Designing a Dynamic Brand Equity Model Concentrating on Fake News in Coca-Cola Company

Document Type : Research Article

Authors

• Davood Arian Nezhad
• Hadi Bastam
• Ali Hosseinzadeh

Department of Management , Torbat-e-Heydariye Branch, Islamic Azad University, Torbat-e-Heydariye, Iran.

10.22067/jstinp.2023.81365.1050

Abstract

One of the most valuable assets for organizations is the brand of their products and services, as building a strong brand is critical to achieving competitive advantage and long-term survival in the marketplace. In this regard, it is necessary to constantly pay special attention to the status of the brand value compared to competitors to avoid the effects of fake news. Brand equity should be considered and investigated from different aspects because different factors, such as brand awareness, brand loyalty, brand association, perceived quality, and brand awareness, can affect brand equity over time. So, this concept is dynamic in marketing management. Therefore, in this research, using the system dynamics approach, a dynamic model is presented to investigate brand equity, focusing on fake news from the Coca-Cola Company, to understand better the marketing managers of the mechanism of brand equity changes over time.
The simulation outcomes demonstrated that the unique brand value and the factors influencing it do not change instantly but interact via feedback loops and build-up over time. The second stage's simulation findings revealed that fake news dissemination, brand equity, perceived quality, and brand awareness changed more than they did in the first. Customer loyalty is also influenced by perceived quality. The number of consumers who believe in the reputation and credibility of the company declines with the spread of fake information. Based on the outcomes of the simulation and the application of the policy of increasing customer knowledge, it was determined that the organization's investment to increase the customer's knowledge of the products and remove the misunderstandings brought on by fake information could increase trust in the brand and lead to the neutralization of the effect of fake news on the brand value and the factors affecting it.

Keywords

• Dynamic model
• Brand equity
• Fake news
• Customer knowledge
• Coca-Cola company

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