Evaluating Brand Equity Models Towards e PDF

Evaluating brand equity
models towards enhancing

the corporate value.
Aisha Mohammed Ali Alnahdy

ID: 003EHKL0610
Bachelor of Arts (Hons) Business Studies (BABS)
Cardiff Metropolitan University
September 2013
DECLARATION
“I hereby Aisha Mohammed Ali (003EHKL0610), declare

that this dissertation has not already been accepted in
substance for any degree and is not concurrently
submitted in candidature for any degree. It is the result of
my own independent research except where otherwise
stated”.
Aisha Mohammed Ali
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ACKNOWLEDGEMENT
I would like to express my gratitude to my supervisor Dr. Syed Kadir for
the useful comments, remarks and engagement through the writing
process of this dissertation.
Also, I like to thank the participants in my survey, who have willingly

shared their precious time during the process of interviewing. I would
like to thank my beloved family, my mother Sofia, My brother and sisters
who have supported me throughout the duration of my study, both by
keeping me harmonious and helping me putting pieces together. I will be
grateful forever for your love.
Special thanks go to my class mate, Ibrokhim Mirkodirov and all my

friends, who help me to assemble the parts and gave suggestion.
I have to appreciate the guidance given by other lectures as well as the

panels especially in my whole degree period that has improved my skills
thanks to their comment and advices.
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ABSTRACT
Companies across the globe are now increasingly recognizing the power of value of
brand as it provides high competitive advantage for business in competitive market
place. During the last three decades, the business world has undergone a paradigm
shift with the effect of brand as a concept getting attention and becoming an
effective tool for retainment and sustenance in the competitive world. Brands are
considered to be an asset for a company which increases the worth of the concern.
Like any other asset, brand generates revenues and value for the company.
The historical evolution of brands has shown that brands initially have served the
roles of differentiating between competing items, representing consistency of
quality and providing legal protection from copying. Apart from providing the
offering with the badge of its maker, there-by indicating legal ownership of all the
special technical and other relevant features that the offering may possess, the
brand can have a powerful symbolic significance.
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Table of Contents
ABSTRACT ........................................................................................... 3
CHAPTER 1: INTRODUCTION ........................................................ 7
1.1 Overview ............................................................................................................... 7
1.2 Background to Study ............................................................................................. 7
1.3 Problem Statement ................................................................................................ 8
1.4 Research Questions ............................................................................................... 9
1.5 Research Objectives .............................................................................................. 9
1.6 Research Framework .......................................................................................... 10
1.7 Significance ............................................................................................................. 10
1.8 Limitation of Study .............................................................................................. 11
1.9 Remaining Chapters ............................................................................................ 11
1.10 Conclusion ............................................................................................................ 12
CHAPTER 2: LITERATURE REVIEW ........................................... 13

2.1 Overview .................................................................................................................. 13
2.2 Brand value ............................................................................................................. 13
2.2.1 Brand equity models..................................................................................... 14
2.2.1.1 AAker’s brand equity model................................................................ 15
2.2.1.2 Keller’s brand equity model ................................................................ 16
2.2.1.3 Model Classification ................................................................................ 18
2.3 Brand awareness .................................................................................................. 19
2.4 Brand perceived quality .................................................................................... 21
2.5 Brand loyalty .......................................................................................................... 22
2.6 Managerial implications .................................................................................... 23
2.6.1 Accounting Role in the Brand Valuation............................................... 24
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2.7 Other factors........................................................................................................... 25
2.7.1 Importance of Advertising in Branding ................................................ 25
2.7.2 Perspectives of Brand Equity .................................................................... 26
2.7.2.1 Customer Based Brand Equity ......................................................... 26
2.8 Consumer value .................................................................................................... 28
2.9 Conclusion ............................................................................................................... 28
CHAPTER 3: RESEARCH METHODOLOGY ................................ 29

3.1 Overview .................................................................................................................. 29
3.2 Background of research ..................................................................................... 29
3.3 Research design .................................................................................................... 30
3.4 Sampling design .................................................................................................... 32
3.5 Data collection ....................................................................................................... 33
3.5.1 Primary Source ............................................................................................... 33
3.5.2 Secondary Data ............................................................................................... 34
3.6 Research instrument........................................................................................... 34
3.6.1 Questionnaire: ................................................................................................. 35
3.6.2 Online surveys ................................................................................................. 36
3.8 Research Limitations .......................................................................................... 36
3.9 Conclusion ............................................................................................................... 36
CHAPTER 4: DATA ANALYSIS ....................................................... 37

4.1 Overview of Data Analysis ................................................................................ 37
4.2 Survey Questionnaire Analysis ....................................................................... 37
4.2.1 Demographic Profile of Responders ...................................................... 38
4.2.1.1 Summary of the Demographic Profile of Respondents ......... 40
4.2.2 Finding Results and Analysis .................................................................... 41
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4.2.2.1 Section A: Brand Value ........................................................................ 41
4.2.2.2 Section B: Brand awareness .............................................................. 44
4.2.2.3 Section C: Brand perceived quality ................................................ 46
4.2.2.4 Section D: Brand Loyalty .................................................................... 48
4.2.2.5 Section E: Managerial Implications ............................................... 50
4.3 Research Finding .................................................................................................. 51
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ........ 55

5.1 Conclusion of Research ...................................................................................... 55
5.2 Recommendations of Research ................................................................. 55
5.2.1 LEVERAGING AND MEASURING BRAND EQUITY ............................ 56
5.2.1.1 Leveraging brand equity .................................................................... 56
5.2.1.2 Building brand equity .......................................................................... 56
BIBLIOGRAPHY ............................................................................... 57
APPENDICES ..................................................................................... 62
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CHAPTER 1: INTRODUCTION
1.1 Overview
Today, company′s real value lies outside the business itself, in the minds of potential
buyers. This is reflected in the value of brands, which are the anchors of company’s
value. Products are introduced, they live and disappear but brands endure (Kapferer,
1992).
The term ‘brand’’ holds multiple meanings. According to John Murphy, founder of
Interbrand (Ingham, 2003), a brand is not only an actual product, but also the
unique property of a specific owner. Brands are increasingly considered to be the
primary capital in many businesses.
Financial professionals have developed the idea that a brand has an equity which
exceeds its conventional asset value. This is supported by the fact that the cost of
introducing a new brand to the market has been approximated at $100 million with
a 50 percent probability of failure (Ourusoff, 1993). Therefore, the phenomenon of
brand and brand equity valuation became the centre of interest of both academic
and business experts. The main issues are how a company can build, nurture and
use a brand in order to obtain and sustain the competitive advantage in the
marketplace.
1.2 Background to Study

There has been much researches on branding and brand equity in recent years,
relatively little has been published on brand valuation, even though it being a key
managerial issue. The research reviews the brand valuation literature. It highlights
Brand Valuation research, the obstacles to Brand Valuation aspects and valuation
approaches.
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Brand equity is a measure of the health of the brand. Thus, it can be used for
marketing decision-making. In addition, brand equity cannot be viewed only from
the companies’ perspective, but one must be concerned with the way customers
perceive product or service brands. In the marketing literature, operationalisation of
consumer-based brand equity usually falls into two groups (Cobb et al., 1995):
consumer perception (brand awareness, brand associations, perceived quality) and
consumer behaviour (brand loyalty, willingness to pay a high price).
The key sources of brand equity suggested by Aaker (Aaker, 1991), incorporate both
perceptual and behavioural dimensions in the definition, whereas Lassar et al.
strictly distinguish the perceptual dimension from the behavioural dimension, so
that behaviour is a consequence of brand equity rather than the brand itself (Aaker,
1995).
Brand equity as a concept has been developed over the last decade (Keller, 1998).
One of the main issues still to be resolved is how to value brands. Summarizing the
primary thrust of articles published in the Journal of Marketing Research during
1987-1997, Malhotra concluded that in the area of brand evaluation and choice,
future research should focus on further measurements of the brand equity construct
(Malhotra et al., 1999). They proposed that a generally accepted measure could
further the overall understanding of the strategic role of brand equity in extending
the brand and in financially benefiting the firm. While there are a number of
approaches available to managers, it is still uncertain which approach is best, and
the issues around the discount rate, growth rate and useful life have to be resolved
(Kapferer, 1997).
1.3 Problem Statement

