REVIEW OF RELATED LITERATURE

To highlight the findings, this section offered current information and

findings from a variety of sources relevant to this study. This seeks to give

readers a better knowledge when it comes to market branding. This section

discusses the disciplines and literature related to the existing concept under

examination.

The Impact of Brand Equity based for customers

Before the widespread adoption of branding as a business practice,

brands were little associated with the sale of retail goods because many

products distributed for consumers’ consumption were sold as staples in bulk.

Commonly, the one general store in town carried commodities such as sacks

of coffee beans, slabs of cheese, and barrels of pickles without naming their

specific sources. At the foundation of all branding activity is the human desire

to be someone of validity, to build a personal and social identity, to show

oneself as both like other people to belong and unlike other people to stand

out, and to have a good reputation. The examination of brand equity has

mainly been centered towards determining the factors that could improve

brand value (Dinçer, Bozaykut-Buk, Emir, Yuksel, & Ashill, 2019). Consumer

products and service marketers place a high value on brand equity. Brand

equity improves the efficacy of brand expansions and brand launches. This is

because consumers who trust and are loyal to a brand are willing to

experiment with brand extensions. While methods for measuring the financial

worth of brand equity have existed, methods for measuring customer-based

brand equity have been weak. The functional performance should be

highlighted by the functional branding. These demands are satisfied by

functionally performing products and are associated with fundamental motives.

According to Park et al. (2010), through promoting efficacy and control,

brands can be managed to lessen uncertainty in consumers' lives and make it

possible to achieve desired goals. Therefore, the performance of a product is

linked to functional brands. The competitive advantage for businesses who

have brands with High equity includes the following: a price premium can be

charged obtained; increasing client demand. Poulis and Wisker (2016) tested

the effect of employee-based brand equity on organizational performance and

found that the attachment of employees to a brand represents the main factor

that contributes to better financial outcomes. In other words, we understand

what industrial brand equity is made of significantly better than we understand

what causes it to exist. This is an important gap that must be filled in order to

determine where industrial brand equity originates.

One way to achieve this objective is to create a private brand because

it reduces consumer risk and links the value-creating activities of suppliers

with buyers’ perceptions. This study indicated that the emphasis on price. Its

retail availability tended to imply that these products were still manufactured

on a commodity basis. The heavy reliance on pricing showed a low efficacy of

firms' branding initiatives. Brand equity is one of the key concepts in brand

management research (Kim, Jin-Sun, & Kim, 2008) that refers to the value

that a company generates from a product with a recognizable name as

opposed to a generic equivalent. In other words, brand equity is formed when

the product is memorable, easily recognizable, trustworthy, and superior in

quality and reliability. The related issues of customer engagement (CE) have

been always the consideration and attention of researchers and scholars over
the marketing field. Specifically, customer brand engagement (CBE), as part

of CE, plays a significant role within the marketing literature (Calder et al.,

2009; Dwivedi, 2015; Heinonen, 2011; Hollebeek et al., 2014). Brands

represent enormously valuable pieces of legal property, capable of influencing

consumer behavior, being bought and sold, and providing the security of

sustained future revenues to their owner. The value directly or indirectly

accrued by these various benefits is often called brand equity (Kapferer 2012;

Keller 2014). A basic premise of 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. Brand equity can be thought of as the “added

value” endowed to a product in the thoughts, words, and actions of

consumers. There are many different ways that this added value can be

created for a brand. Similarly, there are also many different ways the value of

a brand can be manifested or exploited to benefit the firm in terms of greater

revenue and/or lower costs. For brand equity to provide a useful strategic

function and guide marketing decisions, it is important for marketers to fully

understand the sources of brand equity, how they affect outcomes of interest

in sales, and how these sources and outcomes change, if at all, over time.

Understanding the sources and outcomes of brand equity provides a common

denominator for interpreting marketing strategies and assessing the value of a

brand: The sources of brand equity help managers understand and focus on

what drives their brand equity; the outcomes of brand equity help managers

understand exactly how and where brands add value. Towards that goal, we

review measures of both sources and outcomes of brand equity in detail. We

then present a model of value creation, the brand value chain, as a holistic,
integrated approach to understanding how to capture the value created by

brands. We also outline some issues in developing a brand equity

measurement system. We conclude by providing some summary

observations.

Brands are very significant pieces of legitimate belongings, with the

capability of affecting how consumers act, being purchased and sold, and

offering owners with the security for long-term earnings. Brand equity is the

power of a brand in the minds and experiences of people over time. To use

brand equity effectively, marketers must understand its sources, impact on

outcomes, and changes over time. This understanding aids in the

interpretation of marketing strategy and the evaluation of brand value. A value

creation model, the brand value chain, is provided as a comprehensive

strategy to capture brand value. The development of a brand equity

measurement methodology is also mentioned.

Brand equity itself includes the overall strength of a brand in the market

and will provide value to the company/business entity that produces the

product/service. The task of marketers here is very important to be able to

make the right design or strategy in making a brand identity that is easy to

remember and has strong assets in society. High brand equity provides a

competitive advantage for the company. Because consumers expect the

brand to be available in stores, the company has higher supply power. High

brand equity can also increase new customer loyalty and retain old customers.

So it is very important for companies to create high brand equity in order to

win the competition. brand equity as a positive differential effect caused by the

knowledge of the brand name on the customer for the product or service.
Brand equity causes customers to show a preference for a product over

another if the two are essentially identical. One of the preferences that

consumers pay attention to is the brand of the product.

