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g communications and this increases the opportunities of expansion and franchising. Moreover, Delgado-Ballester and Munuera-Aleman (2005) add that brand names create resistance to competitors, provide larger margins, greater intermediary co-operation and support, and brand expansion opportunities. All these are considered to be adding value to the brand because of its brand name.

According to Yasin et al ( 2007, p.39) the 1989 Marketing Science Institute defines brand equity as 'the value that is added by the name and rewarded in the market with better profit margins or market shares. It can be viewed by customers and channel members as both a financial asset and as a set of favorable associations and behaviors'. In more simple terms, brand equity is the value added by the brand name to the products, the retailers or/and the consumers.

Accordingly, a brand owner can view brand equity as part of the financial value added to the company. In this point of view brand equity affects acquisition and merger decision making (Schultz and Schultz, 2004). Bello and Holbrook (1995) suggested that brand equity emerges when buyers willingly pay more for the same quality level product due to the attraction added by the name. Yoo and Donthu (2000) has indicated that brand equity can be calculate approximately by taking out the product's physical attributes utility from the total utility of a brand. The need to find an appropriate measurement method to estimate the values of brand equity have lead researchers to suggest two paths - financial based and customer based methods. The next part will look at the review and criticism of both methods.

2.4 Measurement of Brand Equity

Studies regarding the measurement of brand equity can be grouped into three different perspectives: the customer-based perspective, the financial perspective, and the combined perspective.

2.4.1 Financial Base Brand Equity Perspective

The financial perspective is conceptualized on providing a financial estimate (between branded products over unbranded products) of a brand's value as an asset on the balance sheet (Simon & Sullivan, 1993). Alternatively, Feldwick (1996) propose brand equity is the total value of a brand name when it is included in the firm's balance sheet or sold as a separate asset.

Simon and Sullivan (1993) also adopt the financial market value-based technique in calculating the value of brand equity and separate it from the value of the firm's other assets. Another widely used method in brand valuation is the one used by the financial world (Ourusoff, 1993) where the net brand-related profit is calculated and a multiplier is assigned, based on the brand strength (leadership, communication support, stability, trading environment, internationality and legal protection).

This method (the financial based perception) enables the managers to approach the valuation of the firm brand in the same way they approach any other corporate assets valuation. Schultz and Schultz (2003) point out that placing financial value to brand equity can help a firm in:

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