Assessing sport brand value through use of the contingent valuation method


  • J. Lucy Lee Bowling Green State University



Brand equity measurements, Contingent valuation method (CVM), Sport brand value.


This work is a first attempt to estimate customer-based brand equity with the contingent valuation method (CVM) for a service-oriented product. We assess the value of a sport brand, IRONMAN triathlon, utilizing the CVM - one of the few available measures for estimating intangible product values. The equity of the IRONMAN brand was derived from consumers’ perceptions, attitudes, and behaviours by asking consumers (i.e., triathletes who have experiences with IRONMAN and non-IRONMAN branded events) about their willingness to pay for an IRONMAN and generic non-IRONMAN triathlon events. We found (1) the presence of price premiums that sport consumers were willing to pay for the branded sport product and (2) the estimated brand equity value of approximately $102 million for IRONMAN Half-distance events, and $123 million for IRONMAN Full-distance event.

Author Biography

  • J. Lucy Lee, Bowling Green State University
    Assistant Professor, Sport Management Program


Aaker, D.A. (1991), Managing Brand Equity. The Free Press: New York, NY.

Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38, 102-120.

Abdullah, S., & Jeanty, P. W. (2011). Willingness to pay for renewable energy: Evidence from a contingent valuation survey in Kenya. Renewable and Sustainable Energy Reviews, 15(6), 2974-2983.

Agarwal, M. & Rao. V. (1996). An empirical comparison of consumer-based measures of brand equity. Marketing Letters, 7, 237–47.

Ailawadi, K. L., Lehmann, D. R., & Neslin, S. A. (2003). Revenue premium as an outcome measure of brand equity. Journal of Marketing, 67, 1-17.

Ambler, T. (2003). Marketing and the Bottom Line: The Marketing Metrics that Will Pump Up Cash Flow. Pearson Education.

Anselmsson, J., Johansson, I., & Persson, N. (2007). Understanding Price Premium for grocery products: a conceptual model of customer-based brand equity. Journal of Product & Brand Management, 16, 401-414.

Arrow, K., Solow, R., Portney, P. R., Leamer, E. E., Radner, R., & Schuman, H. (1993), Report of the NOAA Panel on Contingent Valuation. Federal Register, 58, 4601–4614.

Atkinson, G., Mourato, S., Szymanski, S., & Ozdemiroglu, E. (2008). Are We Willing to Pay Enough to Back the Bid?: Valuing the Intangible Impacts of London's Bid to Host the 2012 Summer Olympic Games. Urban Studies, 45, 419-444.

Blomquist, G. C., & Whitehead, J. C. (1998). Resource quality information and validity of willingness to pay in contingent valuation. Resource and Energy Economics, 20(2), 179-196.

Boone, L.E., Kochunny, C.M., & Wilkins, D. (1995). Applying the brand equity concept to Major League Baseball. Sport Marketing Quarterly, 4, 33-42.

Buil, I., de Chernatony, L., & Martinez, E. (2008). A cross-national validation of the consumer-based brand equity scale. Journal of Product and Brand Management, 17, 384-392.

Carson, R. T., & Mitchell, R. C. (1993). The value of clean water: The public's willingness to pay for boatable, fishable, and swimmable quality water. Water Resources Research, 29, 2445-2454.

Castellanos, P., Garcia, J. & Sanchez, J. M. (2011). The willingness to pay to keep a football club in a city: How important are the methodological issues? Journal of Sports Economics, 12, 464-486.

Coates, D., & Humphreys, B. R. (1999). The growth effects of sport franchises, stadia, and arenas. Journal of Policy Analysis and Management, 18, 601-624.<601::AID-PAM4>3.0.CO;2-A

Coates, D., & Humphreys, B. R. (2000). Stadium gambit and local economic development. The Regulation, 23, 15.

Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Psychology Press.

Courey, A. (2013, July 30). The growing triathlon industry. Xpress economy. Retrieved from

Crompton, J. L. (1995). Economic impact analysis of sports facilities and events: Eleven sources of misapplication. Journal of Sport Management, 9, 14-35.

