Sources and consequences of brand equity in the automotive industry

One of the primary means to achieving a differentiated position in the marketplace is through the strategic and tactical actions which create a strong brand in the minds of consumers. While the differential value of a brand has been grounded in consumer perceptions and related to financial outcomes, what remains to be clarified is the progression of firm level structures, processes, and actions which contribute to the creation of these perceptions, as well as the effect of changes in the measurable dimensions on alternative value propositions. In order to contribute to the understanding of brand equity, this thesis is structured as three essays as a means to address both broad theoretical concepts related to the domain of branding within the organization, along with the consideration of some particular antecedents and consequences of brand equity dynamics.; The first essay addresses the challenges faced by managers in a global organization and the processes used to link the organization's brands with the customer. The nature of global environmental drivers, value creating internal corporate relationships and their effect on brand management and global brand portfolio hierarchies are considered. While previous studies have examined various interactions which are contained within this framework, none has looked at the phenomenon holistically. Cultural Materialism, a research strategy used by anthropologists to understand structural changes that occur within societies in response to environmental forces, is employed as an orienting strategy to conduct a qualitative study within the context of the world's largest automotive manufacturer. The second and third essays explore the relationships between specific driver and outcome variables associated with brand equity dynamics. The second essay examines the longitudinal relationship between brand equity dimensions and value retention. In order to consider the relationship between the knowledge a consumer has about a product or service, and the assignment of a probability of the actual quality of the product or service based on this knowledge, a framework based on information asymmetry is employed. A random effects model with auto-regressive error terms is utilized to test the research hypotheses developed. The findings indicate a strong moderation effect by the region of origin, with Asian firms in particular having significant and positive impact of brand equity on the value retention rate of automobiles in the U.S. market.; The third essay provides means to understand the effect of firm level strategic actions on consumer-based dimensions of brand equity, conceptualized as awareness, intended loyalty, perceived quality, perceived economy, and image. A seemingly unrelated regression model is used to test the conceptual model. The results indicate a positive effect of advertising, as measured by annual expenditures, on all the dimensions of brand equity, except luxury image. Innovativeness, as defined by new product introductions, positively affects all the dimensions except perceived value.{09}The contextual factors of region of origin and global brand reach have mixed effects on the consumer-based dimensions of brand equity.