Academic journal article International Journal of Marketing Studies

Distribution Intensity, Advertising, Monetary Promotion, and Customer-Based Brand Equity: An Applied Study in Egypt

Academic journal article International Journal of Marketing Studies

Distribution Intensity, Advertising, Monetary Promotion, and Customer-Based Brand Equity: An Applied Study in Egypt

Article excerpt

Abstract

Brand equity is so essential issue to be considered by manufacturers and retailers as well, that is to manage the brand rationally. The aim of the current research is to support managers in terms of determining the expected influence of marketing activities on the brand equity, which implies for the relative fund each activity deserves. The study investigated the potential effects of brand equity drivers (i.e., distribution intensity, advertising, monetary promotion) on the dimensions of customer-based brand equity. In addition, the research investigates the inter-relationships among the dimensions of brand equity. The study was built on data derived from 497 respondents. The results indicate that the proposed model reflects perfect fit to the data. The most of the hypothesized influences were significant and took the expected directions. The results would lead to suggest that brand awareness is the starting point to constitute the customer-based brand equity. Discussion and implications are provided.

Keywords: brand equity, distribution intensity, monetary promotion

1. Introduction

Brand is "a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service" (Kotler & Armstrong, 2008, p. 225). These individual components named "brand identities" (Keller, 1993). Berry (2000, p. 128) stated that "in packaged goods, the product is the primary brand, however, with services the company is the primary brand." Brand is considered an important firms' intangible asset (Keller & Lehmann, 2006) that should carefully be managed in order to reach their maximum value (Simon & Sullivan, 1993). Due to the increasing competition, Bambauer-Sachse and Mangold (2011) referred that, studying brands would take more concern. All value chain constituents benefit from the brand (Baldauf, Cravens, Diamantopoulos & Zeugner-Roth, 2009). In case, the consumers are uncertain about the attributes of the product, a firm would rely on the brand as a tool in terms of emphasizing the product credibility, thus decreasing the information costs, and consumer 's risk perception (Erdem & Swait, 1998), and enhances the value shopper gets from the product (Kim & Hyun, 2011). In another word, brand would facilitate the customer choice (Keller & Lehmann, 2006). The ability to create and manage brand is a skill that could be used to differentiate between marketers (Kotler & Armstrong, 2008). At this point, brand equity would be seen as the brand achievement (Buil, Chernatony & Martínez, 2013). Specifically, brand equity could be defined 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 the firm's customers" (Erdem, Swait, Broniarczyk, Chakravarti, Kapferer, Keane, Roberts, Steenkamp, & Zettelmeyer, 1999, p. 302). Brand equity is value granted by the brand to the product (Chattopadhyay, Dutta, & Sivani, 2010; Yoo & Donthu, 2001; Yoo, Naveen, & Sungho, 2000; Park & Srinivasan, 1994; Keller, 1993; Simon & Sullivan, 1993, Srinivasan, Park, & Chang, 2005), thus it is an interesting matter in both, industrial and consumer marketing (Kim & Hyun, 2011). Brand equity considered a pivotal issue in the marketing domain for practitioner and academics as well (Buil et al., 2013; Baldauf et al., 2009), which could be noticed since the late of 1980s (Srinivasan et al., 2005). The firm's success (Yoo et al., 2000) and total value (Simon & Sullivan, 1993) may depend on how far the firm succeeds in managing its brand equity. Matching with win-win philosophy, Yoo, et al. (2000) stated that brand equity would generate value to different stakeholders (i.e., firm; customers; employees; shareholders; and management). Brand equity considered a measurement for evaluating the effect of long-term marketing activities (Yoo & Donthu, 2001; Simon & Sullivan, 1993; Aaker, 1996), and it would be seen as a proxy of performance (Kim & Hyun, 2011). …

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