Showing papers on "Brand equity published in 1996"
TL;DR: In this paper, the authors present managers with a framework for measuring the strength of a brand by examining ten sets of measures grouped into five categories: loyalty, perceived quality, associations, awareness, and market behavior.
Abstract: This article presents managers with a framework for measuring the strength of a brand. It specifically examines ten sets of measures grouped into five categories: loyalty, perceived quality, associations, awareness, and market behavior. Employing these measures can be difficult and their results must be used carefully. However, they have the capacity to provide managers with a set of important and extremely useful measurement tools.
3,107 citations
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TL;DR: In this article, the authors test the application of brand management techniques to human resource management (HR) and find that bringing functionally separate roles closer together would bring mutual benefit and lead to comparable performance measures, eg, trust and commitment.
Abstract: This paper tests the application of brand management techniques to human resource management (HR) The context is set by defining the ‘Employer Brand’ concept and reviewing current HR concerns Pilot qualitative research is reported with top executives of 27 UK companies, who were asked to reflect on their HR practices and the relevance of branding This exploratory research indicates that marketing can indeed be applied to the employment situation Bringing these functionally separate roles closer together would bring mutual benefit and lead to comparable performance measures, eg, trust and commitment Strong corporate equity with the brand's customers can improve the return on HR, while at the same time improved HR can improve the return on brand equity from external customers Formal, larger scale research would be required to substantiate the reciprocal benefits from a closer alignment of HR and marketing practices
993 citations
TL;DR: This article used a memory network model to identify various association characteristics underlying consumer-based brand equity, such as set size, valence, uniqueness, and origin, and examined differences between high and low equity brands on these measures.
657 citations
TL;DR: In this paper, the authors examined the relationship among brand familiarity, confidence in brand evaluations, brand attitudes, and purchase intention, and found that familiarity with a brand influences a consumer's confidence toward the brand, which in turn affects his/her intention to buy the same brand.
620 citations
TL;DR: In this paper, the authors compared eleven consumer-based brand equity measures and evaluated their convergence in a simulated shopping environment, as well as purchase-intention and brand-quality scales.
Abstract: This article compares eleven different consumer-based brand equity measures and evaluates their convergence. Predictive validity at the individual and aggregate levels is also investigated. Measures based on the dollar metric method and discrete choice methodology predict choices extremely well in a simulated shopping environment, as well as purchase-intention and brand-quality scales.
462 citations
TL;DR: This paper found that consumers who have self-images similar to a brand's image were more persuaded by advertisements encouraging them to think about their own self-image, whereas consumers who had selfimages different from a brand’s image are more persuaded by advertisements to think only functional product quality.
Abstract: Argues that the degree of congruence (similarity) between a brand’s image and a consumer’s self‐image (self‐concept) can have significant effects on consumers’ brand evaluations and purchase intentions. Results from this research suggest that marketers can manage the effects of brand and self‐image on consumers’ brand evaluations. The effects of brand image can be magnified by using promotional messages that encourage consumers to think about their own self‐image while evaluating a brand. Results also suggest that consumers who have self‐images similar to a brand’s image are more persuaded by advertisements encouraging them to think about their own self‐image, whereas consumers who have self‐images different from a brand’s image are more persuaded by advertisements encouraging them to think about only functional product quality.
384 citations
TL;DR: The authors discusses the relationship between brand origin and the concept of the global brand and highlights potential problems associated with the use of brand origin, draws managerial implications relating to its use, and suggests areas where research is needed.
Abstract: Argues that, although researchers have studied several aspects of brands which may affect consumer purchasing processes, one significant characteristic of many brands ‐ the origin cues that they contain ‐ has received little or no attention. Reviews current research in the country‐of‐origin area related to branding, as well as the work done by other researchers on brand personality and brand image. Distinguishes brand origin from country of origin, and shows how this concept could be valuable in resolving a methodological problem with some country‐of‐origin studies. Surveys ways in which brand origin is used in practice, both implicitly and explicitly, and discusses the relationship between brand origin and the concept of the global brand. Finally, highlights potential problems associated with the use of brand origin, draws managerial implications relating to its use, and suggests areas where research is needed.