Scientific and empirical researches of brand valuation are made by such scientists as
Kapferer, Aaker and Joachimsthaler, Keller , and others, but in this area there is a
lack of singleness and wholeness in pursuance of measuring brand equity.
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The aim of the research is to prepare integrated brand valuation on theoretical layer
analysis and summary of brand valuation models.
1.4 Research Questions

Initial analysis of the problem statement leads to a number of questions on which
the study has focused which will be answered in the course of the secondary and
primary research;
1. What is brand valuation and how does it affect the corporate value?
2. How does brand awareness influence corporate value?
3. What are the possible managerial implications of brand equity?
4. What is brand perceived quality, and how can it be determined?
5. How does brand loyalty impact corporate value?
These were what made the researcher go in for a research with a hope to find
something interesting, useful and value enough to be able to apply as strategic tools
one can practice to improve overall brand performance.
1.5 Research Objectives

 To analyse brand valuation and its impacts on corporate value.
 To understand how brand awareness influence corporate brand equity.
 To investigate brand perceived quality.
 To examine brand loyalty impacts on corporate value.
 To study the managerial implications of brand equity.
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1.6 Research Framework
Brand Value
Brand Awareness
Towards
Brand Perceived Quality enhancing:
Brand Loyalty
- Corporate value.
- Consumer value.
Managerial Implications
1.7 Significance
The purpose of the research is to discuss and elaborate the main issues encountered
in evaluating brand equity models towards enhancing corporate value. In order to
achieve this purpose, the researcher analyse the concept of brand equity, provide a
comprehensive framework for managing brand equity, look into the aspects which
may influence corporate value as well and distinguish different ways to control and
measure brand equity.
Brand equity can be regarded as a managerial concept, as a financial intangible

asset, as a relationship concept or as a customer-based concept from the perspective
of the individual consumer. The main asset dimensions of brand equity can be
grouped into brand loyalty, brand awareness, perceived quality and brand
associations. Brand equity can create advantages and benefits for the firm, the trade
or the consumer.
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1.8 Limitation of Study

The main research limitations found during this study is time management since a
limited time is allocated to carry out the research study. The researcher has had very
limited time to conduct the research. To compensate for this draw back the research
aims and objectives have been clearly identified.
1.9 Remaining Chapters

In the context of formatting a clear structure, this research is divided into five
chapters to guide the research process flow by concentrating on the research
question and outlining the research objectives.
Chapter 2: Covers the literature review related to the importance of this research
study as well as the research objectives identified in chapter one, such as brand
loyalty impacts on corporate value, brand valuation and brand perceived quality.
Chapter 3: outlines the concepts related to research methodology, explaining how

information and data are brought together in order to carry out the primary data
collection of this research study. This chapter covers research design, research
approach, research strategy, data collection methods, data reliability and ethical
limitations.
Chapter 4: This chapter presents the data, findings and analysis of the primary
research that had been gathered to answer the key questions proposed in this study.
It repeats research questions and answers each one using primary data collected,
supported by the literature review.
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Chapter 5: provides the conclusion in this research and give some

recommendations based on relevant academic theories in literature review chapter.
As well it outlines the limitations faced and further recommendations have also
been suggested for future research.
1.10 Conclusion
As the global competition gets stiffer and industries in this business environment
are not sure of their survival, the brand is one of the few assets that can provide
long-term competitive advantage to the firm. Brand valuation today could become a
comprehensive instrument in decision making for the corporate houses. Many
established methodologies have been widely practiced for brand valuation by brand
consultancies, such as Interbrand and brand finance. Today, a number of alternative
brand valuation techniques are available and the wide range of alternative valuation
methods yield significantly different results
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CHAPTER 2: LITERATURE REVIEW

2.1 Overview
This chapter makes the theoretical and systematic inquiry into the literature that
contains the information relevant to the research question. It is the relation of the
existing literature on the research topic to the study that defines the boundary of
this research.
2.2 Brand value

Nowadays, a widely accepted method of valuing a company or business is to
discount the cash flows to equity it produces, to a net present value. A similar
approach can be used for brands. The profit streams produced by the brand are
discounted to their net present value using a discount rate, which reflects the risk of
the realization of those income streams; i.e., which reflects the strength of the brand,
the drivers of those profit streams.
Interbrand valuation model employs an economic use method which is the most
widely accepted and has made Inter brand a world-wide authority in this field. It is
based on the premise that brands, when well managed, affect the way that
consumers behave in the market and, as a result the brand owner derives economic
benefit from this behaviour. Interbrand bases its valuation method on the concept of
economic use and the primary question is ‘how much more valuable is the business
because it owns certain brands’ (Yates, 1999). As such, it is a marketing measure
that reflects the security and growth prospects of the brand as well as financial
measure that reflects the earnings potential of the brand.
If we take into account the economic worth concept, we can discuss both the
discounted cash flows that are to be generated by the brand in the future, as well as
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the likelihood that these earnings will be generated. Generally speaking, Inter
brand's brand valuation methodology is comprised of four fundamentals (Yates,
1999):
• Financial Analysis: used to identify business earnings and 'Earnings from

Intangibles' for each of the distinct segments being assessed.
• Market Analysis: used to measure the role that a brand plays in driving demand for
services in the markets in which it operates, and hence, to determine what
proportion of Earnings from Intangibles are attributable to the brand.
• Brand Analysis: used to assess competitive strengths and weaknesses of the brand
and hence the security of future earnings expected from that brand.
• Legal Analysis: used to make sure that the brand is a true piece of property.
The value of every asset, whether tangible or intangible, can be estimated. Some
assets are easier to value than others, and some valuations are more precise than
others. Intangible assets, such as brands, often fall in the more difficult, less precise
valuation category. While the valuation of brands requires techniques that are quite
different from those used to value stocks or fixed assets, the basic principles are the
same.
First, from a shareholder’s perspective, the value of a brand is equal to the financial
returns that the brand will generate over its useful life. Second, any financial returns
attributed to a brand must be discounted to account for market uncertainty and
asset-specific risks. These two principles apply to the valuation of all assets, not just
brands.
2.2.1 Brand equity models

Brand equity consists of elements such as the brand associations, market
fundamentals and marketing assets that distinguish one brand from another and
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that influence a customer’s perceptions of knowledge about a brand. When brand
elements are favourable in a customer’s mind, brand equity is considered to be
positive. When they are not favourable, the brand equity is negative. Positive
associations of a brand in a customer’s mind are generally stronger and more
sustainable than those of a product, assuming that sufficient investments are being
made in appropriate brand management (Keller, 1993).
2.2.1.1 AAKER’S BRAND EQUITY MODEL

Aaker views brand equity as a set of assets ‘liabilities’ linked to a brand’s name and
symbol that adds to or deducts from the value provided by a product or service to
the customer. A consumer perceives brand equity as the value added to the product
by associating it with a brand name (Aaker, 1996). While this value added is a
function of several facets, the core facets are the primary predictors of brand
purchase intent and behaviour. Core Customer Based Brand Equity (CBBE) features,
denoted by Aaker; include perceived quality, perceived value for the cost,
uniqueness, and the willingness to pay a price premium of a given brand (Aaker,
1996).
Davis Aaker identifies five brand equity components in his brand equity model
(Aaker, 1991):
(1) Brand loyalty,
(2) Brand awareness,
(3) Perceived quality,
(4) Brand associations and
(5) Other proprietary assets.
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This model can be used to get to grips with brand’s equity and gain insight into the
relation between the different brand equity components and future performance of
the brand.
FIGURE 1: AAKER'S BRAND EQUITY MODEL
2.2.1.2 KELLER’S BRAND EQUITY MODEL

