1

Customer-Based Brand Equity

The power of a brand lies in what
resides in the minds of customers
(Keller, ch.2, p. 59)
The Brand Equity concept
Forskellige definitioner og opfattelser stikord.
Brand equity er lig med/ medfrer/ indebrer:
Strre volumen eller margin
Added value
Brand aktiver og passiver tilknyttet mrket som pvirker
vrdien
Tidligere rs marketingeffekt p salg og indtjening
Brand styrke (konkurrencemssig fordel) og Brand
vrdi (finansielt udkomme)
Den mlelige finansielle vrdi af transaktionen.
Villighed til fortsat at kbe . (loyalitet)
Et trovrdigt, relevant, distinkt lfte, som kan ejes.
2
Customer-Based Brand Equity (CBBE)
(definition, Keller p. 60)
CBBE is formally defined as:
The differentiaI effect that brand
knowIedge has on consumer
response to the marketing of that
brand.
Marketing advantages of Strong Brands
(Keller, figure 2-1)
mproved perception of product performance.
Greater loyalty
Less vulnerability to competitive marketing actions
Less volnerability to marketing crises
Larger margins
More elastic response to price decreases
Mare inelastic respons to price increases
Greater trade cooperation and support
ncreased marketing communication efficiency and
effectiveness
Possible licensing opportunities
Additional brand extension evaluations
3
Making a Brand strong: Brand Knowledge
Brand knowledge creates the differential
effect is the source of Brand Equity
Brand knowledge:
Brand awareness (strength of node in memory)
high IeveI of awareness and famiIiarity, i.e. Brand recognition
(strong exposure) and Brand recall (strong associations with product
catergory or the other cues Learning advantage consideration
advantage choise advantage
Brand image (perception reflected in associations)
strong, favorabIe and unique associations
strong: personal relevans and consistency;
favorabIe
desirabIe: relevant, destinctive and believable and
deIiverabIe: ability to performe, to communication hereof,
sustainablitliy
unique: points of difference (points of parity)
Customer-Based Brand Equity Pyramid
(Keller figure 2-5)
4. ReIationsships
What about you and me?
3. Respons
What about you?
2. Meaning
What are you?
1. Identity
Who are you?
Resonance
Judgements FeeIings
Performance Imagery
SaIience (Awareness )
(Association )
4
Subdimensions of Brand Building Blocks
(Keller figure 2-6)
LoyaIty
Attachment
Community
Engagement
QuaIity
CredibiIity
Consideration
Superiority
Warmth
Fun
Excitement
Security
SociaI approvaI
SeIf-Respect
Primary Characteristics and
Secondary Features
Product ReIiabiIity, DurabIiIty
and ServiceabiIity
Service Effectiveness,
Efficiency and Empaty
StyIe and Design
Price
User ProfiIes
Purchase and Usage
Situations
PersonaIity and VaIues
History, Heritage and
Experience
Category Identifications
Needs Satisfied
Brand building implications
Customers own Brands
Don't take shortcuts with Brands (fig. 2-12)
Brands should have duality (fig. 2-12)
Brands should have richness
Brand resonance provides importante
focus (to what extent are marketing activities affecting the key
dimensions of resonnance: loyalty, attachment, community,
engagement?
But: Keep focus and take care for delution
of the Brand
5
Customer-Based Brand Equity Pyramid
(Keller figure 2-12)
Intense, active IoyaIty
Positive,accessibIe
reactions
Points-of-parity
and points-of-
difference
Deep, broad
Brand
Awareness
Consumer
Brand
Resonance
Consumer Consumer
Judgements FeeIings
Brand Brand
Performance Imagery
Brand
SaIience