SlideShare a Scribd company logo
1 of 30
2.1
CHAPTER 2:CHAPTER 2:
CUSTOMER-BASED BRAND EQUITYCUSTOMER-BASED BRAND EQUITY
2.2
Customer-Based Brand EquityCustomer-Based Brand Equity
 ““The differential effect that brand knowledge hasThe differential effect that brand knowledge has
on consumer response to the marketing of thaton consumer response to the marketing of that
brand.”brand.”
Keller, 1993Keller, 1993
2.3
Customer-Based Brand EquityCustomer-Based Brand Equity
 Differential effectDifferential effect
 Differences in consumer responseDifferences in consumer response
 Brand knowledgeBrand knowledge
 A result of consumers’ knowledge about the brandA result of consumers’ knowledge about the brand
 Consumer response to marketingConsumer response to marketing
 Choice of a brandChoice of a brand
 Recall of copy points from an adRecall of copy points from an ad
 Response to a sales promotionResponse to a sales promotion
 Evaluations of a proposed brand extensionEvaluations of a proposed brand extension
2.4
Brand Equity as aBrand Equity as a ““BridgeBridge””
 Reflection ofReflection of pastpast investments in the marketing ofinvestments in the marketing of
a branda brand
 Direction forDirection for futurefuture marketing actions ormarketing actions or
programsprograms
2.5
Making a Brand Strong:Making a Brand Strong:
Brand KnowledgeBrand Knowledge
 Brand knowledge is the key to creating brandBrand knowledge is the key to creating brand
equity.equity.
 Brand knowledge consists of a brand node inBrand knowledge consists of a brand node in
memory with a variety of associations linked tomemory with a variety of associations linked to
it.it.
 Brand knowledge has two components: brandBrand knowledge has two components: brand
awareness and brand image.awareness and brand image.
2.6
Sources of Brand EquitySources of Brand Equity
 Brand awarenessBrand awareness
 Brand recognitionBrand recognition
 Brand recallBrand recall
 Brand imageBrand image
 Strong, favorable, and unique brand associationsStrong, favorable, and unique brand associations
2.7
Brand Awareness AdvantagesBrand Awareness Advantages
 Learning advantagesLearning advantages
 Register the brand in the minds of consumersRegister the brand in the minds of consumers
 Consideration advantagesConsideration advantages
 Likelihood that the brand will be a member of theLikelihood that the brand will be a member of the
consideration setconsideration set
 Choice advantagesChoice advantages
 Affect choices among brands in the considerationAffect choices among brands in the consideration
setset
2.8
Establishing Brand AwarenessEstablishing Brand Awareness
 Increasing the familiarity of the brand throughIncreasing the familiarity of the brand through
repeated exposure (for brand recognition)repeated exposure (for brand recognition)
 Forging strong associations with the appropriateForging strong associations with the appropriate
product category or other relevant purchase orproduct category or other relevant purchase or
consumption cues (for brand recall)consumption cues (for brand recall)
2.9
Creating a Positive Brand ImageCreating a Positive Brand Image
 Brand AssociationsBrand Associations
 Does not matter which source of brand associationDoes not matter which source of brand association
 Need to be favorable, strong, and uniqueNeed to be favorable, strong, and unique
 Marketers should recognize the influence of theseMarketers should recognize the influence of these
other sources of information by bothother sources of information by both managingmanaging themthem
as well as possible and by adequatelyas well as possible and by adequately accounting foraccounting for
them in designing communication strategies.them in designing communication strategies.
2.10
The Four Steps of Brand BuildingThe Four Steps of Brand Building
1.1. Ensure identification of the brand with customers andEnsure identification of the brand with customers and
an association of the brand in customers’ mindsan association of the brand in customers’ minds
2.2. Establish the totality of brand meaning in the minds ofEstablish the totality of brand meaning in the minds of
consumersconsumers
3.3. Elicit the proper customer responses to the brandElicit the proper customer responses to the brand
identification and brand meaningidentification and brand meaning
4.4. Convert brand response to create an intense, activeConvert brand response to create an intense, active
loyalty relationship between customers and the brandloyalty relationship between customers and the brand
2.11
Four Questions Customers ask of BrandsFour Questions Customers ask of Brands
1.1. Who are you? (brand identity)Who are you? (brand identity)
2.2. What are you? (brand meaning)What are you? (brand meaning)
3.3. What about you? What do I think or feel aboutWhat about you? What do I think or feel about
you? (brand responses)you? (brand responses)
4.4. What about you and me? What kind ofWhat about you and me? What kind of
association and how much of a connectionassociation and how much of a connection
would I like to have with you? (brandwould I like to have with you? (brand
relationships)relationships)
2.12
Customer-Based Brand Equity PyramidCustomer-Based Brand Equity Pyramid
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you and me?
4. RELATIONSHIPS =
What about you and me?
3. RESPONSE =
What about you?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
1. IDENTITY =
Who are you?
Sub-Dimensions of CBBE PyramidSub-Dimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
USER PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &
VALUES
HISTORY, HERITAGE
& EXPERIENCES
2.14
Salience DimensionsSalience Dimensions
 DepthDepth of brand awarenessof brand awareness
 Ease of recognition and recallEase of recognition and recall
 Strength and clarity of category membershipStrength and clarity of category membership
 BreadthBreadth of brand awarenessof brand awareness
 Purchase considerationPurchase consideration
 Consumption considerationConsumption consideration
2.15
Depth and Breadth ImportanceDepth and Breadth Importance
 The product category hierarchy shows us notThe product category hierarchy shows us not
only the depth of awareness matters but also theonly the depth of awareness matters but also the
breadth.breadth.
 The brand must not only beThe brand must not only be top-of-mindtop-of-mind and haveand have
sufficient “mind share,” but it must also do sosufficient “mind share,” but it must also do so atat
the right times and places.the right times and places.
2.16
Product Category StructureProduct Category Structure
 To fully understand brand recall, we need toTo fully understand brand recall, we need to
appreciateappreciate product category structure,product category structure, or howor how
product categories are organized in memory.product categories are organized in memory.
2.17
Performance DimensionsPerformance Dimensions
 Primary characteristics and supplementary featuresPrimary characteristics and supplementary features
 Product reliability, durability, and serviceabilityProduct reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathyService effectiveness, efficiency, and empathy
