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Procedia
Procedia Computer
Computer Science
Science 12600 (2018)
(2018) 000–000
1368–1377
Procedia Computer Science 00 (2018) 000–000
www.elsevier.com/locate/procedia
www.elsevier.com/locate/procedia

International
International Conference
Conference on
on Knowledge
Knowledge Based
Based and
and Intelligent
Intelligent Information
Information and
and Engineering
Engineering
Systems, KES2018, 3-5 September 2018, Belgrade, Serbia
Systems, KES2018, 3-5 September 2018, Belgrade, Serbia

A
A Management
Management Method
Method of
of the
the Corporate
Corporate Brand
Brand Image
Image
Based
Based on
on Customers'
Customers' Perception
Perception
Takumi
Takumi KATO
KATOa*,, Kazuhiko
a*
Kazuhiko TSUDA
TSUDAb
b

a
aBusiness Analytics Section, Honda Motor Co.,Ltd. , 2-1-1 Minami Aoyama Minato, Tokyo 107-0062, Japan
b Business Analytics Section, Honda Motor Co.,Ltd. , 2-1-1 Minami Aoyama Minato, Tokyo 107-0062, Japan
bGraduate School of Business Sciences, University of Tsukuba, 3-29-1, Otsuka, Bunkyo, Tokyo 112-0012, Japan
Graduate School of Business Sciences, University of Tsukuba, 3-29-1, Otsuka, Bunkyo, Tokyo 112-0012, Japan

Abstract
Abstract
In order to acquire target brand images, companies develop various activities to manage brands as assets. However, in fact, since
In order to acquire target brand images, companies develop various activities to manage brands as assets. However, in fact, since
companies cannot grasp the necessary elements for the image, there are companies that make inconsistent products and
companies cannot grasp the necessary elements for the image, there are companies that make inconsistent products and
promotions into the world. Therefore, in this research, we verified the factors that form "quality" brand image, which is said to be
promotions into the world. Therefore, in this research, we verified the factors that form "quality" brand image, which is said to be
ambiguous and complicated. Quality is said to include not only objective value (Functional value) such as performance and
ambiguous and complicated. Quality is said to include not only objective value (Functional value) such as performance and
durability but also subjective value (Emotional value) such as beauty and perceived quality. In recent years, companies such as
durability but also subjective value (Emotional value) such as beauty and perceived quality. In recent years, companies such as
Apple and Samsung, which have excellent emotional value, are emerging, so the value is considered as a major source of
Apple and Samsung, which have excellent emotional value, are emerging, so the value is considered as a major source of
competition in the manufacturing industry. We believe that this research will enable companies to undertake effective decision-
competition in the manufacturing industry. We believe that this research will enable companies to undertake effective decision-
making without obscuring the elements necessary to acquire the target brand image.
making without obscuring the elements necessary to acquire the target brand image.
©
© 2018
2018 The
The Authors.
Authors. Published
Published by
by Elsevier
Elsevier Ltd.
B.V.
© 2018
This The
is an Authors.
open accessPublished by Elsevier
article under the CC B.V.
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer-review under responsibility of KES International.
Peer-review
Selection andunder responsibility
peer-review of KES International.
under responsibility of KES International.
Keywords:Brand Image; Quality; Natural Language Processing; Machine Learning; Imbalanced data
Keywords:Brand Image; Quality; Natural Language Processing; Machine Learning; Imbalanced data

1.
1. Introduction
Introduction
Since
Since Aaker
Aaker and
and Keller
Keller advocated
advocated thethe concept
concept ofof brand equity1, 2,, many
brand equity
1, 2
many companies
companies manage
manage diverse
diverse activities
activities in
in
order
order to manage brands as assets and increase their value. The important point here is the consistency3 of the
to manage brands as assets and increase their value. The important point here is the consistency of the brand
brand
image.
image. Presenting
Presenting aa consistent
consistent image
image with
with products
products and
and promotions
promotions increases
increases purchasing
purchasing drive
drive function
function3.. In
In addition,
addition,
there is another great advantage in the management strategy. Even if product performance has excellent
there is another great advantage in the management strategy. Even if product performance has excellent discrimination, discrimination,
it
it is
is vulnerable
vulnerable to to imitation
imitation by
by competitors.
competitors. On On the
the other
other hand,
hand, consistent
consistent brand
brand image
image isis not
not easily
easily imitated
imitated4..
4

