Brand Equity Theory

“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, brand equity has increasingly been defined in customer-based contexts, which defines brand equity as the value of a brand to the customer (Aaker, 1991; Keller, 1993; Cobb-Walgren et al., 1995; van Osselaer and Alba, 2000,). Aaker (1991) defines brand equity as “a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firms’ customers."Keller (2003) argued that the power of a brand lies in the minds of the customers and what they have

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