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Chapter 2Literature review
2.1 Definition of brand internationalization
‘More and more firms and other organizations have come to the realization that one of their most valuable asset is the brand names associated with their products or services. In an increasingly complex world, individuals and businesses are faced with more and more choices but seemingly have less time to make those choices. The ability of a strong brand simplify consumer decision making, reduce risk, and set expectations is thus invaluable. Creating strong brands that deliver in that promise, and maintaining and enhancing the strength of those brands over time, is thus a management imperative.’(Kevin 2003) Through this condition, if corporations want to increasing their competitiveness should have a strong brand with clear idea and great value.

Scholars have different views of brand. Aaker (1991) thinks that brand is a name, term, symbol or design utilized by corporations in order to offer information and the source of market supply to customers. Simon & Sullivan (1993) think brand equity is a product with brand name, which can make the present value of cash flow comparing with the product without brand name. Kotler (1997) thinks brand has 6 levels of meaning: attributes, benefit, value, culture, personality, and users. Johny & Ilkka (2005) think that brand contains product image factors (pattern, color), functional factors (function, quality), and consumer psychology factors (perception, cognition).

Some scholars do not agree with this view (Asker & Joachinsthaler, 1999; David & Erich, 2000). Brand internationalization strategy should meet the local needs in target countries (Motameni & Shahrokhi, 1998). Douglas et al., (2001) think this ‘strategy’ can realize the scale economy benefits brought by unionization and standardization and realize low cost operating. Wright (2002) thinks brand internationalization is a brand international marketing, and its purpose is making the brand to occupy the strong position in foreign countries (Gillespie et al., 2002; Quelch, 2003). Gelder (2005) defines brand internationalization in terms of region, and he thinks that brand internationalization is the corporations do business in many countries or areas.

2.2 Brand value
2.2.1 Improvement of brand value
Brands is an important part of corporations, a well known brand will be the significant intangibles for the corporation. ‘If your company has created a superior product offered at a price that delivers an outstanding value and supports the product by unparalleled service, but no one has ever heard of your company or its products, how many of those products are you likely to sell? Zero. That’s why awareness is so important. It is the cornerstone of strong brands.’ Basic on the high quality products and good customer service, increasing the brands awareness will be the major method to earn extend profit and improving the brand value. Brand awareness means a gauge of marketing effectiveness measured by the ability of a customer to recognize and/or recall a name, image or other mark associated with a particular brand.

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