 Style and designStyle and design
 PricePrice
2.18
Imagery DimensionsImagery Dimensions
 User profilesUser profiles
 Demographic and psychographic characteristicsDemographic and psychographic characteristics
 Actual or aspirationalActual or aspirational
 Group perceptionsGroup perceptions——popularitypopularity
 Purchase and usage situationsPurchase and usage situations
 Type of channel, specific stores, ease of purchaseType of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usageTime (day, week, month, year, etc.), location, and context of usage
 Personality and valuesPersonality and values
 Sincerity, excitement, competence, sophistication, and ruggednessSincerity, excitement, competence, sophistication, and ruggedness
 History, heritage, and experiencesHistory, heritage, and experiences
 NostalgiaNostalgia
 MemoriesMemories
2.19
Judgment DimensionsJudgment Dimensions
 Brand qualityBrand quality
 ValueValue
 SatisfactionSatisfaction
 Brand credibilityBrand credibility
 ExpertiseExpertise
 TrustworthinessTrustworthiness
 LikeabilityLikeability
 Brand considerationBrand consideration
 RelevanceRelevance
 Brand superiorityBrand superiority
 DifferentiationDifferentiation
2.20
Feelings DimensionsFeelings Dimensions
 WarmthWarmth
 FunFun
 ExcitementExcitement
 SecuritySecurity
 Social ApprovalSocial Approval
 Self-respectSelf-respect
2.21
Resonance DimensionsResonance Dimensions
 Behavioral loyaltyBehavioral loyalty
 Frequency and amount of repeat purchasesFrequency and amount of repeat purchases
 Attitudinal attachmentAttitudinal attachment
 Love brand (favorite possessions; “a little pleasure”)Love brand (favorite possessions; “a little pleasure”)
 Proud of brandProud of brand
 Sense of communitySense of community
 KinshipKinship
 AffiliationAffiliation
 Active engagementActive engagement
 Seek informationSeek information
 Join clubJoin club
 Visit website, chat roomsVisit website, chat rooms
Customer-Based Brand Equity ModelCustomer-Based Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
Performance
Brand
Imagery
INTENSE, ACTIVE
LOYALTY
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS
DEEP, BROAD
BRAND
AWARENESS
Application:Application:
Identify the Key Drivers of Brand EquityIdentify the Key Drivers of Brand Equity
0.17 0.66
0.24
0.65
P-2
PerformancePerformance
P-1
P-10
P-7
P-8
P-9
P-3
P-4
P-6
P-5
P-11
P-12
I-2
I-9
ImageryImagery
I-1
I-3
I-6
I-5
I-10
I-7
I-8
I-11
I-12
I-4
F-2
FeelingsFeelings
F-1
F-3
F-4
F-6
F-5
F-7
F-8
F-9
F-11
F-12
F-10
J-2
JudgmentJudgment
J-1
J-3
J-4
J-6
J-5
J-10
J-7
J-8
J-9
J-11
J-12
R-2
ResonanceResonance
R-1
R-3
R-4
R-6
R-5
R-10
R-7
R-8
R-9
R-11
R-12
0.58
0.49
2.24
Brand Building ImplicationsBrand Building Implications
 Customers own brands.Customers own brands.
 Don’t take shortcuts with brands.Don’t take shortcuts with brands.
 Brands should have a duality.Brands should have a duality.
 Brands should have richness.Brands should have richness.
 Brand resonance provides important focus.Brand resonance provides important focus.
2.25
Creating Customer ValueCreating Customer Value
 Customer-brand relationships are theCustomer-brand relationships are the
foundation of brand resonance and building afoundation of brand resonance and building a
strong brand.strong brand.
 The customer-based brand equity modelThe customer-based brand equity model
certainly puts that notion front and center.certainly puts that notion front and center.
2.26
Is a company consumer-centric?Is a company consumer-centric?
1.1. Is the company looking for ways to take care ofIs the company looking for ways to take care of
you?you?
2.2. Does the company know its customers wellDoes the company know its customers well
enough to differentiate between them?enough to differentiate between them?
3.3. Is someone accountable for customers?Is someone accountable for customers?
4.4. Is the company managed for shareholder value?Is the company managed for shareholder value?
5.5. Is the company testing new customer offers andIs the company testing new customer offers and
learning from the results?learning from the results?
Sources: Larry Selden and Geoffrey Colvin, 2004.
2.27
Customer Relationship ManagementCustomer Relationship Management
(CRM)(CRM)
 Uses a company’s data systems and applicationsUses a company’s data systems and applications
to track consumer activity and manage customerto track consumer activity and manage customer
interactions with the companyinteractions with the company
2.28
Customer EquityCustomer Equity
 Blattberg and Deighton (1996) offer eight guidelines as a meansBlattberg and Deighton (1996) offer eight guidelines as a means
of maximizing customer equity:of maximizing customer equity:
 Invest in highest-value customers firstInvest in highest-value customers first
 Transform product management into customer managementTransform product management into customer management
 Consider how add-on sales and cross-selling can increase customer equityConsider how add-on sales and cross-selling can increase customer equity
 Look for ways to reduce acquisition costsLook for ways to reduce acquisition costs
 Track customer equity gains and losses against marketing programsTrack customer equity gains and losses against marketing programs
 Relate branding to customer equityRelate branding to customer equity
 Monitor the intrinsic retainability of your customerMonitor the intrinsic retainability of your customer
 Consider writing separate marketing plans—or even building twoConsider writing separate marketing plans—or even building two
marketing organizations—for acquisition and retention effortsmarketing organizations—for acquisition and retention efforts
2.29
Customer EquityCustomer Equity
 The sum of lifetime values of all customersThe sum of lifetime values of all customers
 Customer lifetime value (CLV) is affected byCustomer lifetime value (CLV) is affected by
revenue and by the cost of customer acquisition,revenue and by the cost of customer acquisition,
retention, and cross-sellingretention, and cross-selling
 Consists of three components:Consists of three components:
 Value equityValue equity
 Brand equityBrand equity
 Relationship equityRelationship equity
Rust, Zeithamal & Lemon, 2004Rust, Zeithamal & Lemon, 2004
2.30
Relationship of Customer Equity toRelationship of Customer Equity to
Brand EquityBrand Equity
 Customers drive the success of brands butCustomers drive the success of brands but
brands are the necessary touchpoint that firmsbrands are the necessary touchpoint that firms
have to connect with their customers.have to connect with their customers.
 Customer-based brand equity maintains thatCustomer-based brand equity maintains that
brands create value by eliciting differentialbrands create value by eliciting differential
customer response to marketing activities.customer response to marketing activities.
 The higher price premiums and increased levelsThe higher price premiums and increased levels
of loyalty engendered by brands generateof loyalty engendered by brands generate
incremental cash flows.incremental cash flows.