371 citations
299 citations
Journal Article•
240 citations
TL;DR: In this paper, the authors investigated the cross-national applicability of a model of the effects of country of origin and brand name on consumers' evaluations of a product and found that both factors had a significant impact on the evaluation of a new automobile.
Abstract: Examines the cross‐national applicability of a model of the effects of country of origin and brand name on consumers’ evaluations of a product. Specifically, investigates the structures of country‐of‐origin and brand effects on the evaluation of a new automobile by German and French car owners. Uses a multi‐group structural equation modelling approach to assess the invariance of the proposed model across countries. Reports findings indicating both the factor structure and the structural model relationships are invariant, thus providing support for the hypothesis of the model’s cross‐national generalizability. Also notes that both brand name and country of origin turned out to have a significant impact on consumers’ evaluations of the automobile. Discusses the implications of the study for international manufacturing decisions and new product development.
229 citations
TL;DR: In this paper, the authors examined the effect of store atmosphere on consumer evaluations of private brand grocery products and found that store aesthetics do influence consumer perceptions of store brand quality, and discussed the managerial implications of the findings and the limitations of the study.
Abstract: Points out that, although blind tests have generally revealed that consumers can detect little difference between store brand and national brand products, private brands still only have a small market share (14.9 percent). Using an environmental psychology model as the study framework, which postulates a stimulus‐response process, examines the effects of store atmosphere on consumer evaluations of private brand grocery products. Analyzes the results which show that store aesthetics do influence consumer perceptions of store brand quality. Discusses the managerial implications of the findings and the limitations of the study, and makes suggestions for future research.
TL;DR: Brand Valuation is a form of forecasting and therefore quite different from measures of current Brand Strength as discussed by the authors, as these measure different things, there can be no single measure which is universally meaningful, and while much of the current emphasis on branding is helpful, and many different types of performance measures are relevant to it, Brand Equity itself is not a scientific concept.
Abstract: Different meanings of the expression ‘Brand Equity’ are reviewed, concluding that the phrase has at least three quite distinct senses. These are identified as Brand Valuation, (consumer) Brand Strength, and Brand Description. It is argued that Brand Valuation is a form of forecasting and therefore quite different from measures of current Brand Strength. Many different measures of consumer Brand Strength are reviewed; as these measure different things, there can be no single measure which is universally meaningful. The author concludes that while much of the current emphasis on branding is helpful, and many different types of performance measures are relevant to it, ‘Brand Equity’ itself is not a scientific concept.
TL;DR: In this article, the authors examine the issue of balancing media advertising pull strategy and trade promotions push strategy for manufacturers of consumer packaged goods utilizing a three-stage game theoretic analysis and test model's implications with scanner panel data.
Abstract: In this paper we examine the issue of balancing media advertising pull strategy and trade promotions push strategy for manufacturers of consumer packaged goods utilizing a three-stage game theoretic analysis and test model's implications with scanner panel data.
We develop a model of two competing manufacturers who distribute their brand to consumers through a common retailer. In the model the manufacturers directly advertise their brand to consumers and also provide trade deals to the retailer. Each manufacturer's brand has a loyal segment of consumers who buy their favorite brand unless the competing brand is offered at a much lower price by the retailer. The number of loyal consumers is different for the two brands and so is the strength of their loyalty to their favorite brand. The loyal consumers of the brand with stronger loyalty require a larger price differential in favor of the rival brand before they will switch away from their favorite brand.
The manufacturers first decide advertising spending level, and then the wholesale price of their respective brands. The two manufacturers do not observe each other's decisions while making these decisions, however they do take into account how the other firm is likely to react as a function of their own decisions. Advertising directly affects the strength of loyalty a consumer has for the favorite brand. If the favorite brand advertises, the loyalty strength increases but if the rival brand advertises, it decreases. The marginal effect of own versus competing brand advertising is different in magnitude.
