• Title/Summary/Keyword: formation process of brand equity

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The Effects of Luxury Brand Marketing Activities on the Formation of Customer-Based Brand Equity (럭셔리 브랜드 마케팅 활동이 고객기반 브랜드 자산 형성에 미치는 영향)

  • Hwang, Yookyung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.37 no.7
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    • pp.935-951
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    • 2013
  • The recent entry and heated competition of numerous fashion brands in the luxury fashion market have all compelled luxury businesses to change. The issue of brand equity has emerged as one of the most critical areas for luxury marketing management. Despite strong interest in the subject, there is little evidence of how brand equity is created by marketing activities and what their effects are. This study identifies the effects of luxury marketing activities on the brand equity of luxury items, utilizing Keller's (2001) 'CBBE (Customer Based Brand Equity) Model' as a theoretical framework. Based on literature review, a conceptual model for brand signature, heritage, premium price, controlled distribution, and promotion on customers' view on brand equity was tested. To test the hypothesized building paths of luxury brand equity, statistical analysis were performed with an AMOS 7.0 program using a confirmatory factor analysis and structural equation model. The results were: First, luxury brand equity was defined in terms of four components (brand awareness/association, customer judgment, customer feeling, and customer-brand resonance). Second, the proposed conceptual framework of this study was partially significant. We can provide an effectiveness of Keller's CBBE model to conceptualize the building process of luxury brand equity; subsequently, marketers should develop core elements to position a brand strategy to create a competitive advantage.

A Study on the Formation Process of the Brand Equity (브랜드자산 형성과정에 관한 연구 - 스포츠화 구매자의 관여도를 중심으로 -)

  • Kim, Bong-Kwan;Kim, Tae-Woo
    • Journal of Global Scholars of Marketing Science
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    • v.11
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    • pp.59-78
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    • 2003
  • Thus the purpose of this study is to determine how the brand equity is formed in the psychological process of customers by reviewing previous studies of relations between marketing factors influencing the formation and elements for the formation. Results of the study and their suggestions can be summarized as follows. First, among precedent factors required for the formation of the brand equity, advertisement was found having positive effects on both brand awareness and brand image irrespective of the two groups, or high and low involvement groups. Sales promotion did not have any effects on both brand awareness and brand image in the low involvement group while positively affecting brand awareness in the high involvement group. Distribution intensity was found having effects on both brand awareness and brand image in all of the two groups. Second, relations between brand awareness and brand image showed that the former has effects on the latter in both high and low involvement groups. This suggests that brand awareness plays a role in associating brand image. Third, relations among brand awareness, brand image and brand preference showed that both of the former twos influence the other in the high involvement group and that brand awareness cannot influence brand preference in the low involvement group. Fourth, relations between brand preference and brand loyalty showed that the former has effects on the former in both high and low involvement groups. This suggests that there is little possibility for consumers preferring specific brands to turn to other brands which have advantages such as price discount and gift presentation.

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The Effect of Marketing Mix elements on brand Equity (마케팅 믹스 요소가 브랜드 자산에 미치는 영향에 관한 연구)

  • Ryu, Jang-Mu
    • Journal of Industrial Convergence
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    • v.1 no.1
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    • pp.41-70
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    • 2003
  • Many researches on brand equity have been focused in definition about it, factors of it, and the process of formation. Most of them have been used by voluntary production category, as is durable goods or nondurable goods. But this study, using the model is developed by Foote, Cone & Be1ding(FCB) Company, classified four fields, high-low involvement, rationality(rational or sensitive) involvement. The selected goods is a sensitive high involvement(casual wear). This study investigate the effects of brand equity and search the influences of brand equity formation according to factors of marketing mix. To this goals, this study kept a literature survey and a demonstrative research. In literature survey, there are several definitions of brand and brand equity. The research model is derived from selected factors of marketing mix and former study. This study used the regression analysis to verify effects from brand equity through the selected marketing mix. The research data is collected from the capital area. The focus of this study is effects of brand equity according to marketing mix. The followings are results and suggestions of this study. First, in the price factors, the affirmative effects are revealed the perceived quality and the brand awareness in a rational high involvement goods, the perceived quality and the brand associations in a sensitive high involvement goods, all factors of brand equity in a rational low involvement goods, and the perceived quality in a sensitive low involvement goods. As summary, the important characteristics is the price factors to consumers, and consumers recognize that a high price means a high quality. Second, in the store image factors, the affirmative effects are revealed all brand equity factors in a rational high involvement and a sensitive high-low involvement. A good store image incites more interest, contact, and visit from potential consumer. And such store offers more consumer satisfaction, simulates more active and positive conversation to consumers. Third, in advertising spending factors, the affirmative effects are revealed the brand awareness and associations in a rational high involvement and a sensitive high involvement, all brand equity factors in a rational low involvement and a sensitive low involvement. An advertisement increases not only a brand awareness but also strong brand associations. Forth, in price promotion factors, the affirmative effects are revealed the brand associations in a rational high involvement, the negative effects are revealed all brand equity in sensitive high involvement. According the result about the effects of brand royalty through the brand equity factors, a perceived quality and brand associations have positive effects to brand royalty in all factors. Consumers choice a deep perceived quality than other competitive brand. So, brand equity will increase according to a qualitative grade of a perceived brand by consumers. Brand associations represent a quality and a degree of involvement. In conclusion, brand associations and equity have a positive relation each other. According to the analysis results about a brand royalty of selected marketing mix factors, the affirmative effects are revealed the store image and price promotion factors in a rational high involvement, the price and store image in a sensitive high involvement, and the price and advertising spending in a rational low involvement. The results about the affect of selected marketing mix factors according to brand equity, are the perceived quality in a high involvement, and all brand equity factors in a low involvement. The affirmative effects about a store image are revealed all equity factors in high-low involvement. In advertising spending factors, the affirmative effects are revealed the brand awareness and associations in a high involvement goods, and the perceived quality and the brand awareness in a low involvement goods. In price promotion factors, the affirmative effects are revealed the brand awareness in a low involvement goods, and the negative effects are revealed the brand awareness in a high involvement goods. According to a degree of involvement, the results of a brand royalty through a brand equity factors are following. The affirmative effects are revealed the perceived quality and the brand royalty in a high involvement goods, and the brand awareness are revealed a negative effect. The affirmative effects are revealed the perceived Quality and the brand associations in a low involvement goods. So, in a high involvement goods, the brand royalty is built by strong brand associations, but, in a low involvement goods, the brand royalty is built also by a perceived Quality and a brand awareness. This study have some concept of limitation. So, this study presents a future direction of research. First, a future study has to have more deep analysis for this study analyzed through a limited marketing mix factors. Second, a future research has to get mutual effects about brand equity of marketing mix factors for this study has an individual marketing decision factors. Third, for the future, a brand equity needs a research about a several goods such as services, profit or nonprofit, industrial products, culture, and so on. Forth, the research have to diversify a various data for population.

