An Empirical Study on Determinant and Measurement of Brand Equity in Indian Car Industry

Every business around the world needs profit for survival and growth. The profit of a company comes from the excess of revenue over expenditure. A Brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being described as “cultural accessories and personal philosophies”. Brands are valued for the equity; they add value. Everyone in the marketing profession agrees that brands can add substantial value. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that companies possess. To study the problem effectively, car industry is chosen taking into the account the emergence of many new brands of the car product in the recent past. The brand strength depends on the perception of customers. Satisfied and loyal customers indicate positive perceptions of brand. The results of the study shows that brand preference and brand loyalty play an important role in creating brand equity. These components of brand equity must be coherent in their actions so that consistent image of the firm is realized and valued by customers.