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
It is worthwhile to mention here that the process of brand building is also referred to as brand equity. Brand equity is the outcome of various marketing strategies of any organization which is reflected in the consumers’ response. Brand equity is perceived by consumers as the value added to the product by associating it with a brand name. The sources of brand equity help to increase the customer base of a firm. The effectiveness of marketing strategies is enhanced by brand equity assets.
Dimensions of brand equity, that is, perceived quality, brand loyalty and brand associations combined with brand awareness, are then related to brand equity. The results show that frequent price promotions, such as price deals, are related to low brand equity, whereas high advertising spending, high price, good store image, and high distribution intensity are related to high brand equity. The article provides insights into how marketing activities may be controlled to generate and manage brand equity and how marketing activities increase or decrease brand equity. It was concluded that brand equity was positively related to perceived quality, brand loyalty, and brand awareness/ association. Brand equity provides sustainable competitive advantages because it creates meaningful competitive barriers.
This brings us to brand equity. Brand equity is well known and highly recognized brand that leaves a good impression on consumers. Companies achieved brand equity by creating high quality and reliable products that surpasses competition. Sometimes spending enormous amounts of money will create brand equity as well. A great example, and now cliché form of brand equity is Apple, Inc. Apple has created a brand of creating high quality, reliable, and memorable computers.
Also when evaluation is not done due to lack of motivation brand familiarity is enough. Keller (1993) has gone a step further and observed that brand awareness affects the decision of brand within the consideration set also. Rossiter and Percy (1991) claim that brand awareness is the essential first step in building a brand. Ovidiu has made an interesting observation that brand awareness influences the customer’s perceived risk assessment and their confidence in purchase decision of both type of products, durable as well as non-durables. Vakratsas and Ambler (1999) observe that the first step is the awareness.
3. Literature Review • Brand Image Brand image is the variable which enforce a consumer for finding difference between brand and its competitors. Brand image consist of expectations, impressions and beliefs that a person holds about brand. The overall perception of consumer about quality and service can be created by brand image. Brand image is nothing but organization character.
Keller (1993) defined the brand image as “the brand relations preserve in consumers’ mind causes the assumptions about a brand.” Arslan and Altuna (2010) proposed that the product brand image is negatively by brand augmentation, but negative effect is reduced by the relation between the original and expansion brand. The good brand image will be fall due to the brand expansion if the image and the quality of the brand are good and matched as well. Pina, Matinez, Chenatony and Dryry (2006) proposed that the assume quality of the expansion is being affected by the degree of the relationship between the corporate brand and service extension which as a result affect the corporate image particular for those corporate brands which have very high rated images. Expression relationship is useful at abstracting the positive images and holistic impressions but is helpless in
Brand equity is a set of brand intangible assets and liabilities connected to the brand and its trademark that could enhance or disturb the value to the customer and the firm (Aaker 1991, p.15). Brand equity has been referred a lot in business world for years. However, brand equity does not simply occurred, it needs effective building, maintenance, and protection management. (Aaker 1991, p.
This will allow for an insight into brand personality as well, as it aligns with the consumer’s personality traits. The article also inculcates the analysis of the possible impact of the human body morphology upon the personality of the human
Having a positive consumer-based brand equity can lead to long term revenues, greater margin profit and success in term of marketing communication. To develop successful strong brand equity, it involves several stages that have been assembled as a set of brand building blocks. The brand building blocks also aims to identifies areas of strength and weakness as well as to provide guidance to marketing activities. Professor Kevin Lane Keller introduced a pyramid model known as customer based brand equity model that focusing on understanding how customer felt, recognize, heard etc. on the particular brands based on their experiences using the brand over the time.