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    Customer-Based Brand Equity

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    sarakhan0622
    1) The document discusses customer-based brand equity and how it is created through brand awareness, brand image, and the relationships between these concepts and how customers perceive and relate to a brand. 2) It presents a model and pyramid that outlines the different dimensions that contribute to customer-based brand equity, from basic identity and awareness to feelings, judgments, and resonance with customers. 3) The key to creating strong customer-based brand equity is developing deep brand knowledge through high brand awareness, strong and favorable brand associations that are unique within the product category.

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    Customer-Based Brand Equity

    Uploaded by

    sarakhan0622
    65 views30 pages
    1) The document discusses customer-based brand equity and how it is created through brand awareness, brand image, and the relationships between these concepts and how customers perceive and relate to a brand. 2) It presents a model and pyramid that outlines the different dimensions that contribute to customer-based brand equity, from basic identity and awareness to feelings, judgments, and resonance with customers. 3) The key to creating strong customer-based brand equity is developing deep brand knowledge through high brand awareness, strong and favorable brand associations that are unique within the product category.

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    1) The document discusses customer-based brand equity and how it is created through brand awareness, brand image, and the relationships between these concepts and how customers perceive and relate to a brand. 2) It presents a model and pyramid that outlines the different dimensions that contribute to customer-based brand equity, from basic identity and awareness to feelings, judgments, and resonance with customers. 3) The key to creating strong customer-based brand equity is developing deep brand knowledge through high brand awareness, strong and favorable brand associations that are unique within the product category.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    65 views30 pages

    Customer-Based Brand Equity

    Uploaded by

    sarakhan0622
    1) The document discusses customer-based brand equity and how it is created through brand awareness, brand image, and the relationships between these concepts and how customers perceive and relate to a brand. 2) It presents a model and pyramid that outlines the different dimensions that contribute to customer-based brand equity, from basic identity and awareness to feelings, judgments, and resonance with customers. 3) The key to creating strong customer-based brand equity is developing deep brand knowledge through high brand awareness, strong and favorable brand associations that are unique within the product category.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 30

    CHAPTER 2:

    CUSTOMER-BASED BRAND EQUITY

    Kevin Lane Keller


    Tuck School of Business
    Dartmouth College

    2.1

    Customer-Based Brand
    Equity

    The differential effect that brand


    knowledge has on consumer
    response to the marketing of that
    brand.
    Keller, 1993

    2.2

    Customer-Based Brand
    Equity

    Differential effect

    Brand knowledge

    Differences in consumer response


    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

    2.3

    Brand Equity as a Bridge

    Reflection of past investments in the


    marketing of a brand
    Direction for future marketing
    actions or programs

    2.4

    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.
    Brand knowledge has two
    components: brand awareness and
    brand image.
    2.5

    Sources of Brand Equity

    Brand awareness
    Brand recognition
    Brand recall

    Brand image

    Strong, favorable, and unique brand


    associations

    2.6

    Brand Awareness
    Advantages

    Learning advantages

    Consideration advantages

    Register the brand in the minds of


    consumers
    Likelihood that the brand will be a
    member of the consideration set

    Choice advantages

    Affect choices among brands in the


    consideration set
    2.7

    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)

    2.8

    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.

    2.9

    The Four Steps of Brand


    Building
    1.

    2.

    3.

    4.

    Ensure identification of the brand with


    customers and an association of the brand
    in customers minds
    Establish the totality of brand meaning in
    the minds of consumers
    Elicit the proper customer responses to the
    brand identification and brand meaning
    Convert brand response to create an
    intense, active loyalty relationship between
    customers and the brand
    2.10

    Four Questions Customers ask


    of Brands
    1.
    2.
    3.

    4.

    Who are you? (brand identity)


    What are you? (brand meaning)
    What about you? What do I think or
    feel about you? (brand responses)
    What about you and me? What kind
    of association and how much of a
    connection would I like to have
    with you? (brand relationships)
    2.11

    Customer-Based Brand Equity


    Pyramid
    RESONANCE

    JUDGMENTS

    PERFORMANCE

    FEELINGS

    IMAGERY

    SALIENCE

    4.RELATIONSHIPS=
    4.RELATIONSHIPS=
    Whataboutyouandme?
    Whataboutyouandme?

    3.RESPONSE=
    3.RESPONSE=
    Whataboutyou?
    Whataboutyou?

    2.MEANING=
    2.MEANING=
    Whatareyou?
    Whatareyou?

    1.IDENTITY=
    1.IDENTITY=

    Whoareyou?
    Whoareyou? 2.12

    Sub-Dimensions of CBBE
    Pyramid
    LOYALTY
    ATTACHMENT
    COMMUNITY
    ENGAGEMENT

    QUALITY
    CREDIBILITY
    CONSIDERATION
    SUPERIORITY

    PRIMARYCHARACTERISTICS&
    SECONDARYFEATURES
    PRODUCTRELIABILITY,DURABILITY
    &SERVICEABILITY
    SERVICEEFFECTIVENESS,
    EFFICIENCY&EMPATHY
    STYLEANDDESIGN
    PRICE

    WARMTH
    FUN
    EXCITEMENT
    SECURITY
    SOCIALAPPROVAL
    SELFRESPECT

    USERPROFILES
    PURCHASE&USAGE
    SITUATIONS
    PERSONALITY&
    VALUES
    HISTORY,HERITAGE
    &EXPERIENCES

    CATEGORYIDENTIFICATION
    NEEDSSATISFIED

    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

    2.14

    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-ofmind and have sufficient mind
    share, but it must also do so at the
    right times and places.
    2.15

    Product Category
    Structure

    To fully understand brand recall, we


    need to appreciate product category
    structure, or how product categories
    are organized in memory.