Crompton, J. (2004). Beyond economic impact: An alternative rationale for the public subsidy of major league sports facilities. Journal of Sport Management, 18, 40-58.

Cummings, R. G., Brookshire, D. S., Schulze, W. D., Bishop, R. C., & Arrow, K. J. (1986). Valuing environmental goods: an assessment of the contingent valuation method. Totowa, NJ: Rowman & Allanheld.

de Chernatony, L., Harris, F., & Christodoulides, G (2004). Developing a brand performance measure for financial services brands. The Service Industries Journal. 24, 15-33.

Drayer, J., & Shapiro, S. L. (2011). An examination into the factors that influence consumers' perceptions of value. Sport Management Review, 14, 389-398.

Dubin, J. A. (1998). The demand for branded and unbranded products: An econometric method for valuing intangible assets. Chapter 4 in Studies in consumer Demand: Econometric methods applied to market data. Norwell, MA:Kluwer Academic publishers, 77-127.

Faircloth, J. B., Capella, L. M., & Alford, B. L. (2001). The effect of brand attitude and brand image on brand equity. Journal of Marketing Theory and Practice, 9, 61-75.

Farquhar, P.H. (1989). Managing brand equity. Marketing Research, 1, 24-33.

Farquhar, P.H. (1990). Managing brand equity. Journal of Advertising Research, 30, RC7-11.

Feldwick, P. (1996). What is brand equity anyway, and how do you measure it? Journal of the Market Research Society, 38, 85-104.

Gladden, J., Irwin, R., & Sutton, W. (2001). Managing North American major professional sport teams in the new millennium: A focus on building brand equity. Journal of Sport Management, 15, 297-317.

Gladden, J., Milne, G., & Sutton, W. (1998). A conceptual framework for evaluating brand equity in Division I college athletics. Journal of Sport Management, 12, 1-19.

Gladden, J. M., & Milne, G. R. (1999). Examining the importance of brand equity in professional sports. Sport Marketing Quarterly, 8, 21-30.

Holbrook, M. B. (1992). Product quality, attributes, and brand name as determinants of price: The case of consumer electronics. Marketing Letters, 3, 71-83.

Humphreys, B. R., Johnson, B. K., Mason, D. S., & Whitehead, J. (2011). Estimating the value of medal success at the 2010 Winter Olympic Games (No. 11-20).

Johnson, B. K., Groothuis, P. A., & Whitehead, J. C. (2001). The Value of Public Goods Generated by a Major League Sports Team The CVM Approach. Journal of Sports Economics, 2, 6-21.

Johnson, B., Mondello, M., & Whitehead, J. C. (2007). The value of public goods generated by a National Football League team. Journal of Sport Management, 21, 123-136.

Johnson, B. K., & Whitehead, J. C. (2000). The value of public goods from sport stadiums: the CVM approach. Contemporary Economic Policy, 18, 48-58.

Johnson, B. K., Whitehead, J. C., Mason, D. S., & Walker, G. J. (2007). Willingness to pay for amateur sport and recreation programs. Contemporary Economic Policy, 25, 553–564.

Johnson, B. K., Whitehead, J. C., Mason, D. S., & Walker, G. J. (2012). Willingness to pay for downtown public goods generated by large, sports-anchored development projects: The CVM approach. City, Culture and Society, 3(3), 201-208.

Kallas, Z., & Gil, J. M. (2012). Combining contingent valuation with the analytical hierarchy process to decompose the value of rabbit meat. Food Quality and Preference, 24(2), 251-259.

Kapferer, J. N. (2004). The New Strategic Brand Management. Kogan Page: London.

Keller, K.L. (1993). Conceptualizing, measuring and managing customer-based brand equity. Journal of Marketing, 57, 1-22.

Keller, K. L. (2001). Building customer-based brand equity. Marketing Management, July/August, 15-19.

Keller, K. L. (2008). Strategic Brand Management. Building, Measuring, and Managing Brand Equity. Upper Saddle River, NJ: Pearson Prentice Hall.

Keller, K. L., & Lehmann, D. R. (2006). Brands and branding: Research findings and future priorities. Marketing Science, 25, 740-759.

