Customer-Based
. Brand Equity
Customer Based Brand Equity:
The differential effect that brand knowledge
has on consumer response to the marketing
of that brand.
Abhinav Gupta, Asst. Prof., Faculty of
Management
Customer-Based
. Brand Equity
. There are three ingredients of Brand Equity
Differential effect
• Differences in consumer response
Brand knowledge
• A result of consumers’ knowledge about the brand
Consumer response to marketing
• Choice of a brand
• Recall of copy points from an ad
• Response to a sales promotion
• Evaluations of a proposed brand extension
Abhinav Gupta, Asst. Prof., Faculty of
Management
Brand ..Equity
..
Brand Awareness
Brand Image / Brand salience
Awareness
Brand Experiences /
Brand Users
Brand loyalty
Abhinav Gupta, Asst. Prof., Faculty of
Management
Brand Equity. as a “Bridge”
. Brand as a reflection of past
investments in the marketing
Brand as a direction for future
marketing actions or programs
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Making a Brand Strong: Brand Knowledge
. Brand knowledge is the key to creating brand
equity.
Brand knowledge consists of a brand node in
memory with a variety of associations linked
to it.
It has two components:
• Brand Awareness
• Brand Image
Abhinav Gupta, Asst. Prof., Faculty of
Management
Component of Brand Knowledge/
.
Source of Brand Equity
.
Brand Awareness
It consists the performance of brand recognition &
brand recall
• Brand Recognition: Ability of consumer to confirm
prior exposure to the brand when given brand as a cue
• Brand Recall: Ability of consumer to retrieve the
brand from memory when given product category as
cue
Abhinav Gupta, Asst. Prof., Faculty of
Management
Brand Awareness
. Advantages
.
Learning advantages
Register the brand in the minds of consumers
Consideration advantages
Likelihood that the brand will be a member of
the consideration set
Choice advantages
Affect choices among brands in the
consideration set
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Establishing Brand Awareness
.
Increasing the familiarity of the brand
through repeated exposure (for brand
recognition)
Forging strong associations with the
appropriate product category or other
relevant purchase or consumption cues
(for brand recall)
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Component of Brand Knowledge/
Source of Brand Equity
.
Brand image
A positive image is created by marketing
programs that link strong, favorable, &
unique associations to the brand in
memory
• Strength of Brand Association
• favorability of Brand Association
• uniqueness of Brand Association
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Creating a Positive Brand Image
.
Brand Associations
• Does not matter which source of brand
association
• Need to be favorable, strong, and unique
• Marketers should recognize the influence of
these other sources of information by both
managing them as well as possible and by
adequately accounting for them in designing
communication strategies.
Abhinav Gupta, Asst. Prof., Faculty of
Management
The Four Steps of
. Brand Building
.1. Ensure identification of the brand with
customers and an association of the brand in
customers’ minds
2. Establish the totality of brand meaning in the
minds of consumers
3. Elicit the proper customer responses to the
brand identification and brand meaning
4. Convert brand response to create an intense,
active loyalty relationship between customers
and the brand
Abhinav Gupta, Asst. Prof., Faculty of
Management
Four Questions Customers
. ask of Brands
. 1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel
about you? (brand responses)
4. What about you and me? What kind of
association and how much of a
connection would I like to have with
you? (brand relationships)
Abhinav Gupta, Asst. Prof., Faculty of
Management
Brand Resonance
. Pyramid
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Customer-Based Brand Equity Pyramid
.
Brand Relationship
(What about you and me?)
Resonance
Brand response
(What about you?)
Judgment Feeling
Brand Meaning Brand Brand Imagery
(what are you?) Performance
Brand Identity Brand Salience
(Who are you?) Brand awareness
Abhinav Gupta, Asst. Prof., Faculty of
Management
Customer-Based Brand
. Equity Pyramid
.
Brand Relationship Loyalty
(What about you and me?) Commitment
Engagement
Brand response Quality Warm, secure
(What about you?) Creditability Fun, excitement
Superiority Social approval, etc.
Product characteristics Profiles, usage,
Brand Meaning Effectiveness, Reliability Personality & values
(what are you?) Design ,price Experiences
Brand Identity Category identification
(Who are you?)
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Salience Dimensions
• Depth of brand awareness
. – Ease of recognition and recall
– Strength and clarity of category membership
• Breadth of brand awareness
– Purchase consideration
– Consumption consideration
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Depth and Breadth Importance
.
• The product category hierarchy shows us
not only the depth of awareness matters
but also the breadth.
• The brand must not only be top-of-mind
and have sufficient “mind share,” but it
must also do so at the right times and
places.
Abhinav Gupta, Asst. Prof., Faculty of
Management
.
Product Category Structure
.
• To fully understand brand recall, we need
to appreciate product category structure,
or how product categories are organized
in memory.
Abhinav Gupta, Asst. Prof., Faculty of
Management
Performance. Dimensions
.• Primary characteristics and supplementary
features
• Product reliability, durability, and
serviceability
• Service effectiveness, efficiency, and
empathy
• Style and design
• Price
Abhinav Gupta, Asst. Prof., Faculty of
Management
Imagery Dimensions
.
. • User profiles
Demographic and psychographic characteristics
Actual or aspirational
Group perceptions—popularity
• Purchase and usage situations
Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of
usage
• Personality and values
Sincerity, excitement, competence, sophistication, and
ruggedness
• History, heritage, and experiences
Nostalgia
Memories
Abhinav Gupta, Asst. Prof., Faculty of
Management
Judgment Dimensions
.
. • Brand quality • Brand consideration
Value Relevance
Satisfaction
• Brand credibility
Expertise
• Brand superiority
Trustworthiness Differentiation
Likeability
Abhinav Gupta, Asst. Prof., Faculty of
Management
Feelings Dimensions
.
.• Warmth
• Fun
• Excitement
• Security
• Social Approval
• Self-respect
Abhinav Gupta, Asst. Prof., Faculty of
Management
. Resonance Dimensions
.
• Behavioral loyalty
– Frequency and amount of repeat purchases
• Attitudinal attachment
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand
• Sense of community
– Kinship
– Affiliation
• Active engagement
– Seek information
– Join club
– Visit website, chat rooms
Abhinav Gupta, Asst. Prof., Faculty of
Management
. Brand Building Implications
.
• Customers own brands.
• Don’t take shortcuts with brands.
• Brands should have a duality (performance as
well as imagery).
• Brands should have richness (breadth in terms
of duality and depth in terms of richness .
• Brand resonance provides important
focus( customer’s attachment with the brand).
Abhinav Gupta, Asst. Prof., Faculty of
Management
