The influence of brand equity on the success of franchises' expansion

Thèmes abordés

Franchising, brand equity, consumer response, consumer-based brand equity, perceived quality, brand awareness, brand associations, consumer loyalty, franchise expansion, Paul bakery case study

Résumé du document

Previous research widely recognizes brand equity as a factor of durability for a business model. However, there is a noticeable gap in the literature in identifying the influence of brand perception on the success of a franchise firm. Addressing these gaps, this paper explores the impact of consumer-based brand equity on the success of franchises' expansion. This study seeks to understand how brand equity can be leveraged through band awareness, brand loyalty, perceived quality and brand associations, to enhance positive consumer response, leading to a successful franchise expansion.

This study is motivated by two objectives: (1) identify the factors that play a role in the brand equity of a product or service and determine their relative importance and (2) examine how the success of a franchise concept depends on the perceptual equity of the brand by the consumer. A qualitative research design was employed, combined with an interpretive philosophy and a deductive approach, comprising 15 semi-structured interviews with key informants. In-depth case study of a franchise company was conducted in the UK and in France in order to gain insight into consumer's behaviour and brand perception.

Extraits

[...] I know that in London, people love it and like, they see it as the LaDurée of the bakery. (laughts) So yeah, I'd say pretty popular 110 o When you say that British people see PAUL as the LaDurée of the bakery, what do you mean exactly? Ummm like, they see it very upmarket and chic because it's French so it's qualitative and tasty you know. How would you measure your loyalty to the brand? My loyalty? haha, I'm not sure. [...]

[...] Il y a pas photo, c'est frais, c'est très bon j'ai jamais été déçu 10) Quel est votre opinion concernant le rapport qualité-prix chez PAUL ? Concernant le rapport qualité-prix comme je l'ai dit c'est un peu cher mais la qualité finalement vaut le prix. 11) Comment décririez-vous la personnalité de marque de PAUL ? A quels concepts associez-vous la marque ? 82 Je pourrais dire que la marque PAUL dégage une image conservatrice. En clair un concept porté sur la tradition,(.) oui voilà la tradition. [...]

[...] To a lesser extent, the atmosphere in the shop and the variety were mentioned by the interviewees. As aforesaid, customers are very sensitive to limited and seasonal products. Variety, customization, innovation and novelty drive people into consuming from a particular brand. Further, several factors such as the shop design, layout and the staff's outfit reinforce the purchase decision. As discussed in the measurement part, shop atmosphere and variety are two of the main components of price premium, thus leading to loyalty. [...]

[...] By contrast, brand equity entails favourable disposition that may not necessarily result in purchasing behaviour. Thus behavioural intentions are one of the consequences of brand equity, rather than its component. However, other studies propose a social identity perspective to explain brand loyalty. He, Li and Harris (2012) claim that value, trust and satisfaction, along with brand identity and identification, lead to brand loyalty. Brand identification can be defined as active, selective and volitional act motivated by the satisfaction of one or more 12 self-definitional needs' (Bhattacharya and Sen, 2003:77). [...]

[...] The findings thus imply that the four dimensions of consumer-based brand equity identified by Aaker play a major role in the success of the expansion of a business and are also evident in franchise channels. Consequently, franchise businesses require a well-defined framework that can assist them in conveying the image and values of the organization in order to align the strategic goals and the customers/brand relationship. Lastly, by adopting an interpretive view, the explanatory findings suggest that effective brand equity management can foster positive consumer response that in turn is likely to enhance the success of a franchise expansion. [...]