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Customer Based Brand Equity
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Customer Based Brand Equity Customer Based Brand Equity Presentation Transcript

  • CHAPTER 2 CUSTOMER-BASED BRAND EQUITY
  • Customer-Based Brand Equity
    • Brand knowledge is the key to building CBBE:
      • Brand awareness
      • Brand image
    • Associative Network Memory Model
  • Associative Network Memory Model
    • Beyindeki bağların oluşumunu etkilemek
  • Can You Identify the Brands?
    • Convenient, value, golden arches
    • Refreshment, taste, optimism
    • Safety
    • Fun, magic, family entertainment
    • Styling and driving performance
    • Rugged, western cowboy
  • Customer-Based Brand Equity
    • Brand knowledge is the key to building CBBE:
      • Brand awareness (recognition vs. recall)
      • Brand image
        • Strength (Quantity and quality of processing)
        • Favorability ( Desirable and successfully delivered )
        • Uniqueness (reason why vs. no reason why not)
  • Building Customer-Based Brand Equity
    • Building a strong brand involves a series of steps as part of a “branding ladder”
    • How consumers think, feel, and and act with respect to that brand…
    • 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
  • 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?
  • 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
  • Judgment Dimensions
    • Brand quality
      • Value
      • Satisfaction
    • Brand credibility
      • Expertise
      • Trustworthiness
      • Likability
    • Brand consideration
      • Relevance
    • Brand superiority
      • Differentiation
  • 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
  • Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS
  • 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
  • Brand-Building Implications: The Five Branding Tenets
    • Customers own brands
    • Don’t take shortcuts with brands
    • Brands should have a duality
    • Brands should have richness
    • Brand resonance provides important focus
  • 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 efficiency & effectiveness
    • Yield licensing opportunities
    • Support brand extensions.
  • Creating Customer Value
    • Customer-brand relationships are the foundation of brand resonance and building a strong brand.
    • The customer-based brand equity model certainly puts that notion front and center.
  • Customer Relationship Management (CRM)
    • Uses a company’s data systems and applications to track consumer activity and manage customer interactions with the company
  • Customer Equity
    • The sum of lifetime values of all customers
    • Customer lifetime value (CLV) is affected by revenue and by the cost of customer acquisition, retention, and cross-selling
    • Consists of three components:
      • Value equity
      • Brand equity
      • Relationship equity
    • Rust, Zeithamal & Lemon, 2004
  • Customer Equity
    • Blattberg and Deighton (1996) offer eight guidelines as a means of maximizing customer equity:
      • Invest in highest-value customers first
      • Transform product management into customer management
      • Consider how add-on sales and cross-selling can increase customer equity
      • Look for ways to reduce acquisition costs
      • Track customer equity gains and losses against marketing programs
      • Relate branding to customer equity
      • Monitor the intrinsic retainability of your customer
      • Consider writing separate marketing plans—or even building two marketing organizations—for acquisition and retention efforts
  • Relationship of Customer Equity to Brand Equity
    • Customer-based brand equity maintains that brands create value by eliciting differential customer response to marketing activities.
    • Customers drive the success of brands but brands are the necessary touchpoint that firms have to connect with their customers.