Abstract
This research has endeavored to focus on three major issues that are yet to be explored as per the existing literature on marketing. The first issue focuses on the Isoattribute curve analysis, rooted in the theory of conjoint utility analysis. In other words, the first segment concentrates on the derivation of the Isoattribute curve model which helps to attain the consumer equilibrium condition in a two-commodity world (brand or non-brand products). The second segment of the chapter has transitioned from the microeconomic model to the macroeconomic perspective based on a ‘single-country' approach, i.e., USA, based on a derivation of consumer induction factor (CIF). Finally, the third and final segment of the chapter extends its horizon at a larger scale by conducting a cross-country time-series study of 10 years (2009 – 2018) which redefines branding in an absolutely new dimension where the ‘brand values' of seven sample countries are estimated by inculcating the socio-economic, political, and working environment factors as the major dimensions.
TopIntroduction
This research work is my sole contribution to the existing literature of applied marketing, which is totally original and seminal in nature in the sense that it has contributed to introducing three new concepts of Isoattribute curve and Isopartworth line, Consumer Induction Factor (CIF), and Country Brand Value (CBV) that would definitely help to advance the evolving domain of marketing analytics holistically as they have originated from the foundations of Conjoint utility analysis, Consumer behavior, and Brand analytics respectively.
The first segment of this article begins with the concept of Conjoint utility analysis. Conjoint utilities measure customer preference levels depending on the attribute levels of the commodities (brands) consumed and the partworths (relative weights) of the goods (brands) consumed. To quote Toubia (2018): “The premise of Conjoint Analysis is to decompose a product or service into attributes (e.g., number of minutes included, number of GB of data, charge for additional minutes, base price, etc.) that each has different levels (e.g., 500 minutes, 1,000 minutes, unlimited). The output of a Conjoint Analysis study is an estimation of how much each consumer in a sample values each level of each attribute. Such preferences are called partworths because they capture how much each part of the product is worth to the consumer”.
Conceptualization of the Isoattribute Curve and Isopartworth Line
By using the premise of the conjoint utility analysis, the foundations of the Isoattribute curve and the Isopartworth line could be structured from a microeconomic perspective. An isoattribute curve may be defined as a locus of points, each representing a combination of quantities consumed for two commodities under the non – brand category or two products under the same brand category which will yield a fixed level of aggregate attribute at a given time. By maintaining parity with the property of indifference curve, it may be stated that a higher isoattribute curve represents a higher attribute level for a consumer, ceteris paribus.
An isopartworth line may be defined as the locus of points, each representing a combination of different partworths of two commodities under non – brand category or two products under the same brand category within a fixed budget of a consumer for a given time.
The traditional tangency solution may attain the consumer’s equilibrium condition, i.e., by the point of tangency between the isoattribute curve and the isopartworth line where the Marginal Rate of Change (MRC) in the partworth (W) of each good must be equal to its Marginal Rate of Change (MRC) in the attribute level.
The convexity condition of the isoattribute curve refers to the diminishing rate of Marginal Rate of Technical Change (MRTC) between the attribute levels and partworths of two goods consumed. These concepts are discussed in detail under the “Methodology” section and the “Theoretical framework of Isoattribute curve analysis” subsection.
Key Terms in this Chapter
Global Innovation Index (GII)®: It is a composite index that emphasizes the importance of innovation in positively influencing the consumption pattern of the population in general.
Fragile States Index (FSI)®: It is a critical tool to highlight the normal socio-economic and political pressures experienced by the states and identify the impacts of those pressures on states’ capacities based on 12 dimensions.
Job Quality Index (JQI): It is itself a broad-based index computed as the geometric mean of 6 important variables, which provides us a comprehensive overview of the ‘job quality’ for the employees of a country.
Isoattribute Curve: It may be defined as a locus of the combination of quantities consumed for two commodities (brand/non-brand) which will yield the same level of attribute for the consumer.
American Customer Satisfaction Index (ACSI)®: It is the only national cross-industry measure of customer satisfaction in the United States, scaling between 0 and 100.
Country Brand Value (CBV): It refers to the discounted method of estimating a country’s ‘brand’ value using the present value (PV) analysis technique by using six factors (variables).
Consumer Induction Factor (CIF): It may be defined as an index that influences the consumers’ behavioral purchasing pattern based on three factors (variables).
Isopartworth Line: It may be defined as a locus of points, each representing a combination of different partworths of two commodities (brand/non–brand) consumed within a fixed budget of the consumer.