Conclusion
Creating brand equity, that is, building a strong brand, is a successful strategy for differentiating a product from
competing brands (Aaker 1991). Brand equity provides sustainable competitive advantages because it creates meaningful competitive barriers. Brand equity is developed through enhanced perceived quality, brand loyalty, and brand awareness/associations, which cannot be either built or destroyed in the short run but can be created only in the long run through carefully designed marketing investments. Thus, brand equity is durable and sustainable, and a product with strong brand equity is a valuable asset to a firm. Our study shows the importance and roles of various marketing efforts in building strong brand equity. Managers can relate the findings to their brand-building strategies. To enhance the strength of a brand, managers must invest in advertising, distribute through retail stores with good images, increase distribution intensity, and reduce frequent use of price promotions. As for price, high brand equity may allow a company to charge a higher price because consumers are willing to pay premium prices.
ConclusionCreating brand equity, that is, building a strong brand, is a successful strategy for differentiating a product fromcompeting brands (Aaker 1991). Brand equity provides sustainable competitive advantages because it creates meaningful competitive barriers. Brand equity is developed through enhanced perceived quality, brand loyalty, and brand awareness/associations, which cannot be either built or destroyed in the short run but can be created only in the long run through carefully designed marketing investments. Thus, brand equity is durable and sustainable, and a product with strong brand equity is a valuable asset to a firm. Our study shows the importance and roles of various marketing efforts in building strong brand equity. Managers can relate the findings to their brand-building strategies. To enhance the strength of a brand, managers must invest in advertising, distribute through retail stores with good images, increase distribution intensity, and reduce frequent use of price promotions. As for price, high brand equity may allow a company to charge a higher price because consumers are willing to pay premium prices.
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