Brand Equity

 

B​‌‍‍‍‌‍‍‌‍‌‌‍‍‍‌‍‌‌‌‍​uilding brand equity is very important for companies. Various metrics are used to monitor a brand’s equity and make sure it is growing over time. In particular, brands can be measured by a Net Promoter Score (NPS) (https://www.netpromoter.com/know/), which evaluates customers’ experiences and their willingness to recommend a company’s products or services to others. The referenced article, Understanding the Causes of Negative Customer Experience by Charles Adriaenssens (https://www.splunk.com/en_us/blog/it/understanding-the-causes-of-negative-customer-experience.html), provides some excellent real-world NPS and executive dashboard examples.​‌‍‍‍‌‍‍‌‍‌‌‍‍‍‌‍‌‌‌‍​Another powerful brand metric is customer lifetime value (CLV). Review the article How to Calculate Customer Lifetime Value (https://blog.hubspot.com/service/how-to-calculate-customer-lifetime-value) to learn more about the metric and how to calculate it. Based on the textbook readings and related resources, discuss what brand equity and identity mean to you, how one of your favorite companies builds brand strategies, and what metrics organizations use to measure the strength of a brand.

Sample Solution

Brand Equity

Brand equity describes the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of. Organizations establish brand equity by creating positive experiences that entice consumers to continue purchasing from them over competitors who make similar products. McDonald`s reinvigorated strategy is underpinned by a relentless focus on running great restaurants and empowering restaurant crew. The company has reduced its drive through service times by about 30 seconds over the past two years in its largest markets, on average. McDonald’s uses Listening to track sentiment, a key KPI used by many brands to gauge the effectiveness of campaigns. It is an invaluable tool that helps the brand monitor and, well, listen to its audience, to hear what they are saying about the brand – the good, the bad, and everything in between.

winning coalition, as shown above in Figure 3, is very important in determining whether a non-democratic regime can survive; the larger it becomes as a proportion of the selectorate, the greater the likelihood of the next most popular regime being able to take power. The size itself is mainly influenced by the type of authoritarian regime, and is particularly small in the case of monarchies, which, in the case of hereditary monarchies, only require the approval of a branch of the ruling family in order to survive. As explained by Bueno de Mesquita et al., “in autocratic systems, the winning coalition is often a small group of powerful individuals. [Thus] when a challenger emerges to the sitting leader and proposes an alternative allocation of resources, [the leader thwarts the challenge since he or she] retains a winning coalition”[21]; the size of which is in an inverse relationship with the likelihood of successful challenge, since fewer people must be ‘bought-off’. In fact, “the Selectorate Theory (Bueno de Mesquita et al., 2005) theorises that it is the size difference between the selectorate and the winning coalition […] that is most important”[22] in influencing the survival of non-democratic regimes.

This theory has, however, received much criticism. Largely, the extent to which it is true, that having a small winning coalition is the most significant factor affecting the survival of non-democratic regimes, is dependent on how stable the regime appears to be, since “high political instability should reduce the effect of corruption, because actors have less incentive to bribe a government when it is unlikely to survive”[23], meaning the loyalty of the ruler’s winning coalition may become less effective. Thus, in reality, if a challenge to power did arise, the ruler may not be able to rely on his winning coalition if they were, in fact, more confident in the challenger overthrowing the incumbent, as in this circumstance it is highly likely that they would switch allegiances. Furthermore, Clark and Stone argue that Bueno de Mesquita et al.’s analysis “suffers from omitted variable an

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