Brand Equity• FARQUHAR: The added value a brand provides aproduct.• AAKER: Brand assets (or liabilities) linked to abrand’s name and symbol that add (or subtractfrom) a product or service.• KELLER: (CBBE) Customer-Based Brand EquityModelThe differential effect that brand knowledge hason consumer response to marketing of that brand.The power of a brand lies within the consumers’minds.
Brand Equity• The positive differential effect that knowingthe brand name has on customer response tothe product or service.• Provides:– More brand awareness and loyalty– Basis for strong, profitable customerrelationships
The Concept of Brand Equity• The brand equity concept stresses theimportance of the brand in marketingstrategies.• Brand equity is defined in terms of themarketing effects uniquely attributableto the brand.– Brand equity relates to the fact that differentoutcomes result in the marketing of a product orservice because of its brand name, as compared toif the same product or service did not have thatname.
The Concept ofCustomer-Based Brand Equity• Customer-based brand equity– Differential effect– Customer brand knowledge– Customer response to brand marketing
Determinants ofCustomer-Based Brand Equity– Customer is aware of and familiar with the brand– Customer holds some strong, favorable, and uniquebrand associations in memory
BuildingCustomer-Based Brand Equity• Brand knowledge structures depend on . . .– The initial choices for the brand elements– The supporting marketing program and the mannerby which the brand is integrated into it– Other associations indirectly transferred to thebrand by linking it to some other entities
Customer-Based Brand Equityas a “Bridge”• Customer-based brand equity representsthe “added value” endowed to a productas a result of past investments in themarketing of a brand.• Customer-based brand equity providesdirection and focus to future marketingactivities
Brand EquityNo Brand Loyalty(customer will change)No Brand Loyalty(customer will change)Satisfied Customer(no reason to change)Satisfied Customer(no reason to change)Satisfied & Switching CostSatisfied & Switching CostValues the Brand(brand as friend)Values the Brand(brand as friend)Devotedto BrandDevotedto Brand
CUSTOMER-BASED BRAND EQUITY PYRAMIDRESONANCESALIENCEJUDGMENTS FEELINGSPERFORMANCE IMAGERY4. RELATIONSHIPS =What about you & me?4. RELATIONSHIPS =What about you & me?3. RESPONSE =What about you?3. RESPONSE =What about you?2. MEANING =What are you?2. MEANING =What are you?1. IDENTITY =Who are you?1. IDENTITY =Who are you?
Salience Dimensions• Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category membership• Breadth of brand awareness– Purchase consideration– Consumption consideration
Performance Dimensions• Primary characteristics & supplementary features• Product reliability, durability, and serviceability• Service effectiveness, efficiency, and empathy• Style and design• Price
Imagery Dimensions• 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
Feelings Dimensions• Warmth• Fun• Excitement• Security• Social approval• Self-respect
Resonance Dimensions• Behavioral loyalty– Frequency and amount of repeat purchases• 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