Consumer Based Brand Equity

Published Date: 02 Nov 2017

Table of Contents

ACKNOWLEDGEMENT

CHAPTER 1: INTRODUCTION

ABSTRACT

A very important factor that influences consumer’s perceptions of a brand is Strong brand equity. Achievement in brand management comes from understanding and managing brand equity to make strong attributes that will influence clients when making their choices.

This thesis concentrates on the importance of these dimensions (brand awareness, brand loyalty, brand image and perceived quality) of customer-based brand equity on consumer’s perceptions of a brand. This is based on the theory that all these dimensions of customer based-brand equity will have influence on consumer’s perceptions of brand. However, this thesis intends to find out which among these three dimensions (brand image, brand loyalty and perceived quality) emerge to have the least brand equity in both restaurants and to find out if customer based-brand equity differ between the two restaurants with respect to each attribute of brand awareness, brand image, perceived quality and brand loyalty. Brand responsiveness was treated separately from other dimensions because of the difference in scale.

A prepared questionnaire was built to provide answers to our research question. In this study, one hundred questionnaires were distributed, but sixty four practical questionnaires were realized. The study examined four dimensions of consumer’s based-brand equity namely brand awareness, brand image, perceived quality and brand loyalty. Among the three dimensions, brand loyalty seems to have the least brand equity rating by consumers than the other dimensions. Although, the four dimension appear to have influence on customer perceptions of brand.

INTRODUCTION

Given the rapid changes in the global market and increased competition between companies experience, brand management "has become more important. Good brand management brings about a clear differentiation between products, ensuring customer loyalty and preferences and may lead to greater market share. Aaker (2000) is of the view that establishing and managing brand should not be taken to be the core operating target for most industries but should also be seen as a source of competitiveness. In other words, value is added to a brand when the brand is able to compete successfully with other brands. Many researchers have been interested in the concept and measurement of brand equity because of the need in the market in today’s are interested in the development, Maintenance and use of product brand, to obtain a certain level of competitive advantage. According to Aliabad et al, (2003), leading to various dimensions of brand equity, Factors that affect it, the perspective from it should be studied as well as how measures it. Brand is defined as an important source of capital for most businesses is intended. Brand has different kind of meaning attached to it as a brand name, logo, symbol or a sign of identity business. Prasad and Dev. (2000) also argues that a brand can be seen to include all tangible and intangible attributes that a business stands. The fact that many local and international brands of various products based on brand equity in the service industry used to measure brand equity, the Reviews have not been fully explored. Prasad and Dev. (2000) presented a Study that shows that the easiest way for hotels to recognize and distinguish your brand is through your customers in mind. Low and Lamb, Jr. (2000) also stated that the services market, the main brand is the firm’s brand while in packaged goods market, the main brand is seen to be the product brand. Strong brand power and customer attitudes enhance the relationship between brand products. Attitude strength is developed by experience with the product. According to Keller (2002), customer awareness and association influences inferred attributes, perceived quality and finally result to brand loyalty. He went further to say that the advantage of this dimensionality of customer-based brand equity is that it allows marketing managers to study how their marketing programs enhance their brand values in the minds of customers. Brand and core values ​​of what a brand stands for fast-food restaurants are most rapid. If properly managed, it can increase the competitive advantage of the fast food restaurant. Basic features of a fast food restaurant are also notable for a fast food restaurant to excel, because the power of a brand to differentiate between competitors usually provide the Basic steps are different. The majority of fast food restaurants are recognizable brand Name, such as McDonald's golden arches, which is easily recognized by customers. Therefore, the best way to build brand value and product and service is stopped Commodity through continuous efforts to build brand equity. Brands with a strong Emotional attachment with customers, seeking differentiation in communication and Service have been established. Branding makes clear why there is a restaurant brand that will inspire your employees to be used in the making for our customer.

The dynamic, growing and competitive market is forced all companies to define some marketing strategies and change them to maintain and grow their market shares. Their marketing strategies must lead to attracting new customers and also prevent the current customers to quit their market share or lose their loyalty to the company. So investigating about marketing strategies and analyze the market, the competitors, the current position of the company itself and the potentials of the company is very important.

