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2.1
CHAPTER 2:CHAPTER 2:
CUSTOMERCUSTOMER--BASED BRAND EQUITYBASED BRAND EQUITY
Kevin Lane KellerKevin Lane Keller
Tuck School of BusinessTuck School of Business
Dartmouth CollegeDartmouth College
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2.2
CustomerCustomer--Based Brand EquityBased Brand Equity
The differential effect that brand knowledge hasThe differential effect that brand knowledge has
on consumer response to the marketing of thaton consumer response to the marketing of that
brand.brand.
Keller, 1993Keller, 1993
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2.3
CustomerCustomer--Based Brand EquityBased Brand Equity
Differential effectDifferential effect
Differences in consumer responseDifferences in consumer response
Brand knowledgeBrand knowledge
A result of consumers knowledge about the brandA result of consumers knowledge about the brand
Consumer response to marketingConsumer response to marketing
Choice of a brandChoice of a brand
Recall of copy points from an adRecall of copy points from an ad Response to a sales promotionResponse to a sales promotion
Evaluations of a proposed brand extensionEvaluations of a proposed brand extension
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2.4
Brand Equity as aBrand Equity as a BridgeBridge
Reflection ofReflection ofpastpast investments in the marketing ofinvestments in the marketing of
a branda brand
Direction forDirection forfuturefuturemarketing actions ormarketing actions orprogramsprograms
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2.5
Making a Brand Strong:Making a Brand Strong:
Brand KnowledgeBrand Knowledge
Brand knowledge is the key to creating brandBrand knowledge is the key to creating brand
equity.equity.
Brand knowledge consists of a brand node inBrand knowledge consists of a brand node inmemory with a variety of associations linked tomemory with a variety of associations linked to
it.it.
Brand knowledge has two components: brandBrand knowledge has two components: brand
awareness and brand image.awareness and brand image.
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2.6
Sources of Brand EquitySources of Brand Equity
Brand awarenessBrand awareness
Brand recognitionBrand recognition
Brand recallBrand recall Brand imageBrand image
Strong, favorable, and unique brand associationsStrong, favorable, and unique brand associations
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2.7
Brand Awareness AdvantagesBrand Awareness Advantages
Learning advantagesLearning advantages
Register the brand in the minds of consumersRegister the brand in the minds of consumers
Consideration advantagesConsideration advantages Likelihood that the brand will be a member of theLikelihood that the brand will be a member of the
considerationsetconsiderationset
Choice advantagesChoice advantages
Affect choices among brands in the considerationAffect choices among brands in the consideration
setset
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2.8
Establishing Brand AwarenessEstablishing Brand Awareness
Increasing the familiarity of the brand throughIncreasing the familiarity of the brand through
repeated exposure (for brand recognition)repeated exposure (for brand recognition)
Forging strong associations with the appropriateForging strong associations with the appropriateproduct category or other relevant purchase orproduct category or other relevant purchase or
consumption cues (for brand recall)consumption cues (for brand recall)
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2.9
Creating a Positive Brand ImageCreating a Positive Brand Image
Brand AssociationsBrand Associations
Does not matter which source of brand associationDoes not matter which source of brand association
Need to be favorable, strong, and uniqueNeed to be favorable, strong, and unique Marketers should recognize the influence of theseMarketers should recognize the influence of these
other sources of information by bothother sources of information by both managingmanagingthemthem
as well as possible and by adequatelyas well as possible and by adequatelyaccountingforaccountingfor
them in designing communication strategies.them in designing communication strategies.
