Brand equity and store brand tiers: An analysis based on an experimental design

The creation of strong brands interests manufacturers and distributors, as well as researchers. However, previous investigations of brand equity have focused almost exclusively on manufacturers’ brands, without considering the brand equity of store brands.

Brand equity and store brand tiers: An analysis based on an experimental design

Óscar González-Benito and Mercedes Martos-Partal

Universidad de Salamanca

Mariana Fustinoni-Venturini

Boticario Group and Universidad de Salamanca

Introduction

Recent. 2004; Washburn 2004). Creating and managing brand equity represents a priority for companies of all sizes, in various industries and in different markets (Keller 2000). Strong brands offer an important, intangible asset (Kotler & Armstrong 1995) that grants firms a marginal cash flow, greater probability of brand election, greater customer loyalty, less vulnerability to competitive marketing actions, opportunities for brand extensions, and chances to license to other companies (Aaker 1994; Keller 1998). Greater brand knowledge and positive brand images also have favourable implications for price, distribution and promotional activities (Farquhar 1990; Keller 1993). For consumers, brands offer security, guarantee quality, facilitate the decision process, reduce risk, create trust and communicate social status (Aaker 1994; Keller 1998; Wilke & Zaichkowsky 1999; Keller & Lehmann 2006). Thus understanding how brands contribute to the product experience is a priority for both managers and researchers (Christodoulides & de Chernatony 2010).

DOI:10.2501/IJMR-2015-006

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