Kevin Lane Keller’s well known Brand Equity model; (also known as Customer-
Based Brand Equity Model) shows the process of building strong brands. Powerful
brands create meaningful images in the minds of consumers (Keller, 1993), with
brand image and reputation enhancing differentiation and thus potentially having a
positive influence on buying behaviour.
The model, seen in Figure 2, illustrates the four steps that company need to follow to
build strong brand equity.
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FIGURE 2: KELLER'S BRAND EQUITY MODEL
The four steps of the pyramid represent four fundamental questions that customers
will ask about your brand. It contains six building blocks that must be in place for
the company to reach the top of the pyramid, and to develop a successful brand.
Keller describes brand equity as the differential effect of brand knowledge on

consumer response to the marketing of the brand. As well he views CBBE as a
process, that occurs when the consumer is familiar with the brand and holds some
favourable, strong, and unique brand associations in memory (Keller, 1993). The
favourable, strong, and unique associations are termed as primary associations that
include brand beliefs and attitudes encompassing the perceived benefits of a given
brand (Keller, 1993). These beliefs and attitudes can be functional and experiential
such as perceived quality and value relative to other brands, or symbolic like
uniqueness. Primary brand associations of perceived quality, perceived value for the
cost, uniqueness, and the willingness to pay a price premium, are the strongest
predictors of purchase intent and purchase behaviour in Keller’s framework.
The brand value is based on a number of dynamic variables including differentiation,

competitiveness, category strength, corporate strategy, relevance, management
ability, existing intangible and tangible assets...etc. these variables doesn’t only
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change regularly, but as well the core of company’s attention changes depending on
the requirements of the business. Thus, the brand value is some sort of relative
measure, contingent on conditions and perspective. Eventually, the consumer is the
one that attaches value to a brand, not consultants, or the manager himself (Woods,
1998).
The organization which owns the brand enjoys the benefits not obtainable to other
organizations. First benefit is that an organization through brand acquires a good
communication tool, which is not one-way. That means enterprises are good
communicators, but only if they are good listeners of what consumers want to say.
On top, successful brands are the outcome of good communication. Loyalty is the
straight result of good communication between a company and a consumer.
It is an outcome of trust. Building trust requires long term attention. It takes cash,
knowledge, patience and the most important is time. Losing the trust will costs
much more net present value of all future net earnings from the brand (Yates, 1999).
Another benefit of branding is differentiation, the brand delegates a product or a

service as being different from competitors' products and services by indicating
positive key values specific to a brand. Consumers’ perception of brands is
recognized from and based on both emotional and rational reasons. This provides
the basis for the ongoing relationship between a supplier and a consumer, and
because of this, brands provide a security of demand that the supplier otherwise
would not enjoy (Abratt & Bick, 2003).
2.2.1.3 MODEL CLASSIFICATION

Traditional classification divides all models of brand equity in three categories:
financial, consumer-based and composite models. The financial approach is
explained by the definition of the brand equity provided by (Bekmeier, 1998), which
is as follows: brand equity is a net present value of future net surpluses over the
cash inputs that owner of a brand can earn. The main ongoing question is: what is
the value of a brand for a company or a producer?
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Financially oriented valuations of brand equity should result in monetary value,
which can be included in the financial statements of the company. Nevertheless,
such valuations are of very limited capacity since they do not take into account all
the aspects of a brand and its equity. Namely, they take into account purely financial
aspects of the brand, while excluding all other aspects. In addition, the application of
these models is problematic in terms of; discount rate, growth rate and useful life
(Kapferer, 1992).
The benefits of financial models are that most of them encompass the value-based
techniques of the financial market to estimate a firm’s brand equity (Simon &
Sullivan, 1993). The estimation techniques extract the brand equity’s value from the
value of a firm’s other assets. The methodology separates the value of a firm’s
securities into tangible and intangible assets, and then carves brand equity out of
other intangible assets.
Second category of models is consumer-based. They value the brand from the
consumer stand point. The main ongoing question is what is the value form the
consumer’s point of view?. This approach takes into account consumer’s perception
of a product, its quality and the added value of that product to the customer. The
consumer-based perspective assumes the two multi-dimensional concepts of brand
strength and brand value (Srivastava & Shocker, 1991). Brand strength is based on
perceptions and behaviours of customers that allow the brand to enjoy sustainable
and differentiated competitive advantages.
2.3 Brand awareness

Brand awareness is the process of building the brand and using it to let customers
know about the business. By creating a memorable brand through marketing and ad
strategies, more people will know what the company is and there will be increase in
sales and even repeat business. The primary parts of becoming brand-aware are the
creation of business name, logo and taglines.
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Brand awareness is a much neglected constructed deserves considerably more
attention due to its central importance in brand choice. From an empirical point of
view, numerous researchers have shown that brand awareness measures are
powerful predictors of consumer choice behaviour. Furthermore, from a conceptual
or theoretical point of view, brand awareness has been recognised as preceding and
necessary to brand evaluation (Howard & Sheth, 1969).
Brand awareness is essential not only because it brings customers to the business
for the first time, it encourages them to keep coming back. People like to buy from
names they trust and that they can identify with; when the logo and tagline are easy
for them to remember, the brand comes to symbolize the company and it’s the first
thing to come to the consumer’s mind when they’re ready to buy (Kar, 2013).
Equity is the value of the brand beyond the physical assets like buildings and
equipment. To develop a strong brand equity companies have to develop a high level
of brand awareness. The more people are aware of the company and the stronger its
reputation, the greater the profit potential and overall brand value. Word of mouth
in the market plays a strong role in helping brand grow its customer base and
develop loyal relationships with top customers.
The importance of brand awareness has become increasingly significant with the
evolution of the Internet and digital technology. The public is more equipped with
mobile and social media tools to communicate quickly about the brand. This means
that establishing a strong reputation for good products or services, integrity in
business practices and community involvement are even more critical to long-term
success.
There are two types of brand awareness:
Aided awareness, which means that on mentioning the product category, the
customers recognize your brand from the lists of brands shown.
Top of mind awareness: This means that on mentioning the product
category, the first brand that customer recalls from his mind is your brand.
Building brand awareness is essential for building brand equity. It includes use of
various renowned channels of promotion such as advertising, word of mouth
publicity, social media like blogs, sponsorships, launching events, etc.
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create brand awareness, it is important to create reliable brand image, slogans and
taglines. The brand message to be communicated should also be consistent. Strong
brand awareness leads to high sales and high market share. Brand awareness can be
regarded as a means through which consumers become acquainted and familiar
with a brand and recognize that brand (Macdonald & Sharp, 2003).
2.4 Brand perceived quality

Perceived quality can be defined as the customer’s perception of the overall quality
or superiority of a product or service with respect to its intended purpose, relative
to alternatives (Yaseen et al., 2011).
It is one of the key elements of the brand equity since it is proven that this element is
associated with the price premium, price elasticity, brand usage and stock return. As
such, this element can be applicable to all brand types, across products and markets.
It is also very important to notice that this element works only if we compare the
brand in question with the competitive brands. The other issue is that loyal
customers are usually prone to overestimate the quality of their favourite brand to
other brands (Aaker, 1991).
Perceived quality may differ from actual quality for a variety of reasons. First,
consumers may be overly influenced by a previous image of poor quality. Because of
this, they may not believe new claims, or they may not be willing to take the time to
verify them.
Second, a company may be achieving quality on a dimension that consumers do not

consider important. When Citibank dramatically increased back office efficiency by
automating its processing activities, the expected impact on customer evaluations
was disappointing. Customers, it turned out, either did not notice the changes or did
not recognize any benefit from them. There is a need to make sure that investments
in quality occur in areas that will resonate with customers (Aaker, 1995).
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Third, consumers rarely have all the information necessary to make a rational and
objective judgment on quality and even if they do have the information, they may
lack the time and motivation to process it. As a result, they rely on one or two signs
that they associate with quality; the key to influencing perceived quality is
understanding and managing these signs properly. Thus, it is important to
understand the little things that consumers use as the basis for making a judgment
of quality.
2.5 Brand loyalty

Brand loyalty is a result of consumer behaviour and is affected by a person's
preferences. Loyal customers will consistently purchase products from their
preferred brands, regardless of convenience or price. Companies will often use
different marketing strategies to develop loyal customers through loyalty programs
such as rewards programs or trials and incentives like samples and free gifts.
Every business and organization puts major effort into asserting their brand image
into society, trying to gain customers acceptance and money. A brand is a name or
symbol which is used to show the identity of the organization or product. The things
that make the product stand out from competition, typically help create a distinctive
voice, or story to tell through branding.
How people act towards a particular brand is a proof of brand’s importance. There
are certain factors that all contribute to create a successful brand with substantial
brand equity. Brand loyalty itself is created from several aspects, such as:
Customer’s perceived value.