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2.10
The Four Steps of Brand BuildingThe Four Steps of Brand Building
1.1. Ensure identification of the brand with customers andEnsure identification of the brand with customers and
an association of the brand in customers mindsan association of the brand in customers minds
2.2. Establish the totality of brand meaning in the minds ofEstablish the totality of brand meaning in the minds of
consumersconsumers3.3. Elicit the proper customer responses to the brandElicit the proper customer responses to the brand
identification and brand meaningidentification and brand meaning
4.4. Convert brand response to create an intense, activeConvert brand response to create an intense, active
loyalty relationship between customers and the brandloyalty relationship between customers and the brand
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2.11
Four Questions Customers ask of BrandsFour Questions Customers ask of Brands
1.1. Who are you? (brand identity)Who are you? (brand identity)
2.2. What are you? (brand meaning)What are you? (brand meaning)
3.3. What about you? What do I think or feel aboutWhat about you? What do I think or feel aboutyou? (brand responses)you? (brand responses)
4.4. What about you and me? What kind ofWhat about you and me? What kind of
association and how much of a connectionassociation and how much of a connectionwould I like to have with you? (brandwould I like to have with you? (brand
relationships)relationships)
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2.12
CustomerCustomer--Based Brand Equity PyramidBased 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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SubSub--Dimensions of CBBE PyramidDimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUNEXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
USER PROFILES
PURCHASE & USAGE
SITUATIONSPERSONALITY &
VALUES
HISTORY, HERITAGE
& EXPERIENCES
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2.14
Salience DimensionsSalience Dimensions
DepthDepthof brand awarenessof brand awareness
Ease of recognition and recallEase of recognition and recall
Strength and clarity of category membershipStrength and clarity of category membership
BreadthBreadthof brand awarenessof brand awareness
Purchase considerationPurchase consideration
Consumption considerationConsumption consideration
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2.15
Depth and Breadth ImportanceDepth and Breadth Importance
The product category hierarchy shows us notThe product category hierarchy shows us not
only the depth of awareness matters but also theonly the depth of awareness matters but also the
breadth.breadth.
The brand must not only beThe brand must not only be toptop--ofof--mindmindand haveand have
sufficient mind share, but it must also do sosufficient mind share, but it must also do so atat
therighttimesandplaces.therighttimesandplaces.
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2.16
Product Category StructureProduct Category Structure
To fully understand brand recall, we need toTo fully understand brand recall, we need to
appreciateappreciateproductcategorystructure,productcategorystructure, or howor how
product categories are organized in memory.product categories are organized in memory.
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2.17
Performance DimensionsPerformance Dimensions
Primary characteristics and supplementary featuresPrimary characteristics and supplementary features
Product reliability, durability, and serviceabilityProduct reliability, durability, and serviceability
Service effectiveness, efficiency, and empathyService effectiveness, efficiency, and empathy
Style and designStyle and design
PricePrice
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2.18
Imagery DimensionsImagery Dimensions
User profilesUser profiles
Demographic and psychographic characteristicsDemographic and psychographic characteristics
Actual or aspirationalActual or aspirational
Group perceptionsGroup perceptionspopularitypopularity
Purchase and usage situationsPurchase and usage situations Type of channel, specific stores, ease of purchaseType of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usageTime (day, week, month, year, etc.), location, and context of usage
Personality and valuesPersonality and values
Sincerity, excitement, competence, sophistication, and ruggednessSincerity, excitement, competence, sophistication, and ruggedness
History, heritage, and experiencesHistory, heritage, and experiences
NostalgiaNostalgia
MemoriesMemories
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2.19
Judgment DimensionsJudgment Dimensions
Brand qualityBrand quality
ValueValue
SatisfactionSatisfaction
Brand credibilityBrand credibility ExpertiseExpertise
TrustworthinessTrustworthiness
LikeabilityLikeability
Brand considerationBrand consideration
RelevanceRelevance
Brand superiorityBrand superiority DifferentiationDifferentiation
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2.20
Feelings DimensionsFeelings Dimensions
WarmthWarmth
FunFun
ExcitementExcitement SecuritySecurity
Social ApprovalSocial Approval
SelfSelf--respectrespect
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2.21
Resonance DimensionsResonance Dimensions
Behavioral loyaltyBehavioral loyalty Frequency and amount of repeat purchasesFrequency and amount of repeat purchases
Attitudinal attachmentAttitudinal attachment Love brand (favorite possessions; a little pleasure)Love brand (favorite possessions; a little pleasure)
Proud of brand
Proud of brand
Sense of communitySense of community KinshipKinship
AffiliationAffiliation
Active engagementActive engagement Seek informationSeek information
Join clubJoin club
Visit website, chat roomsVisit website, chat rooms
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CustomerCustomer--Based Brand Equity ModelBased Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
PerformanceBrand
Imagery
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS
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2.23
Brand Building ImplicationsBrand Building Implications
Customers own brands.Customers own brands.
Dont take shortcuts with brands.Dont take shortcuts with brands.
Brands should have a duality.Brands should have a duality. Brands should have richness.Brands should have richness.
Brand resonance provides important focus.Brand resonance provides important focus.
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2.24
Creating Customer ValueCreating Customer Value
CustomerCustomer--brand relationships are thebrand relationships are the
foundation of brand resonance and building afoundation of brand resonance and building a
strong brand.strong brand.
The customerThe customer--based brand equity modelbased brand equity model
certainly puts that notion front and center.certainly puts that notion front and center.