Paper Example on Audi Brand

Introduction

In this case, the Audi brand will be confined to Aaker model to help explain how it uses the Customer-Based Brand Equity to help them enhance the Audi brand awareness to their customers.

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Brand Equity

It is the collection of associations and behaviors regarding the Audi brand customers, channel members and parent corporations that permit the brand to get higher volume or higher margins than that it could if it operated without a brand name which gives the brand a stable, viable and a differentiated advantage over other competitors. Aaker (2009) defines brand equity as the assets that relate to a brand or its uniqueness that add to the value and volume consumers and firms get from a product or service. Therefore, brand equity is the additional value that results due to the reason that the product has a brand name as opposed to that which would have occurred if the product was without a brand name (Pappu, Quester, and Cooksey, 2005, p. 44). As observed from above, brand equity can be viewed from either the perspective of the firm or that of the consumers. (Atilgan, et al., 2005) despite the definition one uses, the quality and value of brand equity to those who are doing marketing like Audi brand are determined by the way they use it. For the brand equity to be well managed, which is an essential factor to the Audi cars company, it should be strategic, long-term oriented and practicable (Keller, Parameswaran, and Jacob, 2011). Notably, some other factors that can influence brand equity. It is true that most studies agree with the essential nature of consumers while trying to define brand equity because the success of consumers is crucial to the success of the firm too.

Consumer-Based Brand Equity (CBBE)

It is the information that people store in their mind about a brand, for example, the Audi brand in this case. It also shows the importance of getting into the consumers' perception about a given product, what they prefer as well as their buying habits. Keller (2011, p.48) helped to develop the theoretical basis for brand equity asserts that the Consumer-Based Brand Equity emanates from what the consumer knows about the Audi brand and its marketing.

Aaker's Model of Brand Equity

Fundamentally, this model shows the sources or dimensions of consumer-based brand equity which explains brand loyalty, brand awareness, perceived quality of the Audi car products, brand associations as well as the benefits derived from these consumers and the owners of the brand. The value of this model, championed by Aaker, who is deemed the pioneer in the area of brand equity, is applauded by most researchers for bringing together aspects relating to both perception and behavior by the customers of the Audi products. In fact, it has an advantage because the five dimensions mentioned can be applied to any product or market and not only Audi cars. Its major undoing is that there is no connection between the elements shown and no weighting is apportioned to each of the features, and therefore its pragmatism in measuring consumer-based brand equity is questionable.

Fig1. Aaker's brand equity model

Brand Loyalty

In considering Audi cars' products, the brand loyalty is the continued willingness and preference to purchase the products is known as brand loyalty. Aaker (2009) stresses that consumers' loyalty to the brand is based on the brand's equity and that such loyalty that a brand puts among its consumers is the robust measure of its value. In his view, the brand loyalty is different quantitatively from the other dimensions of brand equity because it is inseparably linked with the brand experience of the consumers while the others are characteristics. Of many other brands that a person might never have used. As explained, brand loyalty can only exist after the consumer has bought the product, likes it, respect or trust the Audi products and is satisfied with it in general. In the case of the Audi cars, loyalty to the brand is a reflection of an efficiency motive. This is where the customer for the Audi products perceives them to be so good, and hence they automatically select it. It is true that the brand loyalty of existing customers is quite essential in building a long-term and sustenance of given brand equity. Therefore Audi Company should look into measures that are going to enable them to maintain their brand by containing their customers. The model believes that the stronger the relationship between the brand and the customer the more the brand will benefit. Conceivably, the consumers of the Audi cars will regularly buy the omission of others and will be more liable to try the brand. The brand will also have reduced marketing, distribution costs shall have decreased, and even advertising prices as the cost of keeping existing consumers happy and reducing the risk of them changing to other brands is meaningfully less than that of trying to reach new consumers and convincing them to switch to another brand alternatives and other extensions. Various researchers have found that there exists a positive relationship between high loyalty and satisfaction of consumers (Aaker, 2009, p. 178). Additionally, as the loyalty of this brand Audi will be increasing, consumers will realize that this brand offers them some value that they would not be getting from other brands competing Audi cars in the market and make them pay more for the vehicles. In the cases where the brand has a large number of customers for its products, it will help to assure the loyal consumers as they will have comfort because other people have also selected that brand. Aaker states that loyalty is significant for a brands existence and companies should, therefore, manage customers with care to ensure that their brand does not weaken in the market. It is therefore prudent for the Audi Company to ensure that it measures the loyalty of its existing consumers not only by how much they are satisfied by the car brands but also through examining whether they like the brand and are faithful to the Audi car brands. Like for example, a consumer who grew up in a family with Audi brand car can develop a liking for it and grow attached to the brand. Every single company desires to have a consumer connected to their brand. Notably, consumers who are devoted to a given brand will always take pride in being associated with such a brand (Boo, Busser and Baloglu, 2009, p. 231). It is still important to them be it functionally or merely to show and express their identity. It is worth noting that the value of consumers that are attached to a specific car brand, for example, Audi car brands is not defined by the business that they generate but by the impact they have on other people they interact with and on the market.