Brand trust.
Customer satisfaction.
Customers’ willingness to pay more prices.
Repeat purchase behaviour that customers show.
Commitment level.
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The brand can add significant value when it is well recognized and has a positive
association in the consumer’s mind. This concept is called brand equity. Brand
awareness, brand loyalty, brand perceived quality and brand association leads to
brand equity.
Frequent brand advertising helps customer in developing a high level of brand

awareness and leads to a stronger association. It also imposes a better effect on
perceived brand equity in mind of the customer. The positively perceived brand
equity then leads to a higher level of brand equity.
The benefits of brand loyalty are longer tenure, and lower sensitivity to price. Recent
research found evidence that longer-term customers were indeed less sensitive to
price increases. According to Andrew Ehrenberg, consumers buy portfolios of
brands. They switch regularly between brands, often because they simply want a
change. Thus, brand penetration or brand share reflects only a statistical chance that
the majority of customers will buy that brand next time as part of a portfolio of
brands. It does not guarantee that they will stay loyal (Creamer, 2011).
By creating promotions and loyalty programs that encourage the consumer to take
some sort of action, companies are building brand loyalty by offering more than just
an advertisement. Offering incentives like big prizes creates an environment in
which customers see the advertiser as more than just the advertiser. Individuals are
far more likely to come back to a company that uses interesting promotions or
loyalty programs than a company with a static message of ‘buy our brand because
we're the best.’
2.6 Managerial implications

The potential for brand valuation to carry internal managerial implications is
dependent upon amongst other things, the extent to which brand valuation becomes
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formally integrated into the internal accounting system. In this regard the
companies surveyed differed considerably (Guilding & Pike, 1994).
One implication is that the influence of equity of individual corporate brand on the
overall value of the company differs from one company to another. Corporate brand
of a company adds the largest value to the overall market value of the company. This
indicates that the overall value of company is the most sensitive to market
influences, and the success of its corporate brand.
2.6.1 Accounting Role in the Brand Valuation

Another important implication of the corporate brand is related to the needs of the
companies themselves, i.e. companies whose primary interest is to show the value of
their assets in real terms. The fact is that brands represent approximately 62% of
the total companies' value and in case of BMW this share is 77% (Satter, 2001). This
validates the statement that the value of the brand must be attached to all the
statements reporting the value of the company to its shareholders.
Nevertheless, Abratt and Bick highlight the reason why brand should be kept off
balance sheet. Namely, keeping internally generated brands on the balance sheet
statement decreases the profitability ratio (ROE) since the capital base is increasing.
On the other hand, recognizing the brand as an asset is decreasing a firm’s gearing
ratios (i.e. Return on total assets (ROA), since assets’ base is increasing (Abratt &
Bick, 2003).
Brand equity is the value which should give the proper measure of brand goodwill in
the financial statements. The value of the company presented in such a way is not
providing the adequate picture for the potential investors. If the value of the brand is
not included in financial statements, we can talk about hidden assets and
information asymmetry. Therefore, financial statements must take into account both
value of the brand as well as the value of all intangible assets (patents, licences etc.).
Since measurement of the intangibles is difficult, and in many cases impossible,
accuracy of the financial statement is always questionable. Brand valuation, and an
inclusion of value obtained in this way (in the financial statements), is just one of the
possible ways to decrease this inaccuracy.
P a g e | 24
2.7 Other factors

2.7.1 Importance of Advertising in Branding
Advertising, along with personal experience, is an undeniable force majeure in
creating brand equity. The impact of advertising to the overall marketing program is
evidenced in two ways. First, business suppliers need to constantly remind potential
buyers of their products, or need to make them aware of the company’s new
products and services. Second, advertising may make the selling efforts more
effective (Hutt & Speh, 2004). Advertising, in comparison to other marketing
program activities, is cheaper since the costs of reaching the target audience through
sales personnel can be very high.
Advertising program scan create both product awareness and brand awareness.
Consumers exposed to advertising, word of mouth and/or other means of
promotion are usually able to recall the brand, even when actual brand awareness
and recognition is low (Pitta & Katsanis, 1995). This means that advertising is an
inevitable and a necessary tool in creating brand awareness. Nevertheless, to
achieve higher levels of brand awareness, which can eventually lead to brand
knowledge, the company needs to take actions to advance its advertising activities.
Nevertheless, the ultimate role of advertising in the brand valuation exists, even
though the mere expenses of the marketing department in the company does not
represent added value of that department to the brand. Some companies are
evaluating the activities of the marketing managers based on the advertising and
marketing communication expenditures. Today, clients believe that agents should be
rewarded based on the value they add to brand, rather than on the amounts they
spend on media (Zimmermann et al., 2002).
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2.7.2 Perspectives of Brand Equity

Brand equity can be viewed from the three different perspectives. One perspective is
the so-called Customer Based Brand Equity, first used by Keller and Aaker.
2.7.2.1 Customer Based Brand Equity

According to (keller, 2001) companies can develop strong brands only if the brand
development process includes the following steps:
(1) Establishment of proper brand identity,
(2) Creation of the appropriate brand meaning,
(3) Extraction of the right brand responses, and
(4) Building of appropriate brand relationships with customers.
Keller introduces six building blocks which are part of the Customer Based Brand
Equity pyramid as shown in figure 3. Those building blocks are: salience,
performance, imagery, judgment, feelings and resonance.
FIGURE 3: CBBE
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Establishment of brand identity is based on the brand salience which refers to brand
awareness. Consumer is aware of the brand existence if he/she is able to recall and
to recognize the brand. The main criteria for brand identity, according to Keller, are
depth and breadth of brand awareness (keller, 2001).
The next step is the brand meaning which is divided into brand's performance and
brand imagery. Brand performance as one of the building blocks refers to the basic
purpose of the product itself, functionality, or the ability to satisfy customers’ needs.
This characteristic of a product is its intrinsic facet. The other building element,
brand imagery, is developed from the extrinsic property of a product itself and it is
connected to the possibility that the product will satisfy customer's psychological
and social needs. Brand meaning needs favourable, strong and unique associations.
The third step, i.e. brand responses step is defined as the way customers respond to
a brand. Responses are divided into brand feelings and brand judgments. Brand
judgment is the combination of brand imagery and brand performance in the minds
of the consumers. Brand feelings are customers’ emotional reactions to the social
currency brand evokes (keller, 2001). Brand responses lead to the positive and
accessible reactions of consumers.
Lastly, brand relationship is defined as the relationship between the customer and
brand, and it is related to personal identification of the customer with the brand.
Brand resonance as a building block of brand relationship is defined as the depth of
the psychological bond between the customer and the brand which results in loyalty.
Criteria are the intense and active loyalty.
A strong brand satisfies all the above-mentioned criteria. The most powerful block is
brand resonance. Therefore, the strongest brands will be those to which customers
become so attached that they, in effect, become evangelistic and actively seek means
to interact with the brand and eagerly share their experiences with others (Keller,
1993).
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2.8 Consumer value

Consumer value is a marketing and business concept that attempts to analyze the
satisfaction received by a customer from a purchase. More importantly, it tries to
analyze the likelihood that the consumer will become a repeat customer providing
ongoing business for the firm. Businesses analyze customer value in an attempt to
solidify a customer base, study product performance and to market the product
more effectively.
Consumer value is one of the latest ways in which marketers have sought to analyze
customer satisfaction. Customer satisfaction is important because it leads to repeat
purchases. Customer satisfaction is especially important when the market is
saturated. In those situations, growth may only be possible through taking market
share from competitors. Further, when consumers perceive consumer value to be
high, they will spread the reputation of the firm through word of mouth, which can
lead to more sales.
2.9 Conclusion
consultancies, such as Interbrand and brand finance. As the importance of
intangibles to companies’ increases, managers should install more value-based
brand management system that can align the management of the brand asset with
that of other corporate assets.
Brand equity methods ought to give guidance to marketers that vary according to
the outcomes they want to influence. Brand positioning may need to be changed to
favour one outcome over another for a while, according to long-term brand strategy.
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CHAPTER 3: RESEARCH METHODOLOGY