The two manufacturers provide trade deals to the retailer by discounting the brand from a regular wholesale price. The trade discounts are partially passed on to the consumers by the retailer who sets the retail prices of the two brands after observing the wholesale prices. The retail shelf price discounts make the promoted brand more attractive to the consumers due to the reduced price differential between their favorite brand and the promoted brand, thus affecting their switching behavior.
The model and its analysis shed light on the role of brand loyalty in the optimal advertising and trade promotion policies for the two manufacturers. The analysis indicates that, if one brand is sufficiently stronger than the other and if advertising is cost effective, then the stronger brand loyalty requires less advertising than weaker brand loyalty, but a larger loyal segment requires more advertising than a smaller loyal segment. Moreover, stronger brand loyalty requires more trade promotion spending under these conditions. The analysis also indicates that the retailer promotes the stronger loyalty brand more often but provides a smaller price discount for it compared to the weaker loyalty brand.
These analytical results can be understood better if we view advertising as a “defensive” strategy used to build brand loyalty which helps in retaining the loyal consumers, and price promotions as an “offensive” strategy used to attract the loyal consumers away from the rival brand. For example, the result that the stronger brand invests less in advertising than the weaker brand can be explained as follows. The stronger loyalty brand does not find use of advertising attractive because it faces little threat from the weaker brand due to its sufficiently stronger loyalty. Instead it spends more on promotions provided advertising is cost effective to attract away the weaker brand's loyal consumers. The weaker brand, on the other hand, finds it optimal to defend its loyal franchise by spending more on advertising, as promotions do not help much due to the difficulty in attracting away the stronger brand's loyal consumers. In this sense, the stronger brand plays “offensive” by using more trade promotions, and the weaker brand plays “defensive” by emphasizing advertising.
We also conduct an empirical analysis of the model's propositions using scanner panel data on seven frequently purchased nondurable product categories. In a sample of 38 national brands from the seven categories we find that weaker loyalty brands spend more on advertising; brands with larger loyal segment spend more on advertising; and the retailer promotes stronger loyalty brands more often but provides a smaller price discount on average for them compared to weaker loyalty brands. These findings are consistent with the model.
TL;DR: In this article, the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products has been investigated, showing that consumer perception of product value changes, evidenced by brand country dimensions, as production is sourced internationally.
Abstract: States that few studies have attempted to measure the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products. Suggests a methodology for defining product value by consumers’ perception of brand and country image dimensions when sourced internationally. Brand‐country image profiles were factor analysed to provide dimensions of each brand‐country combination. Shows that consumer perception of product value changes, evidenced by brand‐country dimensions, as production is sourced internationally, and suggests a modified marketing strategy.
TL;DR: In this article, the authors investigated the role of brand equity considerations in line and brand extension decision process and concluded that extension decisions are more about brand development than new product development, rather than product development.
Abstract: Considers the managerial processes that lead to the launch of successful line and brand extensions. Seeks to clarify the role, if any, that brand equity considerations have in the extension decision process. A case study approach is used. Data relating to 11 extension launches was collected from major fast‐moving customer goods (FMCG) manufacturers in Europe, the USA, and Australia by The Boston Consulting Group (BCG). The output of the analysis is a set of propositions about the extension process, summarized in the form of a process model. The overall conclusion is that extension decisions are more about brand development than new product development.
TL;DR: In this article, two important tools which can reduce the dilution of the core brand image and/or enhance the success of a new brand extension introduction distancing, and information cues are discussed.
