Designing the Brand Equity Model and Forecasting the Future Process in Alborz Insurance Company with Using a System Dynamics Approach

Subject Areas : Futurology

Somayyeh Shafeiha ¹ ( Ph.D. student of business management Islamic Azad University, Central Tehran Branch, Tehran, Iran (Corresponding Author) [e-mail] )
Abbas Saleh Ardestani ² ( Associate Professor, Faculty Member of Islamic Azad University, Central Tehran Branch. Tehran, Iran. )
M. A. Afshar Kazemi ³ ( Associate Professor, Faculty Member of Islamic Azad University, Central Tehran Branch. Tehran, Iran. )
V. Reza Mirabi ⁴ ( Associate Professor, Faculty Member of Islamic Azad University, Central Tehran Branch. Tehran, Iran )

Received: 2017-04-22 Accepted : 2017-09-12 Published : 2017-07-23

Keywords: Brand Equity System, Dynamics Model, Scenario, Insurance Industry,

Abstract :

In changing and dynamic world, the managers need to become sensitive to the dynamic uses of brand management. Have to look at marketing issues with a systematic approach to predict the effects of their decisions before occurring in the future by using an integrated tool. Brand equity is a source of competitive advantage that reduces the Company's vulnerability to crises and competitors, then, creating a strong brand and its improvement appears to be the ultimate goal of marketing activities, especially service businesses, which can improve and increase the rate of return on brand investment. The aim of this study was to design and analysis system dynamics of brand equity capable of simulating the effect of variables (brand loyalty, perceived quality, brand awareness, brand association) over time. In this paper, brand equity in Alborz insurance company was designed within a systematic thinking, and using the system dynamic tools, the behavior of variables was predicted on a 72-month by using of Vensim software. The main variables were initially identified. Then, their relationships were completed in the form of causal loops and accumulation- flow diagram. Finally, the model was simulated in the software. Then, through analysis of sensitivity and policy, a valid model by an improved policy structure was obtained, which was used to develop the brand equity improvement scenario. It was clarified in the best scenario that by changing the parameters, brand equity will rise from 61.7% at the beginning of the base year to 84.2% at the end of the simulation.