Showing papers on "Brand equity published in 2000"

An examination of selected marketing mix elements and brand equity

Abstract: This study explores the relationships between selected marketing mix elements and the creation of brand equity. The authors propose a conceptual framework in which marketing elements are related to the dimensions of brand equity, that is, perceived quality, brand loyalty, and brand associations combined with brand awareness. These dimensions are then related to brand equity. The empirical tests using a structural equation model support the research hypotheses. 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.

Cultivating service brand equity

Abstract: In packaged goods, the product is the primary brand. However, with services, the company is the primary brand. This article, based on primary research with 14 mature, high-performance service companies, makes a case for service branding as a cornerstone of services marketing for today and tomorrow. The article presents a service-branding model that underscores the salient role of customers' service experiences in brand formation. Four primary strategies that excellent service firms use to cultivate brand equity are discussed and illustrated. Branding is not just for tangible goods; it is a principal success driver for service organizations as well.

Impact of Product-Harm Crises on Brand Equity: The Moderating Role of Consumer Expectations:

Abstract: Brand equity is a valuable yet fragile asset. The mounting frequency of product-harm crises and ill-prepared corporate responses to such crises can have profound consequences for brand equity. Yet there is little research on the marketing impact of crises. The authors employ the expectations–evidence framework to understand the impact of firms’ responses to crises on customer-based brand equity. The results of a field survey and two laboratory experiments indicate that consumers interpret firm response on the basis of their prior expectations about the firm. The interaction of expectations and firm response is shown to affect postcrisis brand equity. The authors draw implications for the expectations–evidence framework and for the outcomes of different types of firm response (i.e., unambiguous support, ambiguous response, and unambiguous stonewalling) on brand equity.

Brands and brand equity: definition and management

Abstract: This article assumes that brands should be managed as valuable, long‐term corporate assets It is proposed that for a true brand asset mindset to be achieved, the relationship between brand loyalty and brand value needs to be recognised within the management accounting system It is also suggested that strategic brand management is achieved by having a multi‐disciplinary focus, which is facilitated by a common vocabulary This article seeks to establish the relationships between the constructs and concepts of branding, and to provide a framework and vocabulary that aids effective communication between the functions of accounting and marketing Performance measures for brand management are also considered, and a model for the management of brand equity is provided

Consuming luxury brands: The relevance of the ‘Rarity Principle’

Abstract: This paper extends work on the influence of awareness, purchase and dream values of luxury brands on two counts. First, it introduces a measure on consumers' ‘dislike’ for certain luxury brands of high awareness. The justification is consumers may be aware of a well-known brand but need not necessarily like it. Second, the Rarity Principle suggests that in order to maintain prestige, luxury brands must sustain high levels of awareness and tightly controlled brand diffusion to enhance exclusivity. This study in Singapore supports the notion that Asian consumers hold different perceptions in the ownership of luxury brands compared to the West. The findings show that the popularity of a brand may propel the dream value of the brand. Increasing awareness yields higher levels of brand preference, which generates stronger purchase intentions. This clearly rejects the Rarity Principle, which exists in the USA findings. Therefore, in order for luxury brands to be successful, they have to be promoted through active-marketing communication. The focus must be on strengthening the brand image and delivering benefits that the brands could provide.

The Brand Relationship Spectrum: The Key to the Brand Architecture Challenge

Abstract: The classic brand manager dealt with simple brand structures in part because he or she was faced with a relatively simple environment and simple business strategies. Today the situation is far different. Brand managers now face market fragmentation, channel dynamics, global realities, and business environments that have drastically changed their task. In addition, there is pressure to leverage brand assets because of the prohibitive cost of creating new brands. This set of challenges has created a new discipline called "brand architecture." A coherent brand architecture can lead to impact, clarity, synergy, and leverage rather than market weakness, confusion, waste, and missed opportunities. Brand architecture is an organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands. This article introduces a powerful brand architecture tool, the "brand relationship spectrum." It is intended to help brand architecture strategists employ insight and subtlety to subbrands, endorsed brands, and their alternatives. Subbrands and endorsed brands can play a key role in creating a coherent and effective brand architecture.

The Effect of Brand Class, Brand Awareness, and Price on Customer Value and Behavioral Intentions

Abstract: The author introduces a comprehensive customer value framework and tests an extended value model with lodging products. The extended value model in this study newly incorporates the concepts of brand awareness, as compared to brand or product class, and price fairness. Based on Baron and Kenny’s guideline for mediation analysis, this study found the traditional customer value process to be useful for lodging research and marketing. In addition, brand awareness and price fairness concepts were found to play significant roles in the customer value process. The article includes discussions on both managerial and research implications.

