Title: The Effect of Brand Equity on Customer Satisfaction: An Empirical Study Based on David Aaker's Brand Equity Model
Abstract: IntroductionThe concept of equity was brought to light initially in late 1980s. Brand equity is an intangible asset which creates an association between and its consumers. Brand equity can be viewed from three perspectives-financial, extension and consumer. In this research, we focus on consumer perspective. According to Keller (2003), the power of lies in what customers have learned, felt, seen, and heard about as result of their experiences over time. One way of knowing how customers are familiar with is through equity. According to David Aaker, equity has four dimensions-brand loyalty, awareness, association and perceived quality. He states that equity helps customer to interpret and process information about product, and also affects customer's confidence in purchase decision and quality of user experience.The branded shoes market in Pakistan is facing challenging environment due to growing competition and increasing number of brands. A large number of branded shoes are competing in market, and customers are showing increasing preference for branded shoes. Companies are therefore more focused on establishing strong identity for their products in order to attract customers and build customer satisfaction. Brand equity research plays vital role in helping managers to build equity and gain competitive advantage. This research studies association between equity dimensions, overall equity and customer satisfaction.Literature ReviewBrand EquityMany researchers like Kotier, Keller and Aaker have provided definitions and models about equity. David Aaker was first to introduce concept of equity (during 1980s). Aaker (1991) described equity as a set of assets and liabilities linked to brand, its name and symbol that add to or subtract from value provided by product or service.Farquhar (1989) stated that we can generate equity by 'adding value' to product. Keller (1993) introduced customer-based equity model. He defined equity as the differential effect of knowledge on consumer response to marketing of brand and highlighted four steps to build and manage brand. Kapferer (1992) came up with identity prism. Yoo et al. (2000) described equity as the difference in consumer choice between focal branded product and an unbranded product, given same level of product features. In conclusion, all researchers agreed that added value can generate equity by enhancing consumer association and perception about particular brand.According to Liaogang et al. (2007), generating equity and managing is an important issue for companies. Generating equity helps companies in product differentiation and getting competitive advantage. According to Park and Srinivasan (1994), equity is incremental utility and value endowed to product or service by its name. According to Chen and Tseng (2010), it is considered as source of competitive advantage by many firms.Customer SatisfactionAccording to Howard and Sheth (1969), satisfaction is the buyer's cognitive state of being adequately or inadequately rewarded for sacrifices he has undergone. Oliver (1981) describes customer satisfaction as the summary psychological state resulting when emotion surrounding disconfirmed expectations is coupled with consumer's prior feelings about consumption experience. Vavra (1997) defined customer satisfaction as a satisfactory post-purchase experience with product or service given an existing purchase expectation. According to these studies, customer satisfaction increases purchase intent.Hypotheses DevelopmentBrand Loyalty and Brand EquitySheth and Park (1974) concluded that loyalty has three dimensions. …
Publication Year: 2016
Publication Date: 2016-09-01
Language: en
Type: article
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Cited By Count: 13
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