BRAND VALUE

Brand Value

Abstract

The paper discusses the various stakeholder groups and brand value. Brand value is the perceived value of the brand in the minds of the customers. This is calculated as the ratio of the benefits derived by the product or the service and the price the customer paid for. For price sensitive customers this is a function of product performance whereas for premium products it is equal to the equity of the brand. Unlike the previously held notion that brand value is created mostly by customers, the paper presents the various stakeholders that have a role in creating and building brand value.

Introduction5

Brand value5

What you get6

Stages of brand value6

Building brand value from the inside out - Employees8

Employee brand-building behavior10

Creation of brand value by customers11

Discovering the brand11

Defining the brand12

Delivering the brand experience14

Supplier competence and brand value16

Supplier competence17

Purchasing value17

Switching cost17

Buyer satisfaction17

Brand loyalty18

Brand trust18

Stakeholder model of brand value creation18

Stakeholder identification18

Stakeholder prioritization19

Sources of brand value20

The stakeholder model22

Conclusion24

References25

Brand Value

Introduction

A brand is a combination of tangible and intangible elements that are associated with the brand. The journey from a mere product to a brand is not an easy one given the cut throat competition. A brand is something that the target audience can relate to. They have an emotional association with the brand. A brand has a personality and stands for itself (Kuusik, 2009). To be more precise, a brand is composed of several elements. Ultimately, the brand exists in isolation and the value of the brand is greater than the total value of the elements put together that form the brand.

Brand value

Brand value may be defined as the value that a customer perceives is associated with a brand. This value is the difference between what a person gets against what he pays for. For brands that charge a premium price, what a person gets is essentially an equal to the equity of the brand. For brands that are prices lower, the value of the brand may be defined in terms of the performance of the product (Daum, 2003). Hence, the equation that is mostly used for measuring brand value as a ratio of what you get and what you pay is not a very good measure of brand value when taken simply in the form of a numerator and a denominator. For premium brands this translates to equity and for cheaper brands this means product performance.

What you get

The purpose of a product or a service is to meet the needs and wants of the customers. How well a product manages to meet the needs of the customer is what is called what you get against the price you paid for.

Brand value is a product of several factors including brand equity, product features and the price of the product. The repurchase of a certain product or service and the need to recommend the product to someone else stems from the brand value derived by the person from the product or service (Allee, 2003).

A stakeholder of a company can be anyone and everyone who is affected by the ...