The document discusses brand equity, defining it as the value derived from a well-known brand name. It outlines principles for creating brand equity, the importance of measuring it at various levels (firm, product, consumer), and the negative implications of poor brand perception. Additionally, it details methods for measuring brand awareness, associations, and loyalty, highlighting the components of brand image and personality.

1. Defining BRAND EQUITYFG - Brand Management – Chapter 2
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2. Learning Objectives
 1. Defining Brand Equity
 2. Measuring Brand Equity
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3. Brand Equity
 Brand equity principles
 Brand equity describes the value of having a well-known
brand name.
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4. Brand Equity
 Principles of brand equity
 The value premium that a company realizes from a
product with a recognizable name as compared to its
generic equivalent.
 Companies can create brand equity for their products
 By making them memorable, easily recognizable and superior in
quality and reliability.
 By developing values and emotions attached to their products
 By developing Mass marketing campaigns
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5. Brand Equity
 Principles of brand equity
 The value premium that a company realizes from a
product with a recognizable name as compared to its
generic equivalent.
 Companies can create brand equity for their products
 By making them memorable, easily recognizable and superior in
quality and reliability.
 By developing values and emotions attached to their products
 By developing Mass marketing campaigns
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6. Brand Equity
 Negative brand equity
 If consumers are willing to pay more for a generic product
than for a branded one, the brand is said to have negative
brand equity.
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7. Brand Equity
 Negative brand equity
 Negative brand equity might
happen if a company had a
major product recall or
caused a widely publicized
environmental disaster.
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8. Brand Equity
 Importance of brand equity
 Financial results
 Sales predictability
 Price premium
 Attract investors
 Umbrella effect:
 When a company wants to expand its product line, if the
brand's equity is positive, customers will more likely buy the
new product by associating it with the existing successful
brand.
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9. Brand Equity Measurement
 Brand Equity can be measured at the
 Firm level
 Product level
 Consumer level
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10. Brand Equity Measurement
 Firm Level Measurement
 Firm level approaches measure the brand as a financial
asset.
 In short, a calculation is made regarding how much the
brand is worth as an intangible asset.
 Cf. Interbrand annual ranking
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11. Strong Brands
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12. Brand Equity Measurement
 Product Level Measurement
 The classic product level brand measurement example
is to compare the price of a no-name (generic) or
private label product to an "equivalent" branded
product.
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13. Brand Equity Measurement
 Product Level Measurement
 The difference in price, assuming all things equal, is due to
the brand.
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14. Brand Equity Measurement
 Consumer Level Measurement
 This approach seeks to measure 3 dimensions of
brand equity:
1. Awareness
2. brand image
3. Customer loyalty
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15. Brand Equity Measurement
 Consumer Level Measurement
 Awareness
 the extent to which a brand is recognized by potential
customers, and is correctly associated with a particular
product category.
 Brand image
 This approach seeks to map the mind of the consumer to find
out what associations with the brand the consumer has.
 Brand loyalty
 A consumer's commitment to repurchase or otherwise
continue using the brand, or other positive behaviors such as
word of mouth advocacy.
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16. Brand Equity Measurement
 Measures of Brand Awareness
 Aided Awareness - When asked about a product category,
if the consumer is aided with a list of company names and
he recognizes the company from the given set it is
categorized as aided awareness.
 Spontaneous awareness - When asked about a product
category, the consumers are asked to list brands they know
without any cues.
 Top of the mind Awareness - It’s the first brand name listed by
the consumers when asked to name brands they know without
any cues.
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17. Brand Equity Measurement
 Brand Image
 Brand image is the consumers’ perception about the brand.
 It can be defined as a unique bundle of associations within
the minds of target customers.
 It signifies what the brand presently stands for.
 It is a set of beliefs held about a specific brand.
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18. Brand Equity Measurement
 Brand Image
 Definition: A unique set of associations in the minds
of customers concerning what a brand stands for and
the implied promises the brand makes.
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19. Brand Equity Measurement
 Brand Image Components
 Visual associations: What customer see about the brand
 Mental associations: What customers think about the brand
 Product and attributes: (design, functionalities, quality, category,
industry, etc.)
 Usage imagery: when, where, how we use the product (e.g. it evoke
sports, holidays, week-ends, etc.)
 Personality of the brand (e.g. sophisticated (Chanel), rugged (The North
Face), etc.
 Emotional associations: What customers feels when in contact
with the brand
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20. Brand Equity Measurement
 Brand Image Components
 Visual associations:
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Round shaped spectacles and a stickGolden Arches & Ronald

21. Brand Equity Measurement
Positive Emotions and moods
 Good
 Safe
 Trust
 Inspired
 Belonging
 Admired
 Superior
 Belonging
 Self-confident
 Express my personality
 Aesthetic
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 Trendy
 “First” in things
 Influential over others
 Efficient
 Comfortable
 Generous
 Gratified
 Pride
 Smart
 Imaginative
 Enchantment
 Etc.

