Net Entropy Score: A Framework for Measuring Brand Consistency Variance and Its Compounding Effect on Revenue
Year: 2026
Type: article
Abstract: This paper introduces the Net Entropy Score (NES), a framework for measuring brand consistency variance and quantifying its compounding effect on revenue. NES treats inconsistency, not satisfaction, as the load-bearing variable in compounding businesses, and provides a -100 to +100 measurement scale grounded in public review aggregation and internal experience signals. The paper distinguishes Predicted NES (calibrated from public signals) from Measured NES (calibrated from internal data) and introduces the convergence gap as a diagnostic for brand-experience alignment. A four-layer model maps from measurement to mechanism to outcomes to business impact, with a closed-form revenue-leakage estimate calibrated to industry-specific operational profiles. Worked applications to multi-billion-dollar retail (Walmart, ~$680B revenue) and early-stage DTC (Brand Undisclosed, ~$3M revenue) demonstrate scale invariance, with industry calibration handling the difference. Limitations and avenues for empirical validation through structured customer surveys are discussed. The framework is trademark-filed in India (Class 35) and was first deposited on SSRN (Abstract ID: 6667158). The full working paper and supporting materials are available at netentropyscore.com.
Author: Upadhyay, Pankaj
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7159811973
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