...Clarify Brand Equity Perspective Brand equity can be viewed from several different perspectives. The hard-line perspective is that of financial outcomes which examine price premium. That is, how much more will a consumer pay for a product or service that is branded over a product or service that is generic? A softer perspective is that of brand extension where consideration is given to the value that a brand lends to the introduction of other products, or considers the reverse dynamic of the impact of a new product or service on the existing brand. This following steps address a third perspective - customer-based. Determine Brand Equity Research Goals Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark. When exploring change is the research goal, customer brand attitude is tapped regarding branding decisions that might result in repositioning or renaming products or services. A deeper examination of extending brand power is carried out when substantive additions to a brand are considered. Each of these research goals requires a different tact. Understand Customer Brand Attitude A customer-based perspective in the measurement of brand equity focuses on the experiences that consumers have with a brand. The stronger the brand, the stronger the customer's attitude toward the products or services associated...
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...International Journal of Advanced Research in Management and Social Sciences ISSN: 2278-6236 IMPACT OF CELEBRITY ENDORSEMENT ON BRAND EQUITY IN COSMETIC PRODUCT S. Sivesan* Abstract: In the present business environment, marketers are using different kinds of marketing strategies to achieve the organizational goals. Celebrity endorsement is one of the marketing strategies which are adopted to achieve the organizational goals. Celebrity endorsement advertisements have been known as ‘ubiquitous feature of modern marketing. This study attempts to measure the impact of celebrity of endorsement on brand equity in the cosmetic product. For this purpose, 123 respondents were selected by using systematic random sampling methods. The data analysis covered correlation, regression, and rank order by using the version 16.0 of SPSS package. Results revealed that celebrity endorsement and brand equity are positively correlated with the value of 0.3394 which is highly significant at one percent level. A result of the regression analysis is celebrity endorsement 0.44 which means 44 percent impact on brand equity. This study would hopefully benefit to the academicians, researchers, policy makers and practitioners through exploring the impact of celebrity endorsement and brand equity. Keywords: celebrity endorsement, brand equity, advertisement *Lecturer, Department of Marketing, Faculty of Management Studies and Commerce, University of Jaffna, Sri Lanka Vol. 2 | No. 4 | April 2013...
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...KEA's Global Strategy Swedish company IKEA was the world's largest furniture retailer since the early 1990s. It sold inexpensive furniture of Scandinavian design. The company operated in 55 countries with a workforce of 76,000 (the company referred to its workforce as its 'co-workers'). IKEA offered nearly 12,000 items to the home furnishings market worldwide. It sold a wide range of products including furniture, accessories, bathrooms and kitchens at 186 retail stores in 30 countries across Europe, North America, Southeast Asia, Middle East and Australia. IKEA enjoyed high brand equity. | | In 2003, Manhattan US-based Interbrand, a marketing research and consultancy firm, valued the 'IKEA' brand at $6.92 billion and ranked IKEA 43rd on its list of the top 100 most valuable global brands, ahead of Nestle, Harley-Davidson, and Apple.3 | Analysts attributed IKEA's success to its skill in combining good product design and superior quality with an affordable price. IKEA's low-pricing strategy was aimed at young people. For several decades, IKEA had looked for international markets, which were culturally as close as possible to the Scandinavian market. The basic assumption behind IKEA's global strategy was 'one-design-suits-all.' Anders Dahlvig, the CEO of IKEA, had once said, "Whether we are in China, Russia, Manhattan, or London, people buy the same things. We don't adapt to local markets." | IKEA had, in fact, been quite successful with its 'one-design-suits-all' global...
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...Brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues to their owner. The value directly or indirectly accrued by these various benefits is often called brand equity (Kapferer, 2005; Keller, 2003). A basic premise of brand equity is that the power of a brand lies in the minds of consumers and what they have experienced and learned about the brand over time. Brand equity can be thought of as the "added value" endowed to a product in the thoughts, words, and actions of consumers. There are many different ways that this added value can be created for a brand. Similarly, there are also many different ways the value of a brand can be manifested or exploited to benefit the firm (i.e., in terms of greater revenue and/or lower costs). For brand equity to provide a useful strategic function and guide marketing decisions, it is important for marketers to fully understand the sources of brand equity, how they affect outcomes of interest (e.g., sales), and how these sources and outcomes change, if at all, over time. Understanding the sources and outcomes of brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand: The sources of brand equity help managers understand and focus on what drives their brand equity; the outcomes of brand...