More Related Content

What's hot

DESINGING MARKETING PROGRAMS
DESINGING MARKETING PROGRAMSDESINGING MARKETING PROGRAMS
DESINGING MARKETING PROGRAMSYIGIT ACIKAY
 
Strategic Brand Management 1
Strategic Brand Management 1Strategic Brand Management 1
Strategic Brand Management 1rishistd
 
Chapter 1 brand and brand management
Chapter 1 brand and brand managementChapter 1 brand and brand management
Chapter 1 brand and brand managementdivya gadaria
 
Chapter 2 (customer based brand equity)
Chapter 2 (customer based brand equity)Chapter 2 (customer based brand equity)
Chapter 2 (customer based brand equity)Jawad Chaudhry
 
Keller Sbm3 03
Keller Sbm3 03Keller Sbm3 03
Keller Sbm3 03jhumu
 
Chap 2, customer based brand equity
Chap 2, customer based brand equityChap 2, customer based brand equity
Chap 2, customer based brand equityRajesh Kumar
 
Strategic Brand Management (2013)
Strategic Brand Management (2013)Strategic Brand Management (2013)
Strategic Brand Management (2013)Hatta Harris Rahman
 
MANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEMANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEAshish Hande
 
Measuring Brand Equity
Measuring Brand EquityMeasuring Brand Equity
Measuring Brand EquityCarol Phillips
 
(MBASkills.IN) Customer Based Brand Equity
(MBASkills.IN) Customer Based Brand Equity(MBASkills.IN) Customer Based Brand Equity
(MBASkills.IN) Customer Based Brand EquitySameer Mathur
 
BRAND POSITIONING & VALUES
 BRAND POSITIONING & VALUES BRAND POSITIONING & VALUES
BRAND POSITIONING & VALUESAvinash Singh
 
Customer based brand equity model
Customer based brand equity model Customer based brand equity model
Customer based brand equity model Soroush Mosavati
 
Chapter 4 choosing brand elements to build brand equity
Chapter 4   choosing brand elements to build brand equityChapter 4   choosing brand elements to build brand equity
Chapter 4 choosing brand elements to build brand equityAAddnan Chowdhury
 

What's hot (20)

DESINGING MARKETING PROGRAMS
DESINGING MARKETING PROGRAMSDESINGING MARKETING PROGRAMS
DESINGING MARKETING PROGRAMS
 
Strategic Brand Management 1
Strategic Brand Management 1Strategic Brand Management 1
Strategic Brand Management 1
 
