Brand equity refers to the value of a brand and consists of brand loyalty, brand awareness, perceived quality, and brand associations. Brand loyalty measures how attached customers are to a brand and are less likely to switch. Brand awareness refers to a customer's ability to recognize or recall a brand. Perceived quality is a customer's perception of a brand's overall quality compared to alternatives. Brand associations are anything linked to a brand in a customer's memory, such as product attributes, feelings, or symbols. Maintaining strong brand equity provides strategic benefits like reduced costs and increased customer loyalty.

1. Managing Brand Equity

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

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

5. Brand 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.

6. Brand 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

7. Measuring Brand Loyalty Purchase Behavior Patterns Switching Cost Analysis Satisfaction Measurement

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

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

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

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

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

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

14. 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

15. What Influences Perceived Quality of Product ? Performance Features Conformance with specifications Reliability Durability Serviceability Fit and finish

16. What Influences Perceived Quality of Service ? Appearance Reliability Competence Responsiveness Empathy

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

18. Brand 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.

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

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

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

22. Criteria for Brand 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

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