The study of brand equity has gained popularity since the 1980s as marketers and
researchers got convinced that brands are the most valuable assets of a firm. Aaker (1991),
Keller (1993), Feldwick (1996) and many others started defining brand equity from various
perspectives. These gave rise to two schools of thoughts, namely, (1) financial performance
increases for brands possessing high brand equity; and (2) positive customers’ perceptions
creating brand equity. However, it is Keller’s (1993) Customer-Based Brand Equity model,
which has provided a framework of how customers’ responses help in building brand
equity. Keller (1993) has defined Customer-Based Brand Equity as ‘the differential effect
of the brand knowledge on the customer response to the marketing of the brand’.
Customer-based brand equity occurs when the customer has a high level of awareness and
familiarity with the brand and holds some strong, favorable and unique brand associations
in memory (Keller, 2007, p. 95).
Building a powerful brand is desired by all marketers. Compared to the big
multinationals originating from USA, Japan, Korea, etc., the branding expertise among
Indian firms is considered to be low. A typical Indian firm has to compete with powerful
global brands as well as its own Indian competitors. Memon (2011, p. 4) puts forward that
the Indian customer is very choosy in selecting the brands and the market is obsessed with
international brands. Brands that customers find under the same name in multiple
countries with generally similar and centrally coordinated marketing strategies are referred
to as global brands (Kapferer, 2003, p. 338) and after reviewing the Indian customer
durables market, it becomes obvious that many of these global brands are leading in terms
of market shares.
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