1. Brand Management 260 Ch 2

2. The Concept of Customer-Based Brand Equity
Customer-based brand equity is defined as the Differential effect that brand knowledge has on consumer response to the marketing of the brand.
KEY terms
Differential effect
Brand knowledge
Consumer response to marketing 12

3. Positive CBBE More accepting of a new brand extension
Less sensitive to price changes and withdrawal of advertising support
More willing to seek out the brand in a new distribution channel

4. Customer-Based Brand Equity as a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus to future marketing activities 7 7

5. Making a brand strong…Brand Knowledge
Brand knowledge creates Brand equity because it creates differential effect that drives brand equity.
Associative Network Memory Model
Nodes and linkages create brand image and brand awareness 19

6. Determinants of Customer-Based Brand Equity
Customer is aware of and familiar with the brand
Customer holds some strong, favorable, and unique brand associations in memory
Body Shop
MTV
Marlboro
Head and Shoulders 14

7. Making a brand strong…Brand Knowledge
Brand knowledge structures depend on . . .
The initial choices for the brand elements
The supporting marketing program and the manner by which the brand is integrated into it
Other associations indirectly transferred to the brand by linking it to some other entities 19

8. Brand Elements
A visual or verbal information that serves to identify and differentiate a product
Brand name
Logo
Symbols
Character
Packaging
Slogan
Jingle
Ask what consumers would think about the brand if they only know its brand name and associated logo

9. Disneyland as a Brand “Associations”
Fun
Family
Happiness
Mickey Mouse
Dream Holiday
Fantasy
Magical
Journey
A brand is a “network of associations”
It resides in customer’s mind but not in the company

10. Benefits of Customer-Based Brand Equity
Enjoy greater brand loyalty, usage, and affinity
Command larger price premiums
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions. 15

11. Motivation for Customer-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

12. 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

13. 4 steps of brand building
Ensure identification of the brand with customers and an association of the brand in customers minds with a specific product class or customer need.
Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties
Elicit the proper customer responses to this brand identification and brand meaning
Convert brand response to create an intense active loyalty relationship between customers and the brand.

14. 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?

15. Salience Dimensions Depth of brand awareness
Ease of recognition & recall
Strength & clarity of category membership
Breadth of brand awareness
Purchase consideration
Consumption consideration

16. Performance Dimensions
Primary characteristics & supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price 23

17. Imagery Dimensions User profiles Purchase & usage situations
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

18. Judgment Dimensions Brand quality Brand credibility
Value
Satisfaction
Brand credibility
Expertise
Trustworthiness
Likability
Brand consideration
Relevance
Brand superiority
Differentiation

19. Feelings Dimensions Warmth Fun Excitement Security Social approval
Self-respect

20. Resonance Dimensions Behavioral loyalty Attitudinal attachment
Frequency and amount of repeat purchases
Attitudinal attachment
Love brand (favorite possessions; “a little pleasure”)
Proud of brand
Sense of community (e.g Apple, Harley Davidson)
Kinship
Affiliation
Active engagement
Seek information
Join club
Visit web site, chat rooms

21. Customer-Based Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer Judgments
Consumer Feelings
Performance
Imagery
INTENSE, ACTIVE LOYALTY
RATIONAL & EMOTIONAL REACTIONS
POINTS-OF-PARITY & POINTS-OF-DIFFERENCE
DEEP, BROAD BRAND AWARENESS

22. Sub-Dimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY CREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUN
EXCITEMENT
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 SITUATIONS
PERSONALITY & VALUES
HISTORY, HERITAGE,
& EXPERIENCES