Observations: Building Brand Equity by Managing the Brand&s Relationships

Abstract: One of the older and simpler definitions of Brand Equity was the one coined by David Ogilvy, when he said many years ago: A brand is the consumer's idea of a product. This could be thought of as the first principle of brand equity— that a brand is different from a product and that the difference is something with which it is invested by the consumer. Most definitions of brand equity concentrate on this difference. Although it is the incremental, added-value qualities that make brand equity important to us, the term is often used synonymously with the total value of the brand. It is useful therefore to think of the total equity—or value—of a brand consisting of two different sorts of “equities.” The first are those we might call the “fundamental” equities—the classical marketing variables of product, price, and packaging— together with distribution and measured brand image. The second type are the “added value” equities, which are usually much more elusive to define because of their intangible nature.

Co‐branding: brand equity and trial effects

Abstract: Co‐branding is an increasingly popular technique marketers use in attempting to transfer the positive associations of the partner (constituent) brands to a newly formed co‐brand (composite brand). This research examines the effects of co‐branding on the brand equity of both the co‐branded product and the constituent brands that comprise it, both before and after product trial. It appears that co‐branding is a win/win strategy for both co‐branding partners regardless of whether the original brands are perceived by consumers as having high or low brand equity. Although low equity brands may benefit most from co‐branding, high equity brands are not denigrated even when paired with a low equity partner. Further, positive product trial seems to enhance consumers’ evaluations of co‐branded products, particularly those with a low equity constituent brand. Co‐branding strategies may be effective in exploiting a product performance advantage or in introducing a new product with an unfamiliar brand name.

Managing hotel brand equity: A customer-centric framework for assessing performance

Abstract: Here is how marketers can build a numerical index to gauge customers' perceptions of a hotel brand.

Consumer Learning and Brand Equity

Abstract: A series of experiments illustrates a learning process that enhances brand equity at the expense of quality-determining attributes. When the relationship between brand name and product quality is learned prior to the relationship between product attributes and quality, inhibition of the latter may occur. The phenomenon is shown to be robust, but its influence appears sensitive to contextual variations in the learning environment. Tests of process are inconsistent with attentional explanations and popular models of causal reasoning, but they are supportive of associative learning models that portray learners as inherently forward looking. P urchase decisions are based on predictions of product performance. Consumers base their predictions in part on product cues and are accurate to the extent that they have properly learned the relationship between the cues and performance. Consumer research has devoted little attention to this learning process despite its fundamental importance (Hutchinson and Alba 1991; Meyer 1987). In the present research we examine consumer learning of product cues as predictors of product quality with particular emphasis on the distinction between brand and attribute cues. To illustrate, consider the cases in which consumers rely strictly on either brand or attribute cues to predict quality. If consumers learn the relationship between product attributes and quality, they will differentiate among brands that possess different attributes and treat as commodities those brands that share the same attributes. Once the predictive rule is learned, it may be applied to any new brand that possesses the attributes. In contrast, consumers who rely strictly on brand cues will ignore the underlying attributes and may incorrectly differentiate physically identical brands. The latter case is important because it can be costly and is not uncommon (such as when consumers pay high premiums for branded drugs that are chemically identical to their generic counterparts). An appealing explanation of this phenomenon is that consumers are unaware of the attributes of these brands. Indeed, firms attempt to foster such ignorance by making attribute information difficult to find or process (Bergen, Dutta, and Shugan 1996; Hoch and Deighton 1989). The present research investigates whether consumers will routinely learn the determinants of product quality when attribute cues are *Stijn M. J. van Osselaer is assistant professor of marketing, University of Chicago. Joseph W. Alba is distinguished professor of marketing, University of Florida. This work was supported by the Beatrice Foods Co. Faculty Research Fund at the University of Chicago Graduate School of Business. The authors thank Alan Cooke, Joffre Swait, Chris Janiszewski, and Bart Weitz for their helpful comments. freely available and processing is unconstrained. We suggest that learning can be suppressed even under these relatively favorable conditions due to the learning phenomenon known as blocking.

The Emergence of Market Structure in New Repeat-Purchase Categories: The Interplay of Market Share and Retailer Distribution

Abstract: The authors study brand-share dynamics among competing brands in new repeat-purchase categories. In such new categories, market shares are strongly affected by retailer distribution decisions. Because a retailer that considers a brand for distribution can take into account the prior performance of that brand with other retailers, the success of a manufacturer in obtaining distribution can depend positively on its brand’s market share to date. This creates positive feedback between a brand’s market share and its distribution over the growth stage of the category. Temporary positive feedback, along with the way manufacturers influence their brand’s market share and distribution, is hypothesized to drive the emergence of the market structure. The authors model this feedback to quantify the evolution of a brand’s coupled market share and distribution. Empirical results using data from the U.S. ready-to-drink tea category suggest that positive feedback between market share and distribution exists in t...

