Consumer Based Brand Equity: A Case Study

saliency, brand associations and brand personality, and where brand value is the outcome of managing the brand meaning. Keller (1993) defined Consumer Based Brand Equity as the differential effect of brand knowledge on consumer response to the marketing of the brand. The Consumer Based Brand Equity involves consumer’s reactions to an element of the marketing mix for the brand in comparison with their reaction to the same marketing mix element attributed to a fictitiously named or unnamed version of the product or service. Consumer Based Brand Equity occurs when the consumer is familiar with the brand and holds some favourable, strong and unique Brand Associations in memory. According to Keller (1993), Consumer Based Brand Equity consisted of

This perspective indicates only perceptual dimensions excluding behavioural or attitudinal dimensions like loyalty or usage intention, etc. Cobb-Walgren, Cynthia and Donthu (1995) examined the effect of Consumer Based Brand Equity on consumer preferences and purchase intentions. For comparative purposes, researchers tested two sets of brands, one from a service category characterised by high financial and functional risk (hotels), and one from a lower risk category (household cleansers). Each set included two brands that were objectively similar, but advertisement spending over a decade was remarkably different. 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

Brand strength factors, to be specific, are Consumer Based Potency, Competitive Potency and Global Potency. Erdem and Swait (1998) developed an information economic perspective model on the value (or equity) ascribed to brand by consumers. The proposed signaling perspective explicitly considered the imperfect and asymmetrical information structure of the market. When consumers are uncertain about product attributes, firms may use brands to inform consumers about product positions and to ensure that their product claims are credible. Brands as market signals improve consumer perceptions about brand attribute levels and increase confidence in brand’s claims. The reduced uncertainty lowers the risk perceived by consumers, thus increasing consumer’s expected utility. A brand signal is compared to a firm’s past and present marketing mix strategies and activities associated with that brand, which can serve as credible market signals. Using two product categories, juice and jeans and observing a total of 890 respondents, and employing structural equation model, the researchers concluded that brand as a signal should be credible in an asymmetric and imperfect information framework in order to have Consumer Based Brand