CH 2 (Customer Based Brand Equity)

8/13/2019 CH 2 (Customer Based Brand Equity)

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Chapter 2

Customer Based Brand Equity


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Customer Based Brand Equity

CBBE is formally defined as the differentialeffect that the brand knowledge has on

consumer responses to the marketing of that

brand.


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Brand Equity as a Bridge

According to the CBBE model power of the

brand lies in the mind of the consumers and

what they have learned and experienced

about the brand overtime.

Brand Equity provides marketers as Strategic

bridge in the form of :


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Brand Equity as Strategic Bridge

Brand as a reflection of the past: Dollars

spent on Marketing should not be viewed as

expenses but as investment.

Brands as Direction for the Future: Brand

Knowledge created overtime by marketing

investments dictates brand future direction.


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Making a Brand Strong:

Brand Knowledge

Brand knowledge is the key to creating brandequity.

The model of memory developed bypsychologists known as associative networkmemory model.

Model represents the strengths of associationbetween the information and the brand.


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Sources of Brand Equity

1. Brand Awareness

Brand Awareness consist of Brand Recognition

and Brand Recall.

2. Brand Image

Brand image is created by marketing program

that link strong, favorable, and uniqueassociations to the brand memory.


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Brand Awareness Advantages

1. Learning advantages: Register the brand in the minds of consumers

2. Consideration advantages: Likelihood that the brand will be a member of the

consideration set

3. Choice advantages: Affect choices among brands in the consideration set


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Establishing Brand Awareness

Increasing the familiarity of the brand through

repeated exposure (for brand recognition)

Forging strong associations with the

appropriate product category or otherrelevant purchase or consumption cues (for

brand recall)


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The Four Steps of Brand Building

1. Ensure identification of the brand with customers and anassociation of the brand in customers minds

2. Establish the totality of brand meaning in the minds of

consumers

3. Elicit the proper customer responses to the brandidentification and brand meaning

4. Convert brand response to create an intense, activeloyalty relationship between customers and the brand


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Four Questions Customers ask of

Brands

1. Who are you? (brand identity)

2. What are you? (brand meaning)

3. What about you? What do I think or feel about you?(brand responses)

4. What about you and me? What kind of associationand how much of a connection would I like to havewith you? (brand relationships)


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Customer-Based Brand Equity Pyramid

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you and me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?


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Brand Salience

Brand Salience relates to aspects of theawareness of the brand, for example, howoften and easily the brand is evoked under

various situations.

To what extent brand has top of the mind

recall?

How pervasive is the brand awareness?


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Breadth and Depth of Awareness

The depth of brand awareness concerns the

likelihood that the brand will come to mind

and the ease with which it does so.

The breadth of brand awareness concerns the

range of purchase and usage situation in

which the brand comes to mind.


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Product Category Structure


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Steps/Hierarchy in Product Category

Structure

First Consumer will distinguish between flavorand non flavor beverages.

Then they distinguish between alcoholic and

nonalcoholic beverages. Nonalcoholic beverages are further

distinguished in consumers mind (e.g., coffee

or tea) Alcoholic beverages are further distinguished

whether they are wine, beer etc.


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Strategic Implications of Product

Hierarchy

Through Product Hierarchy Brand awareness

can be improved.

Can Gauge the better understanding for

product positioning.

Brand must be marketed at the right time and

at the right place.


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Brand Performance

Brand performance relates to the ways inwhich product or service attempts to meetcustomersmore functional needs.

Brand Performance Dimensions can serve as ameans by which the brand is differentiated.

Five important dimensions or attributes thatunderlie brand performance are:


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Brand Performance Dimensions

Primary ingredients/characteristics andsupplementary features

Product reliability, durability, andserviceability

Service effectiveness, efficiency and empathy

Style and design

Price


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Brand Imagery

Brand imagery deals with the extrinsicproperties of the product or service.

Brand imagery is how people think about thebrand abstractly, rather then what the brandactually does.

Imagery is related to more intangible aspectsof the brand.


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Imagery Dimensions/Categories

User profiles Demographic and psychographic characteristics

Actual or aspirational

Group perceptionspopularity

Purchase and usage situations Type of channel, specific stores, ease of purchase

Time (day, week, month, year, etc.), location, and context of usage

Personality and values Sincerity, excitement, competence, sophistication, and ruggedness

History, heritage, and experiences Nostalgia

Memories


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Brand Judgment

Brand judgment focus customer personalopinions and evaluations with regard to the

brand.


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Brand Judgment Dimension

Brand Quality

Value

Satisfaction

Brand Credibility

Expertise (Competent, innovative and market leader)

Trustworthiness (dependable and keeping customerinterest in mind)

Likeability (Fun, interesting and worth spending timewith)


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Brand Consideration

Brand consideration is more then mereawareness.

Brand consideration depends on how appropriateand meaningful customer find the brand.

Brand consideration largely depends on howbrand association is created.


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Brand Superiority

Superiority relates to the extent to whichcustomer view the brand as unique and better

then then others. (Differentiation)


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Feelings Dimensions

Warmth : Consumer may feel sentimental,warmhearted or affectionate about the brand.

Fun: Brand makes consumer feel amused, lighthearted,

playful and cheerful etc.

Excitement: Brand make consumer feel energized orfeeling of something special.

Security: Brand produces the feeling of safety, controland self-assurance.


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Feelings Dimensions

Social Approval: Brand results in having

positive response from others.

Self-respect: Brand makes consumer feel

better about themselves.


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Brand Resonance

Brand resonance is the ultimate relationship

and level of identification the consumer has

with the brand.

Resonance is the depth of psychological bond

the consumer has with the brand.


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Brand Resonance

Dimensions/CategoriesBehavioral Loyalty

The first dimension of brand resonance is behavioral loyaltyin terms of repeat purchases

Attitudinal Attachment Consumer should go beyond having positive attitude to

viewing the brand as something special.

Example: Consumer may state that they love their brand,describe it as their favorite possessions view the brand aslittle pleasures that they look forward to.


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Brand Resonance

Dimensions/Categories

Sense of Community

Brand community describes consumers as a partof certain community.

Identification with a brand community mayreflect an important social phenomena.

Consumer feel kinship or affiliation with otherpeople associated with the brand.


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Brand Resonance

Dimensions/Categories

Active Engagement

Strongest affiliation of brand loyalty is whenconsumer are willing to invest time, energy,

money and other resources.

CH 2 (Customer Based Brand Equity)

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