Despite all the above definitions of the brand, Kapferer introduced a new element into the definition of the brand. According to him, Brands are intangible assets, assets that produce added benefits for the business. He pointed out two major paradigms in the various definitions of the brand. The first one that is customer based which focuses exclusively on the customer’s relationship with the brand. This ranges from the point of total indifference to attachment, loyalty, and willingness to buy and rebuy based on beliefs of superiority and evoked emotions. The other paradigm is the one, which aims at producing financial measures in dollars, euros or yen.
The financial approach measures the value of the brand by isolating the net additional cash flows created by the brand. These additional cash flows are the result of customers’ willingness to buy one brand more than its competitors’, even when another brand is cheaper. The customers rationale for…
Source: Thisday Newspaper
