According to an Economist, Aaker, the brand equity is a combination of brand attributes like brand awareness, associations, loyalty, and perceived quality. It is necessary to estimate the net value of the brand to get highest profits and make it more successful as compared to other competitive organizations in the market.
Purchase Intention is a plan that a person willing to buy a specific service or product in the upcoming future. It is a dependent variable that depends on many internal or external factors, and some of them are:
• Outcome Expectation
• Emotional Association
• Aspirational Value
Outcome Expectation- The expected outcome out of the use of a service or a product.
Stimulus/Trigger- The attributes of a product or the packaging that triggers the buyer towards the brand.
Emotional Association- Brand can get value through emotional attachment to the consumers.
Aspirational Value- The product may create some aspirations of a customer like a luxury vehicle.
Recommendation- Purchase Intention also depends on a recommendation from reliable sources.
Some other factors are the perception about the service or a product and associated costs and risks.
Impact of Brand Equity on Purchase Intention
A customer’s purchase intention relies on brand equity’s elements like association, loyalty, and others, and the components can target the consumer positively as well as negatively. We all know that the brand equity has four main elements that determine the value of a company. Let’s see how these components make a significant impact on the purchase intention of a customer.
Association’s impact on Purchase Intention
Brand association is something that carved in customer’s mind about the company, and it has positive or negative attributes. Purchase intention is directly proportional to the associations as it increases with the rise of the later one. If buyers find anything interesting that associated with a brand, they will intend to buy the products of it.
Brand Awareness’s impact on Purchase Intention
Brand awareness includes identity, image, promotional strategies, and advertising. It helps in increasing the level of purchase intention because customers would like to buy commodities from the companies that are famous among consumers.
Loyalty’s impact on Purchase Intention
Another component of brand equity, brand loyalty, has a direct relationship with purchase intention. If buyers are loyal to a company, they will plan to purchase more from an organization. Brand Loyalty is an essential element for both the brand equity and purchase intention as it creates affinity or emotional attachment between a company and consumers.
Perceived Quality’s impact on Purchase Intention
Perceived quality is how buyers have recognized the company’s commodities. The high-quality products and brand recognition attract the customers, and it also helps to boost the level of consumer’s willingness to buy services or commodities from a brand.
To conclude, it is definite that both the purchase intention and brand equity have a connection to each other. The former one is dependent on the later one, and the company’s worth needs positive value to attract the potential buyers.