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.
Attitudes correspond to descriptive characteristics of the product; benefits relate to the personal value attached to the product; and brand attitudes are used for customers’ evaluation of a product. Even though, Keller’s model is considered to be a pioneer in the marketing theory, and many companies choose alternative modern methods to develop brand equity (Jara & Cliquet,
In addition companies need to deliver their products while keeping cost effectiveness in consideration. If they understand the perceived benefits of their target audience and are able to engage with them on a personal level, they can attain customer satisfaction and ultimately can have increased sales. In conclusion, conveying Unique Value proposition clearly to the customers could be a complete win/win for any business. Brand equity Formal Definition: The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. Alternative Definition: Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.
Second, affective dimension is about the emotions and feeling of consumers towards of brands. According to Chaudury and Holbrook (2001), a strong influence from affective is related to purchase loyalty and attitudinal loyalty. Emotion and feeling would be the drivers of brand loyalty, that means the consumers are using or to repurchase a particular brand. Pricing or quality would not be a reason to affect brand loyalty consumers of their purchase behavior; furthermore, the linkage between brand loyalty customer and brand can distribute a positive impact towards brand alliance. Last but not least, behavioral dimension is an intention of what consumer plans to do.
The construct of customer focus is a staple of relationship marketing, which refers to “the process of identifying and establishing, maintaining, enhancing, and when necessary terminating relationships with customers and other stakeholders”(Gronroos, 2004 cited by Augustine, 2011). This is the reason why we are getting closer with them by conducting the customers survey in order to track their satisfaction as well as to know what they want. As Moorman and Rust (1999 cited by Augustine, 2011) have documented, the marketing function positively and
He or she makes a buying decision based on convenience, affordability, and availability. 1.5. Brand Intensification: One of the ways of testing brand loyalty is brand intensification. Aaker (2003) turns back to the nature of the customer-oriented brand association and expands it with the view that customers feel brand intensification equivalents to brand. Customers with real brand intensification express high loyalty to the brand and active engagement to interact with the brand and share their experience with others.
This capital could bring all kinds of interest to the firms, and increase the value of product or service. The Professor of Brand strategy Kevin Lane Keller stated that brand loyalty and brand capital are two concepts who connected closely. The different of the customer's awareness of the brand could result in different responding, which is called brand capital. The organization through changing the factors and brand invest the new marketing decision and the lever effect of addition associate to effect the customer's awareness. Finally, they could gain the earning of customers loyalty, firms’ profits, and brand
Large scale models give the specialist the vital setting of the configuration and of the outcomes for an investigation of consumer loyalty. The promotion of research writing widely covers the components that make up the idea of consumer loyalty, for example, disconfirmation of desires, value, attribution, influence, and lament. Since these components clarify the structure of the consumer loyalty (or "build" ), we shall name these sorts of models as "small scale models" or “micro models”. Micro-models empower an examiner to legitimately operationalize estimations of consumer loyalty, subsequently helping her/him to accomplish develop legitimacy in the consequent fulfilment
Keller (1991) in a laboratory experiment has studied how the competitive advertising and its recall affects the brand evaluations. It was seen that the advertisement recall cues improved evaluation, even in absence of competing advertisements. He has also noted that brand awareness comprises of brand recognition, which confirms prior exposure and recall which confirms whether brand name can be retrieved from the memory when given the product category cue. Brand awareness affects consumer decision making by influencing the formation of brand image. That brand name is like a file which is made in the minds of the customer.
Understanding the various dimensions of brand equity would help the organizations to know the value provided by the brands to its consumers. Marketers have to select appropriate brand elements for creating positive brand equity. The effectiveness of brand building of organizations would ultimately depend on the success of its brand elements in creating positive equity among its customers. To bring a clear picture of brand equity it becomes necessary to understand its different approaches. Brand equity for the purpose of this research is discussed in detail from customers’