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How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response? | Part 1

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What is brand equity and how can it be measured?

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How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response? | Part 1

  1. 1. From: What is brand equity and how can it be measured? Datta, Ailawadi, and van Heerde (2017)
  2. 2. From:From: What is brand equity? Datta, Ailawadi, and van Heerde (2017) Roberto Goizueta, the former CEO of the Coca Cola Company: “[W]hat would happen if tomorrow we woke up and every single asset that Coke has was wiped out. I could walk into any bank and borrow the money to restart operations, just based on the strength of the Coke brand name.”
  3. 3. From:From:  Brand equity is the value of having a well-known brand name, based on the idea that the owner can generate more money from products with that brand name than from products with a less well-known name, as consumers believe that a product with a well-known name is better than products with less well known names. Source: American Marketing Association  In short: The more favorable response a product or service receives because of its brand identification.  It is an intangible asset owned by the firm that needs to be measured What is brand equity? Datta, Ailawadi, and van Heerde (2017)
  4. 4. From:From: How can brand equity be measured? Datta, Ailawadi, and van Heerde (2017) Sales-Based Brand Equity (SBBE): In-Market Sales Data Example of brand measures: Brand Equity Ten, CBBE Pyramid, Brand Asset Valuator Share of choice/market after removing contribution of marketing mix and product attributes Consumer-Based Brand Equity (CBBE): Perceptual Measures
  5. 5. From:From: Consumer-based brand equity (CBBE) is obtained via surveys Energized differentiation Relevance EsteemKnowledge How appropriate is the brand to you? An intimate understanding of the brand How do you regard the brand? A brand’s uniqueness and ability to adapt to future consumer needs CBBE = Combination of the ‘Four Pillars’ used here: others: Datta, Ailawadi, and van Heerde (2017)
  6. 6. From:From: Sales-based Brand Equity Sales-based brand equity (SBBE)is obtained from choice, sales, or market shares Total Market Share (based on scanner data) Sales-based Brand Equity SBBE is the brand’s market share after removing the contribution of the marketing mix and product attributes. Product attributes Regular Price Price promotions Advertising Distribution Feature/Display Product attributes Regular Price Price promotions Feature/Display Advertising Distribution Brand A Brand B Datta, Ailawadi, and van Heerde (2017)
  7. 7. From:From: http://youtu.be/LP8codXiqAE YouTube overview of how brand equity works Datta, Ailawadi, and van Heerde (2017)

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