Introduction Brand equity and customer value The importance of the brand equity has always been emphasized worldwide. The value of the brand also call brand equity. Prasad and Dev (2000) said that brand equity is the method that let the consumer recognize the differentiation between you and others. From the one of the customer value, which is customer experience to determine the quality of a brand. Gala (1994) proposes that the only way to keep the company outstanding is to put the customer value into the competitive strategy.
One of the latest models of brand equity is the one developed by the marketing communication agencies, Young & Rubicam. They managed to develop the Brand Asset Valuator tool that aims to assess the value and market power of a brand, according to four dimensions: differentiation from its competitors, relevance to a given consumer, consumers’ esteem to the brand, and consumers’ knowledge about the brand and what it represents (Farris, Bendle, Pfeifer & Reibstein, 2014). This model is highly used by international store chains of clothes and accessories as Zara, Mango or Desigual. Brand valuation model or brand finance approach was also created by a brand strategy agency, but in comparison to Young & Rubicam model, it orientates on financial results demonstrated by the brand. Thus, the analysis of the market dynamics, as well as consumers’ interest in the brand should be conducted.
The study concluded that brand with higher advertising budget yielded substantially higher levels of Brand Equity, which in turn generated significantly greater preferences and purchase intentions. Feldwick (1996) stated that Brand Equity was generated by the formation of brand value, brand strength, and brand
Every year, there are many products offered by Google. According to the Boston Consulting Group (BCG) Google is the 2nd most innovation business in the world. Google emphasizes its innovation work culture as one of its main competitive advantages. The largest group of internet users. Google has an access to 79% of the world desktop search market users and 89% of the users of mobile search market users.
Unlike most companies, Google does not have a cautious, step-by-step affair that takes two years to unfold for new products. Google would rather see products fail quickly, than see products fail that have been completely planned out. Google uses a few product/market expansion grid strategies. Google already has a good market position. A market that they are trying to penetrate is the apps and entertainment media market, they are doing this by introducing Google Play; an app and website which can be used to download apps.
These department officials have a clear understanding of the goals and objectives of the company brand/s. But not always is the power vested upon branding is understood. This serves as a disadvantage because successful market branding is an important, and easy if correctly implemented, route to visible gains in the market, enhancing the position and image in the market, popularity kept aside. This improved position includes loyal customers, high margins on sales and better tabulation as well as evaluation(or valuation) of the income, the business. Some key points that should be considered while formulating branding goals
Organizations differentiate their products through branding, and a lack of effective branding can cause products to fail in the marketplace (Aaker 2007). Although brand management has been an important activity for some companies for decades, branding has only emerged as a top management priority for a broad cross-section of organizations in the last decade or so. Before considering how brand equity has been conceptualized it is useful to define what brand is. According to the American Marketing Association, a brand is a name , term, sign, symbol or combination of them that is designed to identify goods or services of one seller or group of sellers and to differentiate them from those of competitors '. According to Aaker, most brands focus
2.2 Brand Equity Keller (2002) argues that, from the company’s point of view, branding is the ability creates the differences and equipping products with the power of brand equity. Farquhar (1989) explains brand equity as the added value to the firm, the trade, or the consumer with which a given brand gives a product. Aaker (1991) mention that there are liabilities and assets linked to the brand and that these brand assets can provide value to both the company and customers in form of brand equity. He describes that there are different goals to archive as: • Helps the customers interpret process and store large amounts of information
Brand image is the key driver of brand equity, which refers to consumer’s general perception and feeling about a brand and has an influence on consumer behaviour. For marketers, whatever their companies’ marketing strategies are, the main purpose of their marketing activities is to influence consumers’ perception and attitude toward a brand, establish the brand image in consumers’ mind, and stimulate consumers’ actual purchasing behaviour of the brand, therefore increasing sales, maximizing the market share and developing brand equity. Brand equity is the focus of both academics and practitioners; however, there is no paradigm among the brand equity studies by now. Most studies measure brand equity from perspective of consumer or from the
In this chapter, we are going to explain brand awareness and brand image. Customer-based brand equity happens when there is a high level of brand awareness and familiarity with the brand and it occurs when the customer has in memory some strong, suitable, and unique brand associations; and to establish a positive brand image in consumer memory, we need to create brand awareness and brand image to build customer-based brand equity. 2.1 What is brand awareness, and how do we achieve it? First of all, brand awareness is composed of two things: brand recognition and brand recall performance. Brand acknowledgment or recognition is buyers' capacity to affirm former introduction to the brand when given the brand as a sign.