While
While thethe benefits
benefits of
of consistent
consistent brand
brand image
image are
are grasped
grasped in
in this
this way,
way, many
many companies
companies are are active
active in
in promotion
promotion to to
convey
convey a5 slight image difference for each product. These promotions have little impact on customers' purchase
a slight image difference for each product. These promotions have little impact on customers' purchase
decisions
decisions5.. One
One ofof the
the reasons
reasons for
for this
this is
is that
that it
it is
is not
not possible
possible to
to grasp
grasp the
the necessary
necessary elements
elements to to acquire
acquire the
the target
target
brand image.
brand image.
* Corresponding author. E-mail address: takumi_kato@hm.honda.co.jp
* Corresponding author. E-mail address: takumi_kato@hm.honda.co.jp

1877-0509 ã 2018 The Authors. Published by Elsevier

1877-0509
1877-0509 © 2018
ã 2018 The
TheAuthors.
Authors. Published by Elsevier
Published by Elsevier Ltd.
B.V. Peer-review under responsibility of KES International
B.V.
This Peer-review under responsibility
is an open access article underofthe
KES
CCInternational
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection and peer-review under responsibility of KES International.
10.1016/j.procs.2018.08.088
 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377 1369
Author name / Procedia Computer Science 00 (2018) 000–000

Therefore, in this research, top brands of quality image were extracted from the perception of customers, and the
forming factors were quantitatively evaluated. We targeted quality because it is complex and abstract6. We hope this
research will contribute to effective decision making regarding brand strategy without being bound by stereotypes of
target brand images.

2. Evaluation of brand images

2.1 Quality brand image

Table 1 shows the eight elements that comprise quality7. The breakdown consists of performance (Performance),
which is the main feature of the product, in addition to features complementing the basic performance; reliability,
indicating the probability of failure and repair frequency (Reliability); the degree of satisfying the probability criterion
serviceability (Serviceability) such as conformance meaning conformance, durability indicating period of use until
failure, serviceability such as ease of repair, beauty (Aesthetics) such as appearance, feel, sound, taste, and odor.
Finally, there is Perceived Quality such as brand image and advertisement. The concept whereby quality consists of
the above eight elements is referred to as the Garvin theory hereafter.
Of these eight elements, the last two are the most subjective aspects, including factors such as appearance,
impression, sound, taste, and smell. These are matter of personal judgment; it is nothing but a reflection of personal
preferences. It turns out that this is the same concept as emotional value8. Nobeoka defines objective specifications
and durability as functional value, subjective design and customer experience as emotional value. Then, it is
emphasized that the current competitive domain has shifted to emotional value. In fact, for the Japanese automobile
industry, "Semantic value is more effective than functional value" from the viewpoint of the corporate brand favor9.
However, to date, quantitative verification has not been performed on these eight elements.

Table 1. Garvin’s eight elements of quality

In this study, rather than actually measuring the quality of the product, we quantitatively evaluate customer
perceptions, that is, the brand image of quality.
With regards to quality and brand image, it has been shown that quality of service has a positive influence on brand
image and customer satisfaction in the Thai automobile industry10. Aaker focused on perceived quality, one of the
major factors of brand concept, and proposed a causal model11.
However, there are few examples that have quantitatively verified the constituent factors and composition ratios of
the overall image of the concept of quality perceived by customers, which is the object of this study.
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Author name / Procedia Computer Science 00 (2018) 000–000

2.2 Typology of brand image

Keller defines the brand image as “reflecting the brand association embraced by a consumer’s memory for a
certain brand”2. Brand personality is a concept that has been actively discussed in research on brand image. Aaker
states, “It is defined as a set of human characteristics reminiscent of a given brand, and personality research is a
theme that forms the core part of brand image research in a sense1.” Aaker identifies the Big 5 personality factors of
sincerity, excitement, competence, sophistication, and ruggedness for American brands12.

