Brand Equity and Business Performance: Towards a Conceptual Framework
DOI:
https://doi.org/10.17010/ijom/2013/v43/i2/34047Keywords:
Brand Equity, Business Performance, Brand Awareness, Brand Loyalty, Brand Association.Abstract
A Brand is considered to be one of the most important intangible assets of any business. Companies spend a considerable amount of their revenue and time on brand building activities. In this scenario, there arose a need for the justification of brand building activities. Brand equity and business performance are the two concurrent topics of interest to both managers and academicians. This study examines the relationship between brand equity and business performance in the Fast Moving Consumer Goods (FMCG) industry. By understanding the dimensions of brand equity, the study focuses on the important contributors to brand equity. This article focuses on the studies establishing the relationship between brand equity and business performance, in which brand equity dimensions, i.e. - brand awareness, brand loyalty, perceived quality and brand associations - are related to business performance. Building on existing conceptual and empirical data, a conceptual framework of such a relationship was developed. The proposed framework can serve as a reference framework to leverage the business performance in the brand management process.Downloads
Downloads
Published
How to Cite
Issue
Section
References
Aaker, D.A. & Jacobson, R. (1994). “Study Shows Brand Building Pays Off For Stockholders.†Advertising Age, 65(30), p. 18.
Aaker, D.A. (1991). “Managing Brand Equity.†The Free Press, New York, pp.15-100.
Aaker, D.A. (1996). “Building Strong Brands.†The Free Press, New York, pp. 118-177.
Atilgan, E., Aksoy, S., and Akinci S. (2005). “Determinants of The Brand Equity- A Verification Approach In The Beverage Industry in Turkey.†Marketing Intelligence & Planning, 23(3), pp. 237-248.
Atilgan, E., Serkan, A., Aksoy, S., and Kaynak, E. (2009). “Customer-Based Brand Equity For Global Brands: A Multinational Approach.†Journal of Euromarketing, 18, pp.115 - 132.
Blankson, C., Kalafatis, S.P., Cheng, J.M., and Hadjicharalambous, C.(2008). “Impact of Positioning Strategies On Corporate Performance.†Journal of Advertising Research, 48(1), pp.106-122.
Buil, I., Chernatony, L., and Martı´nez E. (2008). “A Cross-National Validation of the Consumer-Based Brand Equity Scale.†Journal of Product & Brand Management, 17(6), pp. 384 - 392.
Calkins, T., Tybout, A., & Kotler, P. (2005). “Kellogg On Branding.†Wiley, India, pp. 1-20.
Capon, N., Berthon, P., Hulbert, J. M., and Pitt, L. (2001). “Brand Custodianship: A New Primer For Senior Managers.†European Management Journal, 19(3), pp. 215-227.
Cobb-Walgren, C.J., Ruble, C.A. & Donthu, N. (1995). “Brand Equity, Brand Preference, and Purchase Intent.†Journal of Advertising, 24(3), pp. 25-40.
Farquhar, P. H. (1989). “Managing Brand Equity.†Marketing Research, 1(3), pp. 24-33.
Ford, J.D., and Schellenberg, D.A. (1982). “Conceptual Issues of Linkage In The Assessment of Organizational Performance.†Academy Of Management Review, 7(1), pp. 49-58.
Kaplan, R. S., and Norton, P. (1996). “Linking The Balanced Scorecard To Strategy.†California Management Review, 39, pp.53-79.
Kayaman, R. and Arasli, H. (2007). “Customer Based Brand Equity: Evidence From The Hotel Industry.†Managing Service Quality, 17(1), pp. 92-109.
Keller, K. L., and Lehmann, D. R. (2003). “How Do Brands Create Value?†Marketing Management, 12(3), p. 26.
Keller, K.L. (1993). “Conceptualizing, Measuring and Managing Customer-Based Brand Equity.†Journal of Marketing, 57(1), pp.1-22.
Keller, K.L. (2003). “Strategic Brand Management.†(2nd ed.), Prentice Hall, Upper Saddle River, NJ, pp. 47-84.
Kim, H-B., Kim, W.G., and An, J.A. (2003). “The Effect of Consumer Based Brand Equity On Firm's Financial Performance.†Journal of Consumer Marketing, 20(4), pp. 335-351.
Kim, W. G., and Kim, H-B. (2004). “Measuring Customer Based Restaurant Brand Equity-Investigating The Relationship Between Brand Equity and Firms' Performance.†Cornell Hotel and Restaurant Administration Quarterly, 45(2), pp. 115-131.
