Constructing a relationship-based brand equity model

The purpose of this study is to develop and test a model in which several aspects of the service encounter including service staff, servicescape, customer similarity, and customer interaction are taken into account simultaneously as antecedents of relationship quality and generation of brand equity. Testing the hypotheses involved two service settings, banks and department stores. The findings demonstrate that serviced staff and customer interaction have significant direct effects on brand equity. Surprisingly, four variables of service encounter have significant indirect effects through relationship quality on brand equity. Based on these findings, the implications for managers and future research are identified.     

The impact of brand personality and sales promotions on brand equity

This research assesses the relative impact of a long-term brand management instrument (brand personality) and a short-term marketing mix instrument (sales promotions) on brand equity formation. The authors measure consumer perceptions of promotional intensity and brand personality and model their impact on brand equity. They find a positive impact of brand personality and a negative impact of sales promotion intensity on brand equity at the aggregate level. In line with research that identifies varying consumer responses to promotional deals, this study posits that the relative impact of the two elements varies across consumer groups. Three homogeneous consumer groups differ according to the relative impact of brand personality and consumer promotions on brand equity, following an application of a finite mixture partial least squares procedure.     

Leveraging brand equity to attract human capital

We propose that brand equity can influence job seekers’ perceptions of job opportunities. Our results suggest that job seekers view working for a strong brand as a way to build the power of their résumé. The belief that strong brands build powerful résumés is, in part, the outcome of job seekers’ beliefs that working for a strong brand will allow them to advance to better positions internally, provide them job-related training and skills, and demonstrate their willingness to work hard. In turn, job seekers express a greater desire to work for strong brands as measured by salary requirements and perceptions of job appeal in experiment 1 and job choice in experiment 2.

Customer satisfaction and brand equity

The study here examines the interaction between shareholder value and customer satisfaction, as well as the impact on a firm's brand equity. Customer satisfaction may have a positive effect on brand equity, except when managers show excessive customer orientation, in which case the effect is negative because of reductions in shareholder value. The empirical analysis uses incomplete panel data pertaining to 69 firms from 11 nations during the period 2002-2005 and supports the theoretical contentions. This result warns of the perverse effect on brand equity of implementing policies focused exclusively on satisfying customers at the expense of shareholders' interests.     

An integrated retailer image and brand equity framework: Re-examining,extending, and restructuring retailer brand equity

Retailers are amongst the world's strongest brands, but little is known about retailer brand equity. In spite of their extensive use, we argue that current operational models are too abstract for understanding the uniqueness of the retail industry and too simplistic to understand the interrelationships among the dimensions in the retailer brand equity building process. This study contributes to the existing and largely generic retailer equity frameworks in three ways: first, by incorporating retail specific dimensions from the retailer image literature; second, by re-examining and developing the structures and relationships between the dimensions of retailer equity by testing alternative structures commonly used in the more general brand equity literature; and finally by creating a short and parsimonious scale for assessing retailer brandequity in different contexts. Three alternative models are compared and tested on six brands in both convenience and shopping goods categories, ranging from discount to middle range price levels. The outcome is an operational framework supporting the main building blocks of the conceptual brand resonance model presented in Keller (2001) with seven dimensions structured in a four-step sequence as awareness → pricing policy, customer service, product quality, physical store → retailer trust → retailer loyalty, thereby describing retailer brand equity as a four-step process. The extended, although parsimonious, 17-item retailer equity scale can be used by academics as well as practitioners to examine the underlying values of retailer brands and has the potential to incorporate additional dimensions and attributes to investigate specific retail contexts without creating lengthy questionnaires.     

How brand awareness relates to market outcome, brand equity, and the marketing mix

Combining survey data with real-market data, this research investigates brand awareness from three perspectives. This study examines the relation between brand awareness and market outcome and explores the relation between brand awareness and brand equity. The study also investigates the effects of marketing mix elements on brand awareness. Results reveal consumers' brand usage experiences contribute to brand awareness, implying experience precedes awareness in some contexts. The results also confirm positive association between brand awareness and brand equity. Lastly, the current work demonstrates the importance of distribution and price promotion in building brand awareness in a consumer-packaged goods category.     

