Term Paper: Brand Equity Measurement Consumer Perceptions

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[. . .] Managers and executives in the hotel industry should strive to influence their customers' perceptions by exploring the relationship between the four fundamental concepts. According to Kayaman and Huseyin, 2007, a combination of the four concepts is adequate to measure the customer-based brand equity for use by strategists in the hotel industry.

Customer-satisfaction measurement system used in the hotel industry is valuable in determining brand equity. Keshav and Chekitan, 2000, theorize that a large number of customers shall have a strong perception of quality towards a brand in the industry when it has high equity. High customer satisfaction, admirable guest retention and price premiums are symbols of high brand equity. High brand equity also creates high profits because of good customer loyalty. Computation of customers' ranking of the brand involves the use of different measures. Research data on brand knowledge and use studies are useful in studying the different measures. Studies that record guest satisfaction are sources of information for measurements. Ratings of the various perspectives of customers' satisfaction.

Brand performance and awareness

The first step involves quantification of five indicators of high brand equity as depicted by customer behavior. Brand performance and awareness are the foremost indicators of high brand performance in the market. They show the customers' ranking of the brand against other similar competitors in the market. A combination of the indices and ranks results in the brand equity index. Using the Brand Tracker application quantitative customer rankings converts to other performance-related indices (Keshav & Chekitan, 2000). The application reveals customers' opinion about a brand, over time. It describes its market strength in comparison to other similar brands depending on consumer preference.

Customers' satisfaction and customer preference

BrandTracker software gauges customers' satisfaction level and the return intent. The brand's price value and customer preference are an important part of the measurement system. Results show customer-preference over time for the particular brand in the hotel industry. The index also aids remedial marketing and identification of operational areas that require further investigation. It also reveals any case of decline in brand awareness among customers.

Brand tracker model classifies brands in the hotel industry according to performance. Brand champions, as depicted in the model, have high performance and extensive awareness among customers. Customers in the industry have can recall the brand well because of their good performance. Brand champions attract high profits. Brand champions trade at a premium in relation other brands. Rising brands have high performance levels, but customer awareness still rates low. Rising brands may not have been in the industry for a long time and do not enjoy widespread customer experience. This category of brands may only be available in a confined region in the hotel industry, as well. Troubled brands have low performance levels but enjoy a higher awareness among customers in the industry. Troubled brands no longer meet customers' expectations in the industry. Their perceived quality is low. Customer satisfaction ratings of these brands are low. Weak brands experience low performance and awareness level among customers in the hotel industry (Keshav & Chekitan, 2000). They may be new or established in the industry but their differentiation is poor.

Brand equity and customer preference

The BrandTracker application for measuring the brand equity in the hospitality industry shows a close relationship between high brand equity and customer preference. It is an expression of the percentage of customers' satisfaction in relation to other brand performance awareness. It also aids in tracking the brand value over time. The application depicts a notable correlation between brand equity and financial performance. Consumers' actual purchase behavior studied over a considerable span of time can act as a measure of brand equity. Hotels that enjoy strong brand equity attract high occupancies. They have higher market rates, as well. Strong brand equity in the hotel industry renders high customer satisfaction, which initiates a desirable price-value relationship.

General limitations of brand equity measurement

There are notably admissible limitations in the study. The measurement scale outlined by Isabel, Leslie and Martinez, 2008, may differ across countries and cultures. Conceptualization of brand equity may influence the customers' choice differently across cultures and regions. This renders the measurement methods prone to variations. Consumers' cognitive psychology may also affect the applicability of the systems used to measure brand loyalty. Measurement variance, therefore, may occur as influenced by cognitive psychology. Notable limitations in the measurement mechanisms relate to the failure to consider the variables that may create a downgrade in brand equity. Brand equity in the hotel industry is a multidimensional concept that may be complex to measure. This renders several techniques and systems applicable in enhancing brand equity. Most measurement systems used to gauge brand equity in the hotel industry apply hypothesized relationships between diverse variables. However, utilizing different conceptual variables that influence consumer behavior may not provide precise data.


Increased competition in the global markets demands strategic actions by marketers to realize success. The hotel industry experiences existing and emerging challenges from high competition in the global markets. Marketers in the hotel industry must adopt efficient and relevant measures to set their products competitive. Creating a strong brand equity in the hotel industry is imperative to success. Businesses in the industry must consider the concept of brand equity and its measurement. The hotel industry is a model example of service industries where strong brand equity translates to high customer loyalty and ultimately business success. Brand equity is an important area of research because of its fundamental role in developing marketing strategies. Brand equity is a capital source for most industries. In addition to other marketing strategies in the hotel industry developing a strong brand equity is essential.

Further research

Further research in the area is important to determine and formulate a standard model that has a distinct evaluation criterion. Further research on brand identity measurement should focus on the viability and applicability of the systems across nations or cultures. Further research is necessary to investigate the influence of customers' cognitive psychology on the effectiveness of systems applied in measuring brand equity.


Bill, X. & Andrew, C. (2010). A conceptual framework of hotel experience and customer-based brand equity. International Journal of Contemporary Hospitality Management, 22(2), 174-193. doi:http://dx.doi.org/10.1108/09596111011018179

Isabel, B., Leslie, D. & Martinez, E. (2008). A cross-national validation of the consumer-based brand equity scale. The Journal of Product and Brand Management, 17 (6), 384-392. doi:http://dx.doi.org/10.1108/10610420810904121

Kayaman, R. & Huseyin, A. (2007). Customer-based brand equity: Evidence from the hotel industry. Managing Service Quality, 17 (1), 92. doi:http://dx.doi.org/10.1108/09604520710720692

Keshav, P., & Chekitan, D. (2000). Managing hotel brand equity: A customer-centric framework for assessing performance. Cornell Hotel and Restaurant Administration Quarterly, 41 (3), 22-31. Retrieved from http://search.proquest.com/docview/209704579?accountid=45049

Pushpender, N. & Anupam, B. (2012). Measurement Of Brand Equity Of Services - Scale Construction And Validation. Journal of Services Research, 11 (2), 134-154. Retrieved from http://search.proquest.com/docview/964026712?accountid=8289

Singh, G. & Jagrook, D. (2010). Evaluating aaker's sources of brand equity and the mediating role of brand image. Journal of Targeting, Measurement… [END OF PREVIEW]

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