Aaker’s Consumer Based Brand Equity Model

Two principal perspectives have been taken by academics to study brand equity – financial and customer base. The first perspective of brand equity is from the financial market where the value of the asset of a brand is evaluated (Farquhar et al. 1991, Simon and Sullivan 1990). Customer-based brand equity assesses the reaction of the customer to a brand name (Keller 1993, Shocker et al. 1994). Brand equity based on customers is used to indicate how the success of a brand can be directly attributed to the views of customers towards that brand. As consumer-based brand equity has a strong link with brand positioning, competitive edge, brand enhancements, and brand quality, the academic and business community has taken a broad interest in retailing. (Aaker 1991; Çifci et al. 2016).

The greatest-known model of CBBE (Consumer Based Brand Equity) is the Keller model developed by Kevin Lane Keller who is a marketing professor and written in his book named Strategic Brand Management. The Keller model is a pyramid shape and indicates companies how to develop the ultimate goal of brand equity from a strong foundation of brand identity: where consumers have a strong relationship with a brand to promote it. Brand equity focused on customers consists of four dimensions which are brand awareness, brand associations, perceived quality, and brand loyalty. David A. Aaker describes five dimensions of brand equity and this is shown in figure 2.4.

Figure 2.4 Aaker Dimensions of Brand Equity

Source: Aaker (2008)

1. Brand loyalty: to what degree people are loyal to a brand the following considerations are expressed:

– Make less in the number of costs of marketing (It is better to keep on to loyal customers than to potential new customers)

– The leverage of trade (Loyal customers are a reliable source of income for sales)

– Attracting non-loyal customers (Existing customers can make awareness of the brand name easier to raise and thus introduce new non-loyal customers)

– Time for responding to risks of competitive (Existing customers who are not quick to switch brands will give an organization more time to respond to competitive risks.)

2. Brand awareness: The degree to which a brand is publicly known, that can be measured using the following criteria:

– Anchor to which associations may be linked (based on the influence or power possessed by brand name, linked to more or associations, that, in effect, will be influence brand awareness in the end)

– Familiarity and satisfaction (customers who have good experience to a brand, will inform their friends and relatives about it and help raise brand awareness)

– Quality of being dedicated to a brand.

– Brand to be taken into account during the buying process.

3. Perceived quality: to what degree a brand is regarded to make better quality services or products, the following five requirements can be used to measure:

 – The degree of excellence offered by them is a point to purchase it.

– Degree of a process of differentiating / role concerning competing brands

– Price (when the product becomes more difficult to evaluate and rank concerning others is at stake, consumers want to pay price to the best quality brand)

– Usage in various platforms of distribution

 – The sum of units of brand enlargement (this can inform the customer that the brand reflects a certainly reasonable assurance of quality that applies on a broad scale).

4. Brand associations: Five factors can be used to assess organizations triggered by a brand:

– To what degree a brand logo or name can receive associations from the mind of the customer (information on Radio or TV advertising)

– The degree to which the association leads to be different from the competitors

– The degree to which the brand association stands a major role in the purchasing process (the higher the degree, the greater the equity of the brand)

– The degree to which the brand association makes a customer’s positive attitude (the higher this degree, the greater the equity of the brand)

5. Other ownership of property and assets: such as patents and intellectual property, business partners and networks.