Chapter 1 brand and brand management
Chapter 1 brand and brand managementChapter 1 brand and brand management
Chapter 1 brand and brand management
 
Chapter 2 (customer based brand equity)
Chapter 2 (customer based brand equity)Chapter 2 (customer based brand equity)
Chapter 2 (customer based brand equity)
 
Leveraging secondary brand associations to build brand equity by Leroy J. Ebert
Leveraging secondary brand associations to build brand equity by Leroy J. EbertLeveraging secondary brand associations to build brand equity by Leroy J. Ebert
Leveraging secondary brand associations to build brand equity by Leroy J. Ebert
 
Keller Sbm3 03
Keller Sbm3 03Keller Sbm3 03
Keller Sbm3 03
 
Chap 2, customer based brand equity
Chap 2, customer based brand equityChap 2, customer based brand equity
Chap 2, customer based brand equity
 
Strategic Brand Management (2013)
Strategic Brand Management (2013)Strategic Brand Management (2013)
Strategic Brand Management (2013)
 
MANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEMANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIME
 
Keller sbm3 05
Keller sbm3 05Keller sbm3 05
Keller sbm3 05
 
Measuring Brand Equity
Measuring Brand EquityMeasuring Brand Equity
Measuring Brand Equity
 
Keller sbm3 09
Keller sbm3 09Keller sbm3 09
Keller sbm3 09
 
Brand Management
Brand ManagementBrand Management
Brand Management
 
Choosing brand elements
Choosing brand elementsChoosing brand elements
Choosing brand elements
 
Keller sbm3 08
Keller sbm3 08Keller sbm3 08
Keller sbm3 08
 
(MBASkills.IN) Customer Based Brand Equity
(MBASkills.IN) Customer Based Brand Equity(MBASkills.IN) Customer Based Brand Equity
(MBASkills.IN) Customer Based Brand Equity
 
BRAND POSITIONING & VALUES
 BRAND POSITIONING & VALUES BRAND POSITIONING & VALUES
BRAND POSITIONING & VALUES
 
Brand Element
Brand ElementBrand Element
Brand Element
 
Customer based brand equity model
Customer based brand equity model Customer based brand equity model
Customer based brand equity model
 
Chapter 4 choosing brand elements to build brand equity
Chapter 4   choosing brand elements to build brand equityChapter 4   choosing brand elements to build brand equity
Chapter 4 choosing brand elements to build brand equity
 

Similar to CUSTOMER BASED BRAND EQUITY

Brand Management - Symbol, Character, Equity, Loyalty
Brand Management - Symbol, Character, Equity, LoyaltyBrand Management - Symbol, Character, Equity, Loyalty
Brand Management - Symbol, Character, Equity, LoyaltyDarshan Shamsundar
 
kellersbm302-130514104748-phpapp02.ppt
kellersbm302-130514104748-phpapp02.pptkellersbm302-130514104748-phpapp02.ppt
kellersbm302-130514104748-phpapp02.pptMajidKhan475333
 
CUSTOMER-BASED BRAND EQUITY.ppt
CUSTOMER-BASED BRAND EQUITY.pptCUSTOMER-BASED BRAND EQUITY.ppt
CUSTOMER-BASED BRAND EQUITY.pptssuserb653171
 
Customer-based Brand Equity
Customer-based Brand EquityCustomer-based Brand Equity
Customer-based Brand EquityPhong Nguyen
 
Brand management ppt
Brand management ppt Brand management ppt
Brand management ppt Babasab Patil
 
BRAND MANAGEMENT -1
BRAND MANAGEMENT -1BRAND MANAGEMENT -1
BRAND MANAGEMENT -1Ngo Binh
 
(MBASkills.IN) Brand Judgments
(MBASkills.IN) Brand Judgments(MBASkills.IN) Brand Judgments
(MBASkills.IN) Brand JudgmentsSameer Mathur
 
Bmpspp1 1222230432698761-9
Bmpspp1 1222230432698761-9Bmpspp1 1222230432698761-9
Bmpspp1 1222230432698761-9k1236541212
 
Brand Positioning - Reveal the Magic Within
Brand Positioning - Reveal the Magic WithinBrand Positioning - Reveal the Magic Within
Brand Positioning - Reveal the Magic WithinThe Marketing Directors
 
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSETAshish Hande
 

Similar to CUSTOMER BASED BRAND EQUITY (20)

Keller sbm3 02
Keller sbm3 02Keller sbm3 02
Keller sbm3 02
 
brand managament
brand managamentbrand managament
brand managament
 
Brand Management - Symbol, Character, Equity, Loyalty
Brand Management - Symbol, Character, Equity, LoyaltyBrand Management - Symbol, Character, Equity, Loyalty
Brand Management - Symbol, Character, Equity, Loyalty
 
BM - CH 2.ppt
BM - CH 2.pptBM - CH 2.ppt
BM - CH 2.ppt
 
kellersbm302-130514104748-phpapp02.ppt
kellersbm302-130514104748-phpapp02.pptkellersbm302-130514104748-phpapp02.ppt
kellersbm302-130514104748-phpapp02.ppt
 
