Abstract
The chapter describes brand equity and its types. Moreover, it brings unique pieces of work representing the phenomenon of internal brand management (IBM) along with the impact of employee-based brand equity (EBBE) on customer-based brand equity (CBBE). There are mainly three types of brand equity: financial brand equity, CBBE, and EBBE. The author has referred to the literature on EBBE and CBBE in chronological order. The prominent models of CBBE and EBBE are briefly discussed. The impact of EBBE on CBBE is highlighted; moreover, the combined effect of both EBBE and CBBE on the market performance of the organization is described through a framework. The application of EBBE across various industries is also discussed in the chapter. The author has cited the most significant work on brand equity in a descriptive way highlighting the importance of brand equity in general and the impact of EBBE on CBBE in particular. The importance, integration, and combined effect of EBBE and CBBE on market performance have been discussed.
TopIntroduction
The firms had constantly been in the war against their competing brands to create and sustain competitive advantages over each other. As the phenomenon of competitive advantage (CA) has emerged as a global, unpredictable and hostile, thus conventional sources of creating competitive advantage are now misaligned in explanation of how firms create competitive advantage and sustain it over the years (D’Aveni & Gunther, 1994)Thus, the process of strategic management of firms shifts itself from conventional foundations of competitive advantage (Sirmon et al., 2010). Organizations are strategically involved in Brand management. It has long been a significant area of concern for the practitioner, however, it compels them to substantiate the role of employees in the creation of brand equity (De Chernatony & Cottam, 2006). This is the contribution of knowledge, expertise, and proficiency of employees for the firm to stay ahead and all the employees need to understand.
It is required for employees to understand and align their roles and responsibilities with the brand’s expectations for the successful delivery of brand promise (Gapp & Merrilees, 2006). Employees are always required to demonstrate positive organizational behavior for effective organizational performance (Griffin et al., 2007). This is executable through the practice of internal brand management that employees are equipped with obligatory skills and knowledge to go a long way together with organizational vision.
Therefore, this chapter focuses on that how big brands can be created with the influence of positive employee behaviors. Such an area of internal branding has been found research wanting. Calling on to suffice the knowledge, multiple pieces of evidence of research are required in the area of Employee-Based Brand Equity (EBBE) in general and its impact on Customer-Based Brand Equity (CBBE) particularly.
1.1 Origin of Brand Equity
The impression of brand equity can be traced back to the concept of creating brands by different organizations. The firms have been building the brands to differentiate their market offerings from the rest of the firms in the industry. One of the most important roles of the brands is to simplify the decision-making process of a customer mitigating most of the risks (Chieng & Goi, 2011). The value that originates from a brand is brand equity. Aaker & Joachimsthaler (2000) narrate it as a soft asset attached to the name, logo, slogan, and other brand elements.
Consequently, brand equity has emerged as a strategic instrument that symbolizes strong brands. It carries pivotal significance in the planning of the brands. It has attracted both scholars and practitioners. How can brand equity be developed, measured, enhanced, and sustained overtimes? This has been proven a challenge for modern-day brand managers (Keller, 2013).
Key Terms in this Chapter
Brand Knowledge: The extent up to, the employees of an organization are aware of organizational brand promise and trained to outperform.
Market Performance of the Firm: The way a particular firm is performing in the industry, in this chapter, means if the customers of the firms have future purchase intentions, if they are willing to pay a premium price and if they have a brand preference of the firm. It means the firm is performing up to the mark.
H-Factor: The H-factor signifies the human factor here when employees think that organization is taking them like humans in every respect. They are taken care of thoroughly by their organization, they enjoy a sense of comfort and protection. Thus, H-factor entices employees to perform up to the mark in the delivery of brand promise.
Customer-Based Brand Equity (CBBE): This is the value of the organization directly attributed to its customers. The customers become loyal to certain brands and they afford the brand resonance.
Internal Brand Management (IBM): This is a corporate strategy and a process, where the employees are trained and motivated to deliver the brand promise, rather, they are expected to live the brand promise.
Financial-Based Brand Equity (FBBE): This type of brand equity is related to additional cash inflows to the company as an outcome of the brand’s worth. Such brand equity is contributing to stock prices and incremental sales revenue.
Role Clarity: The clarity of the employees of any organization about their roles and responsibilities which they are expected to perform. They are more satisfied with their jobs, and they contribute more valuably to the organizations when their role clarity is high. Their behavior is more responsible when they are clear about their particular role in the organization.
Brand Citizen Behavior: It is the behavior which is usually undocumented and beyond the norms hitherto compatible with the organizational behavior.
Brand Equity: This is the value (Positive) a firm generates over a long time by offering consistent quality to its customers. This value is treated as an intangible asset of the firm. The brands with higher brand equity are more recognizable in the market.
Employee-Based Brand Equity (EBBE): This is the value of the organization attributed to its employees. It is the contribution made by the performance of the employees within the firm and usually, this is an outcome of the internal brand management process.