study on personalization marketing techniques in the online era. Through case studies and insights on consumer interaction, they found effectiveness in social media-driven personalization, text messaging, and email. Surprisingly, brands implementing personalization and catchy content improved brand awareness and customer retention. They further recognized through their study that being consistent on platforms is key to brand loyalty. Brands that exhibit consistency in messaging and personalize content for individual user predispositions build a more solid equity at an emotional level with their consumers.
Environmental and social issues have brought into sharp relief the significance of sustainability-minded branding. Loučanová et al. (2021) studied this connection through a Slovakian examination of how eco-innovation increases brand image. With the help of the Kano model and cluster analysis, they found that eco-innovation characteristics such as environment-sensitive production and clear sustainability communication significantly improve customer perceptions that a brand has value. Consumers are increasingly likely to associate green initiatives with authenticity on behalf of a brand if sustainability is framed as a founding principle and not a marketing afterthought.
Nascimento and Loureiro (2024) also conducted a thorough bibliometric review of sustainability branding articles, amounting to more than 1,500, and identified six dominant thematic clusters among them: brand equity, green marketing, and ethical consumption. Their work vindicates sustainability branding as no longer peripheral but core to mainstream brand strategy. They argue that brands must position themselves on broader societal goals such as climate action or social justice if they want to remain relevant among consumers today. Surprisingly enough, their research determined scant work was done on their convergence, despite growing interest in personalization and sustainability, and none specifically on younger demographics such as Gen Z.
Complementing work on corporate branding, scholars have also studied personal branding and its growing effect on influencer marketing. Tilaar et al. (2022) applied qualitative approaches to how people use online platforms for reinforcing personal branding. They found consistency, interaction-based engagement, and authenticity most influential towards personal brand building. They determined that influencers who build consumer influence through daily stories and authentic interactions at times can overcome large-scale but less personal celebrity sponsorship.
Storytelling also plays a vital role in the development of personal branding. Korzh and Estima (2022) analyzed how narrative techniques such as relatability, emotion, and purpose contribute to effective personal branding. Based on interviews with professionals across various fields, the authors concluded that storytelling helps create distinctive and memorable identities. These narratives increase visibility and reinforce perceived credibility and brand loyalty. When people relate to a story, they are more likely to invest emotionally in the person or product behind it.
These six studies illuminate the evolving branding landscape and suggest that personalization, sustainability, and narrative-based identity-building are crucial in fostering long-term consumer loyalty. However, while each trend has been examined individually, a significant gap exists in understanding how they interact. In particular, consumer loyalty research has not sufficiently explored the relationship between personalized digital branding and sustainability.
Proposed Research Question
Based on the literature reviewed, this proposal presents the following research question: How does integrating sustainability branding and personalized digital marketing influence consumer brand loyalty among Generation Z consumers in North America shopping for eco-friendly products online?
This question targets a gap identified in multiple studies and responds to the shifting expectations of a generation known for its environmental activism and digital nativity. While personalization and sustainability have been studied independently, their combined effect, especially in emerging digital trends, has not been systematically investigated.
Significance of the Proposed Study
This research is significant both theoretically and practically. Theoretically, it seeks to unify two powerful branding paradigms, sustainability and personalization, into one framework for analyzing consumer loyalty. Current research tends to treat them as parallel rather than intersecting phenomena. However, as Gen Z consumers increasingly prioritize authenticity and environmental ethics, understanding how these variables co-function may reveal deeper patterns in brand commitment (Nascimento & Loureiro, 2024).
From a practical perspective, marketers and brand managers can use the insights from this study to design more cohesive and effective branding strategies. Companies in highly competitive industries, such as fashion, health, and technology, must simultaneously appeal to emotional, ethical, and individualistic dimensions of consumer decision-making. If the study confirms that personalization amplifies the effectiveness of sustainability messaging, marketers can strategically link eco-initiatives to targeted content, thereby creating a holistic consumer experience. For example, using AI to tailor environmental impact reports or promote carbon-neutral products to users who already value eco-conscious living could enhance engagement and conversion rates (Saputra et al., 2024).
Further, small businesses and independent professionals can also benefit from this research. Personal branding strategies emphasizing storytelling and sustainability may resonate particularly well with niche audiences. Influencers and entrepreneurs who align personal narratives with environmental ethics may be better positioned to develop loyal followings and partnerships with value-driven brands.
Methodologically, this proposed study would employ a mixed-methods approach, integrating quantitative surveys with qualitative interviews. Surveys would uncover brand perception and loyalty patterns among a large sample of Gen Z consumers. Interviews would uncover deeper motivations, emotional responses, and ethical values driving brand choice. Through triangulation between these methods, the study would build a rich picture of how sustainability and digital personalization work together to build brand value.
In conclusion, this research proposal can ultimately enhance academic theory, inform marketing practice, and contribute to broader debate on ethical consumerism. It can be situated within contemporary branding's trajectory as an emotional and moral endeavor, particularly in a digitally overwhelmed, socially responsible marketplace.
References
Korzh, A., & Estima, A. (2022). The Power of Storytelling as a marketing tool in personal branding. International Journal of Business Innovation, e28957-e28957. https://doi.org/10.34624/ijbi.v1i2.28957
Loučanová, E., Šupín, M., Čorejová, T., Repková-Štofková, K., Šupínová, M., Štofková, Z., & Olšiaková, M. (2021). Sustainability and branding: An integrated perspective of eco-innovation and brand. Sustainability, 13(2), 732. https://doi.org/10.3390/su13020732
Nascimento, J., & Loureiro, S. M. C. (2024). Mapping the sustainability branding field: emerging trends and future directions. Journal of Product & Brand Management, 33(2), 234-257. https://doi.org/10.1108/JPBM-02-2023-4349
Rochefort, T., & Ndlovu, Z. (2024). Digital marketing strategies for building brand awareness and loyalty in the online era. Startupreneur Business Digital (SABDA Journal), 3(2), 107-114. https://doi.org/10.33050/sabda.v3i2.539
Saputra, A. H. D., Putra, S. N. W., & Bennet, D. (2024). Consumer behavior and brand loyalty: A study on digital marketing practices. Startupreneur Business Digital (SABDA Journal), 3(2), 160-170. https://doi.org/10.33050/sabda.v3i2.630
Tilaar, Y. Y. (2022). Qualitative study of enhanced personal branding through digital platform. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 10(2), 731-737. https://doi.org/10.35794/emba.v10i2.40551
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