Brand Equity Based Akers Model

8/10/2019 Brand Equity Based Akers Model

1/8

ijcrb.webs.com

INTERDISCIPLINARYJOURNAL OF CONTEMPORARYRESEARCH IN BUSINESS

OCTOBER 201VOL 3,NO 6

Evaluation of brand equity based Aaker model

(Case study LG & SAMSUNG)

Dr.Rezaie Dollatabady, Hossein

Department of management,Faculty of administrative Sciences and economic,

University of Isfahan, Isfahan, Iran

Rasool Amirusefi (Corresponding author)

MA Of Business Management

University of Islamic Azad Univercity, Torbat-e- Jam Branch

Abstract:This study does with aim asses the brand equity and its dimensions according to the Aaker model, case studyLG & SAMSUNG was performed among household supplies consumers in the Isfahan City. Those

Independent variables of this study include of brand loyalty, perceived quality, brand awareness, brandassociation and dependent variable is brand equity. The research results show that in both of the brands, fourindependent variables of research (brand awareness, Perceived quality, brand loyalty , brand association) with95% confidence level affect in brand equity, Andfourresearchhypotheseswere confirmedintwobrand andAfter compare average of variables of two brands there is no significant difference between Perceived quality,Brand loyalty and Brand equity but average of brand awareness in SAMSUNG brand is more than LG brand

and conversely the average of Brand association in LG brand is more than SAMSUNG brand.

Keywords: Brand, Brand Equity, Brand Loyalty, Perceived Quality, Brand Awareness, Brand Association,Pay APrice Premium

1. Introduction

In global market where many functionally similar products are available from wide range of suppliers, thebrand name has become differentiating tool to offer the promise of value and quality to consumers. Buildingstrong brand enables firms to lower their marketing cost and develop ability to charge premium price for theirproducts. The concept of measuring value of brand come in to existence when advertising practitioners in U.S.first coined the term brand equity in early 1980s. Strong brand equity helps the firm to establish and identity

themselves in the market place (Aaker, 1996) and reduces vulnerability in competitors action leading to highermargins and greater intermediary Co-operation. In measuring the overall value of a brand, researchers andpractitioners have begun to examine the concept of brand equity (Baldinger et.al 1990; Keller, 1993) as rightexploitation of it can bring tremendous value to producers, retailers and consumers of the brand. Historically,research has suggested that brand equity can be estimated by subtracting the utility of physical attributes ofproducts from total utility of a brand and also helps in improving brand value by charging premium over its

competitive brands. Brand equity refers to the marketing effects accrued to product with its brand namecompared with those that will be accrued if the product did not have the brand name. It refers to theincremental utility or value added to a product from its brand name.Branding is powerful means of distinction. (Pappu, et al. 2005). Brand as a Basic of todays competitive game,must be carefully define, create and manage because branding enable a producer to obtain the benefits ofoffering products with unique or superior quality and provides an opportunity to transfer this identifiablerelationships to other products or services (Motameni and Shahrokhi, 1998).

Strong brand leads competitive advantages (Lee and Back, 2010), increase organization cash flow andaccelerate liquidity (Miller and Muir, 2004), provide premium price, profitability and more loyalty forcustomers (Madden, et al. 2005), and also support brand extension opportunity (Yasin, et al. 2007). Buildingbrand equity is considered an important part of brand building (Pappu, et al. 2005). Brand equity refers to theincremental utility or value which brand adds to the product (Chen and Chang, 2008). In the few last decades,

brand equity concept has grown rapidly. One reason for its popularity is strategic role of that and importancein obtaining competitive advantage in strategic management decisions. Brand equity is appropriate metric forevaluating the long-run impact of marketing decision (Atilgan, et al. 2005). Appropriate management of brand

it l d l lt l i k f k ti ti it d k ti i i fl ibl t i


2/8

ijcrb.webs.com



fluctuations, more business support and cooperation, effectiveness of marketing communications, licensing

opportunities, additional opportunities for brand extension, more attraction for investors, more supports frominvestors (Aaker, 1991; Keller, 2003; Van Auken, 2005), greater profit margins (Kim and Kim, 2005), abilityto attract good employees (DelVecchico, et al. 2007), protection of potential competitors entrance during

outsourcing (Lim and Tan, 2009).

2. The importance of study

Entering the international brands to Iran's market despite government restrictions, competitive environmenthas led to some. International brands help to Increasing standards at the local level with entering theirstandards and latest technologies to the Iran's local market. Local brands can also pay to further customize theproducts and services with recognize local needs and specific characteristics Unfortunately, despite thedevelopment of brand's concepts and relevant theories in the world there is a vacuum of knowledge in brand's

field In Iran.Although many theories have been proposed in the world and is used by different companies but make locally

these theories and developing theories and ideas that could be the basis of moving the brand in Iran's marketrarely done. The few studies related to brand that have been in Iran, so that should not be answering real needsof Iran's market.