3.1 Overview
Chapter 3 gives a deeply discussion on how the study was undertaken, and how it
fits with the research objectives. It contains research methods, research design,
sampling design and research instrument. It also describes data collection methods
used in the research, discusses the validity and reliability of the data and the
limitations that researcher encountered while gathering the relevant information.
The objective of this chapter is to describe the methodology used in the research.
3.2 Background of research

According to Thietart, coordinating data, approaches and aims are essential to any
successful research process. However, the researcher’s choices are sometimes partly
influenced by factors that are external to the aims of research (Thiétart, 2001). By
focusing on the most accessible unit of analysis, researchers are often led to revise
their ambitious or adapt research questions, also times restriction can lead
researcher to make compromise in desire to produce results. In addition, Saunders
et al, commented that it would be easy to fall in to a trap of thinking that one
research approach is better than another as to justify which method is better
depends on the questions that research is seeking to answer as well as the
availability of resources among many other variables (Saunders et al., 2009).
Research methodology concepts are not the same and with each concept, different
findings and results will be obtained, thus a different conclusion is drawn up.
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3.3 Research design

Research design refers to the distinctive and specific approach best suited to
answering the research question. In addition, it provides a framework for collection
and analysis of data which included; The Procedure of research, The Method adopt,
The sources and techniques of data collecting, The analyzing the data needed to
solve the research problem. In this stage, sampling methodology, schedule and cost
of research will also have to be determined.
There are three basic types of research design: exploratory, descriptive, and causal.
The names of the three types of research design describe their purpose very well.
The goal of exploratory research is to discover ideas and insights. Descriptive
research is usually concerned with describing a population with respect to
important variables. Causal research is used to establish cause-and-effect
relationships between variables. Experiments are commonly used in causal research
designs because they are best suited to determine cause and effect.
Almost all marketing research projects include exploratory and descriptive research.
How much of each is necessary depends mostly on how much managers already
know about the issue to be studied. When a decision problem has arisen from
unplanned changes in the environment, there is usually a need for exploratory
research to better understand what is happening and why it is happening.
Sometimes, however, managers know a lot about the situation, they understand the
key issues and know what questions need to be asked and the focus quickly shifts to
descriptive research that is geared more toward providing answers than generating
initial insights.
Figure 4 shows the interrelationships.
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FIGURE 4: RELATIONSHIPS AMONG RESEARCH DESIGNS
Descriptive
Research
Exploratory
Research
Causal
Research
Exploratory research is conducted to provide a better understanding of a situation.

It isn’t designed to come up with final answers or decisions. Through exploratory
research, researchers hope to produce hypotheses about what is going on in a
situation.
Explanatory research focuses on why questions. For example, it is one thing to

describe the crime rate in a country, to examine trends over time or to compare the
rates in different countries. It is quite a different thing to develop explanations about
why the crime rate is as high as it is why some types of crime are increasing or why
the rate is higher in some countries than in others. Some types of exploratory
research include literature searches, depth interviews, focus groups, and case
analyses
Descriptive research is very common in business and other aspects of life. In fact,
most of the marketing research you’ve heard about or participated in can be
categorized as descriptive research. It is used to describe the particular issue in
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details which concerns the “What, Who and How Many” rather than the “Why” in
Exploratory. Research tools used are questionnaire and highly structured interview
(Malhotra et al., 2004).
Causal research used to identify the cause and effect of the issue based on
experiment conducted in primary research. It is an investigative act which
determines which variable might be causing certain behaviour; the research helps to
identify the relationship between two variables and what happens to variable B
when variable A behaves in a certain manner.
3.4 Sampling design

The accuracy of research findings largely depends upon the way researchers select
their sample as poor sampling design can produce misleading conclusion.
It would be possible to collect data from entire population that is a manageable size
for some research questions, however sampling provides a valid alternative to a
census when it is impractical to survey the entire population, the budget and time is
constraints, the basic objective of any sampling design is therefore to minimize,
within the limitation of cost, time, the gap between the value obtained from the
sample and those prevalent in the population (Saunders et al., 2009).
Sampling technique is divided into two types; probability sampling and non-
probability sampling. Probability or representative sampling utilizes some form of
random selection which means the chance of each sample being selected from
population is known and is usually equal for all cases. With this type of sampling, it
is possible to achieve research objective that required researcher to estimate
statistically the characteristic of the population from the sample, it is therefore often
associated with survey and experimental research strategies. In addition, Probability
methods include random sampling, systematic sampling, and stratified sampling
(Babbie, 2012).
Non-probability sampling does not involve random selection, members are selected
from the population in some non-random manner as it is not always possible to
carry out a random sample, it is normally associated with qualitative work, pilot
P a g e | 32
work to test survey instruments, market research or when a complete and accurate
sampling frame cannot be complied. These include convenience sampling, judgment
sampling, quota sampling, and snowball sampling (Seale, 2004). For this study,
researcher has adopted the quota sampling as it is relatively quick which suitable for
the time constraint and help researcher meet the research objectives by easily
finding the respondents who fit specified criteria.
As the aims of this study are to identify the right corporate value of organizations,
the researcher has chosen group of working people both male and female 19years
old and over, as a quota sampling as they are considered familiar with the subject
and are the group that the finding strategy could be relevant to, also it is easily to
access and acquire by the screening questions.
3.5 Data collection

Data collection is the process of gathering and measuring information on variables
of interest, in an established systematic fashion that enables one to answer stated
research questions, test hypotheses, and evaluate outcomes. The data collection
component of research is common to all fields of study including physical and social
sciences, humanities, business, etc. While methods vary by discipline, the emphasis
on ensuring accurate and honest collection remains the same.
In order to collect relevant and precise data; the explanatory method is considered
appropriate as this can allow the classification of the differences and similarities of
the respondents’ answer. For this research, two types of data were gathered. These
included the primary and secondary data types.
3.5.1 Primary Source

Primary data are data collected from an original source such as surveys and
interviews. The primary data were derived from the answers the participants gave
during the survey process.
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The primary data is needed to provide the exactly data that researcher needed in
order to solve the problem, though it might consider expensive comparing with
secondary research and time consuming which is the major problem for the author
who want as large as possible sampling size to provide as much accuracy data as
possible (Brassington & Pettitt, 2002).
There are various methods used to gather primary data such as survey, interview or
observation which depends on for example, the nature, purpose, approach, type of
each research.
A survey method, with the use of highly structured questionnaire was applied.
Although this method seemed to be the most appropriate in this research, there are
some disadvantages of the method, in terms that it is time consuming. The second
problem is the non-response. The third problem is the interviewer’s bias. In order to
mediate this problem, the questionnaire in this study was self-administered in the
presence of the interviewer. Interviewers’ involvement was limited to the
explanation of the purpose of the research and the instruction regarding the
questionnaire.
3.5.2 Secondary Data

Secondary sources are the data that has been already collected before. It mainly
consists of the readily available data such as publications and internal records, these
were obtained from published articles and literatures that were related to
evaluating brand equity towards enhancing corporate value. Secondary data from
any sources must be interpreted and analyzed properly. Secondary data are very
useful when the information from the previous research answered the research
questions of the project.
3.6 Research instrument

A research instrument is a survey, questionnaire, test, scale, rating, or tool designed
to measure the variable(s), characteristic(s), or information of interest, often a
P a g e | 34
behavioural or psychological characteristic. Research instruments can be helpful
tools to the research study. Careful planning for data collection can help with setting
realistic goals. Data collection instrumentation, such as surveys, physiologic
measures, or interview guides, must be identified and described. Using previously
validated collection instruments can save time and increase the study's credibility.
Once the data collection procedure has been determined, a time line for completion
should be established (Pierce, 2009).
3.6.1 Questionnaire:
Questionnaire is in the form of formal questions that can be framed and written
down for respondents to provide answers. As a method for research instruments for
data collection, the questionnaire is an efficient method in the sense that many
respondents can be reached within a short time. More empirically, questionnaires
for research instruments come in two main forms; open-ended
questions and closed-ended questions.
The open-ended questions allow respondents to answer freely in their own words.
These questions are very good at exploring ideas but can be difficult to analyse. The
respondents can express themselves as fully as they wish.
Closed - Ended Questions is followed by a structured response. All possible answers

are given with the question. In order to avoid irrelevant information and deviations,
the researcher also employed the close-ended questions, which are a more
restrictive type of question. This type of question provides options and thereby
limits the rate of deviation from responses.
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3.6.2 Online surveys