Investigating the antecedents of customer brand engagement and consumer-based brand equity in social media

The current research is concerned with identifying and testing the role of three main predictors: consumer involvement, consumer participation, and self-expressive brand on the customer brand engagement (CBE). The customer brand engagement is treated in the current study as multidimensional constructs comprising three main aspects: cognitive processing (CP), affection (AF), and activation (AC). It was also proposed a direct influence for these three aspects of CBE on consumer-based brand equity (CBBE). Using online surveys, we gathered data from fans/followers of mobile phone service providers, via Facebook fan pages in Jordan. The data were analysed using structural equation modelling. Based on structural equation modelling analyses (SEM), it was supported that CBE aspects were largely predicted by the role of consumer involvement (INV), consumer participation (COP), and self-expressive brand (SEB). However, we find that activation impact one dimension of the CBBE dimensions, namely, brand loyalty. Further, we find that brand awareness/associations affect perceived quality but not brand loyalty. To validate the CBE scale, future studies could investigate the impact of the scale using other social media platforms for different brands. The limited amount of empirical research on CBE was the motivation behind this research. In particular, there is no study that has investigated the main predictors of CBE and its consequences over developing context by proposing and testing the association between the antecedents of CBE with the dimensions of CBE, which in turn affect the dimensions of CBBE.     

Brand origin and country of manufacture influences on brand equity and the moderating role of brand typicality

This research investigates how country macro and micro images associated with both brand origin (BO) and country of manufacture (COM) impact two main dimensions of brand equity-brand image and brand quality. Whereas BO images relate positively to both dimensions of brand equity, COM images exert an impact on brand quality, not on brand image. The typicality of the brand as a representative of the country of origin moderates the impact of BO on brand equity, such that the effects of BO on brand equity are stronger when the brand is more typical. The authors explore implications for theory and practice.     

The impact of brand equity and the hedonic level of products on consumer stock-out reactions

We investigate the impact of brand equity and the hedonic level of the product on consumer stock-out responses. We also examine whether the hedonic level of the product moderates the effect of brand equity. Using a sample of Dutch consumers divided over eight product groups and eight retail chains, we tested our hypotheses and found that consumers were more loyal to high-equity brands than to low-equity brands in the case of a stock-out situation. In hedonic product groups, consumers were more likely to switch to another store. Purchasers of high-equity brands in hedonic product groups were, compared to purchasers of high-equity brands in utilitarian product groups, less inclined to postpone the purchase but were more likely to switch to another item by that brand. In addition to these two main variables, we also investigate the effect of variables from prior research and some new variables, such as stockpiling and impulse buying. Finally, we discuss the theoretical and managerial implications of the findings.     

Valuation of brand equity and retailer growth strategies using real options

In marketing, significant attention has been devoted to the study of drivers and outcomes of strategic flexibility drawing on real options theory. However, research that quantifies the specific value of flexibility reflected in a bundle of strategic real options is lacking. To remedy this gap, we develop a real options-based framework that takes account of brand expansion and extension options to value brand equity and retailer growth strategies. We show how to value the bundle of strategic real options associated with a flexible marketing strategic vision and how to assess the growth strategies related to the corporate brand of an international retailer. We apply our method to estimating the brand equity of Starbucks both under growth and adversity conditions. The results reveal that our method can more reliably incorporate the growth potential of the brand under uncertainty conditions. Comparisons with other brand valuation approaches are discussed. Our study helps clarify the links among management’s strategic plans, brand-based marketing strategies and share price, and allows to better monitor the impact of retailer strategic choices on long-term brand equity value.     