Brand Awareness

This is the ability of a potential buyer to distinguish or recall that a brand is a member of a given product category and involves three distinct levels. Those that create reliable, top of mind awareness through constant exposure create not only brand awareness but also salience that can inhibit the recall of other brands (Aaker, 2009, p.76; Wang and Yang, 2010). It is described as the purest form of the brand equity because it is widely known as providing a maintainable competitive advantage in sectors with product equality where there are many comparable products about how they are used and their features. Undeniably, brand awareness only is not enough to ensure its success and therefore Audi car product should incorporate other brand equity means for its full success. This is because customers do not make purchasing decisions only by brand awareness, but instead, they consider other factors or variables. In any case, it paves the way for brand image and brand loyalty. Here, the Audi Company should ensure that for them to improve its brand equity, then it should not only rely on the fact that there is brand awareness. It will have the effect of increasing volume of sale of the Audi cars. Ross, James, and Vargas, 2006, p. 274) suggests that because consumers are flooded with a lot of advertising message, there are many ways to visibility which includes the extension of the brand to a broad product range. It can even involve using other platforms like social media and event sponsorship by the Audi Company. These strategies help to provide brand contact as well as increasing brand awareness levels more efficiently than if brands were advertised only on mass media (Huang and Sarigollu, 2014, p. 133; Hutter et al. 2013, p. 342-3).

Figure 2 Brand Awareness Model

Perceived Quality

In most customer-centered brand equity structures, a common element is an observed quality (Jones, 2005, p. 15-18). It is an indication of the attainment of differential brand positioning and for numerous consumers, it the basis on which their purchasing decision is made. It always influences purchase decisions and brand loyalty, mostly in circumstances where the consumer is not encouraged or is unable to carry out a comprehensive pre-purchase analysis. According to Wang and Yang (2010, p. 181), perceived quality helps to reduce risks such as time risks, functional, and even financial among others. These risks could be understood by consumers to be related to the purchasing of strange or familiar brand (Burmann, Jost-Benz, and Riley, 2009, p. 349). Perceived loyalty will also help the Audi cars Company to support customer loyalty regarding financial performance as well as help them to justify the prices that they should charge alongside giving a reason for the purchase by the consumers. In the word of Atilgan et al. (2005, p. 260), perceived quality helps to create a basis for diversity and extension and is said to be an essential part of the brand equity. This shows that it plays a vital role in the perception of consumers of luxury car brands like Audi.

To recognize what perceived quality is and know how to accomplish it; the first extents need to be determined as they differ with circumstances and across different cultures of the people (Valkenburg, and Buijzen, 2005; Esch et al. 2006, p. 99). As the drivers of quality changes with time, it is advised that monitoring of customer trends, what they prefer and the reasons why they are dissatisfied and unmet wants should be put in place (Lai et al. 2010, p. 457). In this manner, managers of the Audi brand will have a clear understanding of their consumers of the car products and the factors that could not only result in increased customer-based brand equity but also those that can negatively affect their perception of the brands.

Brand Associations

As Valkenburg and Buijzen (2005) mentions, brand association is anything that has a connection to the brand in the mind of the consumer. It helps to create brand equity because they create positive feelings and attitudes in consumers and pull a reason for them to make a purchase. In this case, by Audi cars brand Company increasing its brand awareness, it will be able to create a positive purchasing notion in the minds of their consumers hence increasing sales for their products. It is an essential aspect of brand equity in that brand associations enable consumers to process and retrieve information related to the brand and creation of attitudes. On the other hand, brand associations provide a firm understanding of great consumer-related aspects (Christodoulides, Michaelidou & Li, 2009). It helps in the measurement of the effectiveness of different forms of marketing activities such as brand perception, persuasion, evaluation of the product and categorization. The various types of the brand association include; organizational intangibles, product category, and breadth of product line product attributes and customer benefits (Mohd, Nasse...