Brand Equity Model

Nowadays, brand has become the focus of the business society. At thesame time, brand theories have developed dramatically .There are a lot ofdiscussions about brand equity, the new concept which has brought byad-agency in 20th century. Brand equity plays important role in enhancingcompany's competitive advantages, while brand equity model is the core ofbrand equity.Three perspectives to study brand equity are finance, brand developmentand brand relation. In those three perspectives, brand relation focuses on thestudy of the relations between brands and consumers. Creating long and closerelations with consumers is the best way to enhance brand equity. The brandequity model based on the relations with consumers is a very useful tool toimprove brand equity. The new brand equity model which focuses on the relations withconsumers is based on the theories of branding, IMC, consumer behavior,current brand equity model and so on. The core factors of the model areconsumer awareness, consumer benefit and consumer feeling. In those factors,consumer feeling is the last phase of brand relations. It is the most valuedfactor for brand. Each core factor has several sub-factors. Consumerawareness includes brand imagery, company imagery and brand influence.Consumer benefit includes physical benefit and mental benefit. Consumerfeeling includes brand association and brand loyalty. Those factors make upof the model framework. There are close logistic connection among them.It is necessary to adjust the brand equity model for different brands.Appropriate factors should be selected when using the model to analyze abrand's equity. For example, for luxury brands, the consumer feeling is themost important factor to consider about. But for some other brands it is not anecessary one.At the last part of paper, the newly developed brand equity model is citedto analyse the famous brand Coca Cola, to discuss how to develop brandequity.