PROFILE OF THE FAST FOOD COMPANY

CHAPTER 2:

LITERATURE REVIEW

OVERVIEW

Due to the rapid changes in the global market and the increased competition experienced between firms, "Brand Management" has become more important. Good brand management brings about clear differentiation between products, ensures consumer loyalty and preferences and may lead to a greater market share.

Aaker (2000) is of the view that establishing and managing brand should not be taken to be the core operating target for most industries but should also be seen as a source of competitiveness. In other words, value is added to a brand when the brand is able to compete successfully with other brands.

Many researchers (Aaker 2000, Keller 2002, Lasser , Yoo & Donthun 2001, Prasad & Dev. 2000 etc) have been interested in the concept and measurement of brand equity because of the necessity in today’s marketplace to develop, maintain and use product branding to acquire a certain level of competitive advantage. According to Ailawadi et al., (2003, p. 1), this has led to various points of view on brand equity dimensions, the factors that affect it, the perspective from which it should be studied as well as how to measure it.

Brands are highly regarded as an important source of capital for most business. The term brand has different meaning attached to it; a brand can be defined as a name, logo, symbol and identity or a trademark. Prasad and Dev. (2000) also states that a brand can be seen to include all tangible and intangible attributes that a business stands for.

Despite the fact that lots of global and local brands of different products have been used to measure brand equity, survey on brand equity in the service industry have not been fully explored. Prasad and Dev. (2000) presented a study that shows that the easiest method for hotels to recognize and distinguish themselves in the mind of their customers is through branding. Low and Lamb Jr (2000) also stated that in service market, the main brand is the firm’s brand while in packaged goods market, the main brand is seen to be the product brand.

A powerful brand will enhance a customer’s attitude strength of the product association of a brand. Attitude strength is developed by experience with the product. According to Keller (2002), customer awareness and association influences inferred attributes, perceived quality and finally result to brand loyalty. He went further to say that the advantage of this dimensionality of customer-based brand equity is that it allows marketing managers to study how their marketing programs enhance their brand values in the minds of customers.

Brand name and what a brand stands for are the core values for most fast food restaurant. If properly managed, it will increase the competitive advantage of the fast food restaurant. The basic attribute of a fast food restaurant are also significant for a fast food restaurant to excel because the strength of a brand commonly provide the basic steps for differentiating between several competitors. Majority of the fast food restaurants have distinguishable brand identifiers, for example McDonald golden arches is easily recognized by customers.

A strong brand allows customers to have a better perception of the intangible product and services. Also they lessen customer’s perceived monetary, safety and social risk in purchasing services which are hard to ascertain before purchase. Strong brands offer a lot of advantages such as reduced competition, larger brand loyalty and increase response to price adjustment by customers, larger profit and brand extensions to a service firm than brands that are not strong.

Conclusively, the best way to build brand value and stop product and service commoditization is through continuous attempt to build brand equity. Strong brands are established by creating an emotional attachment with customers, seeking differentiation in communication and performing the service. Branding makes clear a restaurant’s reason for existence and inspires its employees to get used to the brand thereby building it for customers.

DEFINITIONS

Brand

Kotler et al (2005 p.549) defined a brand as "a name, term, sign, symbol, design or a combination of these that identifies the makers or seller of the product or services". This definition is based on the use of a brand name, symbols and signs to distinguish a product from its competitor. Prasad and dev (2000) noted that a brand can also be said to include all tangible and intangible attributes that the business stands for. According to Keller (2003 p.3), the American market association (AMA) defines a brand as a "name, term, sign, symbol or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitor" .

A brand is different from a product. According to Kotler (2000), a product is anything which can be presented to a market for purchase, use or consumption that is possible of satisfying need or want. He went further to say that a product is made up of goods that have physical appearance, service, events, experiences, places, persons, organisation, properties, information and ideas.

According to De Chernatony and MacDonald (2003), a brand goes beyond physical constituents and what it stands for, it has some additional attributes which although maybe intangible but are still important to consumers consideration. A brand has added value which differentiate it from a product [Doyle (2002), De Chernatony and MacDonald (2003), Jones and Slater (2003)].

Jones and Slater (2003) sum up these added values as those that develop from experiences of the brand; those that arise as a result of usage of the brand, which could be as a result of consumers association with the brand; those that arise from an assumption that the brand is powerful; and those that arise from the appearance of the brand i.e. packaging the product.

According to Doyle (2002), these added values play a vital role in many consumers buying decisions, as brands are purchased from emotional motivation as well as functional motivation.