CUSTOMER-BASED BRAND EQUITY.ppt
CUSTOMER-BASED BRAND EQUITY.pptCUSTOMER-BASED BRAND EQUITY.ppt
CUSTOMER-BASED BRAND EQUITY.ppt
 
chapter 2
chapter 2chapter 2
chapter 2
 
Customer-based Brand Equity
Customer-based Brand EquityCustomer-based Brand Equity
Customer-based Brand Equity
 
Keller sbm3 03
Keller sbm3 03Keller sbm3 03
Keller sbm3 03
 
Brand management ppt
Brand management ppt Brand management ppt
Brand management ppt
 
Brand equity
Brand equityBrand equity
Brand equity
 
Chapter 9
Chapter 9Chapter 9
Chapter 9
 
BRAND MANAGEMENT -1
BRAND MANAGEMENT -1BRAND MANAGEMENT -1
BRAND MANAGEMENT -1
 
Branding101
Branding101Branding101
Branding101
 
(MBASkills.IN) Brand Judgments
(MBASkills.IN) Brand Judgments(MBASkills.IN) Brand Judgments
(MBASkills.IN) Brand Judgments
 
Bmpspp1 1222230432698761-9
Bmpspp1 1222230432698761-9Bmpspp1 1222230432698761-9
Bmpspp1 1222230432698761-9
 
Brand Positioning - Reveal the Magic Within
Brand Positioning - Reveal the Magic WithinBrand Positioning - Reveal the Magic Within
Brand Positioning - Reveal the Magic Within
 
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY CAPURING CUSTOMER MINDSET
 
Keller_SBM3_02.ppt
Keller_SBM3_02.pptKeller_SBM3_02.ppt
Keller_SBM3_02.ppt
 
Branding for Small to Medium Sized Enterprises (SMEs) - Dr Sean Ennis
Branding for Small to Medium Sized Enterprises (SMEs) - Dr Sean EnnisBranding for Small to Medium Sized Enterprises (SMEs) - Dr Sean Ennis
Branding for Small to Medium Sized Enterprises (SMEs) - Dr Sean Ennis
 

More from Ashish Hande

5 social ethical issues in sdm
5 social ethical issues in sdm5 social ethical issues in sdm
5 social ethical issues in sdmAshish Hande
 
4 wholesaling-and-retailing
4 wholesaling-and-retailing4 wholesaling-and-retailing
4 wholesaling-and-retailingAshish Hande
 
3 channel-information-systems
3 channel-information-systems3 channel-information-systems
3 channel-information-systemsAshish Hande
 
2 management of channel-conflict
2 management of channel-conflict2 management of channel-conflict
2 management of channel-conflictAshish Hande
 
1 distribution cost analyis
1 distribution cost analyis1 distribution cost analyis
1 distribution cost analyisAshish Hande
 
Telemarketing ppt-1
Telemarketing ppt-1Telemarketing ppt-1
Telemarketing ppt-1Ashish Hande
 
CONSUMER BEHAVIOUR MODELS
CONSUMER BEHAVIOUR MODELSCONSUMER BEHAVIOUR MODELS
CONSUMER BEHAVIOUR MODELSAshish Hande
 
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOURCONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOURAshish Hande
 
MODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURAshish Hande
 

More from Ashish Hande (20)

5 social ethical issues in sdm
5 social ethical issues in sdm5 social ethical issues in sdm
5 social ethical issues in sdm
 
4 wholesaling-and-retailing
4 wholesaling-and-retailing4 wholesaling-and-retailing
4 wholesaling-and-retailing
 
3 channel-information-systems
3 channel-information-systems3 channel-information-systems
3 channel-information-systems
 
2 management of channel-conflict
2 management of channel-conflict2 management of channel-conflict
2 management of channel-conflict
 
1 distribution cost analyis
1 distribution cost analyis1 distribution cost analyis
1 distribution cost analyis
 
Telemarketing ppt-1
Telemarketing ppt-1Telemarketing ppt-1
Telemarketing ppt-1
 
Sdm 4.0
Sdm 4.0Sdm 4.0
Sdm 4.0
 
Sdm 2.1
Sdm 2.1Sdm 2.1
Sdm 2.1
 
Sdm 2.0
Sdm 2.0Sdm 2.0
Sdm 2.0
 
Selling fab
Selling fabSelling fab
Selling fab
 
Personal selling
Personal sellingPersonal selling
Personal selling
 
Sdm 1.3
Sdm 1.3Sdm 1.3
Sdm 1.3
 
Sdm 1.2
Sdm 1.2Sdm 1.2
Sdm 1.2
 
Sdm 1.0
Sdm 1.0Sdm 1.0
Sdm 1.0
 
Sdm 1.1
Sdm 1.1Sdm 1.1
Sdm 1.1
 
Models of cb
Models of cbModels of cb
Models of cb
 
Models of cb 1
Models of cb 1Models of cb 1
Models of cb 1
 
CONSUMER BEHAVIOUR MODELS
CONSUMER BEHAVIOUR MODELSCONSUMER BEHAVIOUR MODELS
CONSUMER BEHAVIOUR MODELS
 
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOURCONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
 
MODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOURMODEL OF CONSUMER BEHAVIOUR
MODEL OF CONSUMER BEHAVIOUR
 

Recently uploaded

Graduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxGraduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxneillewis46
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17Celine George
 
Rich Dad Poor Dad ( PDFDrive.com )--.pdf
Rich Dad Poor Dad ( PDFDrive.com )--.pdfRich Dad Poor Dad ( PDFDrive.com )--.pdf
Rich Dad Poor Dad ( PDFDrive.com )--.pdfJerry Chew
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...Nguyen Thanh Tu Collection
 
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdfUGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdfNirmal Dwivedi
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...Nguyen Thanh Tu Collection
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...EADTU
 
What is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxWhat is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxCeline George
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxAdelaideRefugio
 
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...nhezmainit1
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptNishitharanjan Rout
 
diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....Ritu480198
 
Pharmaceutical Biotechnology VI semester.pdf
Pharmaceutical Biotechnology VI semester.pdfPharmaceutical Biotechnology VI semester.pdf
Pharmaceutical Biotechnology VI semester.pdfBALASUNDARESAN M
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMELOISARIVERA8
 
Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesPooky Knightsmith
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...EduSkills OECD
 

Recently uploaded (20)

Graduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxGraduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptx
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17
 
Rich Dad Poor Dad ( PDFDrive.com )--.pdf
Rich Dad Poor Dad ( PDFDrive.com )--.pdfRich Dad Poor Dad ( PDFDrive.com )--.pdf
Rich Dad Poor Dad ( PDFDrive.com )--.pdf
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdfUGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
UGC NET Paper 1 Unit 7 DATA INTERPRETATION.pdf
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
 
What is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxWhat is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptx
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptx
 
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...
PS-Policies-on-Enrolment-Transfer-of-Docs-Checking-of-School-Forms-and-SF10-a...
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
 
diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....
 
Pharmaceutical Biotechnology VI semester.pdf
Pharmaceutical Biotechnology VI semester.pdfPharmaceutical Biotechnology VI semester.pdf
Pharmaceutical Biotechnology VI semester.pdf
 
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
 
Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"
 
Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical Principles
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...
 