Klose, T. (1999). The contingent valuation method in health care. Health Policy, 47, 97-123.

Krishnan, B. C., & Hartline, M. D. (2001). Brand equity: Is it more important in services?. Journal of Services Marketing, 15, 328-342.

Lassar, W., Mittal, B., & Sharma, A. (1995). Measuring customer-based brand equity. Journal of Consumer Marketing, 12, 11-19.

Mahajan, V., Rao, V. R., & Srivastava, R. K. (1994). An approach to assess the importance of brand equity in acquisition decisions. Journal of Product Innovation Management, 11, 221-235.

Mackay, M. M. (2001) Evaluation of brand equity measures: Further empirical results. Journal of Product & Brand Management, 10, 38–51.

Netemeyer, R. G., Krishnan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., Ricks, J., & Wirth, F. (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research, 57, 209-224.

PAC 2013 Participation Report (2013). Retrieved from

Park, C. S., & Srinivasan, V. (1994). A survey-based method for measuring and understanding brand equity and its extendibility. Journal of Marketing Research, 31, 271-288.

Peterson, R. A., & Wilson, W. R. (1985). Perceived risk and price-reliance schema as price-perceived quality mediators. Perceived Quality, 247-68.

Rätzel, S., & Weimann, J. (2006). Der Maradona Effekt: Wie viel Wohlfahrt schafft die deutsche Nationalmannschaft? Perspektiven der Wirtschaftspolitik, 7(2), 257-270.

Rollins, K. & Wistowsky, W. (1997). Benefits of back-country canoeing in Ontario wilderness parks. Journal of Applied Recreation Research, 221, 9–31.

Ross, S. D. (2006). A conceptual framework for understanding spectator-based brand equity. Journal of Sport Management, 20, 22-38.

Rulleau, B., Dehez, J., & Point, P. (2012). Recreational value, site characteristics and user heterogeneity in contingent valuation. Tourism Management, 33, 195-204.

Ryan, M., & Watson, V. (2009). Comparing welfare estimates from payment card contingent valuation and discrete choice experiments. Health Economics, 18, 389-401.

Sethuraman, R. (2001). What makes consumers pay more for national brands than for store brands-image or quality?. Review of Marketing Science, 318, 1-37.

Sethuraman, R., & Cole, C. (1999). Factors influencing the Price Premiums that consumers pay for national brands over store brands. Journal of Product & Brand Management, 8, 340-351.

Shapiro, C. (1983). Premiums for high quality products as returns to reputations. Quarterly Journal of Economics, 98, 659-679.

Shyamsundar, P., & Kramer, R. A. (1996). Tropical forest protection: An empirical analysis of the costs borne by local people. Journal of Environmental Economics and Management, 31, 129-144.

Simon, C. J., & Sullivan, M. V. (1993). The measurement of determinants of brand equity: A financial approach. Marketing Science, 12, 28-52.

Süssmuth, B., Heyne, M., & Maennig, W. (2010). Induced Civic Pride and Integration. Oxford Bulletin of Economics and Statistics, 72, 202-220.

U.S.A. Triathlon Demographics (2013). Retrieved from

Vázquez, R. K., del Rio, A. B., & Iglesias, V. (2002). Consumer-based brand equity: Development and validation of a measurement instrument. Journal of Marketing Management, 18, 27-48.

Walker, M., & Mondello, M. J. (2007). Moving beyond economic impact: A closer look at the contingent valuation method. International Journal of Sport Finance, 2(3), 149-160.

Walton, H., Longo, A. & Dawson, P. A. (2008) Contingent valuation of the 2012 London Olympic Games: A regional perspective. Journal of Sports Economics, 9, 304-317.

Whitehead, J. C., & Cherry, T. L. (2007). Willingness to pay for a green energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches. Resource and Energy Economics, 29, 247-261.

Wicker, P. (2011). Willingness-to-pay in non-profit sports clubs. International Journal of Sport Finance, 6, 155-169.

Wicker, P., Prinz, J., & von Hanau, T. (2012). Estimating the value of national sporting success. Sport Management Review, 15, 200-210.

Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52, 1-14.