Attain and sustain competitive advantage: A system dynamics model of customer-based brand equity

Abstract

Using Vensim® I developed a simulation model of customer based brand equity based on the theoretical framework of Aaker (1991) incorporating the two way linkages of the elements of brand equity and market performance of the firm. I have incorporated three of the four elements/dimensions of brand equity and could not include brand association because many do not consider it part of brand equity and for many others it is part of perceived quality and for some others there is difficulty in measurement (please see section 3.2.3). This may be a limitation of this study. Further, I could not perform all model validation tests which is also a limitation of this study. Model simulations indicate that Mobilink is bound to lose its market share if it continues its current policies. However, heavy investment in its cell sites will help improve its market share and reverse declining trend of the market share.