Enhance Brand Equity Research Articles

The concept of participatory market orientation: An organisation-wide approach to enhancing brand equity

While much marketing literature sees delivering customer experience as the role of the marketer, we argue that this is an organisation-wide responsibility. The organisation-wide approach is based on the premise that the brand-building capability of the organisation is determined by the combination of marketing, human resources, organisational culture, leadership and evaluation. It is our contention that the role of marketing should be concerned with connecting these elements to optimise brand equity (eg awareness, perceived quality, associations, loyalty). In this paper, we suggest a participative model for an organisation-wide approach where the role of the marketer is Janus-like in that he/she must face both outwards to connect with customers and other stakeholders and inwards to build coalitions inside the organisation to deliver a clear and consistent customer experience.

Building Brand Equity via Product Quality

A practical approach is proposed to building brand equity via product quality. It identifies the relevant marketing activities and determines the extent to which these activities contribute to brand equity. Specifically, the proposed brand equity model relates marketing activities to brand equity. This indicates a practical way to assess the importance and adequacy of a company's daily operation in contributing to its brand equity. The importance-efficiency mix further provides management with feasible suggestions on adjusting their marketing activities. Then, based on an importance-efficiency matrix, company resources can be adjusted to enhance brand equity. An empirical study with an insurance company was conducted to illustrate the proposed approach. Using this approach, the insurance company has successfully enhanced their brand equity. This clearly attests to the managerial value of the proposed approach. Research implications and future research avenues were discussed.

Brand Equity and Vertical Product Line Extent

This paper addresses the question of how the vertical structure of a product line relates to brand equity. Does the presence of “premium” or high-quality products in a product line enhance brand equity? Conversely, does the presence of “economy” or low-quality products in a product line diminish brand equity? Economists and marketing researchers refer to variation in quality levels of products within a category as “vertical” differentiation, whereas variation in the function or “category” of the products is referred to as “horizontal” differentiation. Much of the existing research on the relationship between product line structure and brand equity has focused on the horizontal structure of the product line and has been primarily concerned with brand extensions—what happens when the product line of a brand is extended horizontally into new categories? Researchers have been concerned primarily with how the extension fares, but the effect of the extension on the core products is also important. There is an analogous question of what happens when the product line of a brand is extended vertically, either “up market” or “down market.” This question of vertical extensions is part of the more general issue of how the vertical structure of a product line relates to brand equity. The specific research questions addressed in this paper are: (1) do “premium” or high-quality products enhance the brand equity associated with the other products in the line? (2) Conversely, do “economy” or low-quality products diminish the brand equity associated with the other products in the line? These research questions are relevant to three managerial issues in product-line strategy. First, what are the costs and benefits of including “down market” products within a brand? Second, what are the implications of including high-end models within a brand? Third, when should high-end and low-end products be offered under an existing brand umbrella and when should these products be offered under separate brands? We address these research questions empirically through an analysis of the models and brands within the U.S. mountain bicycle industry. We use price premium above that which can be explained by the physical characteristics of the bicycle as a metric for brand equity. We then test several hypotheses related to the relationship between extension of the product line upward and downward and the price premium commanded by the brand. We further support this analysis with a simple laboratory experiment. The analysis reveals that price premium, in the lower quality segments of the market, is significantly positively correlated with the quality of the lowest-quality model in the brand's product line; and, that for the upper quality segments of the market, price premium is also significantly positively correlated with the quality of the highest-quality model in the brand's product line. The results of the analysis are supported by the outcome of an experiment in which 63 percent of the subjects preferred a product offered by a high-end brand to the equivalent product offered by a low-end competitor. These results imply that managers wishing only to maximize the equity of their brands would offer only high-quality products and avoid offering low-quality products. However, this result must be moderated by the overall objective of maximizing profits. Maximizing profits is likely to involve a tradeoff between preserving high brand equity (and therefore high margins) and pursuing the volume typically located in the lower end of the market. One of the most significant implications of this research is that product line managers need to be mindful not just of the incremental cannibalization or stimulation of sales of products that are immediate neighbors of an extension to the product line, but also the effect of such an extension on the brand equity in other, possibly quite different, parts of the product line.

A Brand Equity Strategy for Ultra‐Premium California Wines

Despite nearly universal agreement that ultra‐premium California wines have reached a quality level which is on a par with the world's best, these wines have not captured the hearts and minds of many traditional buyers of the best wines in the international marketplace. These California wines face several competitive disadvantages — the lack of a sustained track record over a long period of time; comparatively small production levels; the lack of an established pecking order; and, a less‐than‐optimal distribution system, among other factors. As a result, brand equity of California ultra‐premium wines has suffered. This paper modifies and extends the paradigms of both Aaker and Keller by specifying a brand equity model that captures the dimensions of brand equity for ultra‐premium California wine producers. Evaluating current marketing practice against the derived model, the authors suggest marketing strategies and tactics that may permit ultra‐premium California wines to overcome many of their competitive disadvantages with the objective of enhancing brand equity.

Virtual World Affordances: Enhancing Brand Value

Virtual worlds are three-dimensional, computer-generated worlds that are a natural extension of the existing Internet. Although many businesses are jumping on the bandwagon to maintain a presence in virtual worlds, there is no well-established knowledge or theory to guide businesses in their involvement in these environments. In this paper, we identify affordances in the virtual worlds that can be used to increase the state of flow experienced in a business virtual site, which in turn may enhance brand equity, or the perceived added value of a brand to customers. We present a conceptual model that can be used to guide future research and industry practice on business implications of the virtual worlds.

Factors Influencing Brand Equity of Bali as a Tourism Destination

Globally, competition among tourism destinations is more stringent in getting foreign tourists, including Bali. One effort to win the competition is increasing destination brand equity through maintaining its influencing factors and gaining tourist positive behavior toward destination. This effort, in long run, will increase and stabilize destination revenue and sustainability.
 This research aims to analyze factors influencing brand equity of Bali as a tourism destination. This research was conducted in Bali’s five major tourism objects. The 240 foreign tourists were chosen as respondents through convenience sampling technique. Data were analyzed using factor analysis.
 The results showed that factors that significantly influenced Bali brand equity were: symbolic and experiential benefit factor, direct and indirect destinations attributes, destination reliability and tangibility, assurance and empathy, brand destinations recognition and recall, destinations common psychological attributes, destination common functional attributes, unique functional attributes, behavioral loyalty, destination awareness, and attitudinal loyalty.
 Given the fluctuative nature of brand equity, Bali needs a consistent effort to maintain or to enhance brand equity of Bali as a tourism destination. Maintaining the dominant factors that influence the strength of brand equity can be used as a basis to develop destination branding strategy to expand market segment, choose the right target market, and anchoring destination position in world market competition.