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...com/0263-4503.htm Brand equity for online companies Rosa E. Rios Australian College of Kuwait, Safat, Kuwait, and Brand equity for online companies 719 Received 1 May 2008 Revised 1 July 2008 Accepted 1 July 2008 Hernan E. Riquelme Kuwait-Maastricht Business School, Salmiya, Kuwait Abstract Purpose – The purpose of this paper is to determine if the traditional approach to measuring brand equity applies to online companies. Design/methodology/approach – This objective is pursued by: developing a measurement model of brand equity for online businesses; and testing the nomological validity of the model using structural equation modelling. Findings – This study finds partial support for the application of the offline brand equity theoretical framework based on brand awareness, brand associations and loyalty for online companies. Brand loyalty and brand value associations directly create brand equity. Research limitations/implications – The study is cross-sectional, the indicators or observable variables used in this study may not be deemed comprehensive enough, no interaction effects have been incorporated, and finally, the research study was based on a few online business retailers. Practical/implications – The results support the view that a consumer’s perceived sense of value resulting from a transaction with an online business develops loyalty. Also, brand-trust association and brand awareness indirectly contribute to creating brand equity through their influence...
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...sagepub.com Measuring Customer-Based Restaurant Brand Equity Woo Gon Kim and Hong-Bumm Kim Cornell Hotel and Restaurant Administration Quarterly 2004; 45; 115 DOI: 10.1177/0010880404264507 The online version of this article can be found at: http://cqx.sagepub.com/cgi/content/abstract/45/2/115 Published by: http://www.sagepublications.com On behalf of: The Center for Hospitality Research of Cornell University Additional services and information for Cornell Hotel and Restaurant Administration Quarterly can be found at: Email Alerts: http://cqx.sagepub.com/cgi/alerts Subscriptions: http://cqx.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Downloaded from http://cqx.sagepub.com at SAGE Publications on December 2, 2009 © 2004 CORNELL UNIVERSITY DOI: 10.1177/0010880404264507 Volume 45, Issue 2 115-131 ARTICLE 10.1177/0010880404264507 Measuring Customerbased Restaurant Brand Equity Investigating the Relationship between Brand Equity and Firms’ Performance by WOO GON KIM and HONG-BUMM KIM Strong brand equity is significantly correlated with revenues for quick-service restaurants. In a study 394 respondents gauged the strength of seven quickservice restaurant brands doing business in Seoul, Korea. The study tested four elements of brand equity, namely, brand awareness, brand image, brand loyalty, and perceived quality. Of those attributes, brand awareness had the strongest direct effect on...
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...Brand Equity Introduction Brands has been around for centuries and play a major role in our lives today it helps us identify a good or service from one seller to another and separate it from the competitors satisfying the same need. These differences could be tangible or intangible which ultimately helps to improve consumers’ lives and enhance the financial value of firms. What is Brand Equity? Brand equity has number of perspectives, but in essence means the value or perception created to a product or service in the minds of the consumer through the activities leading to create a strong consistent brand. This is also called “Brand goodwill” by accountants. The Role of brands As stated by Kotler et al (2012) Brands help to identify the maker of a product and assign responsibility for its performance, helps consumers to evaluate identical products, simplify decision making and reduce risks. It further states brands help firms to simplify product handling and tracing, organize inventory and accounting. A Brand helps firms to invest and reap the benefits of intellectual property rights by obtaining Legal protection through patents, trademarks and copyrights. Scope of Branding Branding involves careful planning and positioning marketing activities and programs to build a strong and reliable brand in the mind of the consumer. As stated in Kotler et al (2012) it is all about creating differences between products. The marketer should develop marketing to build awareness...