 Many researchers have adopted this added value concept into their brand definition. For example, De Chernatony and MacDonald (2003, pg 25) established the following definition. "In identifiable product; service, person or place augmented in such a way that the buyer or user perceives relevant, unique added value which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition".

One of the functions of a brand is that it serves as an identifier of product and services so that it can be differentiated from other products and services of the same class. Aaker (2000) said that brand knowledge serves as a protector for both the manufacturer and consumer.

Schmitt (2001) said that a brand should not just be an identifier, he went further to say that a good image and name is insufficient; delivered experience is also important. Schmitt (2001) recommended two ways to branding:

The brand has to be viewed as an identifier where the logo, slogan, names forms a particular image and awareness for the consumer.

The brand has to be viewed as an experience provider where the logo, slogan, names, event and contacts by consumer provides consumers affective, sensory, lifestyle and create relation with the brand.

Kotler and Armstrong (2004) also see brand to be beyond an identifier. It represents consumer’s sensitivity and emotional attachment to the product.

According to Feldwick, (2002), a brand is a distinguishable symbol of origin and an assurance of performance.

Conclusively, a brand can be said to be a symbol of all facts associated with a product and service. A brand commonly includes a logo, a name and any other visible elements such as symbols and images. It also consists of other sets of expectation related to a product or service which normally arise in people’s mind.

Benefit of a strong brand

According to Dave Dolak (2003), a strong brand will create the following benefits amongst others:

Build name recognition for your product/company.

Influence the consumer’s buying decision.

Build trust and emotional attachment to a firm’s product/service.

Make purchase decision easier. For example in a commodity market where product and services are indistinguishable, it will enable customers trust and create a set of belief about your product even without knowing the uniqueness of your products and characteristics.

A strong brand increases the consumer’s attitude towards a particular brand’s product and services and the strength of such attitude is developed through experience with such brand.

Consumers experience help to increased perceived qualities, inferred attributes and eventually leads to brand loyalty which are not easy to evaluate except before purchase.

A strong brand enjoy benefit such as reduced competitive advantage, premium price greater customer loyalty, profitability, reduce the perceived risk of consumers who are not so sure of their decision.

Factors influencing consumer perceptions of a brand

Kotler (2005) defined perception as the process by which information is received, selected, organised and interpreted by an individual. Some of the factors that influence consumer perceptions of a brand include:

Quality: this is one of the factors which consumers take into account when making their choice of brand. According to Uggla (2001), quality is an integrals part of brand identity.

Price: McDonald and Sharp (2000) stated that price can be used as a reason for brand choice in two ways; either by going for the lowest price in order to escape financial risk or the highest price in order to achieve product quality. According to söderlund (2000), price, place and brand are three important factors when deciding consumers purchase choice in everyday product.

Influence by others: according to Kotler et al (2001), influence by others plays a vital role in consumer’s decision processes. Consumers have the habit of consulting each other regarding a new product or brand and seeking their advice. The advices of other people have a strong affect on consumers buying behaviour. However, the degree of such affect depends on the situation or individual. Later adapters tend to be more influenced than early adapters. Influence by others cannot be sharpened by marketers. A buyer can also be influence culturally i.e. value, behaviour and preferences from family or other institution or socially i.e. by a small group like family or membership group. Purchase decision could also be influenced by attitude of others. For example, a consumer wants to buy MacLean, while in the shop he or she comes in contact with a friend who says Colgate makes my teeth brighter and whiter. The consumer can be forced to buy Colgate.

Advertising: the main aim of advertisement is to create awareness. Advertisement is a conspicuous form of communication. According to Aaker (2000), if advertising, promotion and packaging embrace a regular positioning strategy over a period of time, there is the tendency that the brand will be strong. Some ways of reaching and communication to consumers through advertising is through television, cinema, radio, bill board etc.

Packaging: this is the process of designing the cover of a brand/product. According to Kotler et al (2000), packaging is a form of advertisement in the sense that it sales duties such as attracting consumers, describing and selling the product.

Convenience: according to Lin and Chang (2003), convenience of a brand has a significant effect on consumer. In other word, easy access to brand/product in store is vital when buying low involvement product.

Brand equity

Since the development of brand equity in 1980’s, there have been rapid developments in the subject. This is due to the fact that branding has been recognized as an important factor for the success of a firm especially in a very competitive business environment.