Online (Internet) surveys are becoming an essential research tool for a variety of
research fields, including marketing, social and official statistics research. According
to ESOMAR (European Society for Opinion and Market Research), online survey
research accounted for 20% of global data-collection expenditure in 2006. They
offer capabilities beyond those available for any other type of self-administered
questionnaire (Dillman, 2006). There are many advantages for the online survey, the
entire data collection period is significantly shortened, as all data can be collected
and processed in little more than a month. Interaction between the respondent and
the questionnaire is more dynamic compared to e-mail or paper surveys. Online
surveys are also less intrusive, and they suffer less from social desirability effects.
3.8 Research Limitations

Every research may encounter certain barriers and limitations. This research also
encountered some limitations that may have influenced the findings. Due to
business functions and privacy, this research has failed to gather questionnaire from
all participants’. Even with permission, staff responses are collected by HR officer.
Hence, the response is less likely to reveal what existing staffs are feeling because
honest opinion might bring trouble to latter respondent. Unlike questionnaire
conducted personally by researcher, in which insights of the opinion can be obtained
for in-depth analysis.
3.9 Conclusion
The sampling frame in this study was drawn from UAE and Malaysia population. The
sample size is 112 respondents. The sampling technique used was a sampling
without replacement which, by definition, refers to inclusion of all the sample
elements only once (Malhotra & Birks, 2012). At the same time, non-probability
quota sampling is utilized.
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CHAPTER 4: DATA ANALYSIS

4.1 Overview of Data Analysis
The chapter analyses the primary data findings that have been collected by the
researcher in support to the secondary data in order to answer the research
questions on evaluating brand equity model towards enhancing the corporate value.
Further on, with the aid of charts, tables and statistical calculations, this chapter
illustrates and explains the results obtained from the primary data retrieved from
the 112 respondents’.
4.2 Survey Questionnaire Analysis

Enabling the researcher to conduct the primary data research for this research
study, a questionnaire was designed to obtain all the important information to
gain a better understanding of corporate value. A questionnaire containing 15
questions made up of two types of questions: open-ended and close-ended
questions will be analysed in this chapter. Refer to Appendices for a sample of the
questionnaire used to collect the primary data for this research study.
The targeted respondents was set at 150 people, this was achieved resulting in a
100% response rate. From this response rate 112 (75%) of the questionnaires were
accepted and usable for the data analysis while 38 (25%) of the questionnaires were
rejected by the researcher due to the fact that respondents provided double answers
to particular questions asked and some respondents did not complete all the
questions hence resulting in an incomplete questionnaire.
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4.2.1 Demographic Profile of Responders

The respondent’s demographic profiles are in terms of sex, age, marital status, race,
occupation and income. Presented below are charts representing the percentages
(%) of the demographic profile among the 112 respondents according to each
variable with a table at the end summarising the respondent’s response count
against the percentages for each variable.
As shown in figure bellow, of respondents from the survey conducted in 2013, 43%
were aged between 19-29 years old while 39% were aged 30-39 years old and 18%
were aged 40-49 years old.
Age Group
18%
19-29 years old
43% 30-39 years old
40-49 years old
39% 50 years & above
SOURCE 1: AUTHOR
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The Figure bellow Summarize the gender percentage of the respondents. 57% were
female while 43% were male.
Gender
43% Male
57% Female
SOURCE 2: AUTHOR
Looking at the occupation of the respondents, the highest response count were
employed (72%). Respondents of self employed and retired had the same
percentage of 14% as shown in figure bellow.
Occupation
14%
Salaried
14%
Self Employed
72% Retired
SOURCE 3: AUTHOR
Page 39
Looking at the sector that the respondent were working in; Most respondent were
working in private limited companies (61%), and 36% were divided equally
working in public limited and government organizations while 3% were working in
other companies.
Employed with: 3%
18% Private Limited

Public Limited
Government
18% 61% Other
SOURCE 4: AUTHOR
4.2.1.1 Summary of the Demographic Profile of

Respondents
Table 1 shows a summary of the statistic data of the respondents’ demographic
profile per variable according to the response count against the percentage (%).
TABLE 1: SUMMARY OF THE DEMOGRAPHIC PROFILE OF RESPONDENTS

Demographic Variable Response Count Percentage
Age group:
19-29 years old 48 43%
30-39 year old 44 39%
40-49 years old 20 18%
50 years & above 0
Gender:
Male 48 43%
Female 64 57%
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Occupation:
Salaried 80 72%
Self employed 16 14%
Retired 16 14%
Employed with:
Private limited 69 61%
Public limited 20 18%
Government 20 18%
other 4 3%
SOURCE 5: AUTHOR
4.2.2 Finding Results and Analysis

Totally 15 questions aligned in 5 sections were generated to ensure that all the
research findings were able to meet the objectives of this research. Quantitative data
were tested and analyzed by using the mean score ad frequency analysis from Excel
program.
4.2.2.1 Section A: Brand Value

The following section aims to identify the measurement of Companies brand value
given the responses obtained from questions 1 to 3 of this section.
Page 41
CHART 1:Q1. WOULD YOU RECOMMEND YOUR BRAND TO ANYONE?
4%
Yes
No
96%
SOURCE 6: AUTHOR
Of total respondents, 96% of them would recommend their company brand to

anyone while 4% disagreed.
CHART 2: Q2. WOULD YOU RECOMMEND ANY CHANGES

THAT WOULD MAKE YOUR BRAND BETTER?
In Q2 out from the 112 respondents 68%
recommended change to enhance their
brand, while 32% didn’t recommend any
changes. No
32%
Some recommendation included providing
membership card, change feature and
durability, improve design and technology, Yes
enhance the quality, having seasonal 68%
discounts and improve brand image.
SOURCE 7: AUTHOR
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For Q3, on a scale of 1 – 5, majority of the respondents rated their brand good and
excellent while 24 of the respondents rated their brand as fair and 4 as very poor as
shown in chart 3.
CHART 3: Q3: HOW DO YOU RATE YOUR BRAND VS. OTHER SIMILAR
CATEGORY BRANDS IN THE MARKET?
44
40
Very poor
24 Poor
Fair
Good
Excellent
4
SOURCE 8: AUTHOR
The researcher used the mean, calculation for a better understanding of

respondents rating.
I. Mean
Scale (x) Respondents (f) (fx)
1 0 0
2 0 0
3 24 72
4 48 192
5 40 200
∑ 𝑓=112 ∑ 𝑓𝑥 = 464
Mean = ∑fx / ∑f
= 464 / 112
Mean = 4.1
Page 43
Looking at the Mean measurement, the average respondents’ answers of the scaling
is 4.1.
4.2.2.2 Section B: Brand awareness

Based on the data collected in chart 4, 57% of the respondents do know how people
know about their brand; however the other CHART 4: Q1:DO YOU KNOW WHERE YOUR CUSTOMERS
GET THEIR INFORMATION ABOUT THE SERVICES YOU
PROVIDE?
43% do not know.
Furthermore, respondents mentioned that
most customers get their service
No
information from WOM, internet, news
43%
paper, social networks, advertisements,
media and company official website.
Yes
57%
SOURCE 9: AUTHOR
By closely looking at chart 5, most respondents think that people are familiar with
their brands. The data in the previous question do show why they think so.
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CHART 5: Q2: HOW FAMILIAR DO YOU THINK PEOPLE KNOW ABOUT YOUR BRAND?
44
40
24
Not at all familiar

