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

摘要

Purpose - 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.rnDesign/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 air-conditioner 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 system versus other brands. This will differentiate their brand(s) from competitors, and position themselves differently in the minds of consumers.rnOriginality/value - The study showed that brand name was not an important criterion in the consumer decision-making process for purchasing replacement residential air-conditioning (HVAC) systems. Since consumers are not knowledgeable about air-conditioning brands, they assume homogeneity and shop for price.