CUSTOMER BASED BRAND EQUITY

  • 1. 2.1 CHAPTER 2:CHAPTER 2: CUSTOMER-BASED BRAND EQUITYCUSTOMER-BASED BRAND EQUITY
  • 2. 2.2 Customer-Based Brand EquityCustomer-Based Brand Equity  ““The differential effect that brand knowledge hasThe differential effect that brand knowledge has on consumer response to the marketing of thaton consumer response to the marketing of that brand.”brand.” Keller, 1993Keller, 1993
  • 3. 2.3 Customer-Based Brand EquityCustomer-Based Brand Equity  Differential effectDifferential effect  Differences in consumer responseDifferences in consumer response  Brand knowledgeBrand knowledge  A result of consumers’ knowledge about the brandA result of consumers’ knowledge about the brand  Consumer response to marketingConsumer response to marketing  Choice of a brandChoice of a brand  Recall of copy points from an adRecall of copy points from an ad  Response to a sales promotionResponse to a sales promotion  Evaluations of a proposed brand extensionEvaluations of a proposed brand extension
  • 4. 2.4 Brand Equity as aBrand Equity as a ““BridgeBridge””  Reflection ofReflection of pastpast investments in the marketing ofinvestments in the marketing of a branda brand  Direction forDirection for futurefuture marketing actions ormarketing actions or programsprograms
  • 5. 2.5 Making a Brand Strong:Making a Brand Strong: Brand KnowledgeBrand Knowledge  Brand knowledge is the key to creating brandBrand knowledge is the key to creating brand equity.equity.  Brand knowledge consists of a brand node inBrand knowledge consists of a brand node in memory with a variety of associations linked tomemory with a variety of associations linked to it.it.  Brand knowledge has two components: brandBrand knowledge has two components: brand awareness and brand image.awareness and brand image.
  • 6. 2.6 Sources of Brand EquitySources of Brand Equity  Brand awarenessBrand awareness  Brand recognitionBrand recognition  Brand recallBrand recall  Brand imageBrand image  Strong, favorable, and unique brand associationsStrong, favorable, and unique brand associations
  • 7. 2.7 Brand Awareness AdvantagesBrand Awareness Advantages  Learning advantagesLearning advantages  Register the brand in the minds of consumersRegister the brand in the minds of consumers  Consideration advantagesConsideration advantages  Likelihood that the brand will be a member of theLikelihood that the brand will be a member of the consideration setconsideration set  Choice advantagesChoice advantages  Affect choices among brands in the considerationAffect choices among brands in the consideration setset
  • 8. 2.8 Establishing Brand AwarenessEstablishing Brand Awareness  Increasing the familiarity of the brand throughIncreasing the familiarity of the brand through repeated exposure (for brand recognition)repeated exposure (for brand recognition)  Forging strong associations with the appropriateForging strong associations with the appropriate product category or other relevant purchase orproduct category or other relevant purchase or consumption cues (for brand recall)consumption cues (for brand recall)
  • 9. 2.9 Creating a Positive Brand ImageCreating a Positive Brand Image  Brand AssociationsBrand Associations  Does not matter which source of brand associationDoes not matter which source of brand association  Need to be favorable, strong, and uniqueNeed to be favorable, strong, and unique  Marketers should recognize the influence of theseMarketers should recognize the influence of these other sources of information by bothother sources of information by both managingmanaging themthem as well as possible and by adequatelyas well as possible and by adequately accounting foraccounting for them in designing communication strategies.them in designing communication strategies.
  • 10. 2.10 The Four Steps of Brand BuildingThe Four Steps of Brand Building 1.1. Ensure identification of the brand with customers andEnsure identification of the brand with customers and an association of the brand in customers’ mindsan association of the brand in customers’ minds 2.2. Establish the totality of brand meaning in the minds ofEstablish the totality of brand meaning in the minds of consumersconsumers 3.3. Elicit the proper customer responses to the brandElicit the proper customer responses to the brand identification and brand meaningidentification and brand meaning 4.4. Convert brand response to create an intense, activeConvert brand response to create an intense, active loyalty relationship between customers and the brandloyalty relationship between customers and the brand
  • 11. 2.11 Four Questions Customers ask of BrandsFour Questions Customers ask of Brands 1.1. Who are you? (brand identity)Who are you? (brand identity) 2.2. What are you? (brand meaning)What are you? (brand meaning) 3.3. What about you? What do I think or feel aboutWhat about you? What do I think or feel about you? (brand responses)you? (brand responses) 4.4. What about you and me? What kind ofWhat about you and me? What kind of association and how much of a connectionassociation and how much of a connection would I like to have with you? (brandwould I like to have with you? (brand relationships)relationships)
  • 12. 2.12 Customer-Based Brand Equity PyramidCustomer-Based Brand Equity Pyramid RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you and me? 4. RELATIONSHIPS = What about you and me? 3. RESPONSE = What about you? 3. RESPONSE = What about you? 2. MEANING = What are you? 2. MEANING = What are you? 1. IDENTITY = Who are you? 1. IDENTITY = Who are you?
  • 13. Sub-Dimensions of CBBE PyramidSub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES
  • 14. 2.14 Salience DimensionsSalience Dimensions  DepthDepth of brand awarenessof brand awareness  Ease of recognition and recallEase of recognition and recall  Strength and clarity of category membershipStrength and clarity of category membership  BreadthBreadth of brand awarenessof brand awareness  Purchase considerationPurchase consideration  Consumption considerationConsumption consideration
  • 15. 2.15 Depth and Breadth ImportanceDepth and Breadth Importance  The product category hierarchy shows us notThe product category hierarchy shows us not only the depth of awareness matters but also theonly the depth of awareness matters but also the breadth.breadth.  The brand must not only beThe brand must not only be top-of-mindtop-of-mind and haveand have sufficient “mind share,” but it must also do sosufficient “mind share,” but it must also do so atat the right times and places.the right times and places.
  • 16. 2.16 Product Category StructureProduct Category Structure  To fully understand brand recall, we need toTo fully understand brand recall, we need to appreciateappreciate product category structure,product category structure, or howor how product categories are organized in memory.product categories are organized in memory.
  • 17. 2.17 Performance DimensionsPerformance Dimensions  Primary characteristics and supplementary featuresPrimary characteristics and supplementary features  Product reliability, durability, and serviceabilityProduct reliability, durability, and serviceability  Service effectiveness, efficiency, and empathyService effectiveness, efficiency, and empathy  Style and designStyle and design  PricePrice