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...The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty Dr. Hsin Kuang Chi, Nanhua University, Taiwan Dr. Huery Ren Yeh, Shih Chien University, Kaohsiung, Taiwan Ya Ting Yang, Graduate Student, Nanhua University, Taiwan ABSTRACT The purposes of the study are to explore the effects among brand awareness, perceived quality, brand loyalty and customer purchase intention and mediating effects of perceived quality and brand loyalty on brand awareness and purchase intention. The samples are collected from cellular phone users living in Chiyi, and the research adopts regression analysis and mediating test to examine the hypotheses. The results are: (a) the relations among the brand awareness, perceived quality and brand loyalty for purchase intention are significant and positive effect, (b) perceived quality has a positive effect on brand loyalty, (c) perceived quality will meditate the effects between brand awareness and purchase intention, and (d) brand loyalty will mediate the effects between brand awareness and purchase intention. The study suggests that cellular phone manufacturers ought to build a brand and promote its brand awareness through sales promotion, advertising, and other marketing activities. When brand awareness is high, its brand loyalty will also increase. Consumers will evaluate perceived quality of a product from their purchase experience. As a result, brand loyalty and brand preference will increase...
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...RED BULL: BUILDING BRAND EQUITY IN A NON-TRADITIONAL WAY BY: KAMARUL ARIFFIN NADHIRAH NOORAZLIN BINTI ANI INTRODUCTION 1985 Improves physical endurance Stimulates metabolism and helps eliminates waste substances Improves overall feeling of wellbeing Improves reaction speed and concentration Increase mental alertness Word-OfMouth Sampling Program Event Sponsorship Point-OfPurchase Athlete Endorser Advertisement Controlled All Aspects Of The Event Reinforced The Brand Positioning As An Independent Stimulating Beverage Events Enhanced Red Bull Visibility Unique Events Attracts Media Coverage QUESTION 1 Describe Red Bull’s sources of brand equity. Do these sources change depending on the market or country. BRAND EQUITY Brand equity is a set of characteristics that are unique to a brand. In essence, brand equity is the perception that a good or service with a given brand name is different and better. (Clow & Baack, 2012 ) Brand equity is the added value endowed to products and services. ( Kotler & Keller, 2012 ) SOURCES OF BRAND EQUITY Product Packaging Image Associations AUSTRIA Seeding Program Leading Opinion Limitation UNITED KINGDOM 1995 • Sport drink • Large channel • Billboards “gives you wiiings” “never under estimate what Red Bull can do for you” 1996 • Stimulating drink • WOM • Electronic Media UNITED STATES • West Coast CELL MARKETING • East...
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...Brand Name or Brand Umbrella (marjonel and fatima) Customers used to a brand would take the other product under the same of it and the same level of quality and provide similar type of satisfaction to them. Brand It is defined as “a set of images and associations linked to a commercial product”. Brand Special Features * Brand distinguishes the product from similar other products. * Brand creates specific customer needs and expectations of their fulfillment. * Brand can predict buyers’ behaviour of buying the product or just avoiding it. Brand Equity It can be defined as the “stored value built up in a brand for achieving competitive advantage.” Several Ways of Gaining Brand Equity * Resilience of the brand, its intrinsic strength as compared to the competitive brands. * Trials and test marketing of new products as brand extensions. * Premium prices secured by the company for the existing branded product and product extended products. Several Ways of Gaining Brand Equity * Leverage of brands in gaining access to the bets channels of distribution. * Access to the best media required by the target market segment at reasonable rates. Brand Value The company acquiring or buying a brand finds it more relevant than the companies that possess the brand. Brands provide leverage for brand extensions, as several products can be sold under the brand umbrella. Example: Coca Cola offers under the...
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...Chapter 8 – Developing a brand equity measurement and management system * Indirect approach: assess potential sources of CBBE by identifying and tracking consumers’ brand knowledge. * Direct approach: assess the actual impact of brand knowledge on consumer response to different aspects of the marketing program. * Brand equity measurement system: set of research procedures designed to provide marketers with timely, accurate, and actionable info about brands so they can make the best possible tactical decisions in the short run and strategic decisions in the long run. * New accountability- return of marketing investment. * Measuring the long-term value of marketing in terms of both its full short term and long-term impact on consumers is crucial for accurately assessing ROI. Brand Audits * Brand audit: a comprehensive examination of a brand to discover its sources of brand equity. Assesses the health of the brand, and suggests ways to improve and leverage its equity. * 2 steps in a brand audit: brand inventory and brand exploratory. * Marketing audit: comprehensive systematic, independent and periodic examination of a company’s marketing environment, objectives, strategies, and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. * Brand inventory: provides a current profile of how all the products and services sold by a company are marketed...
