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Motivation forCustomer-Based Brand Equity

Model• Marketers know strong brands are

important but aren’t always sure how to build one.

• CBBE model was designed to be …– comprehensive – cohesive – well-grounded – up-to-date– actionable

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Brand Equity

• The marketing effects uniquely attributable to the brand - Keller

• Positive brand equity leads to:– Loyalty– Margins– Reduced vulnerability to competition– Enhanced marketing effectiveness– Brand extensions

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Rationale of Customer-Based Brand Equity

Model• Basic premise: Power of a brand resides in

the minds of customers• Challenge is to ensure customers have the

right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes

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Brand Equity• Sources of Brand Knowledge

– Brand Awareness– Brand Image

• Strength of Brand Associations• Favorability of Brand Associations• Uniqueness of Brand Associations

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Consequences of Brand Awareness• Learning Advantages- A brand node is established in

memory• Register the brand in the minds of the consumers.• Consideration Advantages- think and consider the

brand while making purchase- consideration set.• Part-list cuing effects-recall of some information can

inhibit recall of other information.• Choice Advantages-can affect choices among brands

in the consideration set.

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Establishing Brand Awareness• Increasing the familiarity-repeated exposure• Seeing, hearing thinking –strongly registered in

memory.• Brand name, symbol, logo, character,

packaging, slogan• Advertising, promotion, event marketing,

publicity, public relation, outdoor Visually and verbally reinforce brand name

• Recall-linkages in memory- product category-situational purchase,consumption cues.

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Brand Image• Positive brand image-marketing programs that

link strong, favorable and unique associations to the brand in memory.

• Brand associations- marketer controlled sources of information, direct experience, consumer reports, word of mouth, media vehicles, inferences about brand,

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Building Customer-Based Brand

Equity• Building a strong brand involves a series of

steps as part of a “branding ladder”• A strong brand is also characterized by a

logically constructed set of brand “building blocks.”– Identifies areas of strength and weakness– Provides guidance to marketing activities

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Building a strong Brand-The Four steps of Brand building

• Who are you? (Brand Identity)• What are you? (Brand meaning)• What about you? (Brand response)• What about you and me? What kind of

association and how much of a connection would I like to have with you? (Brand relationships)

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

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Salience Dimensions

• Salience – aspects of the awareness of the brand-top-of-mind

• Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category membership

• Breadth of brand awareness– Purchase consideration– Consumption consideration

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Performance Dimensions

• Product is at the heart of brand equity-satisfies consumers needs

• Intrinsic properties-product/service characteristics• Primary characteristics & supplementary features• Product reliability, durability, and serviceability• Service effectiveness, efficiency, and empathy• Style and design• Price

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Imagery Dimensions• Extrinsic properties• Meets consumers psychological /social needs• Abstract /intangible aspects of brand• User profiles

– Demographic & psychographic characteristics– Actual or aspirational – Group perceptions -- popularity

• Purchase & usage situations– Type of channel, specific stores, ease of purchase– Time (day, week, month, year, etc.), location, and context of usage

• Personality & values– Sincerity, excitement, competence, sophistication, & ruggedness

• History, heritage, & experiences– Nostalgia– Memories

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Judgment Dimensions• Customers personal opinions and evaluations with regard to

brand.

• Brand quality– Value– Satisfaction

• Brand credibility– Expertise( competent, innovative, market leader)– Trustworthiness( dependable, keeping customers interest in mind)– Likability (fun, Interesting, worth spending time with)

• Brand consideration– Relevance- extent to which customers view the brand as being

appropriate and meaningful to themselves• Brand superiority

– Differentiation- unique and better than other brands.– to build intense and active relationship

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Feelings Dimensions• Emotional response and reaction• Social currency evoked by the brand• Transformational advertising• Warmth- soothing, calm, peace, sentimental,

warmhearted, affectionate • Fun- amused, lighthearted, joyous, playful, cheerful• Excitement -energized, being alive, cool, sexy,Experiential and immediate- increasing in level of

intensity• Security -safety, comfort, self-assurance• Social approval -positive about reaction of others• Self -respect- sense of pride, accomplishment, fulfillmentPrivate and enduring, increasing in level of gravity.

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Resonance Dimensions • Ultimate relationship and level of identification the customer has

with the brand.- nature of relationship- ‘in sync’• Harley Davidson, Apple,eBay.• Intensity or depth of the psychological bonding • Strong personal attachment.• Behavioral loyalty

– Frequency and amount of repeat purchases- lifetime value• Attitudinal attachment

– Love brand (favorite possessions; “a little pleasure”)– Proud of brand

• Sense of community– Kinship– Affiliation

• Active engagement– Seek information– Join club– Visit web site, chat rooms

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Brand Building ImplicationsBranding tenets• Customer own brands• Don’t take shortcuts with brands• Brands should have a duality- appeal to both

head and heart• Brands should have richness• Brand /Resonance provides important focus.