A critical review and reconstruction of perceptual brand equity

Purpose The purpose of this paper is to: distinguish between financial brand equity and perceptual brand equity; distinguish among different stakeholder perspectives on customer-based brand equity, consumer-based brand equity (CBBE) (consumer, customer, employee and resident); contrast the original definitions and measures of CBBE by Aaker and Keller; identify the deviations from the original conceptualizations and measures of CBBE by Aaker and Keller; discuss the evolution of the most commonly used CBBE components; analyze the structural relations of the most common CBBE components and generate conceptual, structural, relational and methodological suggestions for future research. Design/methodology/approach This critical review conducted a narrative analysis of the perceptual brand equity literature (CBBE) by inventorying about 200 empirical and conceptual CBBE studies in several different contexts. Studies that included CBBE, brand equity, customer-based brand equity and consumer-based brand equity were included in this review. Only 87 representative studies that either conceptually defined or empirically measured CBBE and its components were included in the deep analysis. Findings The review revealed that the literature is divergent in terms of CBBE components or structural relations among components in any context including tourism and hospitality. Even though about 40 different CBBE components exist in different contexts, the totality of the CBBE literature reflects a consensus on five components of CBBE, brand familiarity/brand awareness, brand image/brand associations, perceived quality, consumer value and brand loyalty, all of which collectively define the total meanings of a brand from consumer/customer perspective. Research limitations/implications Keeping these five components intact, this study suggests a concise CBBE definition, conceptual clarifications for these components, a model reflecting their structural relations and a framework of parsimonious measures. The study makes future research recommendations in terms of using uniform CBBE components, measures and relational structure among components, identifying the relationship between CBBE and financial-based brand equity and comparing different stakeholder perspectives on CBBE in future research. Originality/value With these observations and suggestions, this critical review provides a guideline for more robust theory development of the CBBE construct. Additionally, it offers a parsimonious and practical CBBE blueprint for the practitioners who include CBBE as a strategic market metric in their marketing and research plans. Furthermore, it suggests standardization in CBBE research to enable systematic reviews with meta-analysis of the CBBE literature in the future. Using standard components, measures and relational models in CBBE research, as was suggested in this study, would allow meta-analysis for a meaningful comparison of results between different brands, products and even industries.