Brand equity (BE)-An overview of BE measurement approaches

Companies are looking for ways to differentiate them in the fragmented and saturated market. Branding is one such strategy which helps the companies to create their unique image in the consumer market. Brand equity is defined as the added value endowed by the brand to the product (Farquharr, 1989). The brand equity literature includes the elements of brand equity, measurement of brand equity and the impact of brand equity on customer equity, customer choice, purchase intention, etc. In 1991, Aaker proposed the brand equity model since then the dimensions of brand equity were taken into research and their relevance is studied.

The two common perspectives adopted in the BE measurement are customer based and firm based equity. Keller (1993) has used the term customer based brand equity because the customer decides whether the brand equity exists out of the firm‘s practices. This paper attempts to explore the sources of brand equity and their contribution towards measuring brand equity. Brand Equity is measured through various approaches by different authors. The study investigates the various models proposed for brand equity measurement and an attempt to consolidate them has been made. The research on brand equity has been extended to include the firm based brand equity to identify the financial value of the brand.

Marketing mix elements and the firm‘s marketing strategies influence the brand building efforts and the brand equity. These elements are considered as the drivers of brand equity and their direct and indirect impact on BE was investigated (Yoo. et.al, 2000; Andreas Herrmann.et.al, 2007; Lassar and Mittal, 1995). Such brand equity measurement aids in the evaluation of the marketing efforts.

The development and measurement of brand equity has received a good share of the strategic marketing management attention in the past several years (Keller, 2003). It is a good example of an area in which marketing scholars and managers have found a productive intersection of interest. However, many issues of strategic brand management remain to be solved, and it must remain a top research and management priority (Frederick E. Webster Jr, 2005). This paper presents various approaches adapted to measure brand equity and highlights the major dimensions adopted in the brand equity measurement.