Kellers Model Of Customer Based Brand Equity Marketing Essay

Kellers exemplification Of Customer found Brand Equity Marketing EssayHow do consumers evaluate cause headspring soft touchs An investigation of the performance of Harrods as a swear out stigmatize to catch up with their soil imageBackground of the Research stigmatization has been bingle the more or less exciting yet phenomenal merchandising creation of the 21st century. A sucker tin be keep an eye oned as a promise make with consumers, the promise of providing consistent quality and satisfaction (Balmer Greyser, 2003). in that respectfore the status nock lav be defined as a shit, symbol, knock-down(prenominal)-arm body or a combination of these to unwrap a ingathering in the food market (Keller, 2006). Brands invite dumbfound precise grievous in recent historic period and atomic number 18 get out of our e realday life and with so much pickaxe available it sticks difficult to choose a special(prenominal) tick offed output. commonly consumers te nd to select products that be familiar to them, products that tend to grow a clear importful forget me drug of shelters, attri plainlyes and smirch names that be indisputable (Keller, 2006). some(prenominal) physical goods and function discharge be trademarked, still in that location has been a vast focus towards the stigma of physical goods and very light work carried out on the targeting of serve (OCass change, 2004).The growth of dish outs has been rapid across the world and it has force all-important(a) to understand the rotating shafts that mass be apply to filth name a improvement to initiate differentiation. stigmatization of physical products tends to be simpler beca handling the consumer is able to bound, touch and feel the end product. Branding a do good is slightly more complicated due to its intangible asset nature, because youre non going home with an item but more of an attend that occurs with gains. Many scholars much(prenominal) as de Chernatony and D each(prenominal)Olmo Riley (1999), Berry (2000), McDonald, de Chernatony and Harris (2001) and OCass and Grace (2003, 2004) stupefy interpreted an approach to create a framework that can be utilise towards stigmatisation a profit. Most of these frameworks are created to measure assisters that are intangible such(prenominal) as banks, hotels, airline, financial and consultant assistances.This study forget be nidus on the mark of Harrods renovations. The study has been motivated by the nature of process stigmatisation and the frameworks that turn out been created by scholars previously mentioned. fifty-fifty not all of these frameworks are applicable for this study and at that placefore forgeting be concentrating only on the framework created by OCass and Grace (2004). The primary(prenominal) reason macrocosm the framework created by OCass and Grace (2004) is the only one that measures serving fire defects from the consumers point of view. The wait on station sit by OCass and Grace (2004) will be used against attend tos creation offered by Harrods.Harrods is substantially famous for the luxury and high class products it offers, however this research emphasises on the run it offers. The main serve ups Harrods offers are as followsKarim Fayed hearing middleBeautySports FitnessFinancial and decentty goHome lifestyleThe studio Interior Design InnovationFurniture and interior designFoodFashion and accessoriesFine JewelleryWeddings OccasionsCorporate gifting operateHealthcareAirport ServicesThis research is not particularly foc victimisation on one help it provides, rather it takes all these overhauls in general and the doents would be the customers of Harrods who have used any of its portions.Aims and ObjectivesThe main charter of this throw away is as followed.What are the service stigmatization factors taken into reflection by consumers when selecting a luxury tag service provider Harrod s?The adjacent objectives have been suggested and need be reached for a successful achievement of the project aima) To pick up, examine and discuss the relevant service stigmatisation associations consumers hold towards service brandsb) To identify and discuss all the relevant service mark associations this instant linked towards Harrods Servicesc) To examine how important are the service brand association for Harrods service consumersd) To evaluate the influence these associations have on the get of services from HarrodsLiterature ReviewOverviewWhat is Brand?A brand is prefatoryally a trademark or a distinctive name of a product or manufacturer, it conveys and portrays the image of the product word brand refers to a name, term, symbol, sign or design used by a soaked to differentiate its offerings from those of its competitors, to identify a product with a particular seller, Kotler, (1999) give tongue to. Developing a good brand has be seed a major task for many governing s today because it provides a number of advantages. Strong brands benefactor the firm establish an identity in the market place (Aaker, 1991). A successful brand has a recognizable name which provides specific attributes to the consumer (i.e. quality, elegance, nurture). accord to The Economist (1988) the staple fiber plan of branding is to manufacture the products image, this image will influence the perceived worth of the product and will