Strategic brand alliances: implications of ingredient branding for national and private label brands

Abstract: Current research on brand alliances has focused primarily on alliances between two known, national brands. However, there is significant benefit to both parties in an alliance between a national brand and a private brand. Such alliances are gaining importance in the industry but have not been studied by marketers. The basic question explored in this study is whether using a national brand ingredient can benefit a private brand without hurting the national brand. First, a theoretical framework to explain how consumers may react to such an alliance is presented. Next, an experiment was conducted which showed that a private brand with a name brand ingredient was evaluated more positively. However, the evaluation of the national brand was not diminished by this association. Implications and future research directions are discussed.

Conceptualizing the country of origin of brand

Abstract: With the globalization of international trade, consumers today are faced with a proliferation of products with multicountry affiliations (hybrid products). As such it is likely that the country of origin of manufacture of a hybrid product is no longer the most important determinant in the evaluation of brand image and product quality. This paper therefore extends prior country of origin research by conceptualizing the country of origin of brand as an alternative evaluation tool. In particular, an earlier definition of country of origin is revisited for its emphasis on the country of brand. We have also highlighted the strategic, conceptual and practical relevance in the form of future research propositions. The managerial implications are also presented.

Moving beyond fit: the role of brand portfolio characteristics in consumer evaluations of brand reliability

Abstract: Brand extensions allow consumers to use past experiences with the brand in order to assess the extension and thereby reduce the risk associated with purchasing a new product. In considering the ability of a brand to mitigate the risk associated with an extension (a construct herein referred to as brand reliability), prior research has focused on the role of fit between the brand and the extension category. In the present study, results indicate that in addition to fit, characteristics of the brand portfolio (number of products affiliated with the brand and the quality variance of these products) play an important role in affecting consumer impressions of brand reliability. In contrast to prior research that forwards that brands become diluted by offering extensions, the present results suggest that having a greater number of products affiliated with the brand has positive consequences when consumers evaluate a new extension.

Better Measurement and Management of Brand Value

Abstract: A brand is a name, symbol, design, or mark .that enhances the value of a product beyond its functional purpose” (Farquhar, 1989). Because brand names enhance the value of products and are difficult for competitors to copy, brand names play a critical role in marketplace competition. “For many businesses the brand name and what it represents are its most important asset—the basis of competitive advantage and of future earnings streams. Yet, the brand name is seldom managed in a coordinated, coherent manner with a view that it must be maintained and strengthened” (Aaker, 1991). The focus here is on value added from the consumer's perspective. Farquhar (1989) has pointed out that the brand name also adds value for the manufacturer and for the retailer. But the ability of a brand name to add value for the consumer is, of course, logically prior. A brand name adds value for the manufacturer and the retailer only because it adds value for the consumer.

Trust, Brand Equity and Brand Reality in Internet Business Relationships: An Interdisciplinary Approach

Abstract: Trust and the concept of the brand are increasingly of interest in the study of business relationships on the Internet. Synthesising studies of trust from other disciplines such as accounting, sociology, psychology and biology can provide useful insights into the application of trust both specifically and generally, to Internet business relationships. While there is a plethora of models, those with potential application for Internet business relationship theory are described and analysed. The argument is extended to discuss the concept of the brand as a surrogate for trust, and hence as a reliable identifier of a certain cluster of values.

The multicultural context of brand loyalty

Abstract: In today’s global market, a brand’s marketing strategy must go head‐to‐head, not only with regional or national brands, but also with international competitors’ marketing strategies. This adds an entirely new dimension to a company’s marketing strategy when it comes to identifying, attracting, and retaining a market. This paper examines the concept of brand loyalty, discusses the various issues connected with brand loyalty, discusses cross‐cultural views on brand loyalty throughout the world, and illustrates the proliferation of brand loyalty across international frontiers.

Succeeding with Brands on the Internet

Abstract: This paper focuses on some of the issues involved in brand building on the Internet. A new mindset is needed to execute an on-line branding strategy which thinks more about enhancing benefits to consumers rather than just to the organisation. By questioning some of the assumptions managers have made about migrating their brands to the Internet, insights are provided about brand building on the Internet. It is argued that, because of the greater involvement of a brand's community on the Internet, a looser form of control is needed, placing more emphasis on brand management as values management. Finally, it is argued that a new theory of the concept of brand is not needed between the off-line and on-line environment, but rather a different approach to executing the brand's essence.

A Consumer-oriented Framework of Brand Equity and Loyalty:

Abstract: This paper criticises the ill-defined use of terms such as equity and loyalty in marketing, and suggests that there has been little success in reconciling different interpretations, despite the nee...

