Forecasting Future Trends in Managing Investment in Brand Using a Dynamic Model for Brand Equity

Document Type : Research Paper

Authors

1 Department of Business Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of business management, Central Tehran Branch, Islamic Azad university, Tehran, Iran.

3 Department of business management, Central Tehran Branch, Islamic Azad university, Tehran, Iran

Abstract

Because of the increased competition at the market, the researchers, in order to respond to the rising marketing expenses, have started to study the brand investment rate which results in the achievement of the competitive advantage, especially in the service industries. Furthermore, the new data sources in the constantly changing world makes the scholars to focus on the dynamic functions of the different kinds of the investment in brand management to improve the decision-making process. The goal of this study to design a dynamic model for the brand management investment through the influential factors on the brand equity (Brand Awareness, Brand Association, Perceived Quality, Brand Loyalty) in Alborz Insurance Company to predict the behavior of these factors in a spectrum of a 6-year time period using Vensim Software. In this article, after drawing the flow-accumulation map, model's sensitivity and policy will be analyzed and the result will be used to prepare the improvement scenario. In this model, with changing the different kinds of investment (media advertisement, public relations, direct marketing and price promotion) three scenarios of basic, optimistic and pessimistic will be compared which the optimistic scenario shows that with increasing the percentage of the total investment, the band equity will have 7 percent increase.

Keywords

References

سجادی، س.ن.، رجبی، ح.، عابدلاتی، م. و رسول طریقی، ر. (1392). بررسی عوامل اثرگذار بر ارزش ویژة برند باشگاه پرسپولیس تهران. رویکردهای نوین در مدیریت ورزشی، 1(3): 52-43.
 
2-Aaker, D.A., & Joachimsthaler, E. (2000). Brand Leadership. New York: The free press.
3-Aaker, D.A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: The Free Press.
4-Asamoah,E.S.,2014,”Customer Based Brand Equity (CBBE) and the Competitive Performance of SMEs in Ghana”, Journal of Small Business and Enterprise Development,Vol.21,No.1, PP.117-131
5-Atilgan, E., Aksoy, S. and Akinci, S. (2005). Determinates of the Brand Equity: A Verification Approach in the Beverage Industry in Turkey. Marketing Intelligence & Planning, 23(3): 237-248.
6-Beristain, J.J. and Zorrilla, P., (2011) ,”The relationship between store image and brand equity:A conceptual framework and evidence from hypermarkets”, Journal of  Retailing and Consumer Services,18.
7-Chang, H.H. & Liu, Y.M. (2009). The Impact of Brand Equity on Brand Preference and
   Purchase Intentions in the Service Industries. The Service Industries Journal, 29(12): 1687-1706.
8-Crescitelli, E. and Figueiredo, J.B. (2009). Brand equity evolution: a system dynamics model. BAR Curitiba, 6(2): 101- 117.
9-Ehrenberg, A.S.C., Uncles, M.D. and Goodhardt, G. G. (2004). Understanding Brand Performance Measures: Using Dirichlet Benchmarks. Journal of Business Research, 57(12): 1307-25.
10-Garg, Ruchi. Rahman, Zillar & Qureshi, M.N.(2014)” Measuring customer experience in banks: Scale Development. Vol.9 No1. pp87-117.
11-Ghafari Ashtiani, P., and Askandari Mehrabadi, A.R., 2011. Assessing the relationship between loyalty program attributes, store satisfaction and store Vafadary. Journal of Marketing Management, 10:27-45.
12-Hidayatno, A., Putri, D.N. and Rahman, I. (2013). Understanding the Dynamics of 6P Branding Strategy with Brand Equity for a Mature Customer-Goods Brand using a System Dynamics Model. Proceeding of the 13th International Conference on QIR (Quality in Research) Yogyakarta, Indonesia, 25-28 June 2013.
13-Keller S.K.L. (2008). Strategic Brand Management: Building, Measuring, and Managing Brand     Equity. Third Edition: Prentice Hall.
14-Kim, J.-H., and Hyun, Y.J. (2011). A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management, 40(3): 424-438.
15-Oh,H. and Hsu,C.H.C.,(2014),”Assessing equivalence of hotel brand equity measures in cross-cultural contexts”, International Journal of Hospitality Management,36,PP.156-166.
16-Seo,S. and Jang,S.C.(S.),(2013),”The roles of brand equity and branding strategy: A study of  restaurant food crises”, International Journal of Hospitality Management,34,PP.192-201.
17-Sterman.,John D.,(2000), Business Dynamics: Systems Thinking and Modeling for a Complex World, McGraw-Hill.
18-Tingchi Liu, M., Wong, I.A., Shi, G., Chu, R. and Brock, J.L., (2014). The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference. Journal of Services Marketing, 28(3), pp.181-194.
19-Yasin, N.M. and Zahari, A.R. (2011). Does family and viral marketing have effect on brand equity? Contemporary Marketing Review, 1(8).
20-Zeithmal, V. A., Bitner, M.J., Gremler, D.D. and Pandit, A. (2011). Service Marketing: Integrating Customer Focus Arcross the Firm, 5th ed., McGraw-Hill, New York, NY.
 
Iranian Journal of Trade Studies
Volume 23, Issue 91 - Serial Number 91
October 2019
Pages 125-152

Files

History

  • Receive Date: 07 November 2017
  • Revise Date: 07 January 2018
  • Accept Date: 04 February 2018

Share

How to cite

Statistics