22. Brand Equity Measurement
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23. Brand Equity Measurement
 Brand image
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24. Brand Equity Measurement
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25. Brand Equity Measurement
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26. Brand Equity Measurement
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27. Brand Equity Measurement
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28. Brand Equity Measurement
 Consumer Level Measurement
 Brands with high levels of awareness and strong,
favorable and unique associations are high equity
brands.
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29. Brand Equity Measurement
 Importance of brand image
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30. Brand Management
How to Measure Brand Equity30

31. Brand Equity Measurement
1. Measuring Brand AWARENESS
Can a customer spontaneously recall your brand?
Awareness is measured for a Category of product
 Product category: A product category is all the products offering the
same general functionality
 Unaided Awareness
 Aided Awareness
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32. Brand Equity Measurement
 Unaided awareness is captured via an open-ended question.
 Example of unaided awareness:
 Please Name all the brands of [Category of Product] you can
think of.
 E.g. General category: bags; Sub-categories women bags, men bags,
children bags, outdoor bags, city bags, school bags, etc., fashion
clothes, shoes, cars, beverages, etc.
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33. Brand Equity Measurement
 Example Top of Mind awareness:
 What is the first brand that comes to your mind when you
think of [Product category] women bags?
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34. Brand Equity Measurement
 Aided Awareness
 Aided awareness provides a pick list from which respondents
can choose the brands they are aware of.
 This list must be randomized and be in a multiple response
format where they can select any or all brands they have
awareness of.
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35. Brand Equity Measurement
 Example Aided Awareness
Which of the following bottled water brands have you heard of?
(Select all that apply)
 Aquafina
 Dasani
 SmartWater
 My Brand
 Fiji
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36. Brand Equity Measurement
 Example Aided Awareness
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37. Brand Equity Measurement
2. Measuring Brand ASSOCIATIONS
Example 1- Brand Associations
 The following question can be open or aided (with a list of
attributes proposed to respondent)
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38. Brand Equity Measurement
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 Questions can start with the general perception of the brand:
 When you think of Nike, What comes to your mind?
 What does Nike means to you?

39. Brand Equity Measurement
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 …and continue with more focus questions:
Product attributes
 What does the air pocket evoke to you?
Usage imagery
 When would you use Nike? (ask for occasions and moods)
Brand personality
 If Nike were a person, what would its personality be like?
Feelings and experience
 If I say Nike, what kind of feeling does it evoke?

40. Brand Equity Measurement
 2. Measuring Brand Association
 Example 2 – Brand Associations
 Which of the following attributes do you associate with [brand]?
 Affordable
 Fun
 Safe
 Dependable
 Modern
 Stylish
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 Easy to Use
 Essential
 Powerful
 Other Popular
 None of these

41. Brand Equity Measurement
 Brand Personality
 The Five Dimensions of Brand Personality by Jennifer Aaker (1997) is a
framework to describe and measure the “personality” of a brand in five
core dimensions, each divided into a set of facets. It is a model to
describe the profile of a brand by using an analogy with a human being.
 Sincerity (down-to-earth, honest, wholesome, cheerful)
 Excitement (daring, spirited, imaginative, up-to-date)
 Competence (reliable, intelligent, successful)
 Sophistication (upper class, charming)
 Ruggedness (outdoorsy, tough)
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42. Brand Equity Measurement
 Brand Personality
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43. Brand Equity Measurement
 Example of question used for Brand Personality
Overall, I think that Nike is down to earth
Disagree 1 2 3 4 5 6 7 Agree
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44. Brand Equity Measurement
3. Measuring Brand LOYALTY
 Customer loyalty is made up of 3 components
① Intention to purchase and repurchase
② Recommendation
③ Satisfaction
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45. Brand Equity Measurement
Intention to purchase and repurchase
How likely are you to buy brand X?
 Very likely – Rather Likely – Don’t know – Rather not likely - not likely
at all
When is the last time you bought brand X?
 Last week- 1 month ago – 3 month ago – 6 months ago – 1 year ago
Are you willing to buy again? When?
 Very likely – Rather Likely – Don’t know – Rather not likely - not likely
at all
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46. Brand Equity Measurement
Recommendation
Are you willing to recommend brand X to relatives, friends
and colleagues?
 Very likely to not likely at all
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2

47. Brand Equity Measurement
Satisfaction
Overall, how satisfied are you with brand X?
 Extremely satisfied to not satisfied
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3

48. Brand Equity Measurement
3. Satisfaction
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Only very satisfied
customers (delighted) are
LOYAL