1. Introduction
The marketing concept is a relatively recent one (Blythe, 2008), and while there are several definitions of marketing, it is agreed that marketing involves the process of exchange between firms and customers, where both parties benefit (Adcock et al, 2001), and that the customer and his needs are placed in the centre of the organization’s activities (Blythe, 2008). Due to this, it is the goal of many organizations to establish a strong brand and significant equity based on their customers.
This essay aims to firstly outline and critically assess the concept of Customer-based Brand Equity in marketing, and secondly evaluate Cadbury’s success in applying this model, as well as highlighting areas where improvements are
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2.1. Brand Awareness
The first step, is establishing brand identity by creating awareness, or brand salience, amongst customers (Aaker, 2009; Keller, 2003). It is the strength of the presence of a brand in the minds of customers (Pappu et al., 2005), and is not only the customers’ ability to both recognize and recall a particular brand, but also involves associating the brand to certain memories (Keller, 2003).
At this stage, it is hence crucial to fulfil two aspects of brand awareness: the depth, and the breath. Depth refers to the ease of recognition and recall experienced by the customers, and can be achieved by making the brand noticeable and memorable. On the other hand, the breadth represents the range of situations and settings during purchase where the brand is considered. A salient brand possesses both, where customers both recognize the brand, and think of various situations where the brand can be used (Keller, 2003).
2.2. Brand Association
Customers usually develop associations and consider other factors such as the image or meaning of the brand during purchase (Keller, 2003), therefore it is important to create positive brand meaning via favourable brand associations, which is the second step of the model (Keller, 2003). Brand association is a widely accepted aspect of brand equity (Aaker, 2009) and includes all brand-related perceptions or attitudes that customers
Finally, Shamma (2011) claims that total brand equity consists of product and corporate brand equity which depends on company’s market, social and financial performance. Furthermore, there is a positive relationship between company’s corporate brand and socially responsible marketing and total brand equity (Shamma, 2011). Similarly, Grace and King (2011) talks about employee brand equity, which is the result of positive and productive employee brand-related behaviour and is strongly linked with brand’s strength (Grace and King, 2011). In contrast, Kay (2004) argues that corporate branding differs from product and service branding as it is aimed at different target audiences. For instance, corporate branding usually targets company’s shareholders and employees whereas product and service branding is focused on consumers who are not really interested in corporate brand identity (Kay, 2004). However, it is also claimed that some companies, especially those that started as niche businesses that appealed to small segments of socially conscious customers succeeded in creating strong and distinctive corporate brands. Referring to CC and Jim Beam corporation consumers are not that concerned about company’s overall image, however introduction of corporate social responsibility and socially
A brand is a portfolio of qualities associated with a name, which in turn invokes certain images to individuals and hold values beyond the benefits of a product (Iacobucci, 2018). Brand association occurs when customers make a cognitive or emotional association with a particular brand. For instance, when a customer sees a certain color, symbol, logo, or name they automatically can make a connection to a particular brand. Brands start with a name that conveys information, suggest their benefits, or can even be named after their founders (Iacobucci, 2018). In the marketing perspective marketers can control the brand which they are marketing by using catching logos, colors, slogans, or even the products shape and appearance. In marketing a marketer can control the message they are trying to convey but cannot really have control over an individual’s association with that particular brand. Once a customer has an association with a particular brand they may favor the brand based on a past experience or even that individual’s sense of style or they may dislike a brand because of an association they
According to the American Marketing Association (AMA), 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”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.
The CBBE model approaches brand equity from the perspective of the customer – whether customer is an individual or an organization. The CBBE model provides a unique point of view as to what brand equity is and how it should best be built, measured and managed. The power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time. The big challenge for marketers is to ensure that customers have the right type of experiences with their products and services. In order to do this, marketers must develop marketing programs in way that best fit into customers’ mind and linked the brand to the desire customers’ feelings,
Purpose - The aim of this paper is to examine if there is a correlation between brand equity and brand loyalty. The author will research the sources of brand equity for three international clothing companies: Abercrombie & Fitch, Marks & Spencer, H&M and apply each company to the Loyalty Ladder.
Brand image is defined as consumer perceptions of a brand as reflected by the brand associations held in consumers’ memory. To measure brand image, one can either use and adapt an existing list of brand associations (e.g., Aaker’s brand personality list described later) or start from scratch by eliciting brand associations and by then measuring the strength of these associations. The outcome of this exercise is usually a short list of the positive and negative associations consumers have with the brand, ranked by their strength. For comparison purposes, it is useful to report the average strength of each association with the brand and the strength of the association with competing brands and to do this for each target segments (e.g., brand users and users of competing brands). For example, you can list the five positive and negative associations INSEAD MBAs and LBS IVIBAs have of the INSEAD and LBS brands and report the four scores for each association.
Brand salience refers to brand recall and how quickly a brand is thought of when the consumer is presented with a visual reminder of the brand identity, as well as how quickly it is thought of over its competitors. Faster recall = higher brand salience. In this study it was found that visual merchandising cognition was a predictor for brand salience.
According to Mohmmad Doostar and Maryam Kazemi (2012) researched the impact of brand equity and purchase decision of final consumer. The researchers have used the model of brand equity according to which brand equity has four dimensions perceived quality, brand loyalty, brand image and brand awareness. The methods to gather information in this study used were library (specialized texts) and field methods (questionnaires collected); the target population in this study was the buyers of the
Regarding the issue of consumer behaviour, organisations could improve their perceived quality of their brands (Keller 2001) whilst adjusting their marketing strategies to enhance the brand image (Simmons 2007)
According to the brand value chain model, brand value based on customers is antecedent of brand value of the company (Keller and Lehmann, 2006). This relationship is determined by both rational and emotional evaluation to brands. In order to improve customer perception about brand value, brand managers should try to establish and maintain reciprocal interactions with
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
In recent times, branding has played a pivotal role in some brands’ success. This has been made possible through the ability of some marketers to capture the essence and minds of people (consumers), and put the trends and characteristics into the personality of a brand. Customers have always found ways to identify themselves with certain products, and on several occasions, branding campaigns
Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes (Kotler and Keller 2006, p. 188) and is anything linked in memory to a brand. Other researchers (Farquhar & Herr 1993, Chen, 1996, Brown & Dacin 1997, Biel 1992) identify different types of association that contribute to the brand equity. Chen (2001) categorized two types of brand associations - product associations and organizational associations.
As mentioned in the introduction, Gil, Andrés and Salina (2007) have mentioned that family can affect brand awarenss, associations and perceived quality of a brand. Brand awareness is linked with brand salience. It refers to the ability of customers to recognise a brand in various circumstances. It can be seperated into breadth and depth of brand awareness. Breadth of awareness represents the different circumstances among various products offered that customers can recall the brand. Depth of awareness represents the degree to which a customer can recall a brand (Keller K. L., 1993). Values and memories of a family can influence customers to perceive the brand (Gil, Andrés and Salina,
Aaker (2002:68) defines brand identity as: “A unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from organization members.”