Advertising vs sales promotion: a brand management perspective

Abstract: Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the antecedents and outcomes of brand managers’ advertising and sales promotion budget allocations by adopting a bounded rationality perspective. Based on survey data collected from 165 brand managers in the USA, higher advertising (vs sales promotion) allocations are associated with: single, relatively high priced brands in the early phases of the product life cycle; and more experienced brand managers who are subject to less retail influence. Also, brands with higher budget allocations to advertising, relative to sales promotion, tend to have more favorable consumer attitudes, stronger brand equity, and higher market share increases and profits. Managerial implications and areas for future study are discussed.

Brand dilution effect of extension failure – a Taiwan study

Abstract: Examines the negative impacts of brand extension failure upon the original brand by calibrating the difference of brand equity. Using data collected from college students in Taiwan, establishes four hypotheses to identify various effects of a failed brand extension in diluting the original brand’s equity. Analyzes the different effects among four types of equity‐source brands for both close and distant extensions. Equity‐source and equity level of the original brand is identified first. All components of brand equity‐source are then used to evaluate the performance of a brand extension. Finds that an unsuccessful brand extension dilutes the original brand for all three high equity‐source brands. Effects of brand dilution differ according to the type of equity source possessed by the original brand, but there is no difference in brand dilution effects from close and distant extension failures.

The power of the brand

Abstract: A brand is made up of three things: what a company sells, what a company does, and what a company is. A brand represents a set of promises. It implies trust, consistency, and a defined set of expectations. The strongest brands own a positioning in the consumer’s mind that is unique to that brand. To maximize the customer‐brand relationship, a company must understand how customers think, act, perceive, and make purchase decisions. This holistic analysis is called “crafting a customer model.” This article offers the steps for creating such a model.

Conceptualising brand personality: A review and research propositions

Abstract: Brands are perceived to possess a personality that consumers use as an avenue for self-expression or to experience the emotional benefits by which the brand differentiates itself from others. Despite developments made in this area, the focus has been solely on the role of brand attributes and their utilitarian functions in influencing consumer attitudes. Very little progress has been made to show how brands are used for self-expressive purposes. This review thus discusses how consumers have a part to play in influencing how brand personality is perceived. This is based on the fact that as consumers build trusting relationships with their preferred brand, they will reinforce positive attitudes towards the brand. To build the theoretical framework, issues pertaining to brand personality dimensions, such as self-concept, self-congruity between brands and their consumers and self-expression using brands, will be reviewed. Further, the paper examines the impact of cultural dimensions of individualism and collectivism on self-congruity. This provides a base for examining the fact that the cultural orientation of consumers may have an implication towards the proposed influence of the consumer's self on the personality of the brand. Finally, the review examines the effects of consumer demographic profiles on the consumer's self-congruity with brand personality. The review will generate and develop relevant research propositions. This will be justified by the conceptual and managerial implications that would radiate from the proposed study.

Marketing Theory : A Student Text

Abstract: PART ONE: OVERVIEW OF MARKETING THEORY Marketing: Philosophy or Function? - Michael J Baker Marketing Theory - Michael Saren A History of Historical Research in Marketing - D G Brian Jones Marketing Ethics - Patrick E Murphy PART TWO: DISCIPLINARY UNDERPINNINGS OF MARKETING THEORY The Economics Basis of Marketing - Richard J Varey The Psychological Basis of Marketing - Allan J Kimmel The Sociological Basis of Marketing - Kjell Gronhaug and Ingeborg Astrid Kleppe Cultural Aspects of Marketing - Kam-hon Lee and Cass Shum PART THREE: THEORIES OF MARKETING MANAGEMENT AND ORGANIZATION The Marketing Mix: A Helicopter View - Walter van Waterschoot and Thomas Foscht Marketing Strategy - Robin Wensley Target Segment Strategy - Sally Dibb and Lyndon Simkin PART FOUR: THEORETICAL SUBAREAS OF MARKETING Consumer Behaviour - Rob Lawson Innovation and New Product Development - Susan Hart Relationships and Networks - Kristian Moller Theory in Social Marketing - Gerard Hastings, Abraham Brown and Thomas Boysen Anker Theories of Retailing - Christopher Moore An Institutional Approach to Sustainable Marketing - William E Kilbourne Brand Equity and the Value of Marketing Assets - Roderick J Brodie and Mark S Glynn POSTSCRIPT The New Service Marketing - Evert Gummesson

Exploring the link between cause-related marketing and brand building

Abstract: The use of cause-related marketing (CRM) is increasing around the world and provides benefits to both firms and causes, by linking the two organisations together. Most of the CRM literature examines this strategy from a for-profit perspective. This paper examines how this literature could be equally applicable to examining CRM from a not-for-profit perspective. That is CRM programmes can positively and negatively impact on a not-for-profit's brand, which is frequently its most valuable asset. In this way CRM can be related to a number of not-forprofit brand and brand equity issues including brand awareness, brand attitude and intention to support the CRM programme. Copyright © 2000 Henry Stewart Publications