In the literatures, different definitions of brand equity have been proposed. According to Park and Srinivasan (2004), brand equity has no acceptable definition. Farquhar defined brand equity as the value which the brand adds to the product. Similar definitions were provided by researchers such as Aaker 2000, Keller 2002, Leuthesser 2003, Yoo and Donthun 2001.

Keller (2002 p.8) sees brand equity as "the differential effect of a brand knowledge on consumer response to the marketing of a brand". This is based on the assumption that the power of a brand lies on what have been learned, heard, seen and felt by the customer about the brand over time. Aaker (2000,p.15) provided the most precise definition of brand equity, he defined brand equity "as a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers".

Simon and Sullivian (2002) used the word "incremental utility" to refer to brand equity. Park and Srinivasan (2004) refer to brand equity as the distinction between the overall brand preference and the multi attribute preference depending on the objectively measured attribute level. Agarwal and Rao (1996) also refer to brand equity as the total quality and choice intention. From the above it is clear that brand equity is viewed in different ways by different researchers.

In other word, brand equity can be said to be any asset or liability connected to a brand name that adds or subtract value to a product.

The definition of brand equity can be widely classified into three perspectives i.e. it could be based on financial perspective which stress the value of a brand to a firm, customer perspective which sees brand equity as the value of a brand to consumers and a combination of the two.

Our present study will focus on consumers based perception. Consumer based brand equity can be divided into consumer perception i.e. (brand awareness, perceived quality, brand association) and consumers behaviors (brand loyalty and willingness to pay a high price). From the consumer’s perspective, brand awareness, brand association brand loyalty and perceived quality are the most important dimension.

Conceptualization of consumer based- brand equity

Different conceptualisations of brand equity have been measured by various researchers. Aaker (2000) view brand equity as a multidimensional concept which is made up of perceived qualities, brand loyalty, brand awareness, brand association and other propriety assets. According to him, Brand loyalty has to do with the level of devotion a consumer has to a brand. Brand awareness has to do with the ability of a potential buyer to identify a brand among a product category. Perceived quality deals with the consumer’s perception of the brands total quality or superiority. Brand association is anything that is connected in a consumer’s memory of a brand. The other proprietary brand asset has to do with patents and trademarks.

A similar conceptualization was proposed by Keller (2002). According to Keller (2002), consumer based brand equity consist of two dimensions, brand knowledge and brand awareness.

Cob-walgren et al based their study on customer based perceptual measure of brand equity. Their study adopted three of Aaker (2000) perceptual component of brand equity i.e. brand awareness, brand association and perceived quality. They tested whether brand equity has an effect on brand perception, intention and attitude. The result of their study found out that brand equity has effect on perception, intention and attitude.

Low and lamb Jr (2000) and Prasad and Dev (2000) also adopted four of Aaker (2000) component i.e. brand awareness, perceived quality, brand loyalty and brand association.

Yoo et al (2000) adopted three of Aaker (2000) component i.e. perceived quality, brand association and brand loyalty. Their study suggested and tested a model and the result revealed that these dimensions contribute to brand equity.

Yoo and Donthun (2001) employed four of Aaker’s component of brand equity i.e. brand awareness, brand loyalty, perceived quality and brand association excluding proprietary assets dimension as it is not important in the measurement of customer based brand equity.

Despite the large number of alternative proposed in the literature, no single measure is ideal. There is no concession on the strengths or weakness of each. Simon and Sullivan (2002) claim that the best method for measuring brand equity depends on the objective market based data which give room for comparison overtime and across firm. According to them, using preferences and consumers attitude is wrong as a result of their individual subjectivity. Farquhar 1989 and Criminis (2003) stated that some marketers also concluded that while brands do add values to various components, it is the consumers who first determine brand equity.

Therefore, for the purpose of our study, customer based brand equity will be based on Aaker (2000 1996) conceptualization i.e. brand awareness, brand loyalty, perceived quality and brand association. Brand association here is referred to as brand image i.e. the set of associations that are connected to the brand which are easily retained in customer’s memory.

