The Brand Relationship Spectrum | Aaker on Brands
based on a brand relationship index model (BRI model), which includes a three innovation researchers (e.g. Fournier, ; Aggarwal, ; Aaker, ). For more than half a century, scholarship has been generated to help managers and . The brand intimacy model analyzes the relationship a consumer has with a brand. It is described as . David A. Aaker, and Alexander Biel, pp. – brand relationship through which consumer connected with brand. A number of authors believe brand as a partner in a dyadic relationship with the buyer (Aaker, . model called the Brand Resonance model developed by Keller ().
Besides, marketers create intangible aspect of the brand through advertisement or by some other sources of information and most importantly imposing unique selling proposition on product. Therefore, positive response stems from high brand image. Strong brand image can lead to high brand equity. Alhaddad 30 found brand image and brand loyalty as the most important determinants of brand equity. He also reported that these two dimensions affect consumer perceptions along with brand equity.
The main objective of this study is to find out the key dimensions of consumer based brand equity in the context of beverage industry in Bangladesh. Based on findings, this study also endeavors to suggest some strategies that may be followed by the managers of the respective industry.
Rapid flourish of the beverage industry and paucity of studies allied to this industry have mainly motivated us to conduct this study. Though numerous conceptual and operational definitions and models given by different stakeholders have been found in literature, there is a deficiency of quantitative research investigating the dimensions of brand equity in the context of beverage industry in Bangladesh.
Hence, the study attempts to give a comprehensive understanding to the concerned persons of beverage industry and make them aware of their necessary actions for ensuring business growth. Beverage market in Bangladesh was taken as the evidence for this purpose. A structured questionnaire was designed to collect pertinent information from the respondents apropos of the various aspects of brand equity in accordance with the conceptual framework.
The scale employed in the questionnaire included 16 statements pertaining to brand equity. All the statements were derived from Yoo et al. Responses to all the statements in the questionnaire were measured on a five-point Likert scale, ranging from strongly disagree 1 to strongly agree 5.
The rationale behind using Likert scale is its suitability for diversified statistical techniques such as arithmetic mean, standard deviation, product-moment correlations, regression analysis and other statistics commonly employed in marketing research The collected data were statistically processed to derive useful information later.
Two measures were adopted to verify the content validity of the scale after a preliminary questionnaire was designed. Firstly, 10 experts of the beverage industry were requested to assess whether the items were tapping the major constructs of interest in this study.
Following a few minor editorial changes, the questionnaire was pretested subsequently using a convenience sample of 15 sales managers. Responses from the pretesting necessitated no further changes to the questionnaire. The statements used in the questionnaire to measure brand equity are given in Appendix 1. The likelihood of beverage consumption is supposed to have strong link to age segments in the market 32 Taking this fact into account, the aforementioned age group was defined as the target population of interest.
Similar procedure was followed in another study related to beverage industry Dhaka division was chosen to select the sample respondents. Dhaka was selected since it is the most densely populated area of Bangladesh. According to BBS 34Dhaka accommodates Majority of the people with diversified characteristics are supposed to come here from different areas of Bangladesh to earn their livelihood. These facts bolster the selection of Dhaka as targeted area.
Convenience sampling method was adopted to recruit the sampling units due to the accessibility and eagerness of respondents to respond to this study. It has been affirmed that convenient samples result in lack of validity and unbiasedness. Despite this fact, it is a prominent sampling technique and followed especially when the target population is students, any particular age or religious group or members of social organizations A total of questionnaires were distributed and amid those, usable questionnaires were received, resulting in an effective response rate of The collected data were analyzed by undertaking a two step procedure.
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In the first phase, univariate analysis is done. Here, frequency distribution was used for showing the proportion of different demographic characteristics. The validity of the various measurement items used in this study was assessed by performing three methods-content validity, construct validity and criterion related validity.
Again, construct validity includes convergent and discriminant validity. The content validity of any instrument relies on theoretical foundation, empirical studies, logical inference and consensus view of experts. Principal Component Analysis PCA with an orthogonal rotation Varimax was performed on brand equity measures in this step for two purposes.
The first purpose was to extract the major factors of brand equity and another was to examine the construct validity of the underlying constructs. Convergent validity measures the extent to which the scale correlates positively with other measures of the same construct. In contrast, discriminant validity assesses the extent to which measures of two separate constructs are relatively distinct from each other and their correlation values are neither absolute 39 0 nor 1.
Both types of validity were assessed through PCA as recommended by Churchill Factor with an eigenvalue greater than 1 was selected and an absolute factor loading of 0. A correlation analysis was also run on all the dimensions of brand equity to examine the pattern of interrelationships amid the dimensions and check the discriminant validity as well.
In this study there are cases in total. A detailed percentage distribution of demographic characteristics of respondents was reported in Table 1. The marital status of major respondents was single Frequency distribution of demographic characteristics This indicates that most of the respondents were well educated and they had adequate knowledge to understand the meaning of questions set in the questionnaire.
The first step of EFA is to check the suitability of data for performing factor analysis.
Branding a New Offering: The Brand Relationship Spectrum
In this regard, Kaiser 41 recommended that the KMO Kaiser-Meyer-Olkin measure of sampling adequacy coefficient value should be greater than 0. The KMO value of the data used for this study is 0. Hence, the sample was proven suitable for running factor analysis.
After performing EFA, four factors were extracted Table 2 and the eigenvalues of these factors were 3. Since all the values were greater than 1, it refers to consistency of clustering.
A driver role reflects the extent to which the brand influences the purchase decision or defines the customer experience. The branded house option maximally leverages an established master brand, requires a minimum investment in each new offering and potentially enhances the clarity and synergy of the portfolio. As a result, it is the default option. Any other strategy requires creating a new brand and needs to be justified by compelling reasons.
The master brand strategy is optimal when two conditions are met. First, the master brand will enhance the offering because its equity, comprised of its awareness, perceived quality, customer base and credibility in the context of the new offering, will be relevant, helpful, and consistent with the value proposition or personality of the new offering. The least amount of distance occurs through the use of a master brand with a sub-brand.
A new brand endorsed by the master brand increases that distance, but by far the most distance results from a new brand not connected to the master brand. Sub-brand The first option is the sub-brand strategy. The sub-brand adds to or modifies the associations of the master brand. It could have a different personality or value proposition than the master brand but does not have as much latitude as an endorsed brand.
A sub-brand can stretch the master brand, allowing it to become relevant in new arenas. An important element in managing the sub-brand is to understand its driver role. If it is significant, then it could merit some brand-building resources. But if it is minor and mainly plays a descriptive role, then its brand-building budget would be less. It is easy to assume the sub-brand is more important than you think. It turns out people really are buying HP and not LazerJet.
Endorsed brand The second option is the endorsed brand strategy, in which the offering is endorsed by an existing master brand. The role of the endorser brand is to provide credibility and reassurance that the endorsed brand will live up to its claims.