BrandEquity

Therearedifferentviewsaboutbrandequitythatprevail.Mostobserversdefinethebrandequity
intermofmarketingimpactthatexceptionallyattributetoabrand.Brandequityrelatestothe
informationthatusuallygetsdifferentresultfrommarketingofaproduct.
DavidW.CravensinhisbookStrategicMarketinghasnarratedthefollowingdescriptionof
BrandEquity
Brandequityisasetofbrandassetsandliabilitieslinkedtoabrand,itsnameandsymbolthat
addtoorsubtractfromthevalueprovidedbyaproductorservicetoafirmand/ortothatfirms
customers

Aboveexplaineddefinitionshowsthattheassetsandliabilitieshaveaconnectionwithbrandname
orsymbolsoifsomechangesareintroducedinthenameorsymbol,thesemayaffectassetsand
liabilities.Thechangescanbesoinfluentialoreffectivethatfewofthesefactorshavetobemoved
out of the brand. Aaker has developed and compiled a group of these assets and liabilities in
followingfivecategoriestomakethemeasiertounderstand.
Brandequityisasetofbrandassetsandliabilitieslinkedtoabrand,itsnameandsymbolthataddtoor
subtractfromthevalueprovidedbyaproductorservicetoafirmand/ortothatfirmscustomers.For
assetsorliabilitiestounderliebrandequitytheymustbelinkedtothenameand/orsymbolofthebrand.
Ifthebrandsnameorsymbolshouldchange,someoralloftheassetsorliabilitiescouldbeaffectedand
evenlost,althoughsomemightbeshiftedtoanewnameandsymbol.Theassetsandliabilitiesonwhich
brandequityisbasedwilldifferfromcontexttocontext.However,theycanbeusefullygroupedintofive
categories

1.
2.
3.
4.
5.

BrandLoyalty
Nameawareness
Perceivedquality
Brandassociation
Proprietybrandassets

Brandequityisavaluableassetforacompany,whichtheywantto,putintheirbrands.Apowerfull
brandenjoysahighlevelofcustomerbrandawarenessandloyalty.Companycanhaveacompetitive
advantagethroughhighbrandequity.Growingandrecognizingbrandarevaluableandfinancial
assetsforacompanyrecognizedbythefinancialmarket.Thefinancialvalueofbranddependson
brandstrength;investinginproductqualityandinadvertisingcanfurtherstrengthenit.
Brandequityprovidesagreatvalueforcustomers;brandequityassetshelpthecustomerstocapture
andprocessthebrandandstorelargenumberofinformationaboutit.Brandequitycanhelpto

developmarketingprogramsandattractthenewandmaintaintheloyaltyandfaithofoldcustomers.
Thecustomerbasedbrandequityariseswhencustomeriswellacquaintedwiththebrandnameand
keepssomefavorable,stronganduniqueaboutbrandassociationinmemory.
Thebrandawareness,brandloyalty,perceivedqualityandbrandassociationarethecoreassetsfor
thebrandequity.Theseareimportantassetsforbuildingstrongbrandequityhelpsinincreasingthe
brandawarenessinthemarket.Theperceivedqualityanditsassociationwiththebrandnamecan
effectthecustomerssatisfactionandgiveshimthereasontopurchase.Thisresultsinthehighbrand
loyaltyamongthecustomerandgreatershareinmarket.
Brandequityalsoinvolvesthevalueaddedofproductthroughcustomerrelationsandperceptionsfor
thespecificbrandname.Brandequityassetscanbedescribedasawayofaddingorsubtractingvalue
forcustomers.Brandequityhelpstheconsumersconstrueprocessandholdinformationpertainingto
brands.Brandequity mayalso influence customers levelof confidence in the decision making
process.
Whenacompanypromotesaproductofarecognizedbrandnameinthemarket,companycansave
thepromotioncost,whichcanbeutilizedintheexpansionofpricingstrategy.Brandequityisvery
helpfultopenetrateinnewmarketwithoutmucheffort.Thusaknownbrandnaturallycreatesa
greaterspaceforitselfintheshelvesthanunknownbrand.Brandequitysupportsthecompanyin
facingthecompetition.Ifabrandhasastrongpositioninthesegment,anotherbrandwillfindavery
difficulttocompeteinthesamesegmentastheyalreadycorrelatevariouscharacteristicswiththe
recognisedbrand.
Customerbasedbrandswithapositiveequity,getmoreorless,afavourablecustomerresponse
towardstheproduct,priceandpromotionofthebrand.Theyperformthesimilarmarketingmix
elements.Customerattributesthefictitiouslyknownorunknownversionoftheproduct.Customer
basedbrandequitywillflourishwhenbrandiswellknownandpossessomefavourable,wellbuilt
anduniquereputationinmemory.Favourableresponsealwaysrepresentspositivecustomersbased
brandequity.Companiescanprogressandhavegreaterprofitbyimprovingrevenuesandlower
productionandmarketingcost.