2.3 Importance of pure recall

In general brand image evaluation, there are many cases where data are obtained by preparing items supposed by
companies and researchers and getting them to select respondents on the set scale (We call this assisted recall). The
method of presenting options to respondents and asking them to match companies and products with images is
referred to as subsidization recall. One problem in subsidization recall is bias. Conversely, pure recall involves
identification of a company or product image without the presentation of options to respondents. Therefore, pure
recall is stronger in memory, bias is less, and you can understand customers. Indeed, when confirming the brand
image with assisted recall, it is verified that respondents overestimate13. In this study, to grasp the image of quality
held by customers without bias, we should use pure recall to understand customers’ perceptions.

3. Verification of factors forming quality brand image in customers’ perception

In this research, we verified the factors forming quality brand image in customers’ perception. In the verification,
we targeted the top brands with strong image penetration.
Table 2 shows the data used in this study. Data is Web survey conducted on 2017/5. The target countries were
Brazil, China, Germany, India, Japan, South Africa, Thailand, the UK, and the USA. The industry was not specified.
The sample size was 500 people in each country, totaling 4,500 people. The respondent attribute sets 10 groups of 2
gender (male and female) × 5 generations (20s–60s), and collects 50 people/groups of each country. As previously
mentioned, the questions involve two items based on pure recall, “a brand remembered as being of high quality” and
“the reason (Hereinafter referred to as recall reasons).” Since answers are written in multiple languages, native in
national languages is analyzed after translating into Japanese.

Table 2. Data overview

The research process is largely composed of 3 phases, as shown in Fig. 1.

 Author
Takumi name
Kato /etProcedia Computer
al. / Procedia Science
Computer 00 (2018)
Science 000–000
126 (2018) 1368–1377 1371

Respondents

Brand Name Reason Dictionary

Top Brand Factor 1

Text Data
The Other Brand

Random Forest Phase 3 Semantic Understanding Phase 1

Logistic Regression Factor Verification Algorithm Semantic
Understanding
Factor Score Score
and Scoring

Extracted Factor 1 Factor 1

Factor Analysis
Phase 2
Extraction of factors
Fig. 1. Research process

In Phase 1, we conducted semantic understanding and scoring. First, the text data of recall reasons was
morphologically analyzed by using the open source analysis engine MeCab to extract nouns and adjectives. Among
them, objective words are registered as elements of functional value, subjective words as elements of emotional value
in a dictionary. For example, words such as "performance" and "durability" are functional value, and words such as
"stylish" and "scent" are emotional value. As shown in Table 2, the composition of the dictionary was defined as 16
elements with eight values for each value. The number of words registered is 86. Due to the characteristic of pure
recall, the number of sentences is at most 2-3. As a result, the number of dictionary-registered words does not become
very large. The other factors were excluded because they were less than 30, which did not reach 1% in composition
ratio of meaning understanding result explained in 4.1 Section.
A semantic understanding algorithm was developed to understand the customers’ colloquial texts. As techniques
to understand colloquial expressions, there are rule base and statistical meaning understanding. Tsuchiya judged
emotions according to the rule of 8,02414. Harada used statistical semantic understanding of, for example, LDA to
understand colloquial expressions15. In this research, since statistical processing is difficult because there are few
words because of pure recall, we adopt the rule-based approach. Another reason for adopting the rule-based approach
is that sentence expressions are limited to quality brand image, so we do not need a large knowledge database.

Table 3. Dictionary composition and word examples

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Author name / Procedia Computer Science 00 (2018) 000–000

In this study, based on the nature of the data obtained, we constructed the following four functions. Table 4 shows
analysis examples by the semantic understanding algorithm. Note that the number of tags is scored in the case where
the tag attached by grasping the dictionary-registered word has a positive meaning. As this data describes the reason
after answering the brand, it is rare that the subject is clearly stated. Therefore, the function of the first “dependency”
is focused on the affirmation/negation of the dictionary registration word, and when it is denied, no score is given. In
the example in Table 4, a score is given because “reputation” and “durable” are affirmed. In the second function of
“multiple negation,” when words having negative meanings are arranged a plurality of times, it is finally judged
whether or not it is affirmative and a score is given. Sixty-five negative words were registered including verbs such
as “disgusting,” “disappointed,” and adjectives such as “bad,” “terrible.” In the example, the reputation score is given
because it is denied twice for “reputation.” The third “affirmative doubt” function is an algorithm that gives the score
of the question-only sentences that are seeking synchronization. Four words are registered. In the example, although
“performance” “durability,” are registered words, a score is not given because it is a simple question text. The function
of the fourth “comparison” does not give a score in the context where another company or the past is better than
understanding the dependency around five comparison words such as “more.” In the example, although “cost
performance” is inferior to “non-branded product,” no score is given, but “taste” is added.
Natural language processing consisting of the above dictionary, morphological analysis, syntax analysis, and rules
is called the semantic understanding algorithm. The environment is implemented in Python.

