Brand Equity Theory

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“In the consumer marketing, brands are often the initiating point of the difference between competitive proposals, so that they can be significant for organizations success. Thus, it is very important that brand’s management applied by strategic method. The brand is a fundamental product of a company. Brand equity shows a price difference that a powerful brand attract it in its sale in comparison with other brands. In recent researches about brand equity, there are two main prominent theoretical points of view that provide valuable views into the body of brand equity. The first perspective of brand equity is from a financial market’s point of view where the asset value of a brand is appraised (Farquhar et al., 1991, Simon and Sullivan, 1993).Recently,…show more content…
He defines customer-based brand equity as “the differential effect that brand knowledge has on consumer response to the marketing of that brand”. Brand knowledge consists of brand awareness and brand image. From consumer aspects, brand equity is the value of the business and expectations of consumers to the organization, products and services, including the experience of communication and awareness of the brand (Auken, 2002). Brand equity management can be measured by brand loyalty or willingness to pay higher prices (Blackstone, 1995). Thus, manufacturers have to create brand loyalty in mind of the consumer by building a strong brand which consists of developing the product features and makes a difference until it protects the brand and attract consumers.…show more content…
The study conducted to investigate the causal relationships between the dimensions of brand equity and brand equity itself which measures the consumers’ perception of brand equity affected the overall brand equity evaluations. Data collected from a sample of university students in Turkey. Findings conclude that brand loyalty is the most influential dimension of brand equity. Weak support is found for the brand awareness and perceived quality dimensions. Marketing managers should consider the relative importance of brand equity dimensions in their overall brand equity

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