BrandLoyalty
Brandloyaltyshowscustomerpreferencestopurchaseaparticularbrand;customersbelievethatthe
brandofferstheenjoyablefeatures,images,orstandardofqualityattherightprice.Thisbeliefand
faithofthecustomerbecomesabasefornewbuyinghabits.Initiallycustomerswillpurchaseabrand
fortrial,afterbeingsatisfied,customerswillkeeponbuyingtheproductfromthecertainbrand.
Brandloyaltyrepresentsanencouragingapproachtowardsabrandresultinginregularpurchaseof
thebrandovertime.
Brandloyaltyisshapeofcontinuepurchasingaconscioustoregularbuyingthesamebrand. 45Brand
LoyaltyreflectstheratioofregularbuyerstothesatisfiedbuyerswholiketheproductThisismore
usefulinmarketingtheproducttoexistingcustomersbecauseofgoodbrandloyaltyitwillcostless
effortandmoney,thantoattractnewones. 46Whenloyalcustomersseeanylackattachmenttobrand
attribute,thenheorsheimmediatelytransferredtotheotherbrandproductsthatofferabetterdeal.
Thereasonforbuyingasameproductfromafamiliarbrandsavesthetimeandreducestheperceived
risk.

Thebrandloyaltyofthecustomerbaseisoftenthecoreofbrandequity.Ifcustomersareindifferentto
thebrandand,infactbuywithrespecttofeatures,priceandconvincewithlittleconcerntothebrand
namethereislikelylittleequity.Ifontheotherhand,theycontinuetopurchasethebrandevenintheface
ofcompetitorswithsuperiorfeatures,price,andconvenience,substantialvalueexistsinthebrandand
perhapsinitssymbolandslogan.
Thisisveryinterestingformystudy,especiallywhenItriedtofindoutaboutthisinmysurvey,how
people become a more loyal with specific brands and why people choose certain branded cars. As
mentionedabove,therearemanyattributesinthecarwhichhelpsthemtogetloyalcustomers.Itcanbe
thatthesamebrandisbeingusedbythefamilyforgenerations.

Brandawareness
Brandawarenessistheabilityofapotentialbuyertorecognizeorrecallthatabrandisamemberof
acertainproductcategorysohecanestablishalinkbetweenproductclassandbrandisinvolved
Thisisthesecondcategoryofthebrandequity.Brandnameawarenessplaysanimportantrolein
decisionmakingofaconsumer;ifcustomerhadalreadyheardthebrandname,thecustomerwould
feelmorecomfortableatthetimeofmakingdecision.Customersdonotprefertobuyanunknown
brand.Thereforecompaniesstrongbrandnameisawiningtrackascustomerschoosetheirbrand
overunknownbrand.
Peoplegenerallytendtobuybrandsthattheyarefamiliarwithandonwhichtheyhaveconfidence.
Tobeabletogettheloyaltyandawarenessoftheconsumerbrandawarenessisamust,forwhich
unknownbrandhastofacethetoughcompetitionfromthebrandsalreadyhavingaplaceinthe
market.
Awellknownbrandhasagoodopportunity,wheneveraneedofthesomeitemsarise,thecustomer
willnotliketotakeachanceandprefertopurchasenameawarebrandfirst.Customeruseproducton
trialbasis,aftersatisfactionofthebrandquality,itwilluseitregularly.Topromotebrandname
awarenessisquiteexpensiveandshouldbedonethroughmassadvertising.Generallypeoplechose
thewellknownbrandedcars.IfindthisinterestingformystudyandIstrivetofinditout.People
chosewellknownbrandedcarsaboveunknownbrandedcarsbecausetheyarewellawareaboutthe
brands,itsreputationinmarketandhavethedirectorindirectexperienceabouttheproduct.
PerceivedQuality
"Ifacustomerexpectsabadlevelofqualityandreceivesit,he/shewillreducehis/herlevelof
preferenceforthebrand"
Itisanessentialcharacteristicforeverybrand;perceivedqualitydefinesacustomersperceptionand
theproductsqualityorsuperiority.Theperceivedqualityprovidesfundamentalreasontopurchase.
It also influences brand integration and exclusion to consideration set before final selection. A
perceivedqualityprovidesgreaterbeneficialopportunityofchargingapremiumprice.Thepremium
raisesprofitandgivesaresourcetoreinvestinthebrand.Perceivedqualitywillenableastrong
brandtoextendfurtherandwillgetagreatersuccesspossibilitythanaweakbrand.
Mostlycustomersprefertobuyproductsfromawellknownandfamiliarbrand,ratherthanopting
fortheunknownandnewbrand.Sometimestheydonotwanttotakeachancebytryingtogofora
newbrand.Perceivedqualityofabrandinfluencesthedecisionmakingprocessofaconsumer.It

