Managers recognize the value of strong brands—that is, those that project a clear and consistent set of positive associations at high levels of awareness (Keller 2003)—and dedicate significant resources to building brand strength.The power of brands has not been lost on marketing academics either; they have spent decades conceptualizing brand equity (e.g., Aaker 1991; Keller 1993) and demonstrating its consequences (for a review, see Christodoulides and De Chernatony 2010). An assumption that is often taken for granted is that brands generate value for firms by affecting how customers think and what they do—in other words, that “the power of brands lies in the minds of consumers” (Leone et al. 2006, p. 126).
Whether such thoughts and behaviors are captured by measuring customers’ increased intention to purchase (e.g., Cobb-Walgren, Ruble, and Donthu 1995), their willingness to accept price premiums (e.g., Ailawadi, Lehmann, and Neslin 2003), or their adoption of products and consequent increases in market share and cash flow (e.g., Agarwal and Rao 1996; Mizik and Jacobson 2008), the focus of existing academic research and managerial attention has been overwhelmingly on how brands help firms win the battle for customers.