Abstract: Relates evidence which suggests that launching a vertical brand extension generally has a negative impact on the core brand because it dilutes the core brand image, advising that a brand extension should be introduced only when its profit potential exceeds the losses that will be sustained as a result of damage to the core brand. Describes two important tools which can reduce the dilution of the core brand image and/or enhance the success of a new brand extension introduction distancing, and information cues: Explains that, to reduce damage to a valuable core brand or to benefit a new step‐up brand extension, the extension should be maximally distanced from the core brand; however, to benefit a new step‐down brand extension (at the expense of the core brand), the extension should be positioned close to the core brand. Highlights how information cues that describe a brand extension can also act like distancing techniques, simply by serving to reinforce the similarities (implied closeness) or differences (implied distance) between the brand extension and the core brand.
TL;DR: In this paper, the authors developed a model that can answer the following questions: i What are the sources of gain or loss of a brand's sales due to category volume and brand switching? ii What consumer and marketing characteristics affect consumers' purchase frequency of the product category and that of different brands? iii Do all consumers behave similarly, or are there distinct segments which respond to marketing actions differently? iv If such segments exist, what is the size and composition of each segment, and what is an appropriate strategy for each group of consumers?
Abstract: It is an everyday marketplace occurrence that brands lose and gain share. However, a brand's sales gain or loss can be attributable to very different factors, and thus understanding the sources of sales gain or loss would seem to be an important aspect of a brand manager's job.
The primary purpose of this research is to develop a model that can answer the following questions: i What are the sources of gain or loss of a brand's sales due to category volume and brand switching? ii What consumer and marketing characteristics affect consumers' purchase frequency of the product category and that of different brands? iii Do all consumers behave similarly, or are there distinct segments which respond to marketing actions differently? iv If such segments exist, what is the size and composition of each segment, and what is the appropriate strategy for each group of consumers?
Our modeling approach, which decomposes a brand's sales into category volume and brand choice components, has many similarities and also several differences with traditional approaches. Similar to the NBD and Dirichlet models, we assume that a consumer's category purchase rate follows a Poisson distribution, and the number of purchases per brand follows a multinomial distribution. Our model differs from traditional models by including marketing mix variables, by accounting for loyal or near-loyal consumers, by explicitly incorporating consideration sets, and by segmenting consumers on the basis of their brand perceptions and their responses to marketing mix variables.
We account for consumer hetereogeneity by identifying homogeneous latent segments that capture differences in consumers' response to marketing variables in both brand choice and category volume behavior. Calibration of the category volume and brand choice models and the separation of loyalty and switching segments are done simultaneously so that there is no need to assume any specific hierarchy and, in contrast to the usual assumption of independence between choice and volume which may be unreasonable at the aggregate level, the requirement is that choice and volume decisions be independent only at the segment level.
We investigate the properties of our model in the context of a national survey of supermarket purchases of jumbo paper towels. 2,500 households were surveyed who were asked to provide information on: rolls of paper towels bought in the last 4 weeks, rolls of each brand of paper towel bought in the last 4 weeks, brand usually bought, brands that a household bought or would consider buying, average price paid or expected for each brand bought or considered, ratings on 20 brand attributes e.g., strength, absorbency, etc., and demographic information e.g., family size.
We found that not only did the modeling framework outperform a variety of competing models, it also provided insights into the competitive structure in this market. The loyal segments could be distinguished on the basis of price sensitivity. Less than 10% of the loyal households were price insensitive and, in general, households showed increasing price sensitivity in their category volume decisions if they had more children and were heavier users of paper towels. This was consistent across all brands. The model estimates that about 71% of the households are switchers and five switching segments are needed to characterize household purchase patterns. Two of the largest switching segments labeled as Price Sensitive and Value Segments are very price sensitive in both their brand choice and category volume components. In both these segments private label brands are dominant with about 30% share. Segments also emerged on the basis of Strength, Absorbency, and Tearing Ease of paper towels. Interestingly, we found that brand shares within these segments are quite consistent with the objective quality ratings of brands as given by Consumer Reports. Finally, price elasticity analysis for one of the brands, Bounty, reveals that a 5% drop in Bounty's price increases its sales by 13.6%. Almost half of this increase comes from brand switching, with the other half coming from increases in category volume e.g., stockpiling. Bounty gains the most from the price sensitive segments Price and Value Segments. Private labels are hurt least by Bounty's price cut.
