The importance of brand equity on purchasing consumer durables: an analysis of home air‐conditioning systems

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to show manufacturers and dealers of residential air-conditioning systems how to raise the equity of their brands, enabling them to sell more premium systems and increase their revenues and profit margins. Design/methodology/approach -For such products the consumer decision-making process is complex and high involvement, and most purchasers are unacquainted with brands. A self-administered survey was developed to assess which attributes were most important to consumers, to what degree brand influenced the price they would pay, and where they searched for product information, as well as demographic characteristics. Findings -In total, 140 homeowners showed that reliability, serviceability and energy-saving features were the attributes consumers desired most. Brand name communicated quality to them, but was not an important choice criterion. However, consumers were willing to pay more for an airconditioner with a reputation for quality. Results also indicated that consumers searched for product information from friends and family, manufacturers' websites and brochures, but not from the Yellow Pages or through salespeople. However, dealers were highly influential during the decision-making process by helping consumers to refine their choice criteria and choose systems that satisfied their end goals. Practical implications -If consumers were better informed about the important attributes of a particular brand (reliability, serviceability and energy efficiency), they would be willing to pay more for it. To raise brand awareness, HVAC manufacturers should use broadcast media that include television and radio frequently and seasonally, and supplement them with outdoor or print to gain brand awareness and knowledge, thus increasing the likelihood that brand becomes a criterion in the decision-making process. All advertising and promotion should steer consumers to the manufacturers' website, which should be filled with home-owner-oriented information about the features and, most importantly, the benefits of the brand. Manufacturers can raise brand equity among consumers through comparative executions that spell out the positive attributes of their s...

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