amplification the brands value to the customer, leading to brand loyalty. From the market spatial relation, Kotler (1994) believes brands convey a few meanings to the consumers manageBenefit The help and benefit sought provided by the firm to its consumers, which is modify by its attributesCulture The brand reflects an organizations image and beauteousnessPersonality The brand is regarded with sealed characteristicsUsers self-image The brand reflects or consistent with consumers self-imageBrand Value Both physical and mental values provided by the brand to its customersAttribute The functions of the product brand provideCompanies normally develop brands as a mention or mode to rive and keep customers by promoting value, image, prestige, or lifestyle. Hence, a brand is not just a symbol but comprises of fondness product, packaging and marketing communication, which includes many important meanings and values of a firm the objective of brand building is to develop more valuable salary and benefits to the friendship.Relationship of Brands and Their EquityAccording to Motameni and Shahrokhi (1998) today brands play an important part in marketing dodge because it has become an important marketing grammatical constituent for the company and a source of information for the consumers. Branding and brand beauteousness has been a key topic of interest to the researchers of marketing for many years. The term brand can be explained as a name, term, sign, symbol, or design, or a combinations of them which is intende d to identify the goods and the services of a seller or a group of sellers to differentiate them from those of competitors (Kotler, 2005. pp 42).This topic of branding and brand honor has been a detailed research topic in the marketing literature. Aaker (1991) and Keller (1993) have gave some thorough insight into brand impartiality, and two have provided theoretical schemes that link brand equity with various consumer response variables. Brand equity has emerged as a marketing imperative, so too has the need to full understand and manage brand associations (OCass Grace, 2003). Aaker (1996) has defined brand equity as a set of assets (and liabilities) linked to a brands name and symbol that adds to (or get off the ground from) the value provided by a product or service to a firm and/or that firms customers. Aaker has in addition identified five assets of brand equity brand awareness, brand loyalty, perceived quality, brand associations and other proprietary brand assets. Aake r (1996) withal presented brand isentity model which is very important in elaborating the concept of brand identity.Fig. 2.1 Source (Aaker 1996)The brand is a very important tool for marketers as consumers use it as a reminder to conclude certain product attributes such as quality (Krishnan Hartline, 2001). Lim OCass (2000) stated that brands are seen to be valuable assets and sources of differentiation that plays a vital role in marketing dodge. Branded goods make it simpler for consumers to identify the product in the marketplace (Lassar et al, 1995), brands also reduce the consumers search costs, perceived risk and signals the quality of the product (Keller, 2006).Kellers Model of Customer Based Brand EquityOn the hand Keller (1993, 1998) has proposed a knowledge based framework which is a customer based brand equity model. The framework consists of two dimensions commonly cognize as brand awareness and brand image. The model consists of product link and non product cogitat e attributes (OCass Grace, 2003 Keller, 2003). The product associate attributes are explained as the components of the relateion product or service wanted by consumers (Keller, 1993). The colligate attributes of service can be described as the handle that takes place in the lead, during or after receiving the service. For case when a customer uses a dry cleaning service they are paying for getting their clothing cleaned and the charge charged is usually for the unseen particles such as the use of premises, detergent, cleaning equipment and employee expertise (OCass Grace, 2003).The non product related attributes refers to all other attributes that are external to the function or the process of the service offering (Keller, 1993). The four non product related categories are price, exploiter and practise imagery, brand genius and feelings and realizes. Price is considered a non product related attribute as it remains external to the purchase or breathing in of a servi ce (Keller, 1993, 1998). In price of branding the price does not directly reflect the service or performance. Moreover price is launch as an important association in brand image rating and a slopped quality indicator (OCass Grace, 2004, Keller, 1998).User imagery is related to the showcase of person who is going to use the product or service (Keller, 1998). The attributes are usually formed by the consumers own experience via sink in of brand users or by the image represented by marketing communications. On the other hand usage imagery illustrates the situational factors in which the brand is used (Keller, 1998). For example condemnation of day, week or year, location, or type of activity. The user and usage imagery typically reflects the conventional users of a product or service in the context within which it is used.Brand constitution has been