Leveraging Brand Associations to Create Cognitive Consistency - Essay Sample

Introduction

The chapter conceptualizes the leveraging process where a brand is linked to some other entity to help create new sets of associations. Brand associations affect evaluations of original products where the consumers do not have the motivation or find it challenging to judge concerns that are related to products (Keller, 2013). The effect of existing brand knowledge is that it ensures cognitive consistency where the truth about new associations is also actual for the brand. This way, companies must make sure that they leverage their secondary associations for consumers to be consistent.

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Retail stores affect brand equity through the process of "image transfer". These retailers have their own brand images in the minds of the consumers because of associations such as product assortment, pricing, credit policy and quality service (Keller, 2013). Businesses can expand their customer base by tapping into new distribution channels.

The reasons why firms may decide to license corporate trademarks is for the generation of extra revenue as well as profits, protection of the trademark, an increase of brand exposure, and enhancing the image. There exists the risk that a product may not live up to the image established by the brand. The extent of leveraging an entity as a source of equity is dependent on the knowledge of the consumers regarding the entity, and how easily the relevant associations to the entity ensure successful transfer of the brand.

Retailers and Brand Equity

Retailers that have the most potent image and brand equity in mind are those found at the traditional brick and mortar stores. These are mostly from the giant stores like those of Best Buy, Walmart and Target. These retailers enjoy the benefit of brand image and equity when they set their street-side business to offer the products and services of the company to the customers, face to face through their stores. Majority of customers have a preference for shopping in physical stores. Retailers of big brands enjoy an influx of customers because of their ability to offer much experience about shopping and where customers can test the products.

These retailers contribute to the brand equity of the more prominent company because they are good at offering the legitimacy of the company. Most of the big brands are only found online, and customers would prefer physical presence that tends to foster the perception of trust. The retailers play the role of maintaining the brand equity of the larger company. Retailer's brand image creates given credence through their physical locations hence helping customers understand the advantage of associated brands.

Apple

Apple is so far the leading brand in the industry of gadgets and technology. The thought by consumers is that Apple brand is a reflection of innovation, convenience and fashionable design, among other eye-catching features. The retailer stores and customer services would do quite well with leveraging even with their limitation of distribution being to only premium sellers. They need more outlets throughout the world to attract consumers to retail stores. The brand can also train its retail staff to offer high-level customer-oriented services and draw passionate fans to the brand. Similarly, their stores incorporate a unique interior design that is open, clean and spacious to make customers feel more special and comfortable.

Reference

Keller, K. L. (2013). Chapter 7: Leveraging secondary brand associations to build brand equity. Strategic brand management. Pearson Education, Inc.