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Introduction
Brand is able to enhance the perceived product utility and desirability because brand is related to prestige, reliability, trustworthiness, social image, identification and value for money (Ganassali and Matysiewicz, 2018; Kotler and Gertner, 2002; Chernev et al., 2011). The extant literature shows that brand name serves as guidelines for a customer to make product decisions (Eisingerich and Rubera, 2010). For example, when consumers are uncertain about product attributes, brands can be used to inform them about product positions and to ensure them that product claims are credible (Erdem and Swait, 2004). The reduced uncertainty can lower information costs and perceived risk by consumers but increase consumers’ expected utility and confidence in brands’ claims. Thus, brand name can help marketers gain competitive advantages through strong brands (Moore et al., 2002). A strong brand enjoys high brand equity and charges a higher price than weaker brands or generic products because consumers are more willing to tolerate price increase if they perceive the quality of the brand is higher compared to alternative brands (Erdem et al., 2008; Keller, 2000). Specifically, favorable brand names generate significantly greater preferences, positively influence perceptions of quality and willingness to buy (Cobb-Walgren et al., 1995; Hong et al., 2002) in a cross-cultural context.
The marketing literature has suggested that brand equity relies on the differential effect to brand knowledge produced by marketing activities (Keller, 1993). There are two forms of orientations concerning brand equity building: brand-centric and customer-centric (Keiningham et al., 2005). Brand-centric marketing focuses on investing in the elements of the marketing mix to improve brand equity whereas customer-centric approach takes advantage of customers’ perceptions of their experiences with brands and their self-brand connection (Hoeffler and Keller, 2002; Fournier, 1998). Brand synthesis theory suggests that in addition to the brand itself, secondary sources, such as country image and distribution channels, affect consumer attitude toward the brand (Hoeffler and Keller, 2002; Pappu et al., 2007). Previous research has indicated that it is not enough to build and protect brand equity focusing on marketing mix (Aaker, 2004; Keller, 2003). This is mainly because the power of a brand lies in the minds of consumers, in the effect of what they have experienced and learned about the...