General Literature Review
Branding of products involves itself with more than just retailing in the market segment. It is a series of positioning oneself to the customers in the market scene. This allows the customers to determine and affirm the correlations between the firm and the consumer. All consumers are brands oriented; their consumption patterns dwell mainly on the branding of its products. Consumers seek to purchase the brands from different producers and not necessarily the product; this is due to the nature of the rationality of the consumers. This gives them the maximum level of satisfaction on their consumption patterns and levels.
Brand equity is the distinction between branding between one firm and the other, and the resultant effect of evaluating smooth competition in the market segment. Brand equity is a strategy that is used by most market players to ensure that they have maximum market dominance in terms of products availability and branding. Most producers who enjoy the freedom of competition in the market segment to balance off their competition use this.
This paper outlines the literature review from two scholarly articles and expounds on the in-depth relation of different aspects. Brand equity involves more than one player in the market scene for it to attract and enjoy the competition within the market region. Consumers are the main ambassadors of brands of different products within the market segment. This paper evaluates the importance of the brand ambassadors and loyalties to these brands. It outlines that, for effective brand equity then, a smooth co-existence must prevail between the customer and the producer of a given product or good.
"Developing and Validating a Multidimensional Consumer-based Brand
Equity scale" from Boonghee Yoo and Naveen Donthu.
Customer based brand equity is of the essence to any further development in marketing. CBBE enables consumers to be objective and selective when choosing the products of their interest, especially when it comes the choice of brands within a given category of products. The purpose of evaluating CBBE is to examine intrinsic relationship with brand associations and variables that correlate with them. As a case study, the research aims at evaluating the solid relationships with purchasing power of different brands and their related product categories.
Core Facets and Related Brand Associations
Every liberal consumer considers the branding of a given product as a value addition towards purchasing the given product. Value addition seems to be a variable with different facets; the major facets are the primary predictors of purchasing the brand and its behavioral characteristic. The major CBBE facts that have been brought forth include; perceived quality, willingness to pay a price premium of a given brand and perceived value for the cost of the brand.
Keller (1993) agrees that; CBBE is the differential effect of the understanding of different brands and qualitative response for the efforts dedicated towards the marketing of the product. Organizational associations which includes a set of beliefs that the consumer is directly inter-related to the reputation of the marketing framework of a company in terms of; trustworthy, honesty and care that is dedicated towards the customers. The brand image of a given company determines the heritage and loyalty that the customers owe to the existence of the producer. It also influences the consistency and positivity that the consumers portray in constant purchase of the product.
Brand associations concerns itself with a series of; brand awareness, brand familiarity, brand popularity, organizational associations and brand-image consistency. Brand awareness is associated with the degree at which consumers recall a given brand when a specific product is mentioned. Brand familiarity is the degree at which consumers are familiar with a given brand name, whereas, brand popularity is the extent at which the consumers thinks of a given product as popular in relation to its consumption by others.
This is the most core fact that is of great consideration in the CBBE methodology. Perceived quality concerns itself mainly with how customer’s judgment is based solely on the esteem, excellence, and superiority of the brand in the market segment. Perceived quality concerns itself intrinsically with the evaluation of the product based on the branding qualities and the purchasing power by the consumers. It is more of cross-evaluation of brands and products in a global prospective.
Perceived Value for the Cost
This primary facet applies as a solid cornerstone of CBBE framework (Farquhar 1989). It is defined as the overall assessment procedure that a given customer undertakes on the utility of a given brand, which is solely based on quality assessment and price that is paid for the brand. The perceived value for the cost involves a trade-off balance between what is paid for and what the customer is given in return.
Uniqueness of the Product
The consumers compare and contrast between two different brands in terms of their quality and market reputation at this extent. A product can easily determine Price that its brand is widely understood throughout the market. Despite the advertising segment of marketing, brand uniqueness in the market commands and determines the price in the marketplace. The uniqueness of a brand that a given customer dedicated to a given product in the market determines the purchasing power of the said product by the customer within the market.
Willingness to Pay a Price Premium
The willingness to pay involves more of, the customer’s willingness to pay for a given brand at the expense of a lesser brand retailing in the market. This is one of the variables that are used, to crosscheck on brand loyalty and can be used to ascertain for brand equity among the consumers (Aaker, 1996). The willingness to pay aspect is mainly a personal decision making process that a given consumer makes depending on the provision and availability of a given brand within the market. A willingness to pay the premium does involve committing oneself to paying more of the anticipated price.