    2.16

    Performance Dimensions

    Primary characteristics and


    supplementary features

    Product reliability, durability, and


    serviceability

    Service effectiveness, efficiency, and


    empathy

    Style and design

    Price

    2.17

    Imagery Dimensions

    User profiles

    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

    Demographic and psychographic characteristics


    Actual or aspirational
    Group perceptionspopularity

    Sincerity, excitement, competence, sophistication, and


    roughness

    History, heritage, and experiences

    Nostalgia
    Memories
    2.18

    Judgment Dimensions

    Brand quality

    Value
    Satisfaction

    Brand credibility

    Expertise
    Trustworthiness
    Likeability

    Brand
    consideration

    Relevance

    Brand superiority

    Differentiation

    2.19

    Feelings Dimensions

    Warmth
    Fun
    Excitement
    Security
    Social Approval
    Self-respect

    2.20

    Resonance Dimensions

    Behavioral loyalty

    Attitudinal attachment

    Love brand (favorite possessions; a little


    pleasure)
    Proud of brand

    Sense of community

    Frequency and amount of repeat purchases

    Kinship
    Affiliation

    Active engagement

    Seek information
    Join club
    Visit website, chat rooms
    2.21

    Customer-Based Brand Equity


    Model
    INTENSE,ACTIVE
    INTENSE,ACTIVE
    LOYALTY
    LOYALTY

    Consumer
    Brand
    Resonance

    Consumer
    Consumer
    Judgments
    Feelings

    Brand
    Performance

    Brand
    Imagery

    BrandSalience

    RATIONAL&
    RATIONAL&
    EMOTIONAL
    EMOTIONAL
    REACTIONS
    REACTIONS
    POINTSOF
    POINTSOF
    PARITY&
    PARITY&
    POINTSOF
    POINTSOF
    DIFFERENCE
    DIFFERENCE
    DEEP,BROAD
    DEEP,BROAD
    BRAND
    BRAND
    AWARENESS
    AWARENESS

    J-2

    J-1

    2
    J-1

    J-

    P3

    11
    J-

    P-2

    Judgment

    P-10

    R-10
    F-2

    F3

    F-1

    2
    F-1

    11
    F-

    I- 3

    I-1

    I-12

    I-2

    0
    F-1

    1
    I-1

    R-4

    5
    R-

    F-4

    R-6

    Feelings

    R-7

    I-4

    R-8

    Imagery

    R9

    0.58

    0.24

    R-2

    Resonance

    0.66

    0.17

    R3

    J-6

    J-7

    J-8

    5
    J-

    J9

    P-6

    P-7

    P-8

    5
    P-

    P9

    0.49

    R-1

    J-4

    2
    R-1

    0.65

    P-4

    1
    R-

    P-1

    2
    P-1

    Performance

    0
    J-1

    11
    P-

    Application:
    Identify the Key Drivers of
    Brand Equity

    F-6

    F-7

    F-8

    5
    F-

    F9

    I- 6

    I-7

    I- 8

    I-5

    I-10
    I- 9

    Brand Building
    Implications

    Customers own brands.


    Dont take shortcuts with brands.
    Brands should have a duality.
    Brands should have richness.
    Brand resonance provides important
    focus.

    2.24

    Creating Customer Value

    Customer-brand relationships are


    the foundation of brand resonance
    and building a strong brand.
    The customer-based brand equity
    model certainly puts that notion
    front and center.

    2.25

    Is a company consumercentric?
    1.

    2.

    3.
    4.

    5.

    Is the company looking for ways to take


    care of you?
    Does the company know its customers
    well enough to differentiate between
    them?
    Is someone accountable for customers?
    Is the company managed for shareholder
    value?
    Is the company testing new customer
    offers and learning from the results?
    Sources: Larry Selden and Geoffrey Colvin, 2004.
    2.26

    Customer Relationship
    Management (CRM)

    Uses a companys data systems and


    applications to track consumer
    activity and manage customer
    interactions with the company

    2.27

    Customer Equity

    Blattberg and Deighton (1996) offer eight guidelines as


    a means of maximizing customer equity:

    Invest in highest-value customers first


    Transform product management into customer management
    Consider how add-on sales and cross-selling can increase
    customer equity
    Look for ways to reduce acquisition costs
    Track customer equity gains and losses against marketing
    programs
    Relate branding to customer equity
    Monitor the intrinsic retain ability of your customer
    Consider writing separate marketing plansor even building two
    marketing organizationsfor acquisition and retention efforts
    2.28

    Customer Equity

    The sum of lifetime values of all


    customers
    Customer lifetime value (CLV) is affected
    by revenue and by the cost of customer
    acquisition, retention, and cross-selling
    Consists of three components:
    Value equity
    Brand equity
    Relationship equity

    Rust, Zeithamal & Lemon, 2004


    2.29

    Relationship of Customer
    Equity to Brand Equity

    Customers drive the success of brands but


    brands are the necessary touchpoint that
    firms have to connect with their
    customers.
    Customer-based brand equity maintains
    that brands create value by eliciting
    differential customer response to
    marketing activities.
    The higher price premiums and increased
    levels of loyalty engendered by brands
    generate incremental cash flows.
    2.30

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