Aaker Brand Equity Model

In simple terms, brand equity is defined as the value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Aaker Brand Equity Model primarily sees brand identity as a combination of 8-12 elements which fall under four perspectives:
  • Brand as Product –consists of product scope, product attributes, quality or value of the product, uses, users and country of origin.
  • Brand as Organization–consists of organizational attributes, local workings versus global activities.
  • Brand as Person–consists of brand personality and consumer brand relationships.
  • Brand as Symbol–consists of audio and visual imagery, metaphorical symbols and brand heritage.
How is brand equity created as per this model?
  • Brand value can influence the client’s trust in the purchase choices; a client will naturally be more relaxed with the brand that was last utilized, is considered to have high quality, or is familiar.
  • Brand value can improve the productivity and adequacy of promotional programs. An advertisement, for instance, will be more viable if it is a usual brand of a customer.
  • Brand awareness, perceived quality and brand associations would all be able to reinforce the loyalty towards the brand by expanding consumer loyalty and giving motivational reasons to purchase the product and lower brand switching.
  • Brand equity will normally give higher edges to products, allowing premium pricing and decreasing dependence on promotional activities. Brand value can likewise give a stage to development by brand extensions and can help in the distribution channels as well.
The model can be used at various stages of marketing like improving the perception of a product performance, to increase the loyalty of customers towards a brand, and differentiate from competitors.
Source: http://bit.ly/2BJZnpe

27 thoughts on “Aaker Brand Equity Model”

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