It doesn`t take much to generate negative brand equity. Often, a mistake or a high-profile event can get the job done. Take United Airlines, for example. In 2017, they received a lot of negative publicity for forcibly ejecting a passenger from an overbooked plane. Their brand value has suffered a boost and, as a result, their share price. Brand value is designed to improve a customer`s ability to interpret and process information. It improves confidence in the purchase decision (Aacker, 1991). GM`s rival division, Chevrolet, returned to the mid-range market when the company relaunched the Malibu nameplate in 1997 (and later the Impala in 2000 in response to imports like the Honda Accord and Toyota Camry, including its stretched Avalon platform), which had been idle since 1983. when the company phased out its remaining mid-range RWD G platform. As of the 2018 model year, both nameplates are still in production.
The Malibu, which was originally part of the mid-size Chevelle lineup until 1977 as a top-of-the-line trim level, GM promoted its trim level to full model status (by the time the Chevelle nameplate was retired (and has remained inactive since due to its association with the muscle car era), its trim level had brand awareness and more well-known), a practice first demonstrated in 1969 when the Chevy II range was renamed (the Nova was the top of the range. Variant of equipment; It was one of the finalists for the official name of the 1962 model, but Chevrolet management wanted its nameplates to start with a “C” — promoting the Nova from trim level to official model status broke the tradition of selectively using Chevrolet C-word names with its lineup of automobiles and trucks. It has been said that brand equity is “the branding of a product name to an audience that attracts attention.” [6] The fact that customers know that a brand exists does not help the business too much. They need to continue to engage with their target audience to create recognition. At this point in the journey, consumers become familiar with a brand. They begin to recognize products or slogans when they see them. It can be said that brand value comes from the total value of the following components in the minds of consumers: The image that is formed in the mind of the customer. Branding is the most important parameter when it comes to creating brand equity. Brands with a high brand value are exposed to a significantly lower risk when introducing range extensions or extending their brand name to new products, because the brand name alone has value. The value of the brand is very important in the fact that it helps a brand to gain importance and increase sales compared to the competitor.
Brand equity is a complex parameter that takes into account many parameters such as brand image, brand identity, brand awareness, brand loyalty, brand association, etc. It is mainly subjective and qualitative, but can be represented quantitatively. Once your brand value is established, customer loyalty follows. This will allow for a high rate of customer retention and will result in profitability in the coming years. This measure of brand equity focuses on evaluating brands and products based on factors such as customer perception, attitude, belief, brand association, etc. As Simon Sinek said, “People don`t buy what you do. They buy why you do it. Many companies have tried to switch from computers to other products, but have failed. They had spent most of their time highlighting features (for example: Gateway was certainly qualified to make flat-screen TVs, but their new products never resonated with the public). Apple, on the other hand, has focused on the brand and its relationship with the consumer. They dared to challenge the status quo right next to them, and when they introduced revolutionary products like the iPod or iPhone, consumers were more enthusiastic than confused.
Focusing on the brand creates relationships with customers and binds a company in one direction. Since brand equity is based on several parameters such as brand image, brand identity, customer perception, etc., it is above all a qualitative parameter for a brand or company. There are many ways to measure a brand. Some measurement approaches are at the company level, some at the product level, and some at the consumer level. The Ford Motor Company`s Lincoln-Mercury division, better known from the late 1960s to 2002, was the Mercury Cougar – first as a twin to the Ford Mustang, then as a personal luxury coupe sharing its platform with its mid-size Torino lineup, until 1977, when its entire mid-size lineup (then called Montego) was renamed as part of the Cougar lineup. which went viral (from a base coupe to a station wagon) until the early 1980s, when L-M repositioned its mid-size lineup by rearranging the Cougar under the Marquis nameplate. When consumers think of Nike, the majority are confronted with positive associations of innovation, motivation and determination. These positive associations are largely created by their inspiring advertising campaigns and collaborations with influential athletes such as LeBron James or Michael Jordan, who encourage consumers to believe that Nike is as expert in retail as its representatives are in theirs.
Young & Rubicam, a marketing communications agency, has developed the BrandAsset Valuator, BAV, a tool to diagnose the power and value of a brand. The agency looks at consumer perspectives along four dimensions: After all, these effects can become tangible or intangible values. If the effect is positive, the tangible value is recorded as an increase in sales or profit. Intangible value is realized in marketing as awareness or goodwill. If the effects are negative, so is the tangible or intangible value. For example, if consumers are willing to pay more for a generic product than for a branded product, the brand is said to have negative brand value. This can happen when a company is the subject of a major product recall or causes a widely publicized environmental disaster.