TL;DR: In this paper, the distinct nature of market-based assets, such as brand equity, in professional service industries is explained, and the concept is just as, if not more, important to professional services marketers.
Abstract: The concept of brand equity has received most attention in the context of fast-moving-consumer-goods marketing yet the concept is just as, if not more, important to professional services marketers. This paper explains the distinct nature of market-based assets, such as brand equity, in professional service industries.
TL;DR: In this article, the authors investigated the impact of the country-of-origin cue associated with a change of ownership and brand on service quality perceptions, price and purchase intentions, with ethnocentrism and product class knowledge as covariates.
TL;DR: This paper used attitude-toward-the-ad (AAD) as a direct measure of sponsorship support, advertising impact on attitude toward the brand (AH), and purchase intention (PI) for official sponsors and ambush marketers in the fast food and credit card product categories of the 1994 Winter Olympic Games.
Abstract: Event sponsorship has become a multibillion dollar industry (Levin, 1993), yet little theory-driven research exists exploring sponsorship effects (Cunningham & Taylor, 1994), Keller (1993) noted that customer-based brand equity is the appropriate goal of all elements of the marketing mix, including promotions such as sponsorship. The effectiveness of these promotions may be observed through what Keller terms “direct measures pitting known brands against unknown or fictitious brands.” This study uses an experimental design employing attitude-toward-the-ad (AAD) as a direct measure of sponsorship support, advertising impact on attitude-toward-the-brand (AH), and purchase intention (PI) for official sponsors and ambush marketers in the fast food and credit card product categories of the 1994 Winter Olympic Games. Ambush marketers are those companies that use advertising to make it appear as if they are associated with the Games without purchasing official sponsorship rights (Sandier & Shani, 1989). Based on ...
TL;DR: In this article, the authors investigated the magnitude and direction of the associations for share of category requirements (SCR), defined as each brand's share among the group of households who bought the brand at least once during the time period under consideration.
Abstract: A criticism of purchase-based brand loyalty measures is that they are confounded by the marketing mix variables that affect brand choice This paper investigates the magnitude and direction of the associations for share of category requirements (SCR), defined as each brand’s share among the group of households who bought the brand at least once during the time period under consideration We discuss the theoretical foundations for the relationships between SCR and a set of marketing mix variables (price, promotions, retail distribution) and conduct a latent structure regression analysis of brand-level data to test these relationships We find that, although the relationship between the marketing mix variables and SCR is statistically signilicant, in real terms the magnitude of the association is fairly low
TL;DR: Kerin et al. as mentioned in this paper explored the relationship among brand trial penetration, product hierarchy, brand strategy, order of entry, lag time between successive brand entrants, and marketing mix variables (i.e., price, promotion, distribution, and advertising).
TL;DR: In this article, the authors analyze markets for goods in which a consumer's value for a specific brand increases with an increase in the variety of the brand's specific supporting services, and they analyze the conditions under which consumers may gain or lose with an increased number of other consumers purchasing the same brand.
TL;DR: In this article, an empirical model of brand loyalty that provides diagnostic data to support the management of brand loyal behaviour and customer equity in grocery markets is presented. But this model is not suitable for a large number of customers.
Abstract: The deference towards brands that motivated yesterday’s consumers to purchase is no longer so evident in today’s shopping environment. As consumers become more sophisticated in their assessment of brands and more demanding in their requirements, brand management will need to develop more substantive market models to regain the initiative. Outlines an empirical model of brand loyalty that provides diagnostic data to support the management of brand loyal behaviour and customer equity in grocery markets.
TL;DR: Brand taxonomies can be a useful mechanism for surfacing diversity among the brand's team, and helping achieve a more coherent implementation of brand strategy as discussed by the authors, which can help managers quickly appreciate the nature of their brand and thus the most appropriate strategies.
