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How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response? | Part 2

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Does consumer-based brand equity align well with sales-based brand equity?

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How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response? | Part 2

  1. 1. From: Does consumer-based brand equity align well with sales- based brand equity? Datta, Ailawadi, and van Heerde (2017)
  2. 2. 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
  3. 3. From:From:  Important to understand the extent to which different measures of brand equity are interchangeable.  Positive consumer perceptions (CBBE) are only as useful to managers as the extent to which they translate into equity in the marketplace (SBBE).  Do positive consumer perceptions (CBBE) result in stronger marketing mix effects? Need for research on association between CBBE and SBBE Datta, Ailawadi, and van Heerde (2017)
  4. 4. From:From:  25 FMCG categories; 441 Brands, ten years 2002-2011  290 brands with CBBE data (from BAV) ↔ SBBE based on a sales response model for scanner data Data Datta, Ailawadi, and van Heerde (2017) Source: Symphony/IRI data provided by Bronnenberg, Kruger and Mela (2008) Category No. of Brands Beer 59 Carbonated Soft Drinks 27 Cigarettes 25 Coffee 30 Cold (RTE) Cereal 23 Deodorants 19 Disposable Diapers 6 Household Cleaners 15 Ketchup 5 Laundry Detergents 20 Margarine & Spreads 13 Mayonnaise 7 Category (cont.) No. of Brands Milk 19 Mustard 12 Peanut Butter 11 Frozen Pizza & Dinners 26 Razors & Blades 5 Salty Snacks 17 Shampoo 28 Soup 8 Pasta Sauce 15 Sugar Substitutes 10 Toilet Tissue 10 Toothpaste 15 Yogurt 16 TOTAL 441
  5. 5. From:From: In general, there is a positive relationship! But, not all brand dimensions are created equal! CBBE and SBBE Correlation With Dimension of CBBE Es- teem Know- ledge En. Diff. SBBE Relevance .85*** .64*** .02 .39*** Esteem .70*** .04** .35*** Knowledge -.20*** .53*** Energized Differentiation -.14*** Datta, Ailawadi, and van Heerde (2017)
  6. 6. From:From: Example: CBBE and marketing mix effectiveness (I) Datta, Ailawadi, and van Heerde (2017) 0 0.02 0.04 0.06 Low High Feature/Display Elasticity Relevant Stature 0 0.001 0.002 0.003 0.004 0.005 0.006 Low High AdvertisingElasticity Relevant Stature Relevant stature (combination of relevance, esteem, knowledge) leads to stronger feature/display, advertising and promotional price elasticities... -4 -3 -2 -1 0 Low High PromotionalPrice Relevant Stature Note: The effect of the Energized Differentiation is different. For details, see paper.
  7. 7. From:From: Example: CBBE and marketing mix effectiveness (II) Datta, Ailawadi, and van Heerde (2017) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Low High Distribution Relevant Stature ...but weaker distribution elasticities, potentially because consumers are willing to search for strong brands wherever they are available. Note: The effect of the Energized Differentiation is different. For details, see paper.
  8. 8. From:From: http://youtu.be/LP8codXiqAE YouTube overview of how brand equity works Datta, Ailawadi, and van Heerde (2017)

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