To accommodate the need for investigating different marketing mix variables that
affect different factors of consumer brand choice behaviour, like brand switching
or brand market shares, customized regression models are often developed to fit
the exact problem at hand.
Summary
The methods of the economic approach are mainly quantitative and focus on
exploring how consumers’ brand choice behaviour is affected by changes in one or
more factors of the marketing mix. The data used are very factual and measurable
in statistical models. Data are often derived from scanner panel data or other
factual, statistical data. The method of analysis mostly focuses on the construction
of mathematical regression models that can be used to measure the causal effects of
how changing a variable in the marketing mix of a brand will affect consumer brand
choice behaviour. The replicability of results is important because results are
mostly used for decision making and problem solving on a general basis in practice.
Managerial implications: strengths and weaknesses
In the economic approach, the primary focus of the brand manager is to eliminate
the barriers to exchange and facilitate the next transaction. The marketing mix is
considered to be the best toolkit for this transactional approach to brand
management. Brand managers hence in the economic approach have the Four Ps
relation between price and demand is reflected: whenever the product or
brand is on promotion, it is reflected in the sales figures – the demand for the
brand is higher.42 Seven brand approaches
Figure 4.6Relation between price and demand