defined as set of human characteristics or traits that consumers attribute to a brand (Keller, 2006, p.369). In simpler terms bra nd personality can be expressed by two demographic and psychographic characteristics, providing a concept upon which the brand can be positioned in the consumers mind. Brand personality or personality characteristics are used to target consumers, hence attracting that particular market where the population can relate themselves to how they see their ideal self (Keller, 2006, p.66). A well established brand personality has the ability to increase emotional ties with the brand along with developing trust and loyalty.According to Keller (1998) feelings and experiences which are also non product related attributes, have become important in terms of consumer evaluations of brands, frequently occurring through the evaluation of publicize. In the context of services, it is important to evaluate the feelings and experiences of service brands. For the reason that product and habit occur simultaneously in services, the service experience is the active structure of meanings associated w ith the behaviours, thoughts and feelings that occur during consumption, which directly adverts on the consumers perceived brand image (Keller, 1998, 2006).The measurement of brand equity has also been a high interest field of force of study. There are direct and validating measures for brand equity. The direct approach is an attempt made to assess the value added by the brand to the product (Keller, 1993). The indirect approach focuses on the acknowledgment of the potential sources of brand equity (Aaker, 1991 Keller, 1993). Both these approach can be given a merit, however Keller (1993) argues that direct and indirect approach to mensuration brand equity are complementary and should be used together. fantasy of Service Branding in the Marketing LiteratureBasically branding is basically an effective marketing strategy, tool and technique which have been utilise with great results for organizations and enormous success in the past (Rooney 1995). Nowadays, branding is confront a new popularity due to new and innovative applications. Though at that place have been times when branding was less than successful. Now marketers are workings to get the appropriate applications in the given settings. All the bothers regarding branding strategy in current time include the selection of a proper brand name. Coonan (1993) stated that this fundamental issue will impact on the success of a branding strategy.Marketers have to choose the advertising strategy to support and communicate the name, once a name is selected. Hence belongings the brand in a strong position is a particular concern. peeled areas of branding include corporate, industrial, and service branding. These non-traditional branding environments are get the future for marketers using branding strategy. To add to the new branding areas, thither are new branding techniques. These techniques include brand extensions and ingredient branding. New strategies, techniques, and arenas for branding have to b e managed. The organization must support and identify with the strategy. The goals, objectives, and mission of any organization should be in line with the branding strategy employed.There has been a lot of work carried out on branding and brand equity by academic researchers like Keller (1993, 1998) and Aaker (1991, 1996), but majority of their work has been focused on physical goods branding. In the get going decade there has been many frameworks created to assist marketers to realise how consumers think about, and respond to brands, as a result enabling marketers to implement effective consumer centred marketing activities. Turley and Moore (1995) have stated that there is an increased growth of service economies passim the world, but the branding literature has mainly explored branding in terms of physical goods, whereas the branding of services has been minimal and left out of the picture.several(prenominal) researches have been done on services marketing that has focused on t opics such as measuring service quality, service failure to service switching but the examination into branding of services has not been undertaken (OCass Grace, 2004). Keller (1993, 1998) and Aaker (1996) have suggested branding frameworks that can be applied to measure brand equity, however these frameworks are excellent when used towards physical goods but are not fully adaptable for service brands as some attributes need to be taken out or completely adjusted. Keller (1993, 1998) has created a construct known as dimensions of brand knowledge which is an in-depth analytical view of the brand from the perspective of the consumer. The model has been criticised because only a small section of the model has been empirically tested to date and the model overlooks the variations found in the area of consumer evaluation concerning goods and services (OCass Grace, 2003). Keller (1998) has however argued that his model can be applied to both branding of goods and services. With respect Berry (2000) has criticised that these models by Keller (1993, 1998) and Aaker (1996) have some aspects in common across the two domains of goods and services, but the application of these models can be questioned. The reason being the marketing principles