Aaker (1996) concluded that the key brand elements that provide value to a brand are perceived quality, brand association, brand loyalty and brand awareness.
Brand awareness
Creating brand awareness is recognized as one of the core objectives for designing a marketing communications strategy for a firm because customers cannot buy a product unless they are aware of it (Peter & Olson, 2008). Brand awareness relates to the salience of the brand in buyers` memory (Aaker, 1996). Thus, brand name awareness is the ability of a prospective buyer to recognize and recall the brand as a member of a specific product category (Aaker, 1991). It is highlighted that brand awareness does not only indicate that the brand has been seen in the past and/or is known but has also been registered in the memory (Hoeffler & Keller, 2002). Brand awareness is regarded as the basic first step in the process of building brand equity because a prospective buyer must first notice and recall the brand while at the market place (Buil et al., 2013; Keller, 2013; Hoeffler & Keller, 2002).
Although brand awareness is an essential asset for brand-building efforts, it is usually not elevated as one of the elements of brand equity which is capable of creating substantial value for a brand (Hoeffler & Keller, 2002; Chen, 2001). For example, Buil et al. (2013) pointed out that brand awareness can be positive, but may not have a direct impact on brand equity.
Keller (2013) suggested that brand awareness can be decomposed into brand recognition and brand recall. Brand recognition indicates the ability of the customers to generate their past experiences with the brand, whilst band recall relates to spontaneous retrieval of the brand from the mind (Hoeffler & Keller, 2002; Keller, 1993). Aaker (1996), however, operationalized
brand awareness as brand recognition, brand recall and top-of-awareness. Keller (2013) emphasized that brand familiarity is an important ingredient of brand awareness.
Alba and Hutchinson (1987) defined brand familiarity as the total number of customers` exposures with the brand. The author further pointed out that previous exposures the customer has had with the brand might not enhance brand recognition, but it is usually the most recent experiences that significantly influences brand awareness.
Though the importance of brand awareness in supporting brand equity is sometimes undervalued (Hoeffler & Keller, 2002; Chen, 2001), it can positively influence customers` purchase intentions and loyalty (Aaker, 1996). Keller (1993) is also of the view that high brand awareness indicates that the brand will be considered among handful of brands the customer wishes to buy. Secondly, strong brand awareness can affect customers’ buying decisions in the consideration set.
Furthermore, it has been emphasized that brand awareness supports the favourability of brand associations and brand quality (Keller, 1993; Keller & Lehmann, 2003). Aaker (1991) also pointed out that customers usually buy well-known brands as these brands are often considered to be of good quality, reliable and in business to stay. An empirical research suggests that brand awareness influences overall brand equity (Asif et al., 2015).
Hence, the following hypothesis is proposed:
H1b: Brand awareness positively and significantly influence overall brand equity
Brand association
After creating brand awareness, a manager`s task is to create a set of strong, desirable and distinctive brand associations in the minds of customers. Brand association is also regarded as another core element of CBBE (Aaker, 1991; 1996; Keller, 1993). Brand association relates to anything that the buyer links to the brand, and it connects the customer to the brand which includes use situations, user imagery, symbols, organizational characteristics, product features and brand personality (Campbell, 2012; Aaker, 1991).
Aaker (1996) suggested that brand association is made up of brand personality, organizational associations and perceived value. Perceived value relates to the basic functional benefits that a
brand conveys to customers. Zeithaml (1988) also suggested that perceived value is the subjective assessment of utility of a product in terms of what is received and given out.
Brand personality can be defined as human traits that are linked to a brand (Aaker, 1997), and it tends to reflect the emotions and feelings evoked by the brand (Keller, 1993). Aaker (1997) suggested five elements of brand personality: sophistication, excitement, sincerity, ruggedness and competence. For some brands, brand personality provides symbolic and self-expressive benefits which, in turn, support differentiation and customer-brand relationships (Aaker, 1996). While product-related attributes tend to serve a utilitarian function, extrinsic product features provide personality for the brand (Keller, 1993; Aaker, 1997).
Finally, the organizational association relates to the organizational elements (values, programs and people) that are connected to the brand. Organizational associations have the potential to drive choice and differentiation. Organizational characteristics that are usually associated with brands include concern for customers, innovativeness, quality, corporate social responsibility, success and a global orientation (Aaker, 1996).
