CUSTOMER-BASED BRAND EQUITY

2.1

Results of Blind Beer Taste

2.2

Customer-Based Brand Equity

The differential effect that brand knowledge has on consumer response to the marketing of that brand.

Differential effect

Differences in consumer response A result of consumers knowledge about the brand Choice of a brand Recall of copy points from an ad Response to a sales promotion Evaluations of a proposed brand extension
2.3

Brand knowledge

Consumer response to marketing

Brand Equity as a Bridge

Reflection of past investments in the marketing of a brand Direction for future marketing actions or programs

2.4

Making a Brand Strong: Brand Knowledge

Brand knowledge is the key to creating brand equity. Brand knowledge consists of a brand node in memory with a variety of associations linked to it. (associative network memory model) Brand knowledge has two components: brand awareness and brand image (Perceptions).

Carrefour: Positive associations-low prices, all products, convenience; Negative associations crowd, cheap, parking problem
2.5

Sources of Brand Equity

Brand awareness
Brand recognition (Important in Retail situation) Brand recall (Important in Services and Online buying)

Brands may get consumer response only on the basis of awareness in especially low involvement situations

Brand image

Strong, favorable, and unique brand associations

Differential or Unique or Strong consumer response get from brand equity

2.6

Brand Awareness Advantages

Learning advantages

Register the brand in the minds of consumers

Likelihood that the brand will be a member of the consideration set Affect choices among brands in the consideration set (especially in low involvement situation)
2.7

Consideration advantages

Choice advantages

Establishing Brand Awareness

Increasing the familiarity of the brand through repeated exposure (for brand recognition) Forging strong associations with the appropriate product category or other relevant purchase or consumption cues like slogans, logos, symbols, characters, packaging (for brand recall)
Bring on the real Thirst-Quencher! Think different The ultimate driving machine Putting News First The World's Favorite Airline Hello Tomorrow The World Five star Airlines

2.8

Creating a Positive Brand Image

Brand Associations
Does not matter which source of brand association Need to be favorable, strong, and unique Adequately account them in designing communication strategies. Could be from direct experience, media, word of mouth, inferences from logo, name, slogan and marketing mix elements

2.9

2.10

The Four Steps of Brand Building

1.

2.

3.

4.

Ensure identification of the brand with customers and an association of the brand in customers minds Establish the totality of brand meaning in the minds of consumers Elicit the proper customer responses to the brand identification and brand meaning Convert brand response to create an intense, active loyalty relationship between customers and the brand

2.11

Four Questions Customers ask of Brands

1.

2.

3.

4.

Who are you? (brand identity) What are you? (brand meaning) What about you? What do I think or feel about you? (brand responses) What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships)

I am a restaurant
I make good quality burger quickly for family dining with less cost Customer: I like you; You make tasty burgers; I will eat at your restaurant; Its fun to be there Customer: I am attached to you; I can eat only your burgers; I am very much attached to Ronald Clown; When I see golden arches, it reminds me to go to your shop

2.12

Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS = RESONANCE What about you and me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

2.13

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE (Functional needs)

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES (social & esteem needs intangible aspects)

CATEGORY IDENTIFICATION

Salience Dimensions

Depth of brand awareness

Ease of recognition and recall Strength and clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration

2.15

Customer-Based Brand Equity Model

ConsumerBrand Resonance
INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Application: Identify the Key Drivers of Brand Equity

Performance Judgment
0.49

0.65

0.17

0.66

Resonance

Imagery

0.24

0.58

Feelings

2.18

Important points on Brand Building

Customers will be so attached to strong brands. Dont take shortcuts with brands.

A great brand is not built by accident Resonance should be by both performance and imagery

Brands should have a duality.

Brand resonance provides important focus.

2.19

Depth and Breadth Importance

The product category hierarchy shows us not only the depth of awareness matters but also the breadth. The brand must not only be top-of-mind and have sufficient mind share, but it must also do so at the right times and places.

2.20

Product Category Structure

To fully understand brand recall, we need to appreciate product category structure, or how product categories are organized in memory.

2.21

Performance Dimensions

Primary characteristics and supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

2.22

Imagery Dimensions

User profiles

Demographic and psychographic characteristics Actual or aspirational Group perceptionspopularity Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Sincerity, excitement, competence, sophistication, and ruggedness Nostalgia Memories
2.23

Purchase and usage situations

Personality and values

History, heritage, and experiences

Judgment Dimensions

Brand quality

Brand consideration

Value Satisfaction

Relevance
Differentiation

Brand credibility

Brand superiority

Expertise Trustworthiness Likeability

2.24

Feelings Dimensions

Warmth Fun Excitement Security Social Approval Self-respect

2.25

Resonance Dimensions

Behavioral loyalty

Frequency and amount of repeat purchases Love brand (favorite possessions; a little pleasure) Proud of brand Kinship Affiliation

Attitudinal attachment

Sense of community

Active engagement

Seek information Join club Visit website, chat rooms

2.26

2.27

2.28