CONCEPTUAL DOMAIN OF CONSUMERS –BASED BRAND EQUITY

BRAND AWARENESS

Brand awareness can be referred to as the degree of consumers’ familiarity with a brand. Aaker (2000) and Keller (2002) stated that brand awareness is a vital element of brand equity. According to Rossiter and Percy (2000), brand awareness is the ability of consumers to distinguish a brand amongst other brand. Keller (2002) conceptualized brand awareness as comprising of brand recall and brand recognition. He went further to say that brand recall is the ability of consumers to remember a brand from their mind when the product class is made know.

Keller (2002, p. 3) argued that "brand recognition may be more important to the extent that product decisions are made in the store". Rossiter et al (2000) noted that brand attitude and intention to purchase a product can only be developed through brand awareness.

According to Aaker (2000 p.62), there are three levels of brand awareness:

Brand recognition: It is the ability of consumers to identify a certain brand amongst other i.e. "aided recall". Aided recall is a situation whereby a person is asked to identify a recognized brand name from a list of brands from the same product class.

Brand recall: This is a situation whereby a consumer is expected to name a brand in a product class. It is also referred to as "unaided recall" as they are not given any clue from the product class.

Top of mind: This is referred to as the first brand that a consumer can recall amongst a given class of product.

Many researchers have seen brand awareness as an element that plays a vital role in consumer’s choice of brand. In Lin and Chang (2003), the result of their study established that brand awareness had the most powerful influence on consumers purchase decision.

Hoye and brown as cited by Lin and Chang (2003) their study examined the importance of brand awareness in consumers decision making process and they found out that brand awareness was a primary factor. Also Jiang (2004) found out in his study that brand recognition influences consumer’s choice.

Hence, in our present study, brand awareness is conceptualized as consisting of brand recognition and top of mind.

2.3.1.1 Achieving brand awareness

Aaker (2000) prescribed some of the following factors as ways to achieve brand awareness:

Involve a slogan or jingle: a slogan is a visible feature of a brand. There can be a strong link between a slogan and a brand. The slogan and jingle are powerful and can be a great change for a brand.

Be different and memorable: as a result of the similarity between product and their means of communication, product differentiation is important.

Symbol exposure: a known symbol will make it easier to recall and memorize a visible illustration of the brand. A logo that is connected to an existing brand or a developed brand will play a vital role in developing and keeping brand awareness.

Publicity: one of the most important ways to get publicity and create awareness is through advertisement.

Event sponsorship: sponsorship of event can also help to create and maintain awareness.

Consider brand extension: one way to increase brand recall is to show the logo or name on the product and make the name popular. Example of this is coca-cola which is more publicized than the key product.

Using cue: packaging is one of the most significant cues to a brand due to the fact that it is what the purchaser sees when purchasing a product. If the product or brand is not known, the only means of contact to the brand or product is the package.

2.3.2 Brand image

Engel Blackwell and Miniard (2002) referred to brand image as the combined effect of brand association or consumers perception of the "brands tangible and intangible association". Keller (2002) see brand image as a perception or association consumers form as a result of their memory concerning a product. According to Low and Lamb (2000 p.352), brand image can also be referred to as the emotional perception or reason that consumers place to a particular brand.

Thus, brand image does not exist in the features, technology or the actual product itself, it is sometimes brought out by advertisement, promotion or users. Brand image enables a consumer to recognize a product, lower purchase risks, evaluate the quality and obtain certain experience and satisfaction out of product differentiation.

Marketing researchers such as Keller (2002) have proposed that brand image is an important element of brand equity. Krishnan found out that brands with high brand equity are prone to more positive brand associations than those with low brand equity. Also Lassar et al found out that brand with high brand image rating always have higher brand equity and premium price. Conclusively, Kwon reported that positive brand image is mostly likely associated with preferred brands.

Researchers have proposed that brand equity is to an extent driven by the brand association composition of the image. According to Keller (2002), favorable, unique and strong associations are assumed to provide a positive brand image which will create a bias in the mind of consumers thereby increasing the brand equity. Pitta and Katsanis also stated that a unique, favorable and strong brand image allows the brand to be easily differentiated and positioned in the consumers mind, thereby adding to the possibility of increased brand equity.

Conclusively, brand image can be said to be the brand association or consumer’s perception about a particular brand as a result of their association with the brand.

2.3.3 Perceived quality

According to Aaker and Keller (2002,2003), perceived quality is a core dimension of customers based brand equity as it relates to the willingness to pay a price premium, brand choice and brand purchase intention.