Slightly familiar
Moderately familiar
Very familiar
Extremely familiar
SOURCE 10: AUTHOR
Out of the acquired respondents, 47% say that their brands appeal to be visual,
while 29% appeal to be auditory and 24% kinesthetic.
CHART 6: Q3: WHICH OF THE FOLLOWING SENSORY DRIVERS DOES YOUR BRAND APPEAL TO?
24%
47% Visual
Auditory
Kinesthetic
29%
SOURCE 11: AUTHOR
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4.2.2.3 Section C: Brand perceived quality

Out of total respondents surveyed, 89 % are saying that their products and services
are easily available, while 11% said the opposite.
CHART 7: Q1. ARE THE PRODUCTS OR SERVICE OF THE BRAND EASILY AVAILABLE?
11%
Y…
89%
SOURCE 12: AUTHOR
Based on the data showed in chart 8, most respondents associated their brand with
high quality of products and services.
CHART 8: Q2. HOW STRONG THE BRAND DOES ASSOCIATES YOUR

CUSTOMERS TO HIGH QUALITY OF PRODUCTS & SERVICES?
68
Not at all strong

Slightly strong
32 Moderately strong
Very strong
Extremely strong
12
SOURCE 13: AUTHOR
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The Mean:

1 0 0
2 0 0
3 12 36
4 68 272
5 32 160
∑ 𝑓=112 ∑ 𝑓𝑥 = 468
Mean = ∑fx / ∑f
= 468 / 112
Mean = 4.1
Looking at the data obtained from the primary source, 71% of the respondents
would like to buy products or services from their companies, while 9% would not.
Some said they would buy because they are used to it, others because they got
special discounts and it’s affordable. And some because it’s their brand and they
know the quality of the products and believe in it. On the other hand, the reason why
the other 29% respondents wouldn’t buy is because they feel the brand is not good
enough.
CHART 9: Q3. WOULD YOU LIKE TO BUY A PRODUCT

PROMOTED UNDER YOUR BRAND NAME?
29%
Yes
No
71%
SOURCE 14: AUTHOR
Page 47
4.2.2.4 Section D: Brand Loyalty

Based on the ranking of the reward types respondents prefer to offer their
customers, Most ranked ‘cash’ as the first reward, followed by ‘free promotional
gifts’ as second, ‘discounts’ as third and last comes the ‘reward programme’ as in
chart 10.
CHART 10: Q1. PLEASE RANK THE TYPE OF REWARDS THAT YOUR
BRAND COULD OFFER CUSTOMERS, IN ORDER OF PREFERENCE:
60
50
40
30
20
10
0
1 2 3 4
Cash 52 28 4 20
Discount 32 24 40 8
Free promotional gifts 12 44 28 28
Reward program 8 12 28 52
SOURCE 15: AUTHOR
In chart 11, it shows how likely respondents think their customers may switch to
alternative brands; the data obtained vary from each scale.
CHART 11: Q2. HOW LIKELY DO YOU THINK WOULD IT BE FOR YOUR
CUSTOMERS TO SWITCH TO OTHER ALTERNATIVE BRANDS?
36
32
Not at all likely
24 Slightly likely
Moderately likely
Very likely
12 Completely likely
8
SOURCE 16: AUTHOR
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The Mean:

1 36 36
2 12 24
3 32 96
4 24 96
5 8 40
∑ 𝑓=112 ∑ 𝑓𝑥 = 292
SOURCE 17: AUTHOR
Mean = ∑fx / ∑f
= 292 / 112
Mean = 2.6
The mean of Q2 will be 2.6, as there are various factors that affect customers buying
behaviour.
As in chart 12, more than 50% of the respondents agreed that their customers
mostly seek the quality of products they offer. Second is easy availability of products
and lastly affordable price and the brand image of products.
CHART 12: Q3. WHAT ARE IMPORTANT ELEMENTS YOU THINK THAT YOUR
CUSTOMERS SEEK IN THE PRODUCTS OF YOUR BRAND WHEN THEY PURCHASE?
64
36 Quality of products
28 Easy availability
20 Affordable Price
Brand image for products
SOURCE 18: AUTHOR
Page 49
4.2.2.5 Section E: Managerial Implications

Based on the data in chart 13, 79% of respondents think that the prices of the
products manufactured by their companies are affordable, while 21% said no.
CHART 13: Q1. DO YOU THINK THE PRICE OF THE PRODUCTS

MANUFACTURED BY YOUR COMPANY IS REASONABLE?
21%
Yes
No
79%
SOURCE 19: AUTHOR
In Q2, most respondents ‘71%’ didn’t make any suggestion to boost their brand
identity. Whereas 29% did so.
CHART 14: Q2. ARE THERE ANY SUGGESTIONS THAT YOU WANT TO MAKE IN ORDER TO BOOST
THE BRAND IDENTITY DESIGN OF YOUR COMPANY IN THE MARKET?
29%
Yes
71% No
SOURCE 20: AUTHOR
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Respondents suggestions included reduce prices, increase advertisement and
promotions, make estimate budget for marketing and improve products quality.
Looking at the data in figure 13, 46% of the respondents do know their company
vision, while 54% do not know.
CHART 15: Q3. DO YOU KNOW YOUR COMPANY VISION?
46% Yes
54% No
SOURCE 21: AUTHOR
4.3 Research Finding

Brand equity is one of the few assets that can provide a long-term competitive
advantage. In spite of the undeniable importance of brands, there is no reliable
method of quantifying their value. Current models encourage the steady inflation of
brand valuations. The result is that intangible assets now count for the vast majority
of stock market valuations. If current accounting principles were to be called into
question it could result in a major loss of asset values.
Page 51
It comes as no surprise that companies are shifting more of their marketing budgets
around social media messaging. Most are aggregating consumer posts through
analytical data gathering to better target advertising and others are using crowd
messaging via content blog posts.
As evidenced by the present study, both brand names and brand packaging do
influence the consumers’ quality evaluations. These are certainly not the only
extrinsic cues influencing the perception of product quality. In as managerial
perspective, the finding that brand and packaging images help the consumer in
differentiating the brands, accentuates the importance of the various firms’
marketing efforts, and more particularly their interdependence.
The variety a brand offers positively inﬂuences quality perceptions, even in a case
where it makes actual choice more difficult, underscores the effect of product
variety on perceived brand quality.
Brand loyalty as an independent variable significantly affected the brand image as a

mediator in equation one; brand loyalty as an independent variable significantly
affected the brand equity as a dependent variable in equation two; both brand
loyalty as an independent variable and brand image as a mediator considerably
impacted the brand equity as a dependent variable.
In most purchasing situations, customer activity decreases over time; once the initial
need has been satisfied, they have no reason to come back. Rewards programs are a
way to fight this downward curve, and motivate customers to maintain a steady
spending level.
Brand switching sometimes known as brand jumping, brand switching is the process
of choosing to switch from routine use of one product or brand to steady usage of a
different but similar product. It is not unusual for customers to build up a great deal
of brand loyalty due to such factors as quality, price, and availability. As corporate
social responsibility (CSR) becomes more important to business, managers will have
to formulate a coherent response that meets the needs of a number of other
stakeholders in addition to shareholders.
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The researcher have experienced from the previous literature review that brand
equity can be approached from the perspective of the individual consumer. The basic
premise with customer-based brand equity is that the power of a brand lies in the
minds of consumers and what they have experienced and learned about the brand
over time. The advantage of conceptualising brand equity from the consumer’s
perspective is that it enables managers to consider specifically how their marketing
program improves the value of their brands. Though the eventual goal of many
marketing programs is to increase sales, it is first necessary to establish knowledge
structures for the brand so that consumers respond favourably to marketing activity
for the brand (Keller, 1993).
Brand loyalty represents a favourable attitude toward a brand resulting in consistent

purchase of the brand over time. It is the result of consumers’ learning that only the
particular brand can satisfy their needs. Two approaches to the study of brand
loyalty have dominated marketing literature. The first, a behavioural approach to
brand loyalty, views consistent purchasing of one brand over time as an indication of
brand loyalty. Repeat purchasing behaviour is assumed to reflect reinforcement and
a strong stimulus-to-response link. But, such loyalty may lack commitment to the
brand and reflect repeat buying based on inertia.
The second, a cognitive approach to brand loyalty, underlines that behaviour alone
does not reflect brand loyalty. Loyalty implies a commitment to a brand that may not
be reflected by just measuring continuous behaviour. A family may buy a particular
brand because it is the lowest priced brand on the market. A slight increase in price
may cause the family to shift to an-other brand. In this case, continuous purchasing
does not reflect reinforcement or loyalty. The stimulus product and reward links are
not strong. The researcher can conclude that some of the apparent limitations of the
strictly behavioural approach in measuring brand loyalty are overcome when loyalty
includes both attitudes and behaviour (Assael, 1992).
Brand awareness plays an important role in consumer decision making for three
major reasons. First, it is important that consumers think of the brand when they
think about the product category. Raising brand awareness increases the likelihood
that the brand will be a member of the consideration set. Second, brand awareness
can affect decisions about a brand in the consideration set. For example, some
Page 53
consumers have been shown to adopt a decision rule to buy only familiar, well-
established brands. In low involvement decision settings, a minimum level of brand
awareness may be sufficient for product choice, even in the absence of a well-formed
attitude. Finally, brand awareness affects consumer decision making by influencing
the formation and strength of brand associations in the brand image.
P a g e | 54
CHAPTER 5: CONCLUSION AND

