Pyramid Powerful brands create meaningful images in the minds of customers (Keller, 1993). A strong brand image and reputation enhances differentiation and has a positive influence on buying behaviour (Gordon et al. , 1993; McEnally and de Chernatony, 1999). A brand is a bundle of functional, economic and psychological benefits for the end-user (Ambler, 1995). Brand equity, as defined by Keller (1993), occurs when a brand is known and has some strong, favourable and unique associations in a consumer’s memory.
This reflects in buyers’ willingness to pay a premium for a favoured brand in preference to others (Hutton, 1997). The Customer-Based Brand Equity pyramid (CBBE) of Keller identifies four steps for building a strong brand. In this paper the CBBE pyramid will be applied to the brand Nike. In this branding ladder, each step is dependent on successfully achieving the previous – from brand identity to brand meaning, brand responses and finally brand relationships.
The ultimate aim is to reach the pinnacle of the CBBE pyramid – resonance – where a completely harmonious relationship exists between customers and the brand (Kuhn, 2008). Firstly, it is important that the brand identity is compatible to the kind of brand that the firm wants to build. Nike ensures that it’s swoosh is well-matched to different kinds of sports and sports attributes, for example shoes and soccer balls. Therefore the Nike brand salience is that it represents sporty people and this can be seen in the degree of sponsorships of professional athletes by means of for example clothing.
The second step establishes the brand meaning by linking tangible and intangible brand associations. Brand meaning is therefore characterised in either functional (brand performance) or abstract (image-related) associations. The product branch in which it operates is high segment, this is characterised by high prices, product reliability, durability and serviceability. The style is mainly focused on comfort during sporting with an attractive style (Kuhn, 2008).
Sweatshop; “A shop employing workers at low wages, for long hours, and under poor conditions” Sweatshop; “A shop employing workers at low wages, for long hours, and under poor conditions” Nike has a long history with Corporate Social Responsibility (CSR). For a long time, the Nike name conjured up heroic images of Jordan, Agassi and Tiger. The swoosh, Nike’s brand logo, made many people feel as if they were champions. That Nike’s reputation has been clouded by a new image – of Asian workers in hot, noisy factories, stitching together shoes for as little as 80 cents a day.
Suddenly, Nike doesn’t seem so cool anymore (McCall, 1998). The widespread criticism of the use of sweatshops provoked protests and products boycotts at retail centres and on college campuses nationwide in 1998. The disapproval helped to cause the sneaker giant’s stock price to drop to $31 in September 1998 from $76 seven months earlier (Chen, 2001). The final step in the pyramid constitutes brand relationship, where brand response is converted to create an intense, active loyalty relationship between customers and the brand.
Homework for MGT321 Introduction to international business
General Instructions – PLEASE READ THEM CAREFULLY
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Analyze the effects of culture, politics and economic systems in the context of international business(Lo 2.1)
Explain the forces driving and evaluating the impact of globalization (Lo 1.3)
Carryout effective self-evaluation through discussing economic systems in the international business context
Please read Case 3: “Economic Development in Bangladesh” available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.629, and answer the following questions:
What were the principal reasons for the economic stagnation of Bangladesh after its war for independence?(marks: 2)
Explain how the liberalization program in the 1990s enabled Bangladesh to start climbing the ladder of economic progress. What are the main lessons here that can be applied to economic development in other nations?(marks: 4)
3.Bangladesh is dependent for its prosperity upon agriculture and textile exports. What are the risks here? How might Bangladesh diversify its industrial and commercial base? (marks: 4)