Global brand equity model: combining customer‐based with product‐market outcome approaches
| DOI | https://doi.org/10.1108/10610420810896068 |
| Date | 22 August 2008 |
| Pages | 305-316 |
| Published date | 22 August 2008 |
| Author | Haizhong Wang,Yujie Wei,Chunling Yu |
| Subject Matter | Marketing |
Global brand equity model: combining
customer-based with product-market outcome
approaches
Haizhong Wang
Department of Marketing, School of Business, Sun Yat-Sen University, Guangzhou, China
Yujie Wei
Department of Marketing and Real Estate, Richard College of Business, The University of West Georgia, Carrollton, Georgia, USA, and
Chunling Yu
Department of Marketing, School of Economics and Management, Tsinghua University, Beijing, China
Abstract
Purpose – There is a growing interest in brand formation and brand valuation among global firms today, but global marketers typically ignore one of
the key factors of brand building – corporation ability association (CAA). This paper aims to explore the structural relationship between CAA and
consumer-based brand equity variables and its product-market outcomes.
Design/methodology/approach – Utilizing Aaker and Keller’s theoretical framework of brand equity, this paper develops a brand equity model
combining customer-based brand equity with product-market outcome approaches. A set of scales are developed and tested on a national sample of
Chinese consumers.
Findings – The data provide support for ten of the 12 hypotheses. The results indicate that CAA is an important factor in building and preserving brand
equity. CAA and brand awareness have impact on quality perception, which has positive impact on brand resonance, brand extensibility, and price
flexibility. Brand resonance has positive influence on brand extensibility and the intention to repurchase.
Practical implications – For global marketersoperating in China,brand equity is a cultural market-based asset and global companies must focus on
building corporation ability association in China in order to enjoy the substantial competitive and economic advantages provided by brand equity.
Theoretically, the proposed brand equity model is an extension of the model proposed by Keller.
Originality/value – For the first time, CAA is integrated into fhe brand equity model. This may provide a theoretical base for further research in the
endorsement role of company ability in brand equity building.
Keywords Brand equity, Customer orientation, Modelling, China, International business
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
Brand equity is regarded as a very important concept in
business practice as well as in academic research because
marketers can gain competitive advantages through strong
brands (Aaker, 1998; Keller, 1993, 2000). Since late 1980s
there has been a frenzy of mergers and acquisitions in which
brands have played the primary role. Increasingly, as the
movement of brand valuation shifts from the developed
economies to other areas of the world, especially to the
emerging economies, the branding question changes
considerably (Roth, 1995). In the era of global marketing,
branding strategy, as a key element in the marketing mix, is
increasingly viewed as a powerful tool to obtain sustainable
competitive advantages (Lin and Kao, 2004), as well as to
fully utilize available resources, and to avoid bleeding price
competitions (Aaker and Keller, 1990). As marketing
managers may want to capitalize on previously acquired
brand equity by extending a reputable brand to a new regional
market, branding decisions are becoming increasingly
important in global marketing. However, while facing
unfamiliar environments and consumers, global brands may
fall into the dilemma because little global-specific research has
focused on this domain so far, and little is known about the
extent to which consumer-based brand equity transfers to
unfamiliar consumers in a global context.
In response to the trend of increasing brand globalization,
there is growing demand for the development of the model of
global brand equity to assess a brand’s value relative to that of
its global competitors. The conceptualization and
measurement of brand equity, including its sources and
outcomes, become an urgent and challenging task. The
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
17/5 (2008) 305–316
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610420810896068]
This paper is funded by the National Natural Science Foundation of
China (No. 70632003 and No. 70772081).
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