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...Brand Equity, Brand Awareness, and Brand Image COM 302 Brand Equity, Brand Awareness, and Brand Image As consumers in the United States of America, Americans encounter a number of advertisements daily. Too many to possibly remember them all, then why do we choose Nike shoes, Colgate toothpaste, McDonalds food, or Toyota cars? Choices made by consumers are often affected by the brand image of the product purchased. A brand exists when a marketing entity receives its own name, term, sign, symbol, design, or any particular combination of these elements as a form of identification (Shimp, 2010). Without a recognizable brand, a product is but a mere commodity. Brands do not only furnish the environment in which we live, but also define who we are. Consumers like brands because they package meaning. They form a kind of shorthand that makes choices easier and in a world where time is an ever-diminishing commodity; brands make it easier to store evaluations (Aaker & Biel, 1993). The distinction between brand image and brand equity is that brand equity deals with the value, usually defined in economic terms, of a brand beyond the physical assets associated with its manufacture or provision (Aaker & Biel, 1993). Brand awareness comes from the brand image. Awareness includes strong, favorable, unique associations with a product. The highest awareness comes from consumers when they can recall from memory a specific brand when a product is mentioned. For example, if someone...
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...article explains the concept of brand equity in a specific industrial marketing setting. Studies do point out cases where price and the hard tangible factors of the physical product do not fully explain the purchase decision. The purpose of this study: To explore the existence of brand equity in a specific business-tobusiness product setting; To investigate the sources of brand equity and its appropriate communication channels; The relative importance of brand relative to other purchase decision criteria. BRAND A brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” BRAND EQUITY Brand equity is the added value that endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm. Aaker (1996) Keller (1998) LOYALTY AWARENESS ASSOCIA TIONS BRAND EQUITY PERCEIVED QUALITY AWARE NESS IMAGE BRAND EQUITY The competitive advantage of firms that have brands with high equity include the following: a. A price premium can be attained b. Increased demand by customers c. Brands can be extended easily d. Communications...
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...is concerned with instituting measures to brand itself within the market and gain an appreciable competitive advantage over other players in the market. Most of the companies concentrate on what makes a brand strong and how to build a strong brand. In this regard, these questions can only be answered by applying Customer-Based Brand Equity (CBBE) model. This model facilitates in understanding the brand equity and ways inn which it is supposed to be built, evaluated, and managed. Besides, the approach of this model is from a customers’ perspective, individual or organization, because they are the nerve of successful marketing. Reason being marketers are wary of ‘what do different brands mean to consumers?’ and ‘how does the brand knowledge of consumers affect their response to marketing activity?’ Brand is an important asset to any business and it depicts what a business enterprise is made of or it is about in a snapshot. Park et al. (1986) in his work agues that brand represent an enormous valuable property and are capable of influencing customer’s behavior or will as facilitating security for sustained future revenues to the business enterprise. The fundamental concept of brand equity lies in the fact that the brand has power implanted in customer’s mind and this is facilitated by their experience over a long period of time. Therefore, brand equity is a culmination of processes that head to realization of a special and distinct brand identify. In this respect, this paper takes...
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...Customer Based Brand Equity – Wal-Mart Class Discussion Wal-Mart is a transnational mega corporation operating in 27 countries with more than 11 000 stores. In Canada alone, Wal-Mart operates 396 retail outlets quite an impressive number considering they have only been operating in Canada for just over 20 years. Wal-Mart in terms of Brand Equity is quite a contradiction. They continue to lose overall brand value and yet are still the most valuable brand in North America and are ranked in the top 20 brands based on brand value globally. Wal-Mart is a love it or hate it brand. Despite its value, it has nearly as many detractors and is it supporters of the brand. Class Demo Raise your hand if you have heard of Wal-Mart before I started talking today? Raise your hand if you have ever been inside a Wal-Mart? Raise your hand if you have ever purchased anything at all in Wal-Mart? Now, how many of you dislike Wal-Mart? As you can see from this little demonstration, even though we all know and have been in a Wal-Mart we do not necessarily look favorably upon Wal-Mart. This leads me to the first part of Keller’s Model of Customer Based Brand Equity; Brand Salience. Brand Salience: Wal-Mart is brand salient in the fact that as we can see people are very aware and very familiar with the brand. It is part of a lot of people’s consideration sets when shopping and it is seen as value for money. Where Wal-Mart struggles the most in terms of brand salience is with...
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