Identification and Measurement of Consumer Brand Relationships

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We have identified the 5 Universal Brand Relationships via a rigorous statistical process across multiple product categories and brands

The Relationship metrics we have developed combine consumers’ brand perceptions and brand experiences in a way that preserves the integrity of these two different components of CBR.

The validity of the CBR constructs is demonstrated by the fact that their influence on brand financial measures, price/value perceptions and customer franchise measures is significantly greater than that of other measures of brand equity.

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Identification and Measurement of Consumer Brand Relationships

  1. 1. Identification & Measurement of Consumer Brand Relationships
  2. 2. How do you access Consumer-Brand Relationships ? How do you define their parameters ? How do you measure them reliably ? • • • • Understanding Brand Relationships is just like understanding any other relationship. Observe the attitudes and behaviors that the relationship gives rise to, and from those deduce the nature of the relationship. In the Consumer-Brand Relationship - as in all relationships – there are two participants, two sets of attitudes that are being expressed, two sets of behaviors that have to be observed before any deductions can be made. We ne e d to lis te n to bo th s id e s o f “the c o nve rs a tio n”
  3. 3. Listening to both sides of the conversation There is a dialogue between brand and consumer going on inside the consumer’s mind. In most research we elicit and measure only one side of that dialogue – the one that reflects consumers’ attitudes toward the brand - brand image. But there is a second side to this dialogue going on, which reflects the brand’s attitudes toward the consumer, which are a measure of how someone feels as a result of interaction with the brand. Essentially, we need to ask the consumer not only what s/he thinks of the brand, but also what the brand thinks of him or her. •Not just Bra nd Pe rc e p tio ns - what you tell consumers about your brand – but also Bra nd A ttitud e s - what you make your brand tell consumers about themselves •Not just Bra nd Us e - what the consumer does with your brand- but also Bra nd Ex p e rie nc e s - what your brand does with the consumer.
  4. 4. Brand Brand Relationship is Relationship is defined by the defined by the combination of a Brandcombination of aby the R elationships are defined combination of Brand Perceptions and specific orbrand specific brand Brand Perceptions Brand Perceptions Brand Attitudes Experiences image with a image with a specific attitude specific attitude of the brand; of the brand;
  5. 5. Brand Perception Factors R elaxed and S tylish Fun Cool Easy Friendly Stylish Different  P ositive Differentiation Distinctive Unique Charism a Dynamic Excitingly Innovative Leader Progressive F unctionality Performs well Gives Satisfaction E otional Values m Love it Fits my life COPYRIGHT 2012 BRANDYIELD CONSULTING LLC
  6. 6. Brand Attitude/Experience Factors • M entoring Challenges Me To Think Differently Teaches Me Inspires Me Shares My Values • There F M or e • P leasure Appreciates My Business Is Recommended By People I Care About Responds To My Needs Has My Interests At Heart Brings Back Good Memories Provides A Little Treat For Me Excites Me COPYRIGHT 2012 BRANDYIELD CONSULTING LLC • S elf-E xpression • S elf-E steem Simplifies My Life Helps Me To Express Myself Frees Me To Be Myself Makes Me Look Good To Others Makes Me Feel Good About Myself
  7. 7. ABra nd Re la tio ns hip is defined by the conjunction of one dimension of brand perception (image, personality, attributes…) and a dimension of brand attitude or experience Brand Attitudes/ Experiences Brand Perceptions Performance/ Satisfaction Emotional Attachment Charisma Positive Differentiation Relaxed & Stylish SelfSelfEsteem Expression Mentoring There For Me Pleasure
  8. 8. • In theory, the number of possible brand relationships is determined by the combinatorial possibilities of the two sets of component factors. In practice, of course, not all combinations have a relational logic to them. Beyond that, we further screened possible relationships for emergent properties, that is relationships that have properties that neither of the separate components do. In practice this meant that we were looking for relationships which have incremental predictive power over that of both of the separate components.
