Keeping it Real while Selling Out : How to increase Customer-Based Brand Equity by utilizing Brand Authenticity

Abstract: Previous research has proven that perceived Brand Authenticity functions as a differentiator, which brands can use to stand out in today’s marketplace. However, few studies have investigated whether it is possible for brands to become more profitable by utilizing their authenticity. This thesis therefore investigates the relationship between the two branding concepts Brand Authenticity and Customer-Based Brand Equity (CBBE). An explanatory survey study is made on the Swedish retail clothing industry, which measures the effect of the Brand Authenticity associations Continuity, Originality, Trustworthiness, Genuineness, Heritage, and Symbolism on the CBBE outcomes (1) consumers’ willingness to pay a price premium, (2) recommend a brand, and (3) buy a brand before other brands. The results show that while some Brand Authenticity associations increase the CBBE outcomes, others seem to give no effect and some even to undermine them. If brand managers of authentic brands wish to increase their value sales through price premiums and increase volume sales through increased purchases, they should focus on communicating Symbolism, Originality and Genuineness. If decreased marketing costs through word of mouth is the goal, brand recommendations can be achieved through communicating Trustworthiness as well. However, Continuity and Heritage should be avoided in all brand communication if increased profits is the primarily goal.