alsodirectlyinfluencesthebrandloyaltyoftheconsumers.Perceivedqualityhasagreaterinfluence
inacustomerspurchasingprocessandinbrandloyalty.Thisinfluenceisveryimportantwhen
customersareinacondition,whichmakesthemunabletomakeananalysisofthequality.Perceived
quality can be used as a helping tool when company intends to utilize a pricing strategy with
premiumpriceandfurtherextendabrandinseveralmarkets.Allcustomersareconsciousaboutthe
productquality.Themajorityofpeopleprefertogoforwellknownbrandscarwhichhaveahigh
reputationinthemarketforthedifferentattributesofthequality.Therearemanyqualityattributes
whichthecustomerlooksfor,likethemileage,safety,designetc.

BrandAssociation
Keller pointed out that the favorability, strength, and uniqueness of brand associations are the
dimensionsdistinguishingbrandknowledgethatplayanimportantroleindeterminingthe
differentialresponsethatmakesupbrandequity,especiallyinhighinvolvementdecisionsettings

Therearevaluesofabrandthatarenotasvisibleasotherbrands.Thesevaluescanbebasedonthe
associationofthebrandwithcertainfactorsorpersonalitiesthatprovidesconfidenceandcredibility
among thecustomers.This Association can bemade through famouspeople,who represent the
brand,andtheirwellknownpersonalityandlifestyle.Forexamplecarscanbeassociatedwiththe
lifestyleorfameofthecelebritiesandtheirassociationwithparticularbrand.Acompanytriesto
associatecertainattributetotheirbrand,whichmakesitharderforthenewbrandstoenterthe
market.Somebrandscanbeassociatedwithotherattributes,likegoodservice;competitorstryingto
competewiththisattribute,canbeextremelydifficultbecauseoftheestablishedtrustandfaithofthe
customerinthemarket.
Many brand associations include product attributes and consumer benefits that offer a specific
explanation to customers purchase and utilize the specific brand. Brand symbolizes a base for
purchasedecisionandbrandloyaltyforexamplecustomeruseToyota,HondaandSuzukibrandcars
becausetheyprovideagoodserviceaftersaleandmakethesparepartseasilyavailable.
Proprietybrandassets
Acompetitorissomeonewhowantstotakebusinessawayfromyou
Inthepreviouscategorieswehavediscussedmoreabouthowthecustomerperceivesandrespondto
thebrand.Thisfifthandfinalcategoryofbrandequitywillfocusonassetsliketrademarksand
channelrelationship.
Aproprietybrandassetismostvaluableforcompanyassetsintheshapeoftrademark;thatcannotbe
copiedeasily.Atrademarkprovidestheprotectiontocompanies,theirbrandnameorsymbol.Itis
noteasyforothercompaniestousetheirnamesbecausemajorityofcustomersidentifythebrand
productthroughtrademarkdesign.Companieshavetomakefurtherprotectiontotheirbrand.The
patentisveryhelpfultoolforcompany.Itcanstopthecompetitorstocopytheproduct.Abrandcan
controldistributionchannelthroughhistoryofthebrandperformance.