of goods and services are inconsistent because the end mingled with the two domains. The core offering of goods is different from the offerings of a service, because core service offering of a service is more complex and mostly compromises of elements such as processes, people and physical facilities (Tax Stuart, 1997 cited in OCass Grace, 2004). As a result the evaluation of service brands by consumers maybe different as there maybe the need for more or newer attributes required in examining service brands than physical goods brands, hence the models by Keller (1993, 1998) and Aaker (1996) are inconsistent and cannot be completely relied on when evaluating consumer perceptions of service brands.ServiceWhen exploring the con cept of service new(a)s office is very important. Youngs (2000 P 43) says, A service, combined with goods products, is experienced and evaluated by customers who have particular goals and motivations for consuming the service. Gronroos (1990) stated that service is an activity or serial publication of activities of more or less intangible nature. He also stated that service normally, but not necessarily, takes place in interactions between the customers and the service employees and/ or physical resources of goods and/or systems of the service provider, which are provided as solutions to customers problems. Young (2000) has mentioned three areas of service, to elaborate it in much better way. First is that service takes place via interaction of consumers and the service provider, it can be a company or an individual. The other factors are the physical resources or the environments playing a vital medium role in the process of service production and consumption. Third service is ne eded by consumers to provide certain functions such as problem-solving.Boone and Kurtz (1994) have worked on services and according to them each of service characteristics is as follows1. impalpability Customer cannot sample a service before purchasing it that appealing to customers sense of sight, hearing, smell, taste, and touch.2. Inseparability Customer perceptions of the service provider become their perceptions of the service itself. Often Customers are unable to judge the quality of a service before purchase.3. Perish-ability The organization cannot put an unsold service into storage.4. hard-fought to Standardizes It is mostly impossible to standardize offerings among sellers of the same service or even to standardize the service of a single seller.5. Buyer Involvement It is very important that buyers are often involved in the development and scattering of services.6. Service quality is actually high variable in all aspects.When goods and services are compared on the ground s of their characteristics following table can be helpful in doing comparison.Fig. 2.2 Comparison of products and services and service branding implications (Source Grace and OCass 2003)Kristen (2008) stated that when its about providing service, knowing the prognosis of customers and the customers perception of the service encounter is a vital component to delivering superior service. Delivering superior service, especially in the hospitality industry creates a myriad of opportunities for the service organization to surpass the competitive and become a recognized leader in the service industry. It only stands to rationalize that the concept of the service encounter directly affects satisfaction, loyalty and future behavioural intensions which in turn, has a direct affect on the organizations success and financial stability.There are four basic unique features of services intangibility, inseparability of production and consumption, heterogeneity and perishability.Heterogeneity of S ervice BrandsThe advertising that positions the brand should be met by frontline lag as if imitating the brand. Regular planning, control, mechanisation and regular reviews of performance improvement and consumer reaction should be made use of to overcome heterogeneity and quality control difficulties of service brands (Chernatony Riley, 1999). The human element in service condition cannot be subjected to quality control measures as a product from a factory, thus each service experience is potentially distinctive, where agreement can prove difficult to achieve on a regular basis (Berry, 2000). Berry (2000) believes the concurrent product and consumption of services can enable to customise the service brand to serve the inescapably of particular consumers better, thereby devising the practice of marketing the responsibility of every employee. The previous branding strategy is unlikely to accommodate differing consumer needs because of the rigid structure and almost inflexible a pproach. By making branding an internal as well as external activity, may help ensure torso across time and differing situations (Chernatony Segal-Horn, 2003). Internal branding also known as internal marketing, has sired great deal of wariness and an area of vast interest, which has created a consistent organisational culture revolving around the brand concept. Within the service company the brand concept needs to be understood, which allows the brand to become an internal cohesive device, enabling employees to retain flexibility to deal with different people and situations, while conforming to the brand concept. As a consequence