  • 18. 2.18 Imagery DimensionsImagery Dimensions  User profilesUser profiles  Demographic and psychographic characteristicsDemographic and psychographic characteristics  Actual or aspirationalActual or aspirational  Group perceptionsGroup perceptions——popularitypopularity  Purchase and usage situationsPurchase and usage situations  Type of channel, specific stores, ease of purchaseType of channel, specific stores, ease of purchase  Time (day, week, month, year, etc.), location, and context of usageTime (day, week, month, year, etc.), location, and context of usage  Personality and valuesPersonality and values  Sincerity, excitement, competence, sophistication, and ruggednessSincerity, excitement, competence, sophistication, and ruggedness  History, heritage, and experiencesHistory, heritage, and experiences  NostalgiaNostalgia  MemoriesMemories
  • 19. 2.19 Judgment DimensionsJudgment Dimensions  Brand qualityBrand quality  ValueValue  SatisfactionSatisfaction  Brand credibilityBrand credibility  ExpertiseExpertise  TrustworthinessTrustworthiness  LikeabilityLikeability  Brand considerationBrand consideration  RelevanceRelevance  Brand superiorityBrand superiority  DifferentiationDifferentiation
  • 20. 2.20 Feelings DimensionsFeelings Dimensions  WarmthWarmth  FunFun  ExcitementExcitement  SecuritySecurity  Social ApprovalSocial Approval  Self-respectSelf-respect
  • 21. 2.21 Resonance DimensionsResonance Dimensions  Behavioral loyaltyBehavioral loyalty  Frequency and amount of repeat purchasesFrequency and amount of repeat purchases  Attitudinal attachmentAttitudinal attachment  Love brand (favorite possessions; “a little pleasure”)Love brand (favorite possessions; “a little pleasure”)  Proud of brandProud of brand  Sense of communitySense of community  KinshipKinship  AffiliationAffiliation  Active engagementActive engagement  Seek informationSeek information  Join clubJoin club  Visit website, chat roomsVisit website, chat rooms
  • 22. Customer-Based Brand Equity ModelCustomer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS RATIONAL & EMOTIONAL REACTIONS POINTS-OF- PARITY & POINTS-OF- DIFFERENCE POINTS-OF- PARITY & POINTS-OF- DIFFERENCE DEEP, BROAD BRAND AWARENESS DEEP, BROAD BRAND AWARENESS
  • 23. Application:Application: Identify the Key Drivers of Brand EquityIdentify the Key Drivers of Brand Equity 0.17 0.66 0.24 0.65 P-2 PerformancePerformance P-1 P-10 P-7 P-8 P-9 P-3 P-4 P-6 P-5 P-11 P-12 I-2 I-9 ImageryImagery I-1 I-3 I-6 I-5 I-10 I-7 I-8 I-11 I-12 I-4 F-2 FeelingsFeelings F-1 F-3 F-4 F-6 F-5 F-7 F-8 F-9 F-11 F-12 F-10 J-2 JudgmentJudgment J-1 J-3 J-4 J-6 J-5 J-10 J-7 J-8 J-9 J-11 J-12 R-2 ResonanceResonance R-1 R-3 R-4 R-6 R-5 R-10 R-7 R-8 R-9 R-11 R-12 0.58 0.49
  • 24. 2.24 Brand Building ImplicationsBrand Building Implications  Customers own brands.Customers own brands.  Don’t take shortcuts with brands.Don’t take shortcuts with brands.  Brands should have a duality.Brands should have a duality.  Brands should have richness.Brands should have richness.  Brand resonance provides important focus.Brand resonance provides important focus.
  • 25. 2.25 Creating Customer ValueCreating Customer Value  Customer-brand relationships are theCustomer-brand relationships are the foundation of brand resonance and building afoundation of brand resonance and building a strong brand.strong brand.  The customer-based brand equity modelThe customer-based brand equity model certainly puts that notion front and center.certainly puts that notion front and center.
  • 26. 2.26 Is a company consumer-centric?Is a company consumer-centric? 1.1. Is the company looking for ways to take care ofIs the company looking for ways to take care of you?you? 2.2. Does the company know its customers wellDoes the company know its customers well enough to differentiate between them?enough to differentiate between them? 3.3. Is someone accountable for customers?Is someone accountable for customers? 4.4. Is the company managed for shareholder value?Is the company managed for shareholder value? 5.5. Is the company testing new customer offers andIs the company testing new customer offers and learning from the results?learning from the results? Sources: Larry Selden and Geoffrey Colvin, 2004.
  • 27. 2.27 Customer Relationship ManagementCustomer Relationship Management (CRM)(CRM)  Uses a company’s data systems and applicationsUses a company’s data systems and applications to track consumer activity and manage customerto track consumer activity and manage customer interactions with the companyinteractions with the company
  • 28. 2.28 Customer EquityCustomer Equity  Blattberg and Deighton (1996) offer eight guidelines as a meansBlattberg and Deighton (1996) offer eight guidelines as a means of maximizing customer equity:of maximizing customer equity:  Invest in highest-value customers firstInvest in highest-value customers first  Transform product management into customer managementTransform product management into customer management  Consider how add-on sales and cross-selling can increase customer equityConsider how add-on sales and cross-selling can increase customer equity  Look for ways to reduce acquisition costsLook for ways to reduce acquisition costs  Track customer equity gains and losses against marketing programsTrack customer equity gains and losses against marketing programs  Relate branding to customer equityRelate branding to customer equity  Monitor the intrinsic retainability of your customerMonitor the intrinsic retainability of your customer  Consider writing separate marketing plans—or even building twoConsider writing separate marketing plans—or even building two marketing organizations—for acquisition and retention effortsmarketing organizations—for acquisition and retention efforts
  • 29. 2.29 Customer EquityCustomer Equity  The sum of lifetime values of all customersThe sum of lifetime values of all customers  Customer lifetime value (CLV) is affected byCustomer lifetime value (CLV) is affected by revenue and by the cost of customer acquisition,revenue and by the cost of customer acquisition, retention, and cross-sellingretention, and cross-selling  Consists of three components:Consists of three components:  Value equityValue equity  Brand equityBrand equity  Relationship equityRelationship equity Rust, Zeithamal & Lemon, 2004Rust, Zeithamal & Lemon, 2004
  • 30. 2.30 Relationship of Customer Equity toRelationship of Customer Equity to Brand EquityBrand Equity  Customers drive the success of brands butCustomers drive the success of brands but brands are the necessary touchpoint that firmsbrands are the necessary touchpoint that firms have to connect with their customers.have to connect with their customers.  Customer-based brand equity maintains thatCustomer-based brand equity maintains that brands create value by eliciting differentialbrands create value by eliciting differential customer response to marketing activities.customer response to marketing activities.  The higher price premiums and increased levelsThe higher price premiums and increased levels of loyalty engendered by brands generateof loyalty engendered by brands generate incremental cash flows.incremental cash flows.