A CONCEPTUAL AND OPERATIONAL DEFINITION OF BRAND EQUITY - A NEW APPROACH

Abstract

Though there is considerable debate regarding brand equity definition, what motivates consumers to pay price premium remains an important theme in brand equity research. Two fundamental motives for studying brand equity exist - financial motive, with the purpose of estimating the value of the brand for accounting purposes and motive derived from more efficient marketing efforts. As customer retention is critical for strategists in the dynamic world of marketing, it is important for operators to devise well-structured programs for securing customers’ base line. This research investigated the brand equity construct and the relationship between brand equity and brand loyalty with a view to develop a conceptual model that explains their connection and harmonise the various definitions. A look at the construct attributes in the existing literature suggests that brand loyalty and brand equity
are identical. This study, while observing the relationship between the selected determinants, presumed the mention of brand loyalty to mean the mention of brand equity. The research found that brand loyalty and brand equity are inextricably connected and synonymous. The study recommended that marketers and scholars defocus the concept of brand equity and sustain brand loyalty as the dominant construct to avoid redundancy, improve efficiency and grow profits.