This class of thoughts believes that, brand equity is not just a process that establishes itself. It is believed and acknowledged that, the composition and value addition effects that a brand brings along with it through; perceived quality, willingness to pay among others, determines the brand leveling in the broader market.
"Developing and Validating Measures of Facets of Customer-based Brand Equity" - from Netemeyer et al.
Brand equity, which involves more of value addition and incremental utility in the brand name. Brand equity is the difference between a focal brand and a given unbranded product, which are exposed, to the same marketing stimuli and product qualities. Product’s brand equity affects the future layout of profits of a given company, and a set of long-term quality and cash flow (Srivastava & shocker, 1991). The willingness of a consumer to offset prices (Keller, 1993), acquisition and merger decision making (Mahajan et al, 1994).
CBBE can be beneficial in different ways; it offers a cross test of counter checking on the theories that are available for testing brand equity. In relation to Aaker (1991), brand equity enhances maximum value addition to the customers by facilitating their interpretation and smooth processing of information, satisfaction, and solid confidence in the purchase decision. Brand equity ensures efficiency and effectiveness in marketing programs of a given organization, brand extensions, competitive advantages, prices and profits, and trade advantage.
The Brand Equity Construct
Brand equity consists of attitudinal dispositions, favorable impressions, and behavioral predilections. Brand associations, perceived quality, brand loyalty, brand awareness, and basic brand knowledge, for example, brand associations and brand awareness. Loyalty and image (Shocker and Weits, 1988), for instance, the value addition that comes along with the brand name, and incremental utility. The distinctive difference between overall brand preference, and variable preference that is based on measured levels of attributes. The quality of choice also determines the brand equity in product lifecycle. Brand equity comprises mainly of four logical dimensions; brand awareness, brand associations, brand loyalty and perceived quality of the brand.
In a broader aspect of consideration, brand equity construct consists more of; brand awareness, brand loyalty, brand associations and perceived quality of brand (Aaker 1991). All these dimensions are applicable when evaluating the link between brand equity and consumer behavior, hence, a cognitive brand equity measure ought to be developed that focuses on capitalizing on these four dimensions. Brand loyalty involves more of the attachment that a given customer owes to a given brand. Brand awareness involves more of brand recognition and recall. It is the ability of a given customer to recall and consider that a given product belongs to a given branding line. Brand associations involves itself with brand imaging; it is the labelling that customers attach to a given brand. Perceived quality is the cross judgment that the consumer places of a given product based on its superiority and excellence.
Item generation through brand equity and the entire CBBE serves as an equitable way of advocating association of branding in different dynamics. Given that, brand equity concerns itself with; brand loyalty, brand association, brand awareness, and perceived quality of the product. This idea of item generation gives the potential strategy of ensuring a stiff market conditions. Item generation consists itself with the entire sense of, segregating oneself from the rest, this is brought about through the manner in which the case is being handled and expatriated. A system of different brands in terms market does not give it the credit that the clients are raising on to general customers, this overtakes them from other potential competitors in the market. This consists of value addition towards the branding of the products and ensures that the line of products available is self-sustaining.
CBBE involves more of designing a strategy that aims at leveling the brand in respect to the product that the company offers to the customer. Item generation ascertains this through; brand loyalty, brand awareness and brand association. All these aims to classify that, brand equity is more of a value than the cost to the consumer.
General Overview of Forms of Measuring Brand Equity
Aaker, D. (1991). Managing Brand Equity. New York: The Free Press.
Farquhar, P. H. (1989). Managing Brand Equity. Adelaide: Macmillan Publications.
Keller, K. L. (1998). Strategic Brand Management. New Jersey: Englewoods Cliffs Inc.
Mahajan, V., Rao, V. R., & Srivastava, R. K. (1994). An Approach to Assess the Importance of Brand Equity in Acquisition Decisions. Washington DC: Sage Publications.
Shocker, A. D. & Weits, B. (1988). A Perspective on Brand Equity Principles and Issues. London: Cambridge University Press, PP. 2-4.