RECOMMENDATIONS
5.1 Conclusion of Research

consultancies, such as Interbrand and brand finance. As the importance of
intangibles to companies’ increases, managers should install more value-based
brand management system that can align the management of the brand asset with
that of other corporate assets.
The company should close the gap between theory and practice of brand valuation.
Single approach may not be a good approach for all uses, as we cannot be sure
whether each of these methods is suitable for some usage and whether just one
method would suffice for any usage. Therefore, organizations should use the
multidimensional holistic approach of brand valuation to overcome the limitation of
subjectivity, because there is no complete approach which consists of all the
attributes that would model for measuring brand equity (Ailawadi et al., 2003).
5.2 Recommendations of Research

The intention of this research study is to evaluate brand equity towards enhancing
the corporate value.
Page 55
5.2.1 LEVERAGING AND MEASURING BRAND EQUITY
5.2.1.1 Leveraging brand equity

There are three ways to leverage brand equity: firstly building it, secondly
borrowing it, or thirdly buying it. Increasingly, building brand equity is not easy –
given the proliferation of brands and the intense competition that is prevalent in
many industries. Within a given industry, there typically exist many high quality
products and high levels of advertising, making it difficult to introduce superior
quality brand and shape perceptions through advertising. Thus, the alternative to
building brand equity is by borrowing or buying it (Farquhar et al., 1990).
5.2.1.2 Building brand equity

Brand equity is built firstly, by creating positive brand evaluations with a quality
product, secondly, by fostering accessible brand attitudes to have the most impact on
consumer purchase behaviour, and thirdly, by developing a consistent brand image
to form a relationship with the consumer. Of these three elements, positive brand
evaluation may be considered the most important, and it is based on a quality
product that delivers superior performance (Farquhar et al., 1990). The first
element in building a strong brand is a positive brand evaluation. Quality is the
cornerstone of a strong brand. A firm must have a quality product that delivers
superior performance to the consumer in order to achieve a positive evaluation of
the brand in the consumer’s memory.
P a g e | 56
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APPENDICES
3. Occupation:
1. What is your age?
 19 – 29 years old
 30 – 39 years old  Salaried
 40 – 49 years old  Self Employed
 50 years and above  Retired
4. If salaried, employed with:
2. What is your gender?  Private Limited

 Male  Public Limited
 Female  Government
 Other (Please Specify): _____________________
Section A: Brand Value
1. Would you recommend your brand to anyone?

___________________________________________________________
2. Would you recommend any changes that would make your brand better?
___________________________________________________________
3. How do you rate your brand VS. Other similar category brands in the market?
(1=Poor , 5=Excellent)
1 2 3 4 5
Section B: Brand awareness
1. Do you know where your customers get their information about the services you
provide? Yes______ No______.
If yes, where? _________________________________________________________
2. How familiar do you think people know about your brand?

(1= Not at all familiar, 5= Extremely familiar)
1 2 3 4 5
P a g e | 62
3. Which of the following sensory drivers does your brand appeal to?
 Visual
 Auditory
 Kinesthetic
Section C: Brand Perceived Quality
1. Are the products or service of the brand easily available?

 Yes
 No
2. How strong the brand does associates your customers to high quality of products & services?
(1= poor, 5= very strong)
1 2 3 4 5
3. Would you like to buy a product promoted under your brand name?
 Yes
 No
 Why? _____________________________________________
Section D: Brand Loyalty
1. Please rank the type of rewards that your brand could offer customers, in order of preference:
(Please rank from 1 to 4: 1 being the reward you would prefer the most)
____ Cash
____ Discount
____ Free promotional gifts
____ Reward Program
2. How likely do you think would it be for your customers to switch to other alternative brands?
(1= Very unlikely, 5= very likely)
1 2 3 4 5
3. What are important elements you think that your customers seek in the products of your brand when they
purchase?
 Quality of products
 Easy availability
 Affordable Price
 Brand image for products
Page 63
Section E: Managerial Implications
1. Do you think the price of the products manufactured by your company is reasonable?
 Yes
 No
2. Are there any suggestions that you want to make in order to boost the brand identity design of your
company in the market?
___________________________________________________________________________
3. Do you know your company vision?

 Yes
 No
 If Yes, what is it? __________________________________________________________
_______________________________________________________________________
P a g e | 64

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Evaluating brand equity

models towards enhancing

Aisha Mohammed Ali Alnahdy

Bachelor of Arts (Hons) Business Studies (BABS)

Cardiff Metropolitan University

“I hereby Aisha Mohammed Ali (003EHKL0610), declare

Aisha Mohammed Ali

Also, I like to thank the participants in my survey, who have willingly

Special thanks go to my class mate, Ibrokhim Mirkodirov and all my

I have to appreciate the guidance given by other lectures as well as the

CHAPTER 2: LITERATURE REVIEW ........................................... 13

CHAPTER 3: RESEARCH METHODOLOGY ................................ 29

CHAPTER 4: DATA ANALYSIS ....................................................... 37

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ........ 55

1.2 Background to Study

1.3 Problem Statement

1.4 Research Questions

1.5 Research Objectives

1.6 Research Framework

Brand equity can be regarded as a managerial concept, as a financial intangible

1.8 Limitation of Study

1.9 Remaining Chapters

Chapter 3: outlines the concepts related to research methodology, explaining how

Chapter 5: provides the conclusion in this research and give some

CHAPTER 2: LITERATURE REVIEW

2.2 Brand value

• Financial Analysis: used to identify business earnings and 'Earnings from

2.2.1 Brand equity models

2.2.1.1 AAKER’S BRAND EQUITY MODEL

(1) Brand loyalty,

(2) Brand awareness,

(3) Perceived quality,

(4) Brand associations and

(5) Other proprietary assets.

FIGURE 1: AAKER'S BRAND EQUITY MODEL

2.2.1.2 KELLER’S BRAND EQUITY MODEL

FIGURE 2: KELLER'S BRAND EQUITY MODEL

Keller describes brand equity as the differential effect of brand knowledge on

The brand value is based on a number of dynamic variables including differentiation,

Another benefit of branding is differentiation, the brand delegates a product or a

2.2.1.3 MODEL CLASSIFICATION

2.3 Brand awareness

There are two types of brand awareness:

2.4 Brand perceived quality

Second, a company may be achieving quality on a dimension that consumers do not

2.5 Brand loyalty

Customer’s perceived value.

Frequent brand advertising helps customer in developing a high level of brand

2.6 Managerial implications

2.6.1 Accounting Role in the Brand Valuation

2.7 Other factors

2.7.2 Perspectives of Brand Equity

2.7.2.1 Customer Based Brand Equity

(1) Establishment of proper brand identity,

(2) Creation of the appropriate brand meaning,

(3) Extraction of the right brand responses, and

(4) Building of appropriate brand relationships with customers.

2.8 Consumer value

CHAPTER 3: RESEARCH METHODOLOGY

3.2 Background of research

3.3 Research design

Figure 4 shows the interrelationships.

provide? Yes No.