Brand Equity

Question 1

Farquhar

Answer 1

• one of the first to write about brand equity
• defines it as the added value a brand gives a product
• distinguished b/w the firm’s, trade’s and consumer’s perspective on brands
• 3 elements of strong brand:
  1. positive brand evaluations; 2. accessible brand attitudes; 3. consistent brand image

Question 2

Aaker

Answer 2

• set of qualities linked with name/symbols that add or subtract to the value offered by product
• brand awareness, perceived quality, brand associations and brand loyalty

Limitations:
- Aaker’s dimensions can not be clearly separated (Christodoulides et al.)

Question 3

Keller

Answer 3

• power of brands rests on what ppl have learned, felt, seen and heard about it through time
• hierarchical order: awareness, brand meaning, brand responses, brand relationships
• strong brand equity if:
  
  • recall and recognition is strong
  • brand associations are strong, unique, favorable
  • consumers are willing to pay more

Limitations:

• does not consider social influence, sustainability or self-brand congruency (?)
• may be discriminatory to brands based on functionality
• imagery may be hard to achieve by functional brands, but it doesn’t mean they don’t have strong equity

Question 4

Baalbaki & Guzman

Answer 4

• quality, preference, sustainability, social influence
• consumer-derived –> big advantage of this paper
• sustainability + social influence are new dimensions
• sustainability becoming brand identity for some e.g. Patagonia, Eco Tools, Lush, Toms Shoes

Limitations

• focused only one product category (mobile phones) which are HI products
• scale may be dynamic/change over time as consumer attitudes and values change

Question 5

Cowan and Guzman

Answer 5

• looked at reputation signals influence equity
• country of origin, CSR and sustainability signals
• 70% are willing to pay more for brands that invest in CSR and sustainability –> but awareness if often low
• domestic and international performance rely differently on CSR and sustainability

Limitations

• small sample size, only of brands on Interbrand and Fortune’s World’s Most Admired Companies
• being green is important but only sheds light on small portion of brand equity