BOOK REVIEW

Managing Brand Equity:

GAREIT J. LONGWELL
TULANE UNIVERSITY

A
aker has written a very readable guide to managing category discussion would provide a better introduction to the
brand equity. He defines brand equity as, “a set of brand loyalty chapter. A discussion of sales promotions also
assets such as name awareness, loyal customers, per- seems out of place in Chapter 1. The categories of brand assets
ceived quality, and associations that are linked to the brand and liabilities are well presented in Figure l-3 (p. 17).Again,
(its name or symbol) and add (or subtract) value to the prod- the importance of regular measurement of brand asset and
uct or service being offered.” liability characteristics is not emphasized. Overall, Aaker does
Relevant case studies open each chapter, giving the reader a thorough job of explaining methods for assigning value to
a context in which the discussion can be applied. Easy-to- brand equity. However, conjoint analysis received a light treat-
understand graphics and interesting reprints of familiar ad- ment as a tool for the assignment of value to brand equity.
vertising supplement the informative text. The primary The importance of brand loyalty in the brand equity equa-
weaknesses of the book are the lack of explicit equity-building tion is illustrated by the case of MicroPro at the beginning of
research findings and a plan of action. Also missing is a com- Chapter 2 (22 pages). Aaker describes brand loyalty with an
parison of brand-association measurement methods for the easily understood pyramid of loyalty levels. Numerous meth-
brand equity manager. ods of measuring brand loyalty are offered for consideration,
In the Preface, Aaker outlines the current interest in brand but little qualitative information is presented. A study on ef-
equity among marketing professionals. Firms have demon- fectiveness in measuring loyalty in relation to actual buying
strated the value of brands by purchasing existing brands in- habits would be a useful reference. Aaker is thorough in dis-
stead of developing costly new brands. Increasing price cussing the value of brand loyalty. The most useful section in
competition has sparked an interest in differentiating products the chapter is summarized with Figure 2-4. Aaker offers the
by brand. Brand extensions are an important avenue for new manager tips on creating brand loyalty. Although the tips are
product development. Research is concentrating on the effects obvious at first reading, the basic principles of customer sat-
of product changes and extensions on brand equity through isfaction are often under-utilized in American business.
new product introduction. Chapter 3 (20 pages) discusses brand awareness as a factor
In light of these issues, Aaker wrote the book for managers in the development of brand equity. Aaker uses a pyramid to
with responsibility for brand equity. Aaker demonstrates the illustrate the levels of brand awareness, properly highlighting
value of proper management. Research findings are presented the importance of top-of-mind product recognition. A useful
and techniques for proper brand equity management are of- experiment description supports the recall of top-of-mind
fered. Finally, Aaker provides a section of thoughtful “ques- products by “priming” subjects with related products. One of
tions to consider” for equity managers at the end of each the most interesting tables in the book is Table 3-4 (p. 71).
chapter. Derived from research by Thomas 5. Wurster, the power of
In Chapter 1 (33 pages), Aaker defines brand equity, the brand awareness over time is demonstrated in the table by
categories of brand assets or liabilities, and equity manage- comparing top-of-mind brand awareness in 1925 versus
ment issues. Procter and Gamble’s Ivory soap is offered as an 1985. Aaker then offers nine considerations in creating brand
effective illustration of the importance of consistency in cre- awareness. The suggestions are practical for use by brand eq-
ating brand equity. The importance of measuring brand equity uity managers in creating brand awareness.
is demonstrated, but not specifically emphasized, through Chapter 4 (25 pages) suggests the importance of perceived
Aaker’s Exhibit, Indicators of an Underemphasis on Brand Build- quality in the brand equity formula through a review of Schlitz
ing (p. 9). beer’s loss of market share from 1974-1988. Of importance
Aaker presents interesting information on differences in is the inability of a product to recover from the perception
brand loyalty by product category in Chapter 1. The product that quality is poor, particularly over a long period of time.
Aaker goes on to justify the importance of maintaining the
Address correspondence to Garett J. Longwell, 2929 Greenbriar #7305, Hous-
perception of quality by presenting values associated with
ton, TX 77098 product quality. Aaker offers dimensions of quality in prod-

