Assessing the Validity of Brand Equity Constructs

This paper tests both the internal and external validity of the Erdem and Swait (1998) brand equity framework using two measurement modelling approaches, namely the relatively new Best-Worst scaling (BWS) method ( Finn and Louviere, 1992 ; Marley and Louviere, 2005 ) and the more traditional confirmatory factor analysis (CFA) method. Data were collected from the Australian banking and mobile services sectors. We find the measurement models derived from BWS outperformed the models based on CFA of the rating data in predicting both stated and real brand choices. The findings have implications for both academics and practitioners in brand equity measurement and management.