3. Brandequity from the viewpoint ofAakerDavid Aaker ,marketing professor at the University of California, Berkeley define brand equity as a set of

assets and liabilities that linked with names and symbols (marks) brand and is added to or less to value thatCreate by a product or service of company or company's customers. This assets and liabilities that Createbrand equity is different from one field to another field. The main assets are: 1-brand awareness. 2- Perceivedquality. 3- Brand loyalty. 4 - Brand association.

Aaker describesthevarious componentsof brandasfollows:

Brand awareness:awareness means The Rate andpower of presence that brand have in the consumer'smind.Various methods thatweighsbrandawareness,criteria to remember brand bycustomer. (Aaker, 1996)

Perceivedquality:Perceivedquality of thebrandisakind of mentalassociation of brand thatreached to

higher levelanddiscussesthe situationand how theassetsBrand. (Aaker, 1996)

Brand loyalty: A loyal customerbecause of sees some unique value in Brand products that there is no inalternativeoptions, mayalsopaymoremoney for obtainthoseBrand. Second consideringloyaltyasanassetwilllead tothe creation ofprogramstoincreaseloyalty and thiswilllead to increasedBrandvalue. (Aaker,1996)

Brand association:Brand association that will shape the Brand identity refers to anything that directly or

indirectly isrelatedwith the brand in Customer's mind.(Aaker, 1996)

4. Hypothesis

: Brand loyalty has an effect of view of consumer on Brand value

: Perceived quality has an effect of view of consumer on Brand value: Brand awareness has an effect of view of consumer on Brand value

: Brand association has an effect of view of consumer on Brand value.

5. Methodology:Statistical society of this study includes the women household products consumer living in Isfahan City with

more than 18 years of age. The method of research is survey, descriptive and its aim is Functional. A methodof data collection in research is the library, field. A data collection tool is the questionnaire. The Sampling

method is a random sampling based on geographical areas.Reliability analysis of independent variables wasconducted using Cronbachs alpha method.

[Insert table 1]

[Insert table 2]


3/8

ijcrb.webs.com



6. Findings:

Regression Testing:

After do the regression test for both Brand LG and SAMSUNG the following results were obtained.[Insert table 3]

[Insert table 4]

: Brand loyalty has an effect of view of consumer on Brand valueBecause for independent variable Brand loyalty for both of Brand LG and SAMSUNG, P value


4/8

ijcrb.webs.com



Because high level of Perceived quality, Brand loyalty and Brand equity is Positive and their low level is

negative, there is no significant difference between them.AccordingT-Test table the average difference between two brands for Brand loyalty is equal to - 0.156AccordingT-Test table the average difference between two brands for Brand awareness is equal to - 0.337

AccordingT-Test table the average difference between two brands for Brand association is equal to 0.878AccordingT-Test table the average difference between two brands for Brand equity is equal to 0.085AccordingT-Test table the average difference between two brands for Perceived quality is equal to 0.066

Above amounts indicate about all the variables, SAMSUNG brand amounts is more than the LG brandamounts even sparingly.

[Insert table 5]

Results and discussion:

The research results show that in both of the brands, four independent variables of research (brand awareness,

Perceived quality, brand loyalty , brand association) with 95% confidence level affect in brand equity, Andfourresearchhypotheseswere confirmedintwobrand and After compare average of variables of two brandsthere is no significant difference between Perceived quality, Brand loyalty and Brand equity but average ofbrand awareness in SAMSUNG brand is more than LG brand and conversely the average of Brand association

in LG brand is more than SAMSUNG brand.According confirmed all four hypothesis in twobrandanddeterminethe effect offour independent variables

of research (brand awareness, Perceived quality, brand loyalty, brand association) on brand equityrecommendedorganizationsforpromotionitsbrandequity consideration thisfourissueespeciallyuntil withimprove the situation of thisfourcomponentsimprove theirposition of brandequity.Suggest to leaders and representatives of the LG Company because brand loyalty is more effective than othervariables provide programs to maintain and enhance this competitive advantage.

Suggest to leaders and representatives of the SAMSUNG Company Because Perceived quality is moreeffective than other variables provide programs to maintain and enhance this competitive advantage.Suggest to leaders and representatives of the LG Company Because according to results of this research, LGCompany acted weaker than SAMSUNG Company in informing and advertising, do activities for correctionthis issue otherwise will stay away from competition.


5/8

ijcrb.webs.com



ReferencesAaker, David.(1991).Managing Brand Equity: Capitalizing on the Value of a Brand Name. The Free Press,

Simon and Schuster, Inc.Aaker, David. (1996) ,Building Strong Brands, The Free Press, Simon and Schuster Inc.Atilgan, E., S. Aksoy, & S. Akinci, 2005, Determinants of the brand equity: A verification approach in the

beverage industry in Turkey. Marketing Intelligence & Planning, 23(3): 237-248.Baldinger, Allan L(1992) , What CEOs are saying about Brand Equity: A Call to Action for Researchers,

Journal of Advertising Research, July-Aug, PP. Rc-6-12.Chen, Y.S., 2009, The drivers of green brand equity; green brand image, green satisfaction and greentrust.Journal of Business Ethics, 93(2): 307-319.

