This document discusses key aspects of brand equity including brand loyalty, brand awareness, perceived quality, and brand associations. It defines each element and provides examples. Brand loyalty refers to customer attachment and likelihood to switch brands. Brand awareness deals with a customer's ability to recognize or recall a brand. Perceived quality is a customer's view of a brand's quality relative to alternatives. Brand associations are anything linked to a brand in a customer's memory. The document emphasizes how these elements create value for brands and should be enhanced through marketing strategies.

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ManagingManaging
Brand EquityBrand Equity

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Brand equity is
a set of brand assets and
liabilities linked to a brand

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Elements of Brand Equity:Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations

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Brand LoyaltyBrand Loyalty
Brand loyalty is a measure of the
attachment that a customer has to a
brand.
It reflects how likely a customer will be to
switch to another brand, especially when that
brand makes a change, either in price or in
product features.

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Brand Loyalty PyramidBrand Loyalty Pyramid
Committed Buyer
Likes the Brand - Considers it a Friend
Satisfied Buyer With Switching Costs
Habitual Buyer - No Reason to Change
Indifferent – No Brand Loyalty
Switchers / Price Sensitive

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Measuring Brand Loyalty
• Purchase Behavior Patterns
• Switching Cost Analysis
• Satisfaction Measurement

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Strategic Value of Brand Loyalty
• Reduce marketing cost
• Trade (channel distribution) leverage
• Attracting new customers

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Enhancing
Brand Loyalty
• Treat the customer right
• Stay close to the customer
• Measure/manage customer
satisfaction
• Create switching cost
• Provide extras

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Brand Awareness isBrand Awareness is
the ability of a potential
buyer to recognize or recall
that a brand is a member of
a certain product category

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Brand Awareness Hierarchy
Top of Mind
Brand Recall
Brand Recognition
Unaware of Brand

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Value of Brand Awareness
• Anchor to which other associations can be
attached
• Familiarity and liking
• Signal of substance/commitment
• Brand to be considered

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How to Achieve
Brand Awareness
Be different, memorable
Involve a slogan or jingle
Symbol exposure
Publicity
Event sponsorship

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The customer's perception of the overall
quality or superiority of a product or service
with respect to its intended purpose, relative to
alternatives. Perceived quality is a perception
by customers.
Perceived Quality

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What
Influences
Perceived
Quality of
ProductProduct?
• Performance
• Features
• Conformance with
specifications
• Reliability
• Durability
• Serviceability
• Fit and finish

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What
Influences
Perceived
Quality of
ServiceService?
Appearance
Reliability
Competence
Responsiveness
Empathy

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The Value of Perceived Quality
• Reason-to-Buy
• Differentiate/Position
• A Price Premium
• Channel Member Interest
• Brand Extensions

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Brand AssociationBrand Association
A brand association is anything
"linked" in memory to a brand.
Thus, McDonald's could be linked to a
character such as Ronald McDonald, a
consumer segment such as kids, a feeling
such as having fun, a product characteristic
such as service, or a symbol such as the
Golden Arches.

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Some Types of
Associations
• Product Attributes
• Customer Benefits
• Relative Price
• Lifestyle/Personality
• Celebrity/Person
• Use/Application

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The Value of Brand
Associations
• Help Process/Retrieve
Information
• Differentiate/Position
• Reason-to-Buy
• Create Positive
Attitudes/Feelings
• Basis for Extensions

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Maintaining
Associations
• Be consistent over time
• Be consistent over
elements of the marketing
program
• Manage disasters in order
to minimize their damage

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Criteria forCriteria for
Brand Name SelectionBrand Name Selection
• Be easy to learn and remember
• Suggest the product class
• Support a symbol or slogan
• Suggest desired association without
being boring or trivial
• Not suggest undesired associations
• Be distinctive
• Be available and protectable legally

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Source of Reference:
David Aaker, Managing Brand Equity : Capitalizing on
the Value of A Brand Name, Free Press