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Brand equity is recognized as a key construct in both marketing management and business strategy. This explosive idea has emerged brands as assets that promote business performance over time (Aaker, 2012). However, this idea has altered perceptions of what marketing does, who does it, and what roles it plays in business strategies (Cliftonand Simmons, 2014). Brand equity has also altered the brand value perception by disclosing that brands are not only a tool of gaining short-term sales and revenue but also provide strategic support to business strategies to promote long-term value for the organizations (Keller, 2013). Therefore, one group of experts say brand value and brand equity can be treated in the same way, but the other group of critics treats the brand value and brand equity in different ways.
Brand equity and brand value are some of the hot topics in marketing research. This is because managers take these issues seriously to track, measure, as well as improve customer equity (Rust, Zeithaml, and Lemond, 2010; Lemon and Zeithmal, 2014). The study shows that there is a close relationship between brand equity and brand value (Aaker, 2012; Keller, 2013; Venkatesan and Kumar, 2014; Reinartz and Kumar, 2015; Blattberg and John, 2011). Keller and Lehmann (2012) said although brand equity and brand value are related, they are two different concepts. Before these two terms were treated as the same constructs because of the lack of accepted models and tools to measure separately. Strivastava and Shocker (2011) said brand equity focuses on customer attention and attraction, whereas brand value focuses on company brand image. Keller (2013) said brand value includes the financial valuation of a brand and brand strengths are the customer effects. Both researchers and practitioners separate the two constructs (Keller and Lehmann, 2012).
The study shows that no particular model or theory still has established and emerged to describe develop brand equity as well as leverage it to create and increase brand value (Keller, 2013). In other words, no appropriate framework has been still developed to separate brand equity from brand value. Aaker (2012) termed brand equity as brand assets that construct comprising five key indicators that are brand awareness, brand loyalty, brand association, perceived quality, as well as other proprietary assets. Keller (2013) defined brand equity as the total calculation of brand assets that create and develop brand value. Brand equity represents customer equity and brand value. Rust, Lemon, and Zeithaml (2014) said brand equity has a customer-based perspective and a brand value organization-based perspective. MSI (1999) disclosed that leading researchers and practitioners developed 10 criteria (in appendix Table 1) to measure brand equity.
Several types of research suggested that brand value is specific toward a particular owner as well as implies unique organization-based perspectives. Therefore, brand equity exists within customers, rather than within the brand (Rust, Zeithaml, and Lemon, 2014). A brand shows promise of benefits to customers and the brand may focus on the functional, social, emotional, and safety benefits of the brand (Aaker, 2012). Therefore, brand equity is recognized as customer perception or desires which are met by a brand. In other ways, brand equity is recognized as the impact of marketing activities (like messages, products) on customer actions (like consideration and purchase) (Keller, 2013).
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Figure: Brand Equity as a Moderator of Marketing Activity Source: Raggio and Leone (2015)
However, too much brand equity may have a negative effect on the customers because the customer may think that the brand is not focusing on the customer seriously (Aaker, 2012). This argument has been supported by Punji and Hillyer (2014) who said brand equity can increase the brand attitudes and brand benefits defined by Keller (2013). Therefore, as Petty and John (2015) note, brand equity focuses on information processing, persistent beliefs, and attitude that are attitudes and behaviors which are affected and influenced by those beliefs.
Several types of research disclose that brand value mainly focuses on a company’s total brand means. In another way, it can be explained that brand value is the replacement or sale value of a specific brand (Clifton and Simmons, 2014). Brand values differ from brand owners. This is because different owners capture less or more potential values to leverage their brand equity (Keller and Lehmann, 2016). The following figure discloses brand value as appropriable and current that is subjective and relies on the capabilities and resources of a focal organization (Raggio and Leone, 2015). However, higher appropriable value can be accessible when businesses can gain brand equity efficiently and effectively (Oliveira and Luce, 2012)……..
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