Advantages And Disadvantages Of Aaker Brand Equity Model

Aaker’s brand equity model BrandAsset® Valuator(BAV)

Developed By UC-Berkeley marketing professor David A.Aker in 1996 By Advertising agency Young and Rubicam(Y&R) in 1993

Information about model/ company According to Aaker brand equity is…“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 firm’s customer” (Aaker 1991, 15)

This model is customer-based equity model, based on customer loyalty and their satisfaction, which provides value to customers. BrandAsset Valuator (BAV) is a comprehensive global database of consumer perception of brands, their goal is to change the way the world thinks about brands.

BAV states:

BAV’s database allows constantly reconfirming and developing the model itself, providing deep insights to brands all over the world. It helps to identify where the brands currently take a position, how they perform in comparison to competitors, and the methods they can adhere to other icon brands to positions of higher

According to Aaker, a particularly important concept for building brand equity is brand identity—the unique set of brand association that represent what the brand stands for and offers to customers an aspiring brand image. There are a set of five categories of brand assets and liabilities which add value to the product and measure brand equity.

Although he did not mention a single measure of brand equity, but expressed it as a set of 5 dimensions: brand loyalty, perceived quality / leadership, associations /differentiation, awareness and market behavior. However, his model provides only indication towards a set of items that can be contributed to be measured. It is not clear how and which of these items should be combined in order to get brand valuation. Brand identity consists of 12 dimensions organized around 4 perspectives:

• Brand-as-product (product scope, product attributes, quality/value, uses, users, country of origin).

• Brand-as-organization (organizational attributes, local versus