Low and Lamb Jr (2000) referred to perceived quality as the perception of the superiority of a brand when compared to alternative brand. Zeithamal (2003) defined perceived quality as consumer’s judgment about the whole product superiority or excellence. According to Szymanski and Henard (2001), one of the antecedents of satisfaction is perceived quality. Like brand association, perceived quality provide consumers with value and give them reason to differentiate a brand from another.

Justified by Researchers such as Carman , Parasuraman et al (2003), perceived quality can said to have a positive effect on customers purchase intention. Although there are inconsistencies on the available empirical evidence for example, Boulding et al (2002) considered service quality as one of the factors leading to purchase intention. In Cronin and Taylor (2003) as cited by Juan Carlos et al (2001) direct effect was not significant whereas there was an indirect effect which rose from satisfaction. Taylor and Baker (2004) speculated that perceived quality liked with satisfaction has an effect on consumers purchase intention.

Therefore, perceived quality can be said to be consumer’s perception of the superiority of a brand which enables them to differentiate a brand from another.

2.3.4 Brand loyalty

According to Aaker (2000, p39), brand loyalty is "the attachment that a customer has to a brand". Yoo and Donthun (2001) also referred to brand loyalty as the tendency to be loyal to a brand and this can be shown by the intention of the consumer to buy the brand as a foremost choice.

Oliver (2001, p. 34) also defined brand loyalty as "deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetition of same-brand or same brand set purchasing, despite situational influence and marketing efforts having the potential to cause switching behaviors".

Odin et al (2001) stated that brand loyalty can either be behavioral or attitudinal. Behavioral loyalty comprises of repeated purchases of the brand. According to Dekimpe et al, one advantage of this is that it measures observable behaviours rather than self reported deposition or intention. It is easier and cheaper to measure.

According to Chaudhuri and Holbrooks (2001), attitudinal loyalty can be referred to as the extent of dispositional promises with respect to some particular advantages connected with the brand while behavioral loyalty has to do with the intention to repeat a purchase.

Although, the definition of behavioral brand loyalty deals with consumer’s sincere loyalty to a brand as shown in purchase choice, the definition based on attitudinal perspective stresses on consumers intention to be loyal to the brand. It is presumed that consumers understanding of quality will be associated with their brand loyalty. As the more loyal a consumer to a brand, the more he/she is presumed to see the brand as a superior quality and vice verse. Also, the more favorable association’s consumers have towards a brand, the more their loyalty and vice versa.

Aaker (2000 2002) classified loyalty as follows:

Non- customer: these are people who buy the brands of competitors.

Price switcher: these are the once that are sensitive to price.

Passive loyal: these once are purchase brand/product as a result of habit rather that reason.

Fence sitters: are those that are indifferent between several brands.

Committed: are those who are honestly loyal to the brand.

Kotler also classified loyalty to include switchers, soft-core, hard-core loyal and shifting loyal

So far, we have been able to connect the views of various researchers that address the issue of consumer based-brand equity. From our readings and what we have been able to gather, we will like to state here that consumers base brand equity have influence on consumers perception of brand. Favorable perceptions of quality are more presumed to be developed by consumers who hold a favorable association toward a brand.

Further more, consumers brand awareness is presumed to be high when they have strong association and perceived quality of the brand and vice versa.

Thus, consumer’s perceptions about the quality of a brand are presumed to be high when they have strong association with the brand and vice versa.

Benefit of a strong brand

According to Dave Dolak (2003), a strong brand will create the following benefits amongst others:

Build name recognition for your product/company.

Influence the consumer’s buying decision.

Build trust and emotional attachment to a firm’s product/service.

Make purchase decision easier. For example in a commodity market where product and services are indistinguishable, it will enable customers trust and create a set of belief about your product even without knowing the uniqueness of your products and characteristics.

A strong brand increases the consumer’s attitude towards a particular brand’s product and services and the strength of such attitude is developed through experience with such brand.

Consumers experience help to increased perceived qualities, inferred attributes and eventually leads to brand loyalty which are not easy to evaluate except before purchase.

A strong brand enjoy benefit such as reduced competitive advantage, premium price greater customer loyalty, profitability, reduce the perceived risk of consumers who are not so sure of their decision.

