Consumer Behavior Towards Retail Stores in India

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Kevin Lane Keller
Conceptualizing, Measuring, and
Managing Customer-Based Brand
The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i.e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research. MUCH attention has been devoted recently to the

concept of brand equity (Aaker and Biel 1992;
Lxuthesser 1988; Maltz 1991). Brand equity has been
viewed from a variety of perspectives (Aaker 1991;
Farquhar 1989; Srivastava and Shocker 1991; Tauber
1988). In a general sense, brand equity is defined in
terms of the marketing effects uniquely attributable to
the brand—for example, when certain outcomes result
from the marketing of a product or service because
of its brand name that would not occur if the
same product or service did not have that name.
There have been two general motivations for
studying brand equity. One is a financially based motivation to estimate the value of a brand more precisely
for accounting purposes (in terms of asset valuation
for the balance sheet) or for merger, acquisition,
Kevin Lane Keller is Associate Professor of Marketing and Fletcher Jones Faculty Scholar for 1992-1993, Graduate School of Business, Stanford Univerity, This article was written while the author was Visiting Professor at the Australian Graduate School of Management, University of New South Wales, Sydney, Australia. He thanks David Aaker, Sheri Bridges, Deborah Maclnnis, John Roberts, John Rossiter, Richard Staelin, Jennifer Aaker, and the anonymous JM reviewers for detailed, constructive comments.

or divestiture purposes. Several different methods of
brand valuation have t>een suggested (Barwise et al.
1989; Wentz 1989). For example, Interbrand Group
has used a subjective multiplier of brand profits based
on the brand's performance along seven dimensions
(leadership, stability, market stability, internationality,
trend, support, and protection); Grand Metropolitan
has valued newly acquired brands by determining
the difference between the acquisition price and fixed
assets. Simon and Sullivan (1990) define brand equity
in terms of the incremental discounted future cash flows
that would result from a product having its brand name
in comparison with the proceeds that would accrue if
the same product did not have that brand name. Based
on the financial market value of the company, their
estimation technique extracts the value of brand equity
from the value of a firm's other assets.
A second reason for studying brand equity arises
from a strategy-based motivation to improve marketing
productivity. Given higher costs, greater competition,
and fiattening demand in many markets, firms
seek to increase the efficiency of tbeir marketing expenses. As a consequence, marketers need a more
thorough understanding of consumer behavior as a ba-
Journai of Marketing
Vol. 57 (January 1993), 1-22 Customer-Based Brand Equity / 1 sis for making better strategic decisions about target
market definition and product positioning, as well as
better tactical decisions about specific marketing mix
actions. Perhaps a firm's most valuable...
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