Chen (2001), however, categorized brand associations into product associations and organizational associations. Product association is further divided into functional attribute association (functional benefit, perceived quality and product attribute) and non-functional attribute association (price/value, emotional associations, use/usage situation, and symbolic associations). The non-functional attribute association seems to coincide with the non-product related attributes proposed by Keller (1993). Organizational association is also grouped into corporate social responsibility associations and corporate ability associations.
Low and Lamb (2000) also identified perceptions of quality, brand attributes and brand image as antecedents of brand associations. This contrasts sharply with the position of Keller (1993: 3) who viewed brand image as “a set of associations linked to the brand”. Hence, according to the author`s position brand image is not a dimension of brand association.
Aaker (1991) pointed out that brand associations can be used to position, differentiate and extend brands as well as evoke positive feelings toward the brand, and provide the reason for buying the brand. Nor is this all, customers depend on brand associations to retrieve, organize and process information stored in the memory to assist in making buying decisions. Chen
(2001) is of the view that strong and unique brand association would increase brand equity and ultimately creates a strong competitive edge for a firm. Yoo et al. (2000) also suggested that brand association can serves as an indicator of quality which may influence the buyer to consider the brand in the store, and ultimately build a positive attitude towards the brand. Hence, strong brand equity suggests that buyers have positive perceptions of the brand (Atilgan et al., 2005). An empirical study also reveals that brand association significantly enhances brand equity (Yoo et al., 2000).
Hence, the following hypothesis is postulated:
H2b: Brand association positively and significantly influence overall brand equity
Perceived quality
Another component of brand equity is customer perceptions of the quality of the brand (Aaker, 1996). Perceptions of quality are concerned with subjective assessment of the overall excellence of a good (Zeithaml, 1988). The author further stated that perceived quality contrasts sharply with objective quality. Actual product quality, however, relates to the extent to which the product provides excellent performance. A further distinction is made between manufacturing-based quality and product-based quality. Gavin (1987) stated that product- based quality relates to the nature and amount of particular attributes that make up the product, whilst manufacturing-based quality refers to conformity to production or service requirements. It has been emphasized that customers’ perceptions of superiority of a product can be enhanced if the actual quality of the product is improved (Gil et al., 2007). In addition, the company needs to convey the superiority of the brand via its marketing activities to customers.
According to Aaker (1992), perceived quality creates value for a brand by being the basis for differentiation, reason to buy, line extensions, channel member interest and price premium, and overall contributing to the profitability of the firm. As a result, perceived quality is regarded as a strategic competitive weapon and therefore many companies have now turned to customer- driven quality to create value to delight their customers. Customers’ perceptions of product quality has been recognized as an element of perceived value (Zeithaml, 1988), and ultimately, superiority of a brand can drive a buyer to choose the brand in place of alternative brands (Yoo et al., 2000).
Although perceived quality is recognized as a distinct dimension of brand equity (Aaker, 1996), some authors consider it as one of the elements of brand association (Campbell, 2002; Keller, 1993; Chen, 2001). However, Aaker (1996) is of the view that, though perceived quality is usually considered as an aspect of brand association, it has been elevated as a distinctive dimension of brand equity due to the following reasons:
amidst brand associations, perception of quality is the only dimension that contributes significantly to enhance financial strength of a firm
perceived quality is usually of great importance for a company
perceived quality in most cases influences the other elements of brand equity and has relationship with them.
Gavin (1987) suggested that customers perceive the quality of a product along the dimensions of product features, performance, conformance, reliability, durability, image, aesthetics and serviceability. Alternatively, Aaker (1991) proposed performance, reliability, durability, serviceability, fit and finish, product features and conformance to specification as the dimensions of quality of a product. It has however been suggested that safety, efficacy/efficiency, convenience, affordability, availability, side effects, package design and advertising are recognized as quality dimensions in the drug industry (Dickov & Igić, 2013; Osemene, Elujoba, & Ilori, 2011).
Moss (2007) pointed out that the way quality is perceived in the pharmaceutical industry is different from that of traditional customer goods industry. The quality of prescription drugs is not determined by users but by a third-party group prior to their commercial viability. In theory, quality itself is not an important factor that drives the purchase of drugs, but in practice, health care providers and patients recognize quality as an essential cue in usage.