  9. 9. These 5 Universal Brand Relationships have been identified across multiple brands and categories with e m e rg e nt properties: the c o m bina tio n o f the two c o m p o ne nts ha s a n e ffe c t g re a te r tha n the s um o f the ir p a rts Brand Attitudes/ Experiences Brand Perceptions SelfEsteem SelfExpression Performance/ R einforce Satisfaction m ent Emotional Attachment Mentoring There For Me Pleasure Identification Charisma R M ole odel Positive Differentiation Relaxed & Stylish S elfDifferentiating P layful
  10. 10. Universal Brand Relationships • Reinforcement • The brand is seen as ha ving s up e rio r p e rfo rm a nc e a nd p ro vid ing he ig hte ne d c us to m e r s a tis fa c tio n (bra nd p e rc e p tio n). Use or purchase of the brand m a ke s the c us to m e r fe e l be tte r a nd s m a rte r (bra nd e x p e rie nc e ) – in his/her own eyes and in those of others – strengthening the attachment to the brand. • Identification • There is a ve ry s tro ng a ffe c tio n fo r the bra nd and (or because) it is e x p e rie nc e d a s e x p re s s ing the c us to m e r’s o wn va lue s a nd a s p ira tio ns . • The brand is a d m ire d fo r its c ha ris m a – a standard of leadership and innovation, which the customer – by a lly ing him /he rs e lf with the bra nd - is invite d to s ha re in. • Role Model • SelfDifferentiating • The brand is s e e n a s d is tinc tive a nd uniq ue – but not in a distant or iconoclastic way. The brand’s difference is inclusive of the c us to m e r, who the re fo re fe e ls d is tinc tive a nd uniq ue to o . • Playful • The brand is like d fo r its re la x e d s ty le ; it demands nothing of the consumer other than to e x p e rie nc e the p le a s ure it g ive s .
  11. 11. Brand Relationships are Not Additive • Although an additive model is often a satisfactory, scientifically parsimonious, way of creating a construct, it does not work for Consumer Brand Relationships. • Consumers’ Brand Perceptions and Brands’ Attitudes are qualitatively different phenomena, and – like “apples and pears” - they need to be kept distinct. • A Brand Relationship is a two-dimensional construct, defined as the resultant vector of the two components of the relationship. • Visually, we compare Brands’ Relationships using a Brand Relationship Map
  12. 12. Brand Attitude/ Brand Experience Brand Relationship (x,y) x A Brand Relationship is defined by the combination of a specific brand image with a specific attitude of the brand; y The strength of the relationship is a function of the strength of the two components. But that function is not a simple additive one. Brand Perceptions
  13. 13. Brand Relationships Create Financial Value
  14. 14. CBR directly Impact the financial returns of a branded business $ Financial & Market Returns Brand Perceptions Brand Perceptions
  15. 15. Relationship Equity - The combined effect of the Five Universal Brand Relationships on financial measures 40.0% 37.0% 32.8% 35.0% Entertaining/Playful 30.0% Role Model 25.0% Self Differentiating - 20.0% Reinforcement 14.8% 15.0% 10.0% 5.0% 0.0% 6.4% 9.0% Identification
  16. 16. Relationship Equity and Stable Franchise Size are both very significant Influences on Sales to Market Cap. multiple. Relationship Equity .48 R2=.42 M arket Cap. / ales S .43 S table franchise Stable Franchise is defined as the percentage of customers saying they use the brand regularly, less the percentage sayingthey do so only if there is no alternative.
  17. 17. Actual Market Cap. Is a function of Relationship Equity, Operating Profit and Stable Franchise Size R elationship Equity .14 2 R =.86 -.22 Operating Profit .89 Market Cap. .32 Stable franchise The negative correlation between Relationship Equity and Operating Profit reflects the fact that there is a trade-off between investment in the brand and the quarterly or yearly earnings statement. Nothing comes without a cost.
  18. 18. to examine the influence of brand relationships on customer franchise, we have to break the latter down into its component parts Acquisition Growth Brand Perceptions Brand Perceptions Retention Maintenance
  19. 19. Influence of Brand Relationships on Franchise Acquisition 4 of the Universal Brand Relationships contribute significantly to trial consideration among nonusers Entertaining / Playful 0.54 0.48 Identification 0.38 0.22 Reinforcement SelfDifferentiating Acquisitions
  20. 20. Influence of Brand Relationships on Franchise Maintenance A different combination of relationships are significant influencers of brand preference among users 0.24 0.16 Maintenance Identification Reinforcement 0.10 Role Model

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