employee relations and internal communications are essential means to motivate and retain consumer conscious employees and ensure greater consistency in service quality (Chernatony Riley, 1999). Employees with positive attitudes and behaviour can increase consumer satisfaction with the service brand, which results in increased market share and sales. Intangibility of Service BrandsThe factor of intangibility of the services of the organization makes it hard for customers to identify and assess the quality of a service and differentiating between other competing brands. There is also a concern to firms as they find it difficult to set accurate prices for services. To overcome this problem number of branding strategies can be implemented. It has been suggested the size and reputation of companies, which are perceived associations of the firms brand name, that are used by consumers as an indicator to measure the quality when selecting between very intangible services (Chernatony Riley, 1999). It has also been noted by Balmer and Greyser (2003) that consumers are instinctive to pay higher premiums for services of a company with a strong reputation. Moreover firms that recognise the company name as the brand name, reason by a distinctive corporate identity, personality and image is considered an important service branding strategy , providing endorsements recognition and acceptance as well as making the service more meaningful hence tangible (Balmer Greyser, 2003 Berry, 2000). some other(prenominal) service branding strategy that has been encouraged is the use of unique word of honor or physical facilities that consumers can immediately associate with specific service providers by offering relevant tangible clues (Chernatony Riley, 1999).Many researchers have considered the branding of goods and services have their similarities however specific nature of services requires orient approaches (McDonald, de Chernatony and Harris 2001). Since every service is based on series of performances, service brands become a target of being perceived as commodities. To overcome this problem McDonald, de Chernatony and Harris (2001) have taken a different approach and recommended to make service brands more tangible to provide consumers with favourable set of perceptions. The authors have identify an effective way to c arry this out is by using physical components associated with the service. For example making changes to the physical elements associated with the brand such as staff uniform, consistent office decorations to the type music played in store. nevertheless making these changes doesnt assure that consumers will have a positive view when assessing the service, because the actual service the company provides cannot be improved due to these changes being made.Inseparability of Service BrandsAs consumers are involved in services production, their expectation usually differ between encounters, mainly due to the fact how they interact with different service providers. The main influence of satisfaction with a service brand is caused by the similarity between expected and perceived behaviour, making it complex to control service quality (Summers, 1996 cited in Chernatony Riley, 1999). Moreover there is an increased emphasis towards selecting and training staff to provide a service that is co nsistent, however it has been argued firms should emphasis the use of corporate branding to establish a favourable consumer nature towards the company (Balmer, 1995). According to this perspective, the company brand provides consistency to the employees behaviour while maintaining consumers expectations. On the other hand it has been stated that by involving consumers in the production process, firms are better able to adapt services to individual needs.Perishability of Service BrandsService brands face a great altercate not only does the firm have to build a strong image and reputation to attract consumers (Balmer Greyser, 2003), but also preventing competitors from making promises that attract consumers away, even before the service brand has been experienced. Services cannot be stored and the service encounter often does not involve any transfer of ownership. In services such as life insurance or pensions the service is purchased long before the benefits have been received and e valuated. To overcome these difficulties it has been suggested the company should build strong brand image and reputation as one of the branding options available. Another problem arising from the characteristic of perishability is the difficulty in synchronising tack on and demand. Service firms need to formulate strategies either to cope with fluctuating demand or make adjustments to match capacity and demand more closely, or they will not only face financial problems but branding issues as well (Chernatony Riley, 1999). The brand as recognised by consumers, encapsulates both the quality of the service and the efficiency with which the service is provided. Chernatony Riley (1999) have provided an example that the brand image of a supermarket chain depends not only on the price and the product they stock , but also how quickly and efficiently customers can pay for the good and exit the store. Long waits at queues can adversely affect the image, unless ways are found to drive on up the queues or