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The Effects of Perceived Experiential Marketing Activity on Consumers' Attitude toward Apparel Brands (의류 브랜드의 체험마케팅 활동에 대한 지각이 소비자 브랜드 태도에 미치는 영향)

  • Moon, Hee-Kang;Youn, Cho-Rong;Park, Ji-Eun;Lee, Yu-Ri
    • Fashion & Textile Research Journal
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    • v.10 no.2
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    • pp.181-190
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    • 2008
  • Active exploitation of experiential marketing is now practiced in diverse range of apparel brands such as luxury, sports and casual brands. Under such a market environments, this study attempts to verify the effects of consumer's experiential marketing perception by analyzing the formation process of brand attitude. The path from experiential marketing strategic modules (sense, feel, think, act, and relate) to brand loyalty is mediated by brand affect and brand trust. Two sports brands were selected as stimuli brands, and a survey was conducted on 286 consumers in their 20s and 30s. The study validates the importance of sense/feel marketing for apparel brands as it had extensive effects on brand affect which is highly significant in the formation of brand loyalty. As a result of comparative analysis of brand attitude and the path model of its formation for two brands which were different in consumers' perception of experiential marketing brand activities, the study realized that the higher the level of perceived experiential marketing, the higher the levels of brand affect, brand trust and brand loyalty. In particular, for brands perceived as actively engaged in experiential marketing, the path from the perception of experiential marketing activity to brand loyalty was clearly segmented between sensibility and rationality as sense/feel marketing had significant effects only on brand affect, and act/relate marketing only on brand trust. This study verifies the positive effects of perceived experiential marketing activities of apparel brands on brand equity, and proposes the strategic appropriateness of experiential marketing that embeds sensibility and feeling appeals.

The Antecedents and Outcomes of Customer Satisfaction and the Formation Process of Brand Preference and Repurchase Intention in Service Industries (서비스 산업에서의 고객만족 선. 후행요인과 브랜드선호도 및 재구매의도 형성과정)

  • Jang, Hyeong-Yu
    • Journal of Global Scholars of Marketing Science
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    • v.16 no.3
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    • pp.61-86
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    • 2006
  • The main purpose of this study is to conceptualize and investigate the relationships between the antecedents and outcomes of customer satisfaction and the linking variables of brand preference and repurchase intention in service industries. To achieve this objective, the study tries to validate the structural equation model and causal relationships among the model's elements involving antecedents to customer satisfaction(perceived quality, value, equity), consequences(brand preference, repurchase intention), and moderating variable/switching cost, customer loyalty). Empirical findings are as follows: First, the effect of two antecedents/perceived quality and value) on customer. satisfaction was accepted but perceived equity was rejected. Second, I found out that there were direct or indirect relationships between the mediating variables/switching cost, customer loyalty, brand preference) and repurchase intention. This means that the proper management concerned with indirect path is probably more important for the success of services industries. Third, the direct effects of customer satisfaction and switching cost on repurchase intention were not significant against the existing studies excepting brand preference. This implies that repurchase intention was mainly intensified by the indirect path, 'customer loyalty${\rightarrow}$brand preference${\rightarrow}$repurchase intention' and 'switching cost${\rightarrow}$brand preference${\rightarrow}$repurchase intention.' The service marketers make efforts not only to strengthen the direct casual linkage but also to consolidate the indirect connections leading to create repurchase intention. Finally, the proper management of these structural relationships will help clarify the role of service marketer resulting in increasing sustainable competitive advantage in service industries.

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