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The Effects of Creating Brand Equity vis-à-vis Price Promotions

The Effects of Creating Brand Equity vis-à-vis Price Promotions. Eric Billinger Savannah State University. Abstract.

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The Effects of Creating Brand Equity vis-à-vis Price Promotions

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  1. The Effects of Creating Brand Equity vis-à-vis Price Promotions Eric Billinger Savannah State University

  2. Abstract Brand equity is the power of a brand that lies in the minds of consumers and their experiences with the brands over time. This study examines price promotions and customers perception of quality when using high-price and low-price strategy. In addition, this paper discusses the short-term and long-term effects of brand equity on customer’s perception of name brand and generic brand products.

  3. Examples of Brand Equity Most Trusted Brands

  4. INTRODUCTION • Brand Equity is one of the most popular topics in marketing, and building strong Brand Equity has become essential for many organizations because it creates several marketing advantages and increases companies’ competitive strength. • Brand equity can be thought of as the "added value" endowed to a product in the thoughts, words, and actions of consumers (Yoo, Donthu & Lee, 2000). • Examples of products with excellent brand equity include Google and Starbucks. In fact Starbucks and Google has surpassed the brand and become synonyms with words meaning coffee or search. Companies can create brand equity for their products by making them memorable, easily recognizable and better in quality and reliability.

  5. LITERATURE REVIEW • The concept of brand equity emerged in the late 1980s. It was not defined precisely; Farquhar (1989) defines Brand Equity as “The added value with which a brand endows a product.” • Aaker (1991) provided a more comprehensive definition of Brand Equity as “A set of brand assets and liabilities linked to a brand, its name and symbol that add or subtract from the value provided to a firm and/or to that firm’s customers.” David Aaker’s (1991) brand equity model is the base model of many researchers’ findings and results. • Aaker’s (1991) model divides the assets that build brand equity into five categories, which include brand loyalty, brand awareness, perceived quality, brand associations and other proprietary brand assets. Figure 1 illustrates the Conceptual framework Aaker’s (1991) brand equity model.

  6. Aaker’s Brand Equity Model

  7. Hypothesis • H1: As brand equity increase in the minds of consumers, consumers will perceived consumer products positively. • H2: The higher the brand price, the more positive the brand image. • H3: The more frequent the price deals, the more negative the brand image.

  8. Most Trusted Brands & Their Products • Samsung • Apple • HP

  9. REFERENCES • Chen, C. (2012). BRANDS AND CONSUMER BEHAVIOR. Social Behavior & Personality: An International Journal, 40(1), 105-114. 211. • Faircloth, J. B., Capella, L. M., & Alford, B. L. (2001). THE EFFECT OF BRAND ATTITUDE • AND BRAND IMAGE ON BRAND EQUITY. Journal of Marketing Theory & Practice, 9(3), 61. • Hilgenkamp, H., & Shanteau, J. (2010). Functional Measurement Analysis of Brand Equity: Does Brand Name Affect Perceptions of Quality?. Psychological: International Journal Of Methodology And Experimental Psychology, 31(3), 561-575. • Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal Of Marketing, 57(1), 1-22. doi:10.2307/1252054 • Khan, B., Shahid, S., & Akhtar, A. (2009). Role of Trust: Brand Equity. SCMS Journal Of Indian Management, 6(2), 12-22 • Malär, L. (2011). Emotional Brand Attachment and Brand Personality: The Relative Importance of the Actual and the Ideal Self. Journal Of Marketing, 75(4), 35-52. • Pandey, A. (2009). Understanding Consumer Perception of Brand Personality. IUP Journal Of Brand Management, 6(3/4), 26-50. • Rangel , A. (2008, January 17). Hitting the spot. http://www.kwintehttp://www.economist.com/ • node/10530119?story_id=10530119ssential.co.uk/resources/global-etiquette/france-country-profile.html • Ranjbarian, B., Abdollahi, S., & Khorsandnejad, A. (2011). The Impact of Brand Equity on Advertising Effectiveness ( Samsung and Snowa brand names as a case study). Interdisciplinary Journal Of Contemporary Research In Business, 3(5), 229-238. • Washburn J. H. and Plank R. E. (2002),“Measuring brand equity: an evaluation of a consumer based brand equity scale”, Journal of Marketing Theory and Practice, 10 (1): 46- 62. • Yoo, B., Donthu, N. and Lee, S., (2000), “An Examination of Selected Marketing Mix Elements and Brand Equity”, Journal of the Academy of Marketing Science, 28(2), pp. 195 • Zinkhan, G. M., & Smith, D. C. (1992). Managing Brand Equity: Capitalizing on the Value of a Brand Name. Journal Of Marketing, 56(2), 125-128.

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