Abstract: Describes how brand management is becoming a team‐based activity, undertaken by senior managers from different backgrounds. While this results in a more experienced team, there is a likelihood that perceptions about the nature of the brand may differ between individuals due to large quantities of information presented and perceptual processes. New brand taxonomies, in particular those from DMB&B and Young & Rubicam, help managers quickly appreciate the nature of their brand and thus the most appropriate strategies. These taxonomies can be a useful mechanism for surfacing diversity among the brand’s team, and helping achieve a more coherent implementation of brand strategy. Presents a process to identify and resolve any diversity among the brand’s team.
TL;DR: Brand chartering as mentioned in this paper is a process for creating and communicating the brand, managing the brand organization, and structuring the brand to deal with the challenges of brand strength, world class culture, etc.
Abstract: Brand managers face many challenges (including questions of brand strength, world class culture, “glocal” branding, seeded marketing channels, “service smart” integration, brand architecture and brand organizing). A framework is presented for thinking about the challenges and how to deal with them. This process, called “brand chartering”, has three principal elements: creating and communicating the brand, managing the brand organization, and directing and structuring the brand. We illustrate how this framework is of help in management practice and show how it can be used as a tool for organizational learning.
TL;DR: In this article, the authors investigated the relationship between brand awareness and preference in the semiconductor manufacturing industry and found that the sensitivity of preference share to increases in brand awareness level displays increasing returns to scale for most brands across various product categories.
Abstract: One of the key issues in business-to-business communication-the relationship between brand awareness and brand preference-is investigated by estimating both an S-shaped and a linear model with a database of information on the semiconductor manufacturing industry. Research results confirm the existence of threshold and saturation effects in the brand awareness-preference association. The average threshold level is approximately 10%-implying that a brand must surpass this awareness level before beginning to generate meaningful additions to its share of brand preference. In the semiconductor manufacturing industry the sensitivity of brand preference share to increases in brand awareness level displays increasing returns to scale for most brands across various product categories. This sensitivity tends to be higher when purchasing process is short, price is an important buying-decision criterion, annual purchase volume is large, product technology is stable, and number of competing brands is small.
TL;DR: In this paper, the authors point out that managers tend to be action oriented, to have high (sometimes unrealistic) aspirations, and to lack ownership of current strategies, which can lead to unwise decisions.
Abstract: Consistency in a brand position and execution over time provides the potential to own positions and symbols and to achieve significant communication cost efficiencies. In the face of these advantages, why are there so few Marlboros and Maytags? One reason is that pressures on brand strategists to change positions and executions can lead to unwise decisions. These pressures can be caused by managers' mindsets and strategic misconceptions. Managers tend to be action oriented, to have high (sometimes unrealistic) aspirations, and to lack ownership of current strategies. Strategic misconceptions can include the beliefs that a newly developed strategy is ineffective, that a new paradigm has emerged, that a superior position/execution can be found, and that customers are bored.
TL;DR: In this paper, the authors look at the financial sector in historical context and confirm its current status before exploring the limits of the FMCG model, and outline how sound FmcG marketing principles must be adapted in their application to the financial marketplace and demonstrates this through a case study of the Nat West Small Business Adviser.
Abstract: As an area that is still experiencing a period of change and development, the financial sector is of particular interest to the brand marketer. While the more established and frequently analysed FMCG market clearly sets ground rules for all types of marketplaces, the dissimilarities between the two areas creates very particular challenges with regard to the marketing of financial brands. This paper looks at the sector in historical context and confirms its current status before exploring the limits of the FMCG model. Drawing conclusions from this exercise, the paper outlines how sound FMCG marketing principles must be adapted in their application to the financial marketplace and demonstrates this through a case study of the Nat West Small Business Adviser.
TL;DR: In this paper, the authors explore the tricky subject of brand optimisation in financial services with an emphasis on the latest thinking and most recent developments in this area, and propose a set of strategies.
Abstract: This paper explores the tricky subject of brand optimisation in financial services with an emphasis on the latest thinking and most recent developments in this area.