Table 4. Analysis result example of the semantic understanding algorithm

In Phase 2, factors that compose the quality brand image were extracted by factor analysis of the tag score given
by the semantic understanding algorithm. Factor analysis was carried out by varimax rotation using the psych package
of statistical software R. The purpose of direct rotation is to eliminate correlations between factors and to extract
factors with high uniqueness. In addition, the number of factors to be extracted was determined by drawing a scree
plot and delimiting it up to the factor with eigenvalues greater than 1.0.
In Phase 3, we first verified whether we could separate quality top brands and the other brands by random forest,
using extracted factors as explanatory variables. At that time, the importance of the variable was evaluated by Mean
Decrease Gini. Although we can only understand the strength of importance by the index, we evaluated the factors,
including positive and negative effects, by logistic regression model. For both analyzes, the environment is R and the
random forest uses the randomForest package. The feature quantity selection parameter mtry was optimized by the
tuneRF function.
As shown in Table 5, we prepared a data set in which factor scores were calculated for each record of recall reasons.
Although there are 4,500 respondents, there are cases in which respondents mention multiple brands and a common
reason. In such cases, the record is divided into the number of brands, and recall reasons are stored the same text. As
a result, the total number of records is 5,590.
 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377 1373
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It is necessary to define the top brand of quality. Table 6 shows the composition ratios of the top 20 global brands
listed in pure recall in each country. Apple and Samsung are outstanding and both have gained more than 10%
globally. The difference between them is that Apple has a high score overall although there are slight fluctuations, but
Samsung has a low presence in China and Japan. In order to understand the characteristics of the brands, the average
factor score data of Table 3 was calculated for each brand, and hierarchical cluster analysis was carried out. Cluster
analysis is performed by Ward’s method using cluster package of R. As a result, as shown in Fig. 2, it is understood
that Apple and Samsung are adjacent to each other, and have similar characteristics among several brands in the world.
Philips, Google, and Microsoft are close to those brands, and it seems that there is a high possibility of becoming a
strong quality brand.
Therefore, in this research, the aforementioned five brands were defined as the top brands of quality image.
However, as shown in the raw data in Table 7, this data is imbalanced because the top brands (positive examples)
occupy only 18.6%. Therefore, the positive data and the negative data were balanced. At first, in order to exclude data
with little significance from the viewpoint of this study, we extracted data with a total absolute value of eight factor
scores exceeding 1.0. Secondly, since the positive data is 612 records, we randomly under sampled the negative data
from 4,434 records to 612 records.

Table 5. Examples of a data set

Table 6. Examples of a data set

1374 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377
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Fig. 2. A brand hierarchical cluster

Table 7. Correction of imbalanced data by random undersampling

Adams stated that among the quality elements of Garvin, beauty and perceived quality difficult to express in plots
often contribute to sales6. Nobeoka argued that emotional value is more important than functional value for customers,
citing Apple and Samsung as advanced companies with emotional value8. Accordingly, we hypothesized that the
elements of emotional value have great influence on quality brand image.

4. Verification and discussion

4.1 Phase 1: Semantic understanding the recall reasons and scoring

The dictionary and semantic understanding algorithm tagged brand recall reasons. The score distribution of each
country is shown in Table 8. As global trends, many voices are gathered in 01_Quality and 02_Durability of functional
value, and functional value accounts for about 60%. As a characteristic of each country, the element of emotional
value 06_Luxury is the most in Japan. In fact, looking at Table 4, CHANEL is recalled 7.2%.

Table 8. Score distribution of quality factors of each country

 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377 1375
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Next, we verified the accuracy of the semantic understanding algorithm. For the text, of 160 records composed of
each quality factor, precision rate and recall rate were evaluated. As shown in Table 9, the results were 96.9% and
93.8% respectively, which confirms the validity of the algorithm.

