Motivation for Customer-Based Brand Equity Model

Marketers know strong brands are important but arent always sure how to build one. CBBE model was designed to be
comprehensive cohesive well-grounded up-to-date actionable

Brand Equity
The marketing effects uniquely attributable to the brand - Keller Positive brand equity leads to:
Loyalty Margins Reduced vulnerability to competition Enhanced marketing effectiveness Brand extensions
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Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Thoughts Feelings Images Perceptions Attitudes
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Brand Equity
Sources of Brand Knowledge
Brand Awareness Brand Image
Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations

Consequences of Brand Awareness

Learning Advantages- A brand node is established in memory Register the brand in the minds of the consumers. Consideration Advantages- think and consider the brand while making purchase- consideration set. Part-list cuing effects-recall of some information can inhibit recall of other information. Choice Advantages-can affect choices among brands in the consideration set.

Establishing Brand Awareness

Increasing the familiarity-repeated exposure Seeing, hearing thinking strongly registered in memory. Brand name, symbol, logo, character, packaging, slogan Advertising, promotion, event marketing, publicity, public relation, outdoor Visually and verbally reinforce brand name Recall-linkages in memory- product categorysituational purchase,consumption cues.
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Brand Image
Positive brand image-marketing programs that link strong, favorable and unique associations to the brand in memory. Brand associations- marketer controlled sources of information, direct experience, consumer reports, word of mouth, media vehicles, inferences about brand,

Building Customer-Based Brand Equity

Building a strong brand involves a series of steps as part of a branding ladder A strong brand is also characterized by a logically constructed set of brand building blocks.
Identifies areas of strength and weakness Provides guidance to marketing activities

Building a strong Brand-The Four steps of Brand building

Who are you? (Brand Identity) What are you? (Brand meaning) What about you? (Brand response) What about you and me? What kind of association and how much of a connection would I like to have with you? (Brand relationships)

CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

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Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

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

CATEGORY IDENTIFICATION NEEDS SATISFIED

Salience Dimensions
Salience aspects of the awareness of the brand-top-of-mind Depth of brand awareness
Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration
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Performance Dimensions
Product is at the heart of brand equity-satisfies consumers needs Intrinsic properties-product/service characteristics Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price
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Imagery Dimensions
Extrinsic properties Meets consumers psychological /social needs Abstract /intangible aspects of brand User profiles
Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories
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Judgment Dimensions
Customers personal opinions and evaluations with regard to brand. Brand quality
Value Satisfaction
Expertise( competent, innovative, market leader) Trustworthiness( dependable, keeping customers interest in mind) Likability (fun, Interesting, worth spending time with) Relevance- extent to which customers view the brand as being appropriate and meaningful to themselves Differentiation- unique and better than other brands. to build intense and active relationship
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Brand credibility

Brand consideration Brand superiority

Feelings Dimensions
Emotional response and reaction Social currency evoked by the brand Transformational advertising Warmth- soothing, calm, peace, sentimental, warmhearted, affectionate Fun- amused, lighthearted, joyous, playful, cheerful Excitement -energized, being alive, cool, sexy, Experiential and immediate- increasing in level of intensity Security -safety, comfort, self-assurance Social approval -positive about reaction of others Self -respect- sense of pride, accomplishment, fulfillment Private and enduring, increasing in level of gravity. 17

Resonance Dimensions
Ultimate relationship and level of identification the customer has with the brand.- nature of relationship- in sync Harley Davidson, Apple,eBay. Intensity or depth of the psychological bonding Strong personal attachment. Behavioral loyalty
Frequency and amount of repeat purchases- lifetime value

Attitudinal attachment
Love brand (favorite possessions; a little pleasure) Proud of brand

Sense of community
Kinship Affiliation

Active engagement

Seek information Join club Visit web site, chat rooms

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Brand Building Implications

Branding tenets Customer own brands Dont take shortcuts with brands Brands should have a duality- appeal to both head and heart Brands should have richness Brand /Resonance provides important focus.

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