Examining the factors effective on brand equity from potential and actual customer’s viewpoint

Authors:
H. Gharehbiglo1, A. Mofid Seyed1, E. Charandabi Siroosnezhad1,2, H. Piroozinia1
1. Islamic Azad University (Ajabshir, Iran)
2. Mobiya Group (Tabriz, Iran)
Pages:
73 - 83
Language:
English
Cite as:


Annotation

The aim of the article. The main purpose of the present study is to survey and elaborate on the factors effective on brand equity from the potential and actual customer’s viewpoint.

The results of the analysis. Brand is one of the most valuable assets of a business and paying attention to the concepts such as brand, brand management, and brand equity improves mental image of the consumers regarding the business and the sale in return.  The general purpose of the present study is to survey and elaborate on the factors effective on brand equity from the potential and actual customer’s viewpoint. To this end, Aaker’s (1991) theory was adopted as theoretical framework with 4 hypotheses. By emphasizing on the model and the consumer behavior-based approach and taking into account the actual/potential consumers of organization, the study is aimed at doing a survey to find the relationship between the different aspects of brand equity in Aaker’s model (brand loyalty, brand awareness, brand quality, and brand association) and brand equity from the customer’s viewpoint (knowledge equity, attitude equity, and relationship equity). Sampling was performed through cluster random sampling and the data gathering tool was Yoo and Denthu’s standard brand equity questionnaire. The findings showed that brand loyalty, brand awareness, and brand quality are effective on brand equity from the actual customer’s viewpoint. The findings make a great contribution to the process of finding better strategies to improve brand equity.  To use the results at practical level, the indices of the variables effective on brand equity can be organized as statements of a questionnaire to measure realization of one or more indices of brand equity. The questionnaire should be filled out by the managers to measure a firm’s readiness to improve brand equity. The results show that there is significant difference between actual customers point of view, loyalty to trade brand, perceived quality about trade brand and awareness about trade brand have the most effect and role in explaining brand equity, respectively, however none of the above-mentioned factors play a role in explaining brand equity from the potential customers point of view and in their views other view other factors are effective in creating brand equity construct.

Conclusions and directions of further researches. In conclusion, this study explain that actual customers are in complete agreement with findings of Aaker, but from potential customers point of view and ineffectiveness of brand association in creating brand equity, the research findings are not in agreement with findings of Aaker. This disagreement in actual and potential customers’ view, can be the result of lack of brand position of aforesaid company in potential customers’ view and the decision of potential customers not to purchase from store. In order overcome the above - mentioned limitations, using non - linear and advanced methods in estimating the factors affecting brand net worth construct, using a large statistical population and considering the effect of other variables such as perceived worth, popularity and so on, in creating brand net worth construct are recommended.


Keywords
brand equity, brand loyalty, brand awareness, perceived brand quality, brand association


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