Zeithmal (1988) stated that “perceived quality” model is based on customers` judgment of product quality but not a manager`s or an expert’s point-of-view. Thus, the viewpoint expressed in this research is related to a user-based perspective which is different from product-based and manufacturing-based approaches suggested by Moss (2007).
Moss (2007) argued that the pharmaceutical industry does not discuss quality issues in detail and also integrates it in the promotion strategy, yet it is relevant for stakeholders in the industry to consider aspects of quality when selecting pharmaceutical brands. Awareness of quality is a growing concern in recent years due to the threat of counterfeit medicines globally. Studies also confirm that perceived quality has a significant effect on brand equity (Yoo et al., 2000; Buil et al., 2013).
As a result, the following hypothesis is posited:
H3b: Perceived quality positively and significantly influence overall brand equity
Brand loyalty
Brand loyalty is regarded as a strategic element of a brand`s equity and measures the attachment of customers to a particular brand (Aaker, 1991). However, brand loyalty is often recognized as the outcome of brand equity and it is really affected by the other elements of brand equity (Campbell, 2012; Aaker, 1991). Aaker (1991) pointed out that brand loyalty is an antecedent of brand equity and is also influenced by brand equity. The author further stated that brand loyalty is substantially influenced by other constructs of brand equity and for that matter, it is one of the many sources that brand equity creates value for a company.
Many authors have also concluded that brand loyalty is the behavioural effect of brand equity rather than a brand equity dimension (Lassar et al., 1995; Kim et al., 2003; Cobb-Walgren et al., 1995; Erdem & Swait, 1998). Aaker (1991) is of the view that brand loyalty qualitatively differs from the other antecedents of brand equity in the sense that it occurs prior to purchases and use experience. On the other hand, brand awareness, associations and perceived quality are features of several brands which have not been used before by potential buyers.
Oliver (1999: 34) defined loyalty as “a deeply held commitment to rebuy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same-brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour”. In the author`s view, customers develop loyalty to a brand through a logical process of cognitive-affective-conative and action stages.
Ferrel and Hartline (2008: 198) are also of the view that brand loyalty is a “positive attitude toward a brand that causes customers to have a consistent preference for the brand over all other competing brands in product category”. The authors distinguished three stages of brand loyalty: brand recognition, brand preference and brand insistence. Brand recognition relates to the minimum degree of brand loyalty and exists when target customers demonstrate awareness of the brand, and include the brand among alternatives when making buying decisions. In contrast, brand preference is a stronger degree of brand loyalty, and occurs when a customer considers a brand as a first choice in relation to analogous brands. Brand insistence is, however, the highest level of brand loyalty, and it occurs when the customer chooses a particular brand even if alternatives are available (Trott & Sople, 2016). However, Keller (2001) examined brand loyalty under brand resonance.
Chaudhuri and Holbrook (2001) categorized brand loyalty into behavioural and attitudinal loyalty. Behavioural loyalty indicates customers` re-patronage of a brand, whilst attitudinal loyalty describes a customer`s commitment to a brand. Empirically, behavioural and attitudinal brand loyalty influence brand equity (Chaudhuri & Holbrook, 2001). Customer satisfaction is also a key indicator of loyalty for a particular product category where purchase and consumption represent repeated behaviour (Aaker, 1996). A loyal customer base has been demonstrated to have significant influence on market share, price premium, a barrier to competitor entry, and the overall profitability of the brand (Chaudhuri & Holbrook, 2001; Aaker, 1996).
Aaker (1991) highlighted that brand loyalty relatively reduces the marketing cost involved in retaining customers to winning new ones, improves trade leverage and insulates against competitor attacks. However, Moss (2007) pointed out that trade leverage is much less important in the prescription drug market than in the OTC market, as distribution channels of the ethical drugs offer a delivery service rather than playing a gate-keeper role. Empirical studies suggest that brand equity is substantially influenced by brand loyalty (Atilgan et al., 2005; Yoo et al., 2000).
In this regard, the following hypothesis is proposed:
H4b: Brand loyalty positively and significantly influence overall brand equity