According to Laroche et al. (2012), Sadek et al. (2018), Seo et al.

(2020) and Seo et al. (2018), brand equity is “the set of brand assets and

liabilities associated with the brand, its name and symbol; which adds or

subtracts from the value provided by a product or service to a company and/or

customers of that company”. Thus, brand equity itself can be categorized as

an intangible asset of a company that must be maintained. By maintaining

and increasing brand equity, it can give customers more confidence to buy

goods or services (Seo et al., 2020; Seo et al., 2018; Suharto et al., 2022).

Wantini et al. (2021) defined brand equity or brand equity as a positive

differentiating effect after knowing the brand name on consumer responses to

products or services with that brand. Brand equity produces consumers who

have choices if consumers are faced with two products that are basically

almost the same. The term brand refers to the value embodied in a well-

known brand. From the consumer's perspective, brand equity is the added

value given to the product by the brand. Brand equity is a set of brand assets

and liabilities associated with a brand, its name, symbol, which add to or

subtract from the value provided by a product or service to the company or its

customers (Laroche et al., 2012; Sadek et al., 2018; Seo et al., 2020; Seo et

al., 2018; Suharto et al., 2022; Wantini et al., 2021). Brand equity is a

collection of belongings and obligations connected with a brand, its name, and

symbol that enhance to or preserve the value supplied to customers by a

product or service. If a brand's name or symbol changes, some or all of its

assets may be modified or even lost, however some may be relocated to a

new name or symbol.

In conclusion, brand equity has a profound impact on customers. It

influences their perceptions, loyalty, and purchasing decisions. Customers

and brands are any organization's two most significant intangible assets.

Ahead of duration, undertake studies in order to evaluate elements influencing

brand equity from the perspective of customers. Building and maintaining

strong brand equity should be a strategic priority for businesses seeking to

create a competitive advantage and long-term customer relationships. Brand

equity is the name given to the value of a company’s brand. It’s a measure of

overall consumer perceptions of any brand. Those perceptions get shaped by

the customer experience that a brand offers. If consumers get treated well,

they’ll develop favorable perceptions of a company. Thus, positive brand

equity gets generated. Poor customer experiences, meanwhile, create

unfavorable opinions of a business. That’s when negative brand equity results.

And once it has, it can be tough to turn around. Brand equity is essential for

the success of any modern organization. Create a favorable customer

impression of your company and success will come much more easily.

Customers will return for more and will spread the word about you. It's difficult

to recover from unfavorable brand equity. Companies with a bad reputation

must work twice as hard to win back consumers. The impact of brand equity

on customers can be significant and can influence their purchasing decisions,

loyalty, and overall satisfaction. Here are some insights about the impact of

brand equity on customers: Customer Perception and Trust: Brand equity

plays a crucial role in shaping customer perception and building trust. A

strong brand with positive brand equity is often perceived as reliable, credible,

and trustworthy. Customers are more likely to choose brands with a good

reputation and a history of delivering quality products or services. Brand

Loyalty: Brand equity fosters customer loyalty. When customers have a

positive experience with a brand, they develop an emotional connection and a

sense of loyalty towards it. They are more likely to become repeat customers

and recommend the brand to others. Brand equity helps in creating a loyal

customer base, which can lead to long-term profitability and sustainability.

Competitive Advantage: A strong brand equity provides a competitive

advantage in the market. Customers often perceive brands with high brand

equity as superior to their competitors. This perception can make customers

more willing to pay a premium price for products or services from a trusted

brand, even if similar alternatives are available at lower prices. Brand

Extensions and New Product Launches: Brand equity can facilitate successful

brand extensions and new product launches. When a brand has strong brand

equity, customers are more receptive to new offerings under the same brand

umbrella. They are more likely to try new products or services from a brand

they already trust, reducing the perceived risk associated with trying

something new. Enhanced Perceived Value: Brand equity enhances the

perceived value of a brand's products or services. Customers attribute

additional value to a brand with strong brand equity, considering factors

beyond the functional attributes of the product. This perceived value can

justify higher prices and lead to increased customer satisfaction. Customer

Advocacy and Word-of-Mouth: Positive brand equity encourages customer

advocacy and positive word-of-mouth. Satisfied customers are more likely to

share their positive experiences with others, both online and offline. This

word-of-mouth marketing can significantly impact a brand's reputation and

attract new customers. Resilience during Crisis: Brands with strong brand

equity tend to be more resilient during times of crisis or negative events.

Customers are more forgiving of occasional missteps or challenges faced by

trusted brands and are more likely to continue their support. Strong brand

equity can help a brand bounce back from negative situations more quickly. It

also provides strategic advantages such as facilitating market expansion,

competitive resilience, and customer co-creation. Building and leveraging

brand equity requires a holistic approach that considers both functional and

emotional aspects of the brand and consistently delivers value to customers.

Customer engagement in product development, idea generation, and

feedback procedures can be facilitated by brand equity. Brands may build

goods or experiences that better fulfill consumer wants and preferences by

incorporating customers in these activities, generating a sense of ownership

and loyalty among customers. Brand equity is tied to perceived value. Quality,

brand loyalty, and brand connotations are all important considerations, the link

between perceived worth and trademark. Brand equity linkages are

substantially weaker than brand loyalty and brand equity are related.

Understanding the influence of brand equity on new goods may help

businesses make strategic decisions regarding brand expansions and

enhance their success rates, as well as help marketers design culturally

relevant brand positioning and communication strategies.

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