lence and service quality that guides the attendance decision of its

Lence and service quality that guides the attendance

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lence and service quality that guides the attendance decision of its prospective students. The concept of measuring the value of the brand began in the early 1980s with the coining of the term ‘brand equity’ by advertising professionals in the USA (Barwise, 1993 ). Keller ( 1993 ) identifies two motivating reasons for measuring brand equity. The first stems from the growing need to develop sound procedures for estimating the financial value of a brand for mergers and acquisitions. The second motivation for studying brand equity comes from the impetus for firms to improve the efficiency of their marketing program by better understanding of consumer’s perceptions and their response to marketing actions. Brand equity has been defined in many different ways by academics and practitioners worldwide. The multi-faceted nature of brand equity and the absence of any single accepted framework have resulted in a number of differ- ent conceptualizations for the construct (Kartono & Rao, 2008 ). The literature on brand equity, although substantial, is largely fragmented and inconclusive. The lack of an agreed definition has in turn spawned various methodologies for measuring the construct (Christodoulides & de Chernatony, 2009 ). Brand equity measurements have been developed along three theoretical streams: finance, psychology and economics. The financial and economic per- spectives are also referred to as firm-based brand equity (FBBE) measures. Financial outcome measures of brand equity assess the value of the brand as a financial asset to the firm. Simon and Sullivan ( 1993 ) defined brand equity as an intangible asset whose value can be extracted from the market value of the firm. Dubin ( 1998 ) adds the income method for brand valuation wherein the brand earning multiplier is used to calculate the brand’s expected future earnings based on historical data. This method is also used by Interbrand (a global brand valuation company). The economic orientation of measuring brand equity includes two inter-related theories: (i) the consumer utility theory to assess the brand equity from the consumer’s perspective and (ii) econ- omic theories of demand and supply to measure the value of the brand to the firm (Kartono & Rao, 2008 ). FBBE measures are therefore the outcome of the consumer’s response to the brand and the brand is considered as a 180 A. Aggarwal Sharma et al. Downloaded by [Sapna Popli] at 08:08 20 December 2013
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driving force for increased market share and brand profitability. In psychologi- cal orientation, researchers employ a cognitive psychology approach to study how consumers perceive and process information about the brand to develop relevant brand equity measures (Keller, 2001 , 2002 ). These measures are based on CBBE (Christodoulides & de Chernatony, 2009 ). This paper focuses on the psychology-based brand equity measures according to the frame- work of familiarity–perception–preference–choice as described earlier.
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