Brand Equity
Brand equity refers to the value and strength of a brand, based on customer perceptions and experiences. It encompasses brand awareness, loyalty, and associations, which can influence consumer behavior and purchase decisions. Building and maintaining strong brand equity is crucial for long-term success and competitive advantage in the market.
7 Key excerpts on "Brand Equity"
eBook - ePubMarketing Theory
A Student Text
- Michael J Baker, Michael Saren(Authors)
- 2016(Publication Date)
- SAGE Publications Ltd(Publisher)
...In addition, Brand Equity has benefits for the marketer beyond sales revenue performance. Brand Equity can improve advertising efficiency, enhance customer loyalty, lead to extension opportunities and create brand licensing opportunities in the future. The chapter proceeds as follows. First the use of the term equity in branding is considered. The next section examines how equity has been used in relation to other marketing assets such as customers, channels and relationships. We then examine how marketing thinking integrates with financial thinking. Finally the issue of developing a theory of Brand Equity and the value of marketing assets is considered. Equity and branding value Although the exact origins of the term Brand Equity are unclear, many definitions of the term abound as has research on this subject. This research has been based on four different perspectives: entity-based, financially-based, process-based and network-based. Towards the end of this chapter we integrate these four different perspectives by suggesting a service-based perspective of Brand Equity. Entity-based Brand Equity Much of the initial research on Brand Equity was in response to the advertising industry’s need to understand the effects of advertising on building brand image and consumer loyalty. Thus the focus was on mass marketing and the one-way impact of marketing activity (especially advertising) on consumers. This initial research on Brand Equity was based on concepts from consumer behaviour and marketing communications and emphasizes brand identity (Merz et al., 2009). It follows the traditional view of marketing where the brand functions as an entity. This perspective is consistent with the AMA (2004) definition of the brand (i.e. a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers). Keller (1993) broadens this perspective to include customer behaviour in response to this differentiation...
eBook - ePubStrategic Issues Management
Organizations and Public Policy Challenges
- Robert L. Heath, Michael J. Palenchar(Authors)
- 2008(Publication Date)
- SAGE Publications, Inc(Publisher)
...The most robust discussion of Brand Equity has occurred in the marketing and advertising literature. There, it is essentially featured as the conceptual and attributional value of an organization’s reputation and uniquely defined image or that of its services or products. In short, Brand Equity features the unique market value of some population’s (such as customers, donors, or shareholders) attitudes toward the organization, as well as its products and services. Brand Equity distinguishes one organization from all others. Although the term is widely associated with marketing coupled to advertising and the promotion and publicity aspects of public relations, it can wisely be connected to SIM, risk management, and crisis management. Marketing claims the term, believing that Brand Equity is the product of skilled advertising and public relations promotion that leads to careful positioning of a company, product, or service. Those who believe in the management connections with SIM are likely to argue that marketing can be supported by SIM in its efforts to create Brand Equity, even in the sense of promotion and publicity. This is even more likely to be true when we think that Brand Equity (even its emotional components) is subject to issue analysis and controversy. Such controversy is a substantial potential during a crisis. A crisis can result from or lead to damaged Brand Equity and harmed reputation. In our time, scandals such as those surrounding Enron, WorldCom, and other businesses engaged in unethical and illegal business activities have demonstrated how Brand Equity has to be defended and can be squandered in an issues environment rather than, or in addition to, marketing. As we preview this chapter, for a moment consider all of the linkages between marketing, SIM, and Brand Equity. From this list, we not only become sensitive to the connections but also lay a foundation for definitions of Brand Equity that support the remainder of the chapter...
eBook - ePubBrand Transformation
Transforming Firm Performance by Disruptive, Pragmatic and Achievable Brand Strategy
- Keith Glanfield(Author)
- 2018(Publication Date)
- Routledge(Publisher)
...In popular business parlance, Brand Equity is a shorthand term used to refer to the strength of a brand and the set of measures used to calculate it. Brand strength is considered a fundamental measure of a brand’s success. The stronger the brand, the stronger its influence on the consumer. The positive influence of strong brands on individuals, particularly consumers, stems from associated network theory, or how an individual holds knowledge of a brand in their memory. It proposes consumers hold and store information in their memory in the form of associative networks. Individuals hold knowledge of a particular domain (i.e. brands) that are represented in memory as links of associations among concept nodes (Sirsi, Ward & Reingen, 1996). Nodes are units of information held in memory, such as brand names, brand attributes and so on. They link together to form a network of ideas, or a knowledge structure. Such links, the connections between nodes, are termed associations. Associations form the basis of models developed to measure the strength of brands, termed Brand Equity (Keller, 1993; Aaker, 1991). As a start point, therefore, Brand Equity represents “the differential effect of brand knowledge on the consumer response to marketing activity” (Keller, 1993). The knowledge a consumer holds for a brand is held in the form of brand awareness and brand image. Brand awareness concerns the ability of a consumer to recall a brand in an unprompted manner, or recognise it as relevant when shown a set of brands for a particular category or industry. Separately, consumers hold an image for a brand, comprising a set of brand associations, reflecting the functional, symbolic and experiential benefits of a brand and its attributes. In sum, the brand image held by the consumer is deemed to be stronger and more favourable, the more favourable, strong and unique the brand’s associations. A strong brand translates into favourable consumer behaviour...