Kim, W.G., Sun, B.J., and Kim, J. H. (2008). “Multidimensional Customer-Based Brand Equity and Its Consequences In Mid Priced Hotels.†Journal of Hospitality & Tourism Research, 32(2), pp. 235-254.
Mahajan, V., Rao, V.R. And Srivastava, R.K. (1990). “Development, Testing, and Validation of Brand Equity Under Conditions of Acquisition and Divestment.†In Maltz, E. (Ed.), “Managing Brand Equity: A Conference Summary Report.†No. 91-110, Marketing Science Institute, Cambridge, MA, pp. 14-15.
Morgan, N. A. and Rego, L. L. (2009). “Brand Portfolio Strategy and Firm Performance.†Journal of Marketing, 73(1), pp. 59-74.
Neely, A.D., Gregory, M.J., and Platts, K. (1995). “Performance Measurement System Design: A Literature Review and Research Agenda.†International Journal of Operations & Production Management, 15(4), pp. 80-116.
Nurittamont, W., and Phapruke. U. (2008). 'The Influences Of Brand Equity in Competitive Advantage and Performance of Spa Business in Thailand.' International Journal of Business Strategy, 8(2), pp. 14-25.
Pappu, Rav., Queste, P., and Cooksey, R. W. (2005). “Consumer-Based Brand Equity: Improving the Measurement Empirical Evidence.†Journal of Product & Brand Management, 14(3), pp. 143-154.
Park, C.S., and Srinivasan, V. (1994). “A Survey-Based Method For Measuring and Understanding Brand Equity And Its Extendibility.†Journal of Marketing Research, 31(2), pp. 271-88.
Prasad, K., & Dev, C.S. (2000). “Managing Hotel Brand Equity.†Cornell Hotel and Restaurant Administration Quarterly, 41(3), pp. 22-31.
Prieto, I., and Revilla, E. (2006). “Learning Capability and Business Performance: A Non Financial and Financial Assessment.†The Learning Organization, 13(2), pp. 166 - 185.
Rios, R.E., and Riquelme, H. E. (2008). “Brand Equity For Online Companies.†Marketing Intelligence & Planning, 26(7), pp. 719-742.
Safon, V. (2007). “How to Compete and How to Compete Profitably: A Model of Competitive Positions and Business Performance.†Global Journal Of Business Research, 1(1), pp. 47-59.
Sarangapani, A., and Mamatha, T. (2008). “Rural Consumer Behaviour With Regard To Selected Fmcgs Consumption Patterns and Brand Usage: A Study.†The ICFAI University Journal of Brand Management, 5(3), pp.22-61.
Simon, C.J., and Sullivan, M.W. (1993). “The Measurement and Determinants of Brand Equity: A Financial Approach.†Marketing Science, 12(1), pp. 28 - 52.
Srivastava, R.K. & Shocker, A.D. (1991), “Brand Equity: A Perspective on Its Meaning and Measurement Report.†Issue 91-124, Working Paper Series, Marketing Science Institute, Cambridge, MA, pp.91-124.
The Nielsen Company. (2010). “Challenges Before An Integrated India: Bridging The Urban- Rural Divide.†Federation of Indian Chambers of Commerce and Industry.
Tolba, A. H., and Hassan, S.S. (2009). “Linking Customer-Based Brand Equity with Brand Market Performance: A Managerial Approach.†Journal of Product & Brand Management, 18(5), pp. 356 - 366.
Tong, X., and Hawley, J.M. (2009). “Measuring Customer-Based Brand Equity: Empirical Evidence from the Sportswear Market in China.†Journal of Product & Brand Management, 18(4), pp. 262- 271.
Uzma, S, H., and Kumar, N. (2010). “Brand Valuation: Financial - Marketing Interface of Metrics.†Indian Journal of Marketing, 40(10), p. 54.
Venkatraman, N., and Ramanujam, V. (1986). “Measurement of Business Performance in Strategy Research: A Comparison of Approaches.†Academy of Management Review, 11(4), pp. 801-814.
Waggoner, D.B., Neely, A.D. and Kennerley, M.P. (1999). “The Forces That Shape Organizational Performance Measurement Systems: An Interdisciplinary Review.†International Journal of Production Economics, 60(1), pp. 53-60.
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), pp. 46-62.
Yoo, B., and Donthu, N. (2001). “Developing and Validating Multidimensional Consumer-Based Brand Equity Scale.†Journal of Business Research, 52(1), pp. 1-14.