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Factors Influencing Brand Image in Banking Industry of Iran

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Factors Influencing Brand Image in Banking Industry of Iran

Sharareh Momeni1,Shabnam Mousavi Khesal2, Nasim Roustapisheh3,Mahmood Zohoori4
1
Master of project management, Limkokwing university, Faculty of business and globalization,
2
Master of knowledge management, FCM, Multimedia University, Malaysia,
3
Master in entrepreneurship management, University of Tehran, Iran,
4
Master of environmental technology management, Faculty of engineering, UPM,

Abstract
The current research as a qualitative research is concentrated on factor influencing brand
image in banking industry of Iran. In this regard, several articles have been reviewed that
propels to propose a new frame work. This frame work postulates the relationships among
service quality, brand image, and advertisement.
Keywords: Service Quality, Brand Image, Advertisement, and Banking

1. Overview

These days, firms use various devices to get the attention of customers. One of these devices
that is very well known is the brand. Brand could be assumed as a linkage among customer
perception and product of the company. According to (Manafi et al. 2011) in this case the
brand equity concept is explained by various researchers as an important factor in marketing.
Although there was a lot of consideration there exist no consensus related to the fact that what
is the best measure for capturing this complicated and multi faced aspect (Maio Mackay,
2001; Raggio and Leone, 2007). The main reason is various insights related to defining and
evaluating this term (Christodoulides and de Chernatony, 2010). The financial point of view
points out to brand value for the company (Simon and Sullivan, 1993; Feldwick, 1996). On
the other hand, the consumer insight concentrates the measurement and conceptualization of
brand equity on each consumer (Leone et al., 2006).
2. Brand Equity and Brand Image

By adopting the latter insight and also from a psychology method based on cognition the
brand equity is the value added by brand for the product (Farquhar, 1989). Aaker (1991, p.
15) develops the most comprehensive and accepted brand equity definitions: a group of brand
properties and also liabilities connected to the brand, its symbol or the name that can subtract
or add value from the value developed by a service or product for a company or the customers
of the company Keller (1993, p. 2) defines a similar explanation. The differential brand
knowledge impact on response of consumer to the brand‘s marketing.

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The brand equity based on consumer measures can evaluate the attitudes, awareness,
attachments, associations and also the consumer loyalty into the brand (Keller and Lehmann,
2006). These measures will suggest many advantages for example source of brand
assessment. For this objective, joining the new and traditional technologies has revealed
successful experiences for instance printed advertisement, online highlight of the brand equity
image and the consequences, television and also the capability to diagnose (Ailawadi et al.,
2003; Gupta and Zeithaml, 2006). In this regard these measures are working as early signals
of evaluation for the performance in the future (Srinivasan et al., 2010). According to this
insight, there are two main developed frameworks that can conceptualize the equity of brand
and they are of Aaker (1991) and Keller (1993).
In 1991 Aaker stated that equity of brand has many different dimensions and the first four
dimensions of brand equity are perceived quality, brand awareness, brand loyalty and brand
associations. The research of brand equity will remove the fifth dimension of Aaker and other
brand assets priority, because this aspect is not relevant for consumers. Keller's (1993)
conceptualization concentrates on knowledge of brand and has two aspects which are brand
image and brand awareness.

3. Advertisement

One of the important activities of marketing is the advertisement. Generally, it was mentioned
that in order to have brand equity for the customer advertisement it is important that to play an
accumulative and sustaining effect for this property (Wang et al., 2009). But somehow the
advertising is able to effect the amount invested as well as the type of message which is
communicated (Martínez et al., 2009).
Many scholars have analyzed the actual and perceived advertise spending that impact brand
equity and also the dimensions (Simon and Sullivan, 1993; Cobb-Walgren et al., 1995; Yoo et
al., 2000; Villarejo and Sánchez, 2005; Bravo et al., 2007). In both approaches there are
positive relationships between advertisements spend and brand equity. It was also stated that
high perception of advertisement as well as contributing to make more positive assumption
for equity of brand and strong association of brand and at last awareness of brand (e.g., Yoo et
al., 2000; Buil et al., 2013).
The advertising expenditure is able to influence the brand equity by various ways. While the
product quality is evaluated then various intrinsic and extrinsic could be applied by the
customers (Rao and Monroe, 1989). The perceived advertising spend is considered as an

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extrinsic cue for the quality (Milgrom and Roberts, 1986; Kirmani and Rao, 2000). By having
some laboratory experiments a lot of studies state that there is a positive relationship between
perceived advertisement spend and the perceived quality (KirmaniandWright, 1989; Kirmani,
1990; 1997; Moorthy and Hawkins, 2005). This result is also clear in shopping environment
work (Moorthy and Zhao, 2000). So, generally consumers think that the more advertised
brand has more strong quality also (Yoo et al., 2000; Bravo et al., 2007; Buil et al., 2013).
4. Perceived Service Quality

The quality construct as mentioned in centers of literature centers for the perceived quality.
Hence, in this research, the perceived quality of service is known as the judgment of the
consumer of the overall superiority or excellence of an entity that is opposite from objective
quality.
A form of attitude is called perceived quality which is relevant but not similar to satisfaction
and outcomes from a comparison for the performance perceptions and expectations
(Parasuraman et al., 1988).
The service quality dimensions are the aspects that are related to consumer expectation and
also service quality perceptions so acting as a consumer quality determinant evaluation
(Rowley, 1998). The most famous and common employed service quality scale is called
SERVQUAL which is a general device for assessing quality of service provided by
Parasuraman et al. (1988). It contains five dimensions for the service quality which are (1)
tangibles which are physical facilities properties, personnel, equipment and communication
tools, (2) the reliability or ability to do the promised services correctly and dependently. (3)
the responsiveness that is the eagerness to assist customers and bring them good services, (4)
the assurance which is the courtesy and knowledge of staff and their capability to provide
trust as well as confidence and (5) the empathy that means individualized attention and caring
that a company brings for the customers.
Many researchers have studied about the SERVQUAL validity because it is an original work
(Orwig et al., 1997). Some of them offered that it should be done by a reliability test and the
factor analysis or the validity of construct must be analyzed in industry by industry basis
(Carman, 1990; Babakus and Boller, 1992; Finn and Lamb, 1991). This paper is not about
repeating the validity of SERVQUAL but rather is about the usage of its dimensions for
developing the service quality measurements and fitting it with the banking nature.

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5. Proposed Framework

Followed by above discussion, it implies that service quality and advertisement can affect
brand image. In this regard, this research proposes a new framework (See Figure 1.). It is
important to know any linkage in this framework is supported by previous studies.

Figure 1: Proposed Framework

Advertisement
 TV
 Print
 Online

Brand
Service Quality Image
 Tangibles
 Reliability
 Responsiveness
 Assurance
 Empathy

6. Conclusion

Extant research emphasized on importance of brand image in banking industry. This study
highlighted two important factors may affect brand image in this industry. Advertisement as a
powerful tool is the first factor, and it can be applied by TV, print, or online. On the other
hand service quality is the second factor including, tangibles, reliability, assurance,
responsiveness, and empathy. Further research can focus on testing the proposed framework
of this study in Iran or other countries. Besides, the dimensions of service quality can be
adapted based on other industries.

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