With the growing competition in the global market, brands are strategically planning to expand their businesses. The brands are offering variety of products in flexible price range to increase their acceptance among retailers and customers. In this competitive environment of becoming the best, brands forget to notice their potential customers and quality while attracting new customers. Therefore, in the long run many brands fails to maintain their position.
Considering other famous European brands like Louboutin, Gucci, Tommy Hilfiger, Versace, Prada and so on always manage to remain on top. It is mainly because of the brand equity and quality that increases their brand preference by their loyal customers. They work on launching new products and strategies like other brands but in order to do so their first priorities is always concerned with being loyal to their existing customer. Brand is known as “the reflection of attributes that a customer buys in return of his investment”. Providing premium services helps to expand the brand and build an impeccable brand equity.
Brand equity is “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm´s customers”-(Aaker, 1991).
Brand equity can be divided into three components: consumer perception, negative/positive effects and resulting value. Consumer perception is made by both knowledge and experience associated with a brand and its product. If the consumer have develop good perception about the brand than it will have positive effects on brand equity and ultimately resulting it huge revenues or benefits. It goes completely vice versa in case of bad consumer perception.
Consumer perception are developed on the basis of five factors including: Quality, Price, Advertising, Packaging, Convenience, and Influence by others. All these matters tends to create the consumer perception about a brand. However, consumer further develops their perception with a brand on the basis of:
- Brand Awareness: Brand awareness is the most constructive factor in terms of building consumer perception about brand equity. Brand awareness defines the importance and position of a brand in the people minds. It defines an ability of the consumers to recognize a brand in times of their needs. If a constant brand comes in their mind resisting others then its brand equity is quite strong in consumer perception.
- Brand Associations: Brand association include the thinking, perception, focus, feelings, believes, trust and emotions of the consumer attached to a particular brand. If a consumer can strongly, uniquely associate with the brand then the brand equity is highly effective in consumer perception.
- Perceived Quality: Perceived quality deals with the quality of the services and perception of a consumer towards a brand. It relates with the trust and expectation levels of the consumer associated with what he will get in return of his investment from the brand.
- Brand Loyalty: Brand loyalty is a vice versa process. If a brand is sincere with his clients serving best customer services, goods equivalent to their investment and trustworthy genuine stuff. Then the customer remain loyal to their brands. Brand equity is greatly strengthened with strong brand loyalty in both terms consumer to brands and brands to consumer.
Famous and renowned brands are bounded with different consumer laws especially in UK .They have to follow strict policies and laws related to business and maintaining their equity. If someone starts thinking of creating a brand then he may also take Professional Academic Writers advice to get research work on laws, terms and condition on this subject.