Brand equity

Since the development of brand equity in 1980’s, there have been rapid developments in the subject. This is due to the fact that branding has been recognized as an important factor for the success of a firm especially in a very competitive business environment.

In the literatures, different definitions of brand equity have been proposed. According to Park and Srinivasan (2004), brand equity has no acceptable definition. Farquhar defined brand equity as the value which the brand adds to the product. Similar definitions were provided by researchers such as Aaker 2000, Keller 2002, Leuthesser 2003, Yoo and Donthun 2001.

Keller (2002 p.8) sees brand equity as "the differential effect of a brand knowledge on consumer response to the marketing of a brand". This is based on the assumption that the power of a brand lies on what have been learned, heard, seen and felt by the customer about the brand over time. Aaker (2000,p.15) provided the most precise definition of brand equity, he defined brand equity "as a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers".

Simon and Sullivian (2002) used the word "incremental utility" to refer to brand equity. Park and Srinivasan (2004) refer to brand equity as the distinction between the overall brand preference and the multi attribute preference depending on the objectively measured attribute level. Agarwal and Rao (1996) also refer to brand equity as the total quality and choice intention. From the above it is clear that brand equity is viewed in different ways by different researchers.

In other word, brand equity can be said to be any asset or liability connected to a brand name that adds or subtract value to a product.

The definition of brand equity can be widely classified into three perspectives i.e. it could be based on financial perspective which stress the value of a brand to a firm, customer perspective which sees brand equity as the value of a brand to consumers and a combination of the two.

Our present study will focus on consumers based perception. Consumer based brand equity can be divided into consumer perception i.e. (brand awareness, perceived quality, brand association) and consumers behaviors (brand loyalty and willingness to pay a high price). From the consumer’s perspective, brand awareness, brand association brand loyalty and perceived quality are the most important dimension.

The Branding Process

The following picture shows the brand process in general:

click to close

According the above picture branding process has 6 steps. But it can be presented in following steps too:

Determination of what is being branded: It means defining that the brad is a one and only brand or it is one of the brands of the organization.

Research: It means investigating all the aspects about the product or service and also the market.

Positioning the brand: It means defining the features which make the brand unique.

Defining the brand: it means what the brand stands for and what its unique benefit is.

Developing the brand identity: it includes all possible elements in the brand such as brand name, tagline, and logo and so on.

Lunching the brand internally: Introducing the brand internally before announcing it in the public.

Managing the brand: Developing brand champions, leveraging the brand’s reputation of course with caution, and protect your brand through usage rules and legal rights.

Monitoring, evaluating, and updating the brand.

Conceptualization of consumer based- brand equity

Different conceptualizations of brand equity have been measured by various researchers. Aaker (2000) view brand equity as a multidimensional concept which is made up of perceived qualities, brand loyalty, brand awareness, brand association and other propriety assets. According to him, Brand loyalty has to do with the level of devotion a consumer has to a brand. Brand awareness has to do with the ability of a potential buyer to identify a brand among a product category. Perceived quality deals with the consumer’s perception of the brands total quality or superiority. Brand association is anything that is connected in a consumer’s memory of a brand. The other proprietary brand asset has to do with patents and trademarks.

A similar conceptualization was proposed by Keller (2002). According to Keller (2002), consumer based brand equity consist of two dimensions, brand knowledge and brand awareness.

Cob-walgren et al based their study on customer based perceptual measure of brand equity. Their study adopted three of Aaker (2000) perceptual component of brand equity i.e. brand awareness, brand association and perceived quality. They tested whether brand equity has an effect on brand perception, intention and attitude. The result of their study found out that brand equity has effect on perception, intention and attitude.

Low and lamb Jr (2000) and Prasad and Dev (2000) also adopted four of Aaker (2000) component i.e. brand awareness, perceived quality, brand loyalty and brand association.

Yoo et al (2000) adopted three of Aaker (2000) component i.e. perceived quality, brand association and brand loyalty. Their study suggested and tested a model and the result revealed that these dimensions contribute to brand equity.

Yoo and Donthun (2001) employed four of Aaker’s component of brand equity i.e. brand awareness, brand loyalty, perceived quality and brand association excluding proprietary assets dimension as it is not important in the measurement of customer based brand equity.