Table 9. Evaluation results of relevance ratio and recall ratio in semantic understanding algorithm

4.2 Phase 2: Extraction of factors

Factors constituting the quality brand image are extracted by factor analysis of the tag score given by the semantic
understanding algorithm.
Since the number of factors whose eigenvalues are 1.0 or more was eight, the number of factors to be extracted
was set to eight. As shown in Table 10, out of the eight factors, Safety, Material, Warranty, and Durability are made
up of functional values, and the cumulative explanation rate reaches 64.10%. These factors are associated with the
Garvin theory. In addition, in emotional value, Design and Reputation correspond to Aesthetics and Perceived Quality
in Garvin theory. However, Innovative and Technology of Innovative & Comfortable cannot be found. In other words,
the importance of emotional value has increased in recent years, and it appears as a new factor.

Table 10. Comparison of extraction factors and quality elements of Garvin theory
1376 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377
Author name / Procedia Computer Science 00 (2018) 000–000

4.3 Phase 3: Verification of quality brand image factor

Of the 1,224 data sets described in Table 7, 80% of the randomly sampled data was learned in the random forest
and verified with the remaining 20% of the data. The results are shown in Table 11. In addition, as a result of
optimization by applying a grid search, mtry = 4 is set. As a result, the prediction accuracy of the verification data
was 74.3%. Due to the characteristics of pure recall data, we can discriminate with a certain degree of precision
without using other explanatory variables such as proper noun and customer attributes. Of course, if we resister words
such as “smartphone” and “IT,” which make it easy to identify Apple or Samsung, you can expect further improvement
in accuracy. However, we completed model building here, because hard coding does not meet the purpose of research.
For the logistic regression model, the prediction accuracy was 76.3%.

Table 11. Prediction accuracy of random forest (left) and logistic regression (right)

As shown in Table 12, we found that EF_08_Reputation is the largest factor in both Mean Decrease Gini of the
random forest and the Odds Rate of the logistic regression model. Examining the Odds Rate, the statistically
significant variables are EF_06_Durability in functional value, EF_05_DESIGN in emotional value,
EF_07_Technology of Innovative & Comfortable (omitted from the table) and EF_08_Reputation. In other words, in
order to acquire the quality brand image, it should not be broken, but in addition, design, comfort, and reputation are
also important. Therefore, the hypothesis that “emotional value is important as a factor of quality image formation”
mentioned in Chapter 3 was supported.

Table 12. Mean Decrease Gini and Odds Rate

5. Conclusion

The contribution of this research is to propose a technique to evaluate forming factors of target brand image
quantitatively; we focused on quality called complicated and abstract. We balanced the imbalanced data and evaluated
of factors by random forest and logistic regression model. It is said that learning from imbalanced data is a relatively
new challenge that has attracted growing attention from both academia and industry16. The reason is that it is necessary
 Takumi Kato et al. / Procedia Computer Science 126 (2018) 1368–1377 1377
Author name / Procedia Computer Science 00 (2018) 000–000

to apply the machine-learning model to real-world problems17. We believe that such efforts will be also important
when deriving corporate strategies from the data of the complex market.
As a result, Functional values such as Safety and Durability are fundamental to the constituent factors of the quality
image. However, it turned out that emotional values such as Innovative and Comfortable are included, which were
not discussed in the Garvin theory. Furthermore, as a result of evaluating factors of quality brand image formation by
random forest and logistic regression analysis, it was possible to grasp that “design, comfort, and reputation are
important in addition to durability.” Among them, the most influential factors were reputation.
Brand management covers two types: product brands and corporate brands. In product brand management, it is
necessary to build a concept with benefits for customers and to realize it with a high degree of accuracy. For that
purpose, a technique to verify the emotional area of design scientifically has been reported18.
In the corporate brand management, in order to consistently appeal target brand images, it is important to evaluate
the formation factor of the image quantitatively, as proposed in this research. Since W. A. Shewhart of the American
Bell Telephone Laboratories invented the control chart in 1926, statistical quality control has been actively carried
out19. Quality in the manufacturing industry has long pointed to performance and durability. In the 1970s, the
manufacturing industry in Japan started a production system known as total quality control, and as a result of
producing high quality and high-performance products, the system spread worldwide20. However, in the history of
this long manufacturing industry, it has been rarely told that elements of innovation, comfort, reputation are important
for quality images. This research suggests the importance of grasping the constituent elements of the image aimed at
without having a fixed idea.

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