In the 1980s, the brand equity concept was first presented in the marketing literature. This topic received considerable attention in the 1990s from both scientists and marketing practice, resulting in a large number of articles and books on the topic. (e.g. Aaker and Keller, 1990; Aaker and Biel, 1993; Agarwal and Rao, 1996; Kapferer, 1998, etc.). The link between customers and the brand in marketing research generates the word “brand equity.” There are various approaches to the definition of the word brand; the brand has been represented from the consumer’s perspective or from the owner’s perspective. The American Marketing Association (1960) describes a brand as, or a combination of, a name, word, symbol or design. The aim is to identify and differentiate products and services of a business from competitors. It is possible to use the development of strong brands as an effective weapon to compete with market competitors.
There are two types of major brand categories. The first category is function-oriented, involved with quality, accuracy, and durability of the product. The second category is a prestige-oriented brand concept related to luxury and status images (Park et al., 1991). And essentially brands are developed on the basis of the product that follows the marketing strategy of organizations. Customer experience is basically talking about the product and passing it on to friends or relatives. For this reason, organizations are using branding as an effective marketing strategy tool with frequent success in the past even today. The brand’s quality can be measured using many methods. Brand equity is one of the widely used ways of measuring brand performance. It can be learned from the point of view of the customer and from the point of view of the financial perspective.
Customers are becoming more educated than past; they evaluate branded and unbranded products in terms of quality and price. Brand Identity is the set of organizations and images from the product or brand perceived by the customer. This essentially refers to the set of brand’s relationships with the customer. Selling the product is no longer enough. In order to find out the need for the product, it is absolutely critical to do market research, market analysis and focus group discussion. Branding is not an end in itself, it is necessary to ensure proper product quality and inform the customer about the product.
The word brand equity described the connection between the consumer and branded product by Lisa Wood Sheffield University UK (2000). Brand concept management or brand image management is an activity effectively performed by companies to reinforce and create brand equity and achieve long-term competitive advantage (Park et al. 1986).
According to Joseph Arthur Rooney (1995) while looking at the branding strategy example can be found where branding has not been quite successful, and marketers have to reform the appropriate strategy in such a case. The marketing mix is one of the effective factors for brand equity, and through evaluating its effectiveness it will be possible to identify more effective brand-promoting factors and to allocate more resources. For many organizations, developing strong brands has become a marketing priority. An idea that is taken to be true on the basis of probability is that there is a range of marketing advantages in developing a strong brand.
Figure 2.3 Brand Equity Perspectives
Source: Sanaz Farjam, Xu Hongyi, 2015