persuade consumers to shop outside peak times. Therefore organisation systems become part of the branding process that enable the delivery of promises with regards to service quality, speed and efficiency.Frameworks of Branding of ServicesBecause of the unique features of services, consumers have a complex time evaluating the content and quality of a service prior to, during and after the usage of the service. It has been stated by Krishnan and Hartline (2001) branding is more important in services due to the complexity faced by consumers in assessing the purchase of a service. Branding of services is critical for the reason that consumers view services as a commodity. Branding of services has not been a well researched area hence the literature is slow in development and primarily basic in nature (de Chernatony Segal-Horn, 2003 Grace OCass, 2002). Berry (2000) has suggested service brands should be distinctive, relevant, unforgettable and flexible and should be named same as the company rather than another name. The intangibility of services makes it difficult for consumers to evaluate the quality of the service. Regarding the growth of services across the world and the incompatibility of brand equity frameworks used for services, academics such as Berry (2000) Chernatony and Riley (1999) McDonald, Chernatony and Harris (2001) have tried to resolve this issue by creating a framework that can be examined towards consumer service branding.Chernatony and Rileys modelChernatony and Riley (1999) have carried out research with brand consultants about what they thought the difference is between goods and service brands and how they address this issue and in doing so they have come up with the double gyrus brand model. The study was implemented using qualitative approach consisting of semi structured in-depth interviews with selected brand consultants in the UK. The purpose of the interview was to find out how brand consultants make sense of bra nds and do consultants have similar views regarding the components of the brand. The aim of this model is to find out can branding be equally used towards goods and services, and consultants perceptions towards the principle of branding a service is similar to branding for goods. In order to describe in simple terms the complex nature of brands the authors Chernatony and Riley (1999) had discovered that all participants had select a mental model of some description. Brand elements such as functional capabilities, symbolic features, signs of ownership, distinctive name, service, shorthand notation and legal breastplate were all referred by consultants that were interviewed and these elements are used to make the double vortex model.Service Branding of Service Brand EquityBerry (2000) has taken a different approach by analysing strategies of 14 mature service companies and has created the service branding model of service brand equity. Berry (2000) believes that brand equity is made up of two components brand awareness and brand meaning (brand image). The following has also been argued by Berry (2000) that the most important source of brand awareness is the companys presented brand, being the companys controlled communications. The controlled communications typically consists of advertising, service facilities, the appearance of service providers, the company name and logo (Brassington Pettitt, 2006). The secondary impact on brand awareness is the external communications, which is usually information consumers receive about the service that are uncontrolled by the company. Brand meaning on the other hand is express to be mainly influenced by customers experience with a particular service company (Berry, 2000). The reason being service businesses are said to be labour intensive, consisting of human interactions and performance, rather than machinery. Berry (2000) has emphasised that this construct plays a critical role in building the brand. The secondary inf luence on brand meaning is said to be the companys presented brand and the external communications. The service brand model by Berry (2000) has introduced new conceptual elements such as servicescapes, controlled and uncontrolled communications, which are significant towards branding of services. These are the typical elements which are missing from the brand knowledge model constructed by Keller (1998).Service Brand ModelIn response OCass and Grace (2003, 2004) have created their own version of the service brand model. This model has been constructed by adopting various measures from other branding models and potential branding dimensions applicable for services to create an integrated approach to resolve issues in consumer service branding. The authors believe by identifying the dimensions within the consumers consciousness they can gain greater knowledge of what brands mean to consumers as well as lower to understand to what extent such dimensions impact on the brand attitudes a nd purchase intentions of service consumers. This construct specifically gathers first hand responses of consumers evaluation of service brands in terms of how they see the brand, what expectations they have and overall feelings attitudes towards the service brand. This model by OCass and Grace (2004) includes the following dimensions core service, interpersonal service, perceived values, se