The impact of mergers and acquisitions on brand equity: A structural analysis

An overlooked strategic benefit of mergers and acquisitions (M&As) is their impact on brand equity. M&As may affect consumer brand preferences, which in turn will affect a firm’s profit. We develop a structural model with a difference-in-differences specification to measure how M&As affect a firm’s profit through three mechanisms: brand equity, cost synergies, and product portfolios. We analyze Lenovo’s acquisition of IBM’s PC division in China’s PC market and find that the increase in brand equity contributed the most to increasing Lenovo’s profit, followed by cost synergies. To explore the generalizability of our modeling approach, we apply it to Geely’s acquisition of Volvo and also find that the gains in brand equity contributed the most to Geely’s profit increase.     

The relationship between store image and store brand equity: A conceptual framework and evidence from hypermarkets

Retailers are making considerable efforts to improve their brand management. The challenge they face, however, is how best to integrate coherently their stores, as brands, and their various distributor brands (store brands, private labels, etc.), in order to increase their brand equity and offer the market differential value that will stimulate customer loyalty. From this perspective, it is crucial for retailers to investigate the relationship between the store and their own brands. This study proposes two theoretical models showing the mechanism whereby store image helps increase the equity of a specific type of distributor brand (the store brand). The approach used in this analysis is based, on the one hand, on defining brand equity through its components, using the model in Aaker (1991), and on the other, on including (social and strategic) corporate dimensions in measuring store image. The empirical research made in the hypermarket sector in the Basque province of Gipuzkoa backs the majority of the proposed hypotheses. The results show that store image can be used by retailers to influence all components of store brand equity, essentially through its commercial and strategic dimension. This research is intended to address the clear lack of research on store brand equity.     

Modeling the brand extensions' influence on brand image

Brand-extension strategies enhance success chances of new products, even though they expose brand image to dilution risks. The present work analyzes how brand-extension evaluation can affect the current brand image and proposes a theoretical model formed by five main factors related to brand associations, extension congruency and extension attitude. The model estimation includes structural equation analysis using data from 699 surveys developed under market conditions. The results verify that extension attitude influences brand image, whereas initial brand associations and perceived fit between the new product and either the remaining products (category fit) or the brand image (image fit) are able to strengthen consumer attitude. The study also explains the role of consumer innovativeness as a moderating factor, suggesting that the characteristics of consumer personality could be more important than expected.     

Strategies to offset performance failures: The role of brand equity

In this research, we examine the role of brand equity as a strategy to offset the negative effects of a performance failure. Two independent studies, spanning four industries and involving 669 respondents are employed to investigate this issue. Results suggest that high brand equity leads to more favorable satisfaction evaluations and behavioral intentions than low brand equity. The brand equity effect is identified as a prevailing advantage that spans the entire failure and recovery sequence. This is an important finding because it implies that the advantages of high brand equity theoretically can apply to all failures, not just those for which recovery is attempted. Further inspection, however, reveals that despite the prevailing advantage, high-equity brand failures lead to a more drastic decline in customer evaluations immediately after the failure episode. Managerial implications and future research are addressed.     

Managing the consumer-based brand equity process: A cross-cultural perspective

Most consumer-based brand equity (CBBE) models are linear and fail to capture the complexity of the brand equity construct and its benefits in terms of key consumer behavioral outcomes. More complex and dynamic models focusing on CBBE as a process often lack empirical support particularly from more than one country. This study builds on and extends previous research by empirically examining the configural nature of the CBBE building process cross-nationally, and by investigating differences vis-a-vis key consumer behavioral outcomes (namely, willingness to pay a price premium, brand recommendation and repurchase intention). These differences are postulated and explained through culture theory particularly the cultural dimension of individualism/collectivism. Using fuzzy-set/Qualitative Comparative Analysis (fs/QCA), survey data from Greece and Germany support the robustness of the extended CBBE model. The model shows that overall brand equity and consumer behavioral outcomes are created through the brand building, brand understanding, and brand relationship blocks, and identifies core causes and common patterns across countries providing a useful diagnostic tool for international brand management.     

