2.2 Brand Equity Model
The original concept of brand equity (Aaker, 1992) has been viewed and developed into different directions: strategically and financially, where the brand value is regarded as an accounting tool, to stipulate the financial value the brand provides to a company (Keller, 1993). The motivation and original definition being:
“A set of assets and liabilities linked to a brand, its name and symbol that adds to or subtracts from the value provided by a product or service to a firm and/or to that firm’s customers.” (Aaker, 1992).
However, K.L. Keller (1993) developed the brand equity model by drawing attention to the customer’s perspective of a brand, in order to improve marketing productivity, and thus developed the consumer …show more content…
It refers to “…the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category” (Aaker, 1991). However, although this dimension is key to the success of a brand, it is often overlooked (Aaker, 1996).
Brand awareness has two different levels: recognition, which grants the brand the sub-stance and confirms prior exposure and at the other level: recall, which affects the choice of brand, between products when given the category. This generates a subcon-scious selection, with regard to consideration, selection and substance building (Aaker, 1992). Hence, awareness is central in affecting consumer’s behaviour and supporting the decision- making process, as Baldauf, Cravens & Binder (2003) show in their study, the effect of consumers purchasing preference towards familiar products, compared to unbeknown …show more content…
Other experts define brand image as the perceptions about a brand, however, includes the product attributes and features, customer value, users, customer groups, lifestyle, quality, com-petitors and countries (Aaker, 1996). For the customer brand association is a method of assumption to select a product by positive or negative attributes and is part of the decision making process. Hence, it is the basis for differentiation, licensing, brand recognition, and - extension. Aaker (1996) states the example of ‘Heinz’, being imme-diately associated with tomato-ketchup and therefor delivers an advantage in competi-tion. In order to exploit the brand name and advantage, an extension of the brand to ‘Heinz Backed Beans’ will create direct perception with the product benefits and quality (Aaker,
The original concept of brand equity (Aaker, 1992) has been viewed and developed into different directions: strategically and financially, where the brand value is regarded as an accounting tool, to stipulate the financial value the brand provides to a company (Keller, 1993). The motivation and original definition being:
“A set of assets and liabilities linked to a brand, its name and symbol that adds to or subtracts from the value provided by a product or service to a firm and/or to that firm’s customers.” (Aaker, 1992).
However, K.L. Keller (1993) developed the brand equity model by drawing attention to the customer’s perspective of a brand, in order to improve marketing productivity, and thus developed the consumer …show more content…
It refers to “…the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category” (Aaker, 1991). However, although this dimension is key to the success of a brand, it is often overlooked (Aaker, 1996).
Brand awareness has two different levels: recognition, which grants the brand the sub-stance and confirms prior exposure and at the other level: recall, which affects the choice of brand, between products when given the category. This generates a subcon-scious selection, with regard to consideration, selection and substance building (Aaker, 1992). Hence, awareness is central in affecting consumer’s behaviour and supporting the decision- making process, as Baldauf, Cravens & Binder (2003) show in their study, the effect of consumers purchasing preference towards familiar products, compared to unbeknown …show more content…
Other experts define brand image as the perceptions about a brand, however, includes the product attributes and features, customer value, users, customer groups, lifestyle, quality, com-petitors and countries (Aaker, 1996). For the customer brand association is a method of assumption to select a product by positive or negative attributes and is part of the decision making process. Hence, it is the basis for differentiation, licensing, brand recognition, and - extension. Aaker (1996) states the example of ‘Heinz’, being imme-diately associated with tomato-ketchup and therefor delivers an advantage in competi-tion. In order to exploit the brand name and advantage, an extension of the brand to ‘Heinz Backed Beans’ will create direct perception with the product benefits and quality (Aaker,