Customer Based Brand Equity Essay
Customer Based Brand Equity
Customer based brand equality is very important for both local and foreign businesses. Many local based brands have been facing increased competition and challenges from other foreign brands. Both foreign and local brands have been taking turns capitalizing on their competitive position within the Chinese mobile phone market. Because of this, there is a need for both local and foreign brands to gain a clear understanding of their customer’s preferences, in regards to mobile phone features and the perception of their competitive position from their customers.
Building a brand and properly managing it has become very important for all companies. Companies are now beginning to realize that brand equity is a most powerful tool and a valuable asset to them. The maintenance and enhancement of a company brand has become a very important part of the management tasks in companies. Brand knowledge structures in the minds of customers are the foundation of brand equity. Brand equity is widely perceived as consisting of brand loyalty, brand awareness, perceived quality and brand associations, among other things.
Building brand equity has specific rewards that are quite obvious. But there is a problem in that very few managers are able to objectively assess the strengths and weakness of their brands. Measuring brand equity is very important in assessing the value of the brand. Customer based brand equality helps companies to become aware of the likes and dislikes of their customers. This article shows that customers have three important attributes that they prefer; which are service, durability and brand image. Brand features uniqueness is the least important factor that affects consumers’ mobile phone preference.
Price, distinctiveness, place, promotion and advertisements are the second tier attributes of consideration for customers. Attention should be given to improving the brand equity within the Chinese market. All mobile brands should pay very close attention to the improvement of their services and the enhancement of their products durability and brand imager, rather than focusing on intense price competition. The foreign brands are consistent across the board, clearly outperforming their foreign competitors with regard to customer attitudes in the Chinese market.
The local foreign companies should begin to focus their attention on enhancing the quality of their product and building up their brand personality and their image. There is still room for the foreign brands to improve their brand equity. Strong brand equity means that customers have high brand awareness, maintain a favorable brand image, perceive high quality and are loyal towards the brand. Reference for the journal: Liaogang, Chongyan, Zian Source: International Management Review, Volume 3, Number 3, 1 April 2007, pp. 76-106