Modeling Brand Equity in Fast-Moving Consumer Goods: A System Dynamics Approach

Today, measuring brand equity, especially in fast-moving consumer goods industry, is a great challenge for corporations. Although, there are several researches and articles on brand building and brand equity, few focused on system dynamics approach. The mainpurpose of the model is to identify, incorporate and simulate generally observed dynamics of customer based brand equity in fast-moving consumer goods. Therefore, in this research adynamic model is introduced and examined. The objective of the study is to present a simulation model, which introduce this evolution path. The model has mapped according to the Aaker brand equity concept and developed by system dynamics approach. Using computational dynamic models can create a new source of information, which can equally inform academics and managers about dynamic application of brand management. For this purpose, a model is developed that can be implemented comfortably and be used for conducting continuous scenarios simulations and characterizing brand equity through examining causal relations of variables.