Skip to main content

Research Repository

Advanced Search

Valuation of brand equity and retailer growth strategies using real options

Trigeorgis, Lenos; Baldi, Francesco; Katsikeas, Constantine S.


Francesco Baldi

Constantine S. Katsikeas


In marketing, significant attention has been devoted to the study of drivers and outcomes of strategic flexibility drawing on real options theory. However, research that quantifies the specific value of flexibility reflected in a bundle of strategic real options is lacking. To remedy this gap, we develop a real options-based framework that takes account of brand expansion and extension options to value brand equity and retailer growth strategies. We show how to value the bundle of strategic real options associated with a flexible marketing strategic vision and how to assess the growth strategies related to the corporate brand of an international retailer. We apply our method to estimating the brand equity of Starbucks both under growth and adversity conditions. The results reveal that our method can more reliably incorporate the growth potential of the brand under uncertainty conditions. Comparisons with other brand valuation approaches are discussed. Our study helps clarify the links among management’s strategic plans, brand-based marketing strategies and share price, and allows to better monitor the impact of retailer strategic choices on long-term brand equity value.


Trigeorgis, L., Baldi, F., & Katsikeas, C. S. (2021). Valuation of brand equity and retailer growth strategies using real options. Journal of Retailing, 97(4), 523-544.

Journal Article Type Article
Acceptance Date Feb 1, 2021
Online Publication Date Feb 19, 2021
Publication Date 2021-12
Deposit Date Feb 14, 2023
Journal Journal of Retailing
Print ISSN 0022-4359
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 97
Issue 4
Pages 523-544
Public URL