Journal of Business Research 29, 247-248 (1994) 0148-2963/94/$7.00

ucts and services which are useful to the managers in assessing terest in the topic. The seven approaches for brand extensions,
the perceived quality of their product or service. Aaker’s ex- based on brand associations, presented by Aaker are a quick
tensive treatment of service sector quality perception was ex- reference for the equity manager considering the potential suc-
cellent, particularly to diversify the books audience. Aaker cess and impact of a brand extension. Aaker presents the ra-
discusses the importance and uses of a guarantee in matching tionale for brand extensions from both the brand manager and
perceived and actual quality. Finally, Aaker demonstrates the consumer points-of-view. The division of the chapter into
need to independently confirm quality, in order to build a three sections, representing good, bad, and worst case sce-
customer’s perception of quality, with Acura’s use of the J.D. narios, is helpful in allowing the brand manager to see the
Power & Associates surveys in its advertising. potential pitfalls of brand extension. Concluding the chapter
Chapter 5 (25 pages) discusses the importance of brand is a rational investigative process for brand extension possi-
associations to brand equity. To develop brand equity, brand bilities.
associations are given ample attention (three chapters) by Chapter 10 (24 pages) details seven techniques for revital-
Aaker. Aaker is specific in detailing the importance of prod- izing a brand. This chapter makes effective use of product
uct-attribute positioning strategy. Ten other brand associa- cases, from Cheez Whiz (product repositioning) to the Ya-
tions are elaborated. The brand associations discussed by maha Disklavier (new technologies), to illustrate effective
Aaker are supported with numerous product examples and methods of revitalizing a brand. Although some sections of
industry studies, where relevant. This chapter is one of the the chapter (i.e., Entering New Markets) are very specific in
most easily read and understood of Aaker’s book, perhaps due providing guidelines for the equity manager, others (i.e., Re-
to the chapter’s singular purpose of definition. positioning The Brand) rely totally on example, with little
Chapter 6 (22 pages) addresses the measurement of brand guidance from Aaker on how to formulate a strategy. A brief
associations. Qualitative marketing research techniques are discussion at the end of the chapter on harvesting and exit
discussed by Aaker in terms of their limitations and strengths. strategy is informative and practical.
He points out weaknesses clearly, but could have offered a Global branding is the closing topic of Chapter 11 (12
more thorough detailing of appropriate uses for the qualitative pages). Among the benefits of global branding offered by
methods. Scaling approaches are offered by Aaker as more Aaker are overlapping brand awareness and economies of
accurate. But, again, Aaker fails to clearly distinguish between scale in advertising, packaging, and promotion. Aaker main-
situations calling for the different scaling techniques, partic- tains that global branding must be specialized by product at-
ularly versus the use of qualitative research of brand associa- tributes. Some characteristics of the product may create
tions. problems for a global marketing strategy. Pricing is an area of
Chapter 7 (27 pages) discusses the importance of selecting particular difficulty in developing a global brand, and Aaker
an appropriate brand association. Aaker uses convincing ex- presents a case study of the Parker Pen as an example. Aaker
amples and testimonials to illustrate the point that brand equity closes Chapter 11 by recapping the issues of the previous 10
is most effectively created when associations are maintained chapters.
over long periods of time. Creating associations is detailed by
Aaker through the management of signals to consumers. Partic-
ularly insightful is Aaker’s discussion on the importance of link-
General Observations
ing promotions to the product, creating a positive, reinforcing
signal to consumers. Maintaining associations is a recurring Aaker’s book is an excellent information source for managers
point in Aaker’s book. Numerous examples of consistency in responsible for brand equity. He is thorough in his documen-
advertising and product positioning point to the validity of tation of management issues through case studies and, where
Aaker’s argument for the need to maintain associations in possible, qualitative or quantitative research. More use of re-
building brand equity. Negative associations are often more search detailing the effectiveness and importance of method-
easily forgiven than the loss of brand loyalty or perceived qual- ologies would have made the book a stronger contribution to
ity. Aaker offers useful illustrations and strategy for the manager the literature.
facing a crisis in brand association. The case studies used were mostly consumer product-
Chapter 8 (24 pages) covers the importance of names, sym- oriented. Aaker could have made the book more applicable to
bols, and slogans. Aaker presents a practical process for de- industrial product management with a wider range of exam-
veloping a name for a new product. He outlines name ples. However, the consumer product emphasis may be im-
development with potential problems and important areas of portant to the surprisingly easy reading of the book. The book
planning (p. 196). Symbols are covered adequately, but Aak- keeps the reader’s interest with familiar cases and products.
er’s discussion on slogans is light. Slogan development should For quick reference, Aaker has included charts and figures to
be given a larger treatment, possibly including results of re- support his conclusions.
search on the effectiveness of slogans in the recall of products. Overall, the book is useful for both educational and prac-
Brand extensions are covered in Chapter 9 (31 pages). tical application. Aaker combines an entertaining writing style
Aaker gives extensions much consideration in light of his in- with pertinent information for brand equity managers.