Despite the large number of alternative proposed in the literature, no single measure is ideal. There is no concession on the strengths or weakness of each. Simon and Sullivan (2002) claim that the best method for measuring brand equity depends on the objective market based data which give room for comparison overtime and across firm. According to them, using preferences and consumers attitude is wrong as a result of their individual subjectivity. Farquhar 1989 and Criminis (2003) stated that some marketers also concluded that while brands do add values to various components, it is the consumers who first determine brand equity.

Therefore, for the purpose of our study, customer based brand equity will be based on Aaker (2000 1996) conceptualization i.e. brand awareness, brand loyalty, perceived quality and brand association. Brand association here is referred to as brand image i.e. the set of associations that are connected to the brand which are easily retained in customer’s memory.

FAST FOOD RESTAURANT

According to the free dictionary (2003), fast food is an "inexpensive food, such as hamburgers and fried chicken prepared and served quickly. In Data Monitor’s (2005), fast food market was determined as the sale of foods and drinks for immediate consumption either on the property or in authorize eating areas or for consumption in another place. According to Park (2004), fast food is a common type of international business. It differs from other kind of food outside the home in the sense that it is fast and easy to prepare, providing a common and consistent product.

Jekanowski et al (2001) stated that due to the constant nature of quality and standard menu of fast food, little time is spent acquiring information about the product. Jekanowski et al also stated that fast food enable food time and time spent in activities like travelling or working to be combined.

Hanson (2002) stated that the recent fast pace of living has influenced people to seek a fast meal to fit into their short lunch hours .This has resulted in the growth of fast food industries. According to Park (2004), eating out enables consumers to satisfy their hunger, need for convenience, pleasure, entertainment, time saving, social interaction and the mood of transformation .He went further to say that benefits are obtained from food and restaurant by consumers.

Brand names as we know are very important to the success of fast food restaurant. It does not only create customers trust but also enhance the competitive advantages of the restaurant. Many fast food restaurants have distinguishable logos, features or text.

PROBLEM STATEMENT

Due to the fast changes in the global market and increasing competition, management of brand has become more important than before.

Building strong brand equity has the most priority in many fast food restaurants, but attaining this goal is not always an easy task due to the fact that the products and services of many fast food restaurants are similar and their means of distributions are the same. After reviewing relating literatures, I found limited studies regarding to customer based-brand equity in service industry but most of them focus on the relationship between brand equity and firm’s performance using brand awareness and image as a moderating effect. Also I noticed that most researches [Aaker (2000), Keller (2002), cob-walgren et al , Lasser et al , Yoo et al (2000), Yoo and Donthun (2001), Lin and Chang (2003)] that surveyed these four dimensions of customer based-brand equity (brand awareness, perceived quality, brand loyalty and brand image) have suggested that all of them have influence on consumer.

Therefore, I decided do a research for indicating the importance of these four dimensions of brand equity (brand awareness, brand loyalty brand image, perceived quality) on consumers’ perceptions of a brand.

RESEARCH QUESTION

RESEARCH PURPOSE

This study focuses on the importance of customers’ based-brand equity on consumers’ perception of brand. In this context I will try to find out the following issues:

Which dimension among these three client based-brand equity dimensions (brand image, brand loyalty and perceived quality) appears to have the least brand equity rating?

Does consumer based-brand equity differ between the two restaurants with respect to attribute of brand awareness, brand image, perceived quality and brand loyalty?

According to reviewed literature, I assumed that all the four dimensions of customer based brand equity have influence on consumer’s perceptions of brand. There are many well-known fast food restaurants in Iran, and I will choose two of them to conduct this study. The result of this study could provide as a decision making tool to help fast food restaurant managers to maximize the value of their brands.

Hypothesis1: A higher degree of brand equity leads to a higher degree of consumers’ perception of a brand

LIMITATION

RESEARCH METHODOLOGY

The approach of this study is quantitative. In addition, this is a descriptive study. The selected strategy to conduct this research is multiple-case study since I study two specific organizations. In order to gather data, some kinds of reliable and valid questionnaires are prepared. The aforementioned questionnaires will be distributed among the statistical sample. And then with a statistical method, I find the relationship between variables and measure the importance of customer based-brand equity on consumer perceptions of brand.

RESEARCH APPROACH

DATA COLLECTION

CHAPTER 3: LITERATURE REVIEW

CHAPTER 4: Findings and Analysis:

CHAPTER 5: Conclusion and Recommendations