Does an absence of brand equity generalize across product classes?

A previous study viewed brand equity as a price premium measured by the increment that a brandname contributes to the price of a product when controlling for its quality (as determined by an assessment of the relevant attributes, features, or characteristics). Using two samples of data drawn from Consumer Reports and the Crutchfield Catalog this earlier research found a striking absence of brand equity thus defined across a variety of product categories in the general area of consumer electronics. These findings raise the important question of whether this apparent absence of brand equity in the case of consumer electronics generalizes to other product classes. The present study uses the approach developed earlier to investigate this question in the context of five nondurable and durable categories: popcorn (N = 51), coffee (N = 82), recording tapes (N = 84), colas (N = 27), and automobiles (N = 96). Again, with minor exceptions, the results cast serious doubt on the viability of brand equity in the markets for consumer products.