Multidimensional brand equity and asymmetric risk

The authors investigate the extent to which central customer-based brand equity dimensions (Differentiation, Relevance, Esteem, Knowledge, and Energy) influence a firm’s systematic risk (i.e., beta) during both market upturns and downturns. The results demonstrate that aggregating upside and downside beta or different dimensions of brand equity masks the true associations which can be seen only in the disaggregate analyses. The authors find that Relevance and Knowledge play roles as stabilizers, showing negative relationships with both upside gains and downside risk, while Esteem plays the role of protector, showing a negative relationship with only downside losses and not influencing upside gains; Energy acts as a booster, being positively associated with a firm’s potential gains in a period of market growth without increasing the firm’s expected losses during a bad market. The positive relationship of Energy with aggregate risk could be misleading as it hides the beneficial effect of Energy as a booster. The authors also find that Relevance is the most important consideration when people make choices in bad market situations, while Energy becomes the most crucial deciding factor in good market situations. Taking advantage of the multidimensional constructs of brand equity while allowing for the asymmetrical characteristics of risk enables managers to capture the differential role of each brand equity dimension in influencing firm risks, which leads to more sophisticated strategic decisions regarding risk management. In addition to general brand strategy, the authors provide tailored brand strategies to firms from different industries or with different financial characteristics.     

Constructing an index for brand equity: a hospital example

If two hospitals are providing identical services in all respects, except for the brand name, why are customers willing to pay more for one hospital than the other? That is, the brand name is not just a name, but a name that contains value (brand equity). Brand equity is the value that the brand name endows to the product, such that consumers are willing to pay a premium price for products with the particular brand name. Accordingly, a company needs to manage its brand carefully so that its brand equity does not depreciate. Although measuring brand equity is important, managers have no brand equity index that is psychometrically robust and parsimonious enough for practice. Indeed, index construction is quite different from conventional scale development. Moreover, researchers might still be unaware of the potential appropriateness of formative indicators for operationalizing particular constructs. Towards this end, drawing on the brand equity literature and following the index construction procedure, this study creates a brand equity index for a hospital. The results reveal a parsimonious five-indicator brand equity index that can adequately capture the full domain of brand equity. This study also illustrates the differences between index construction and scale development.     

Brand equity: extending brand awareness and liking with Signal Detection Theory

Brand equity, which is a central topic in modern marketing, may be assessed from three perspectives: customer mind set, product market outcomes and financial market outcomes. Brand awareness (memory) and brand liking are elements of customer mind set brand equity. The factors determining brand awareness and likeability are also determinants of the change in financial brand equity. In order to understand these factors, Signal Detection Theory is employed for finding the components of brand awareness and likeability. Signal Detection Theory has a strong tradition in psychology, but is under‐represented in marketing and consumer behaviour. This study extended the concept of brand awareness to ‘awareness sensitivity and bias’ and the concept of ‘brand likeability’ to ‘liking sensitivity and bias’ using Signal Detection Theory. The effect of divided attention on the extended components was investigated in three laboratory experiments. It was found that, in the attended mode compared with the unattended mode, consumers perform better in preserving a favourable brand awareness and have a conservative reaction tendency. This effect of attention occurs in building brand awareness for short presentations, but not for long presentations. These findings may serve as guidelines for a strategy formulation for enhancing customer mind set brand equity.     

The impact of brand health on customer equity

This paper aims at studying the interactions between brand and customer assets over the long-term. Through the application of a new behavioural measure called the brand health index (BHI) we examine the impact of brand health on customer equity, and its mediating impact on the advertising-customer equity relationship. Three services industries, department stores, airlines, and banking, were studied from 2001 to 2012. The results show that brand health has a positive impact on customer equity, although the magnitude of the BHI impact varies across different industries. Moreover it was demonstrated that brand health mediates the impact of advertising on customer equity.