eBook - ePubThe New Strategic Brand Management
Advanced Insights and Strategic Thinking
- Jean-Noël Kapferer(Author)
- 2012(Publication Date)
- Kogan Page(Publisher)
...The official Marketing Science definition of Brand Equity is ‘the set of associations and behavior on the part of a brand’s customers, channel members and parent corporation that permits the brand to earn greater volume or greater margins than it could without the brand name’ (Leuthesser, 1988). This definition is very interesting and has been forgotten all too quickly. It is all-encompassing, reminding us that channel members are very important in Brand Equity. It also specifically ties margins to brand associations and customers’ behaviour. Does it mean that unless there is a higher volume or a higher margin as a result of the creation of a brand, there is no brand value? This is not clear, for the word ‘margin’ seems to refer to gross margin only, whereas brand financial value is measured at the level of earnings before interest and tax (EBIT). To dispel the existing confusion around the phrase Brand Equity, created by the abundance of definitions, concepts, measurement tools and comments by experts, it is important to show how the consumer and financial approaches are connected, and to use clear terms with limited boundaries (see Table 1.2): Brand assets. These are the sources of influence of the brand (awareness/saliency, emotion, image, strength of relationship with consumers), and patents. Brand strength at a specific point in time as a result of these assets within a specific market, competitive environment and business model. Brand strength is captured by behavioural competitive indicators: market share, market leadership, loyalty rates and price premium (if one follows a price premium strategy). Brand value is the ability of brands to deliver profits. A brand has no financial value unless it can deliver profits. To say that lack of profit is not a brand problem but a business problem is to separate the brand from the business, an intellectual temptation...
- Su Mi Dahlgaard-Park(Author)
- 2015(Publication Date)
- SAGE Publications, Inc(Publisher)
...Brand Equity Brand Equity 37 39 Brand Equity The concept of Brand Equity has been defined and debated in the literature indifferent ways. The variety of approaches can be simplified by these twomeanings: (1) financial-based Brand Equity and (2) customer-based brandequity (CBBE). The first meaning has been highlighted in the accountingliterature and the second meaning in the marketing literature.Financial-based Brand Equity, or brand value in the financial market, isconsidered to be the net present value of the estimated future cash flowsattributable to the brand. Many brand valuation methodologies are developedand discussed in the literature, and most of these are used in practice bycommercial specialist providers. However, several other methods used inpractice are not theoretically sound. The concept of CBBE appears in thedefinition of Brand Equity provided by the American Marketing Association:“From a consumer perspective, Brand Equity is based on consumer attitudesabout positive brand attributes and favorable consequences of brand use.”For many years, there has been extensive interest in Brand Equity inmarketing and business strategy, both in academic research and businesspractice. A strong brand is among the most valuable intangible assets forany company, and building Brand Equity is considered to be one of the keydrivers of a company’s success. This perspective emphasizes the importanceof measuring and managing Brand Equity. Thus, this entry focuses on twoframeworks for understanding how companies build CBBE. There are several conceptualizations of CBBE. The aspects of most CBBEconceptualizations are covered by two frameworks developed by David A. Aakerand Kevin L. Keller. Aaker has identified four dimensions of CBBE: (1) brandawareness, (2) brand associations/differentiation, (3) perceived quality,and (4) brand loyalty. Here, loyalty is the core dimension...
eBook - ePubInternational Brand Strategy
A Guide to Achieving Global Brand Growth
- Sean Duffy(Author)
- 2021(Publication Date)
- Kogan Page(Publisher)
...Many customers walked past the corner stall, literally going out of their way to do business with the friendly vendor. Obviously, this was a casual observation, not a controlled experiment, but it got me thinking. That lunch break provided a simple metaphor that, for me, crystalized the research I’d read relating emotion and purchase decisions (see Chapters 5 and 8). It also helped me understand the advantage that positive Brand Equity can have in a crowded market. The vendor on the left was the de facto brand for the products he sold, and he was very likable. That adds value to his offer. He alone differentiated his offer from others in the market. He wasn’t just making sales. With each transaction, he was also increasing the probability of future transactions. He was building Brand Equity and, by doing so, creating a preference for his apples, green beans and daisies even though they were identical to those sold in dozens of other stalls around him. Brand management and Brand Equity The Oxford dictionary defines Brand Equity as: ‘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.’ 1 If we can agree that developing Brand Equity is a worthwhile investment for your company, then we have to ask exactly how do we create Brand Equity? What are its components? What are the management objectives associated with creating that value? These are the questions that practitioners deal with on an operational level. When seeking to answer these questions, it’s not as if there is a shortage of brand-equity models. A quick survey reveals a plethora of options. I’ve found that most of these models are too general, too theoretical or too complex for practical use...
- Robert E Stevens, David L Loudon, Henry Cole, Bruce Wrenn(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...The scarcity of funds in most churches and ministries means that the maximum results must be achieved per dollar expenditure. 4. Marketing's focus on the coordination of activities and concentration on constituents' needs usually produces more efficient efforts from activities. If constituents receive the right communications, the amount can be reduced. Marketing aids in identifying what the right messages are and, therefore, improves efficiency. Brand Equity A brand is a name, term, or method of identification that distinguishes a product, service, or organization from all others. Equity is the value of property above and beyond what is owed on it. Therefore, Brand Equity is the intangible value of a product or an organization above and beyond the physical net assets. The name of a church or ministry (its brand) has value just as a brand of product has value. Brand Equity is the added value that a name gives a church. In effect, it is what people think and feel, in total, about the organization. “Goodwill” is synonymous with Brand Equity. For a church, Brand Equity helps produce awareness, perceived quality, and loyalty. A church with a good name in the community will have more people considering it as a church home. Its membership will be more committed and less likely to leave. A church with a high level of Brand Equity will not suffer from as much member-switching behavior because other churches may not be viewed as being of equal quality. To increase Brand Equity, a church must develop its strategy, communicate its uniqueness, and deliver on its promises. It must differentiate itself, promote itself, and perform in such a way as to positively touch people's lives. Often, Brand Equity is built on a characteristic or benefit that is superior to the competition...