DelVecchio, D., C.B. Jarvis, R.R. Klink, & B.B. Dineen, 2007. Leveraging brand equity to attract human

capital. Marketing Letter, 18: 149-164.Keller, Kevin Lane (1993), Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,

Journal of Marketing, 57 (January):1-22.Keller K.(1998), Strategic Brand management: building, measuring, and managing Brand Equity, New

Jersey, Prentice Hall.Keller, Kevin L.(2003),Strategic Brand Management, Building, Measuring, and Managing Brand Equity

.2nd Ed. Prentice Hall, Upper Saddle River, New Jersey.Lee, J. S., & K.J. Back, 2010. Reexamination of attendee-based brand equity. Tourism Management, 31(3):

395-401.Lim, W.S., & S.J. Tan, 2009. Using brand equity to counter outsourcing opportunism: A game theoretic

approach. Marketing Letter, 20: 369-383.Miller, J and D. Muir, 2004. The Business of Brands, John Wiley & Sons Pub, UK

Pappu, R., P.G. Quester, R.W. Cooksey, 2005. Consumer-based brand equity: improving the measurement -empirical evidence. Journal of Product & Brand Management, 14(3): 143-154.

VanAuken, B., 2005, The brand management checklist: proven tools and techniques for creating winningbrands, Kogan-Page Pub, London, UK

Yasin, N., M. Nasser Noor, & O. Mohamad, 2007, Does image of country-of-origin matter to brand equity.

Journal of Product & Brand Management, 16(1): 38-48.


6/8

ijcrb.webs.com



Annexure

Table1. Cronbach's alphaLG

Reliability Statistics

Cronbach's

Alpha N of Items

.904 18

Table2. Cronbach's alphaSAMSUNG

Reliability Statistics

Cronbach's

Alpha N of Items

.915 18

Table 3.Regression LG

Model Summary

b

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson

1 .691a .477 .467 .68049 2.173

a. Predictors: (Constant), QUALITY, ASSOCIATION, LOYALTY, AWARNES

b. Dependent Variable: EQUAITY

Coefficients

a

Unstandardized Coefficients

Standardized

Coefficients Collinearity Statistics

Model B Std. Error Beta t Sig. Tolerance VIF

(Constant) -.184 .239 -.769 .443

LOYALTY .297 .062 .291 4.789 .000 .728 1.3

AWARNES .238 .060 .239 3.927 .000 .723 1.3

ASSOCIATION .255 .071 .196 3.605 .000 .910 1.0

1

QUALITY .348 .083 .249 4.209 .000 .768 1.3

D d t V i bl EQUAITY


7/8

ijcrb.webs.com



Table 4.Regression SAMSUNG

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson

1 .715a .511 .501 .75406 2.071

a. Predictors: (Constant), QUALITY, ASSOCIATION, LOYALTY, AWARNES

b. Dependent Variable: EQUAITY

Coefficientsa

Unstandardized Coefficients

Standardized

Coefficients Collinearity Statistics

Model B Std. Error Beta t Sig. Tolerance VIF

(Constant) -.970 .326 -2.980 .003

LOYALTY .229 .073 .209 3.134 .002 .562 1.7

AWARNES .266 .084 .226 3.179 .002 .494 2.0

ASSOCIATION .412 .123 .179 3.348 .001 .878 1.1

1

QUALITY .492 .119 .298 4.146 .000 .484 2.0

a. Dependent Variable: EQUAITY

Table 5.Comparison variables of two brands

Independent Samples Test

Leveness Test for

Eqality of variancest-test for Equality of Means

95% Confidence Interv

of the difference

F Sig. t df

Sig.(2-

tailed)

Mean

difference

Std.Error

difference Lower Uppe

-.848 398 .397 -.08500 .10020 -.28199 .111EQUITY Equal variances assumed

Equal variances not assumed

1.661 .198

-.848 390.845 .397 -.08500 .10020 -.28200 .112

-1.656 398 .098 -.15625 .09433 -.34170 .029LOYALTY Equal variances assumed


2.212 .138

-1.656 396.144 .098 -.15625 .09433 -.34170 .029

-1.008 398 .314 -.06625 .06573 -.19546 .062P QUALITY Equal variances assumed


1.233 .268

-1.008 397.669 .314 -.06625 .06573 -.19546 .062

-3.655 398 .000 -.33750 .09234 -.51904 -.155AWARENESS Equal variances assumed


1.163 .282

-3.655 397.610 .000 -.33750 .09234 -.51904 -.155

14.684 398 .000 .87833 .05982 .76074 .995ASSOCATION Equal variances assumed 25.981 .000


8/8

Copyright of Interdisciplinary Journal of Contemporary Research in Business is the property of

Interdisciplinary Journal of Contemporary Research in Business and its content may not be copied or emailed to

multiple sites or posted to a listserv without the copyright holder's express written permission. However, users

may print, download, or email articles for individual use.

Brand Equity Based Akers Model

Documents

Transcript of Brand Equity Based Akers Model