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Method and system for Estimating a Brand Index using a Dynamic Factor Model

IP.com Disclosure Number: IPCOM000237440D
Publication Date: 2014-Jun-18
Document File: 4 page(s) / 209K

Publishing Venue

The IP.com Prior Art Database

Related People

Ayman Farahat: INVENTOR

Abstract

A method and system is disclosed for estimating a brand index using a Dynamic Factor Model (DFM). The method and system estimates an overall brand index using a multitude of brand metrics, both attitudinal and behavioral. A framework of the DFM is used to compute an index of leading economic indicators and the index of leading economic indicators is further used to estimate the overall brand index. The method and system computes the overall brand index based on a number of brand signals including, but not limited to, search, media consumption, social interactions and email messages.

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Method and system for Estimating a Brand Index using a Dynamic Factor Model

Abstract

A method and system is disclosed for estimating a brand index using a Dynamic Factor Model (DFM).  The method and system estimates an overall brand index using a multitude of brand metrics, both attitudinal and behavioral.  A framework of the DFM is used to compute an index of leading economic indicators and the index of leading economic indicators is further used to estimate the overall brand index.  The method and system computes the overall brand index based on a number of brand signals including, but not limited to, search, media consumption, social interactions and email messages.

Description

Disclosed is a method and system for estimating a brand index using a Dynamic Factor Model (DFM).

The method and system utilizes the DFM to estimate an overall brand index.  The DFM is utilized for computing the overall brand index of leading economic indicators from different microeconomic signals.  The core idea is to determine an observed overall state of an economy which represents the overall brand index.  An observable signal, such as, but not limited to, a number of unemployment applications, depends on the overall state of the economy as well as other factors that are specific to the observable signal such as, but not limited to, weather conditions.

The method includes a step of identifying basic signals for each brand.  The basic signals are associated with their respective brands and are utilized for creating the overall brand index.  The basic signals include, but are not limited to, a brand data, such as, search volume, toolbar data and third party data such as, attitudinal metrics and results of surveys.

Thereafter, the method includes fitting the DFM to a given data and computing a factor from the basic signals.  Additionally, the method and system estimates an unobserved factor based on the basic signals.  An important consideration is that the unobserved factor is required to make an economic sense, such as, the unobserved factor must be positive.  Another important consideration is that the factor follows some kind of dynamic process, such as, a value of the factor at time t depends on the value of the factor at time t+1.  These considerations make the factor smoother than the basic signals.  The DFM can be mathematically described by the equations:

ft = a f t-1 + et                             ...