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8/3/2019 48990396 Strategic Brand Management Keller 2 CBBE 0002
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Customer-Based Brand Equity
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Motivation forCustomer-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
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Rationale of Customer-Based Brand Equity Model
Basic premise: Power of a brand resides in the mindsof customers
Challenge is to create the right brand knowledgestructures - ensure customers have the right types of experiences with products and services through theirmarketing programs: Thoughts
Feelings Images
Perceptions
Attitudes
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Building
Customer-Based Brand EquityThe CBBE model provides -
Branding ladder - building a strong brand involves aseries of steps
Building blocks - strong brand is characterized by alogically constructed building blocks
Reinforces a number of branding tenets
1. Customer¶s own brands
2. Don¶t take short cuts with brands3. Brands should have a duality ± rational and emotional
4. Brands should have richness - resonance
5. Brand resonance provides important focus
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CBBC Model is Useful
CBBC model is useful as - ± Road map /guidance for brand building
± Yardstick to assess progress / weaknesses andstrengths
± Guide for marketing research effort
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The Concept of CBBE
Customer-based brand equity can be Positive CBBE - gets a positive response from consumers
Negative CBBC - evokes a negative response
CBBE has 3 key ingredients
1. Differential effect on consumer response to themarketing of the brand (because of brand knowledge),(if there is no differential effect, it is a commodity and competition
will be based on price)
2. Because of Customer brand knowledge the result of marketing and previous experience with the brand
3. Which causes Customer response to brandmarketing reflected in the perception, preferencesand behavior related to all aspects of the marketing
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Brand Equity as a Bridge
CBBE represents the added value endowedto a product as a result of past investments inthe marketing of a brand.
Hence CBBE provides direction and focus tofuture marketing activities It provides focus and guidance to interpret the past
marketing programs and design of future marketing
programs
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Brand Equity as a Bridge
Customer knowledge provides a vital bridge fromthe past to the future
BE as a reflection of the past all past expenditure are
either good or bad brand investmentsQuality of investment is more important than quantity (can overspend if the money is not spent wisely)
BE as direction for the future Consumers decidewhere the brand can go and where it cannot because of brand knowledge created over time - dictates the futuredirection for the brand..
The true value and Future prospects of the brand rests with theconsumer
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Consumer-Based Brand Equity Framework
Brand
Knowledge
Brand
Recognition
Brand
Recall
Non-Product-Related
(e.g., Price, Packaging,
User and Usage Imagery)
Product-Related(e.g., color, size,
design features)
Functional
Symbolic
Experiential
Attributes
Benefits
Overall
Evaluation
(Attitude)
Types of
Brand Associations
Favorability,
Strength, and
Uniqueness of
Brand Association
Brand
Awareness
BrandImage
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Sources of BE - Determinants of CBBE
Brand Knowledge - key to differential effect that creates /drives BE
The associative network memory model ± BK is considered a node in memory with a variety of associations
Brand associations are the other nodes that are linked to the brandnode in memory (about the product and aspects independent of it)
The associations are categorized as - Brand awareness and familiarity ± strength of the memory
The ability to identify the brand and recall it and«
To recall it under many different conditions Brand Image ± is consistent with an associative memory model ±
a perception about a brand as reflected by the band associations
Brand Associations vary by groups
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
1. Awareness and familiarity with the brand
In some cases this alone may be adequate, but in othercases
2 . Strong, favorable, and unique brandassociations (brand Image) in memory
determines the differential response (meaningfuldifferences) which makes up BE.
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
1. Brand Awareness consists of -
Brand recognition ability to confirm prior exposure to theBrand, given the brand as a cue
Important when decisions are made in the store Brand Recall ability to retrieve the brand from memory
when given a brand association cue - the product category,the needs fulfilled, purchase situation
Important when brand is not present and it has to be
actively sought on-line brands, critical services etc Relative importance of recognition and recall depends on
whether - product related decision is taken with product present orabsent
It is easier to recognize than recall.
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
1. Brand awareness
Consequences important role in consumerdecision making for 3 reasons
1. Learning Advantage for formation of brandassociations
2 . Consideration advantage puts brand on theconsideration set
3. Choice advantage particularly with Lowinvolvement goods
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Sources of BE - Determinants of CBBE
Consequences of Brand awareness important rolein consumer decision making for 3 reasons
1. Learning Advantages influences the formation of brand
associations that make up the brand image.
The nature of the brand node affects the different kinds of associations to become attached in memory
It is the first step in building BE and the choice of brand
elements make the process easier or more difficult
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Sources of BE - Determinants of CBBE
Consequences of Brand awareness plays animportant role in consumer decision making
for 3 reasons
2 . Consideration Advantages thinking of the brand, whenmaking purchase decisions, when the brand is acceptable.
Raising awareness increases the likelihood of the brand
being on the consideration set. (Part-list-cuing says it reduces the likelihood of other brands not being there)
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Sources of BE - Determinants of CBBE
Consequences of Brand awareness important for3 reasons
3. Choice advantage affects choice in the consideration set
even when there are no other associations to those brands.(Consumers buy well established brands)
In low-involvement situations - Minimum levels of brandawareness may be adequate to produce choice even in theabsence of well formed attitudes
(In low-involvement situations consumers -1. Lack purchase motivation- does not care about the
product - gasoline
2. Lack purchase ability to judge product quality. Heuristics(shortcut) will be used and the brand which they are familiarwith will be chosen)
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Sources of BE - Determinants of CBBE
Establishing brand awareness
Repeated exposure through IMC
increases familiarity with the brand.
useful for brand recognition more than for brand recall
(Important to reinforce brand name with all brand elements)
For increased recall the brand requires linkages inmemory of
appropriate product category
other situational purchase or consumption cues
(using a slogan or jingle can creatively do this along with the other brandelements)
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
2. Brand Image created by
Marketing programs that link strong favorable
associations to the brand in memory
And other sources of information
Marketer controlled sources of info
Distribution channel, company, person, place or events
Info from other sources / WOM
Brand Experience
Assumptions and inferences from the brand
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
2.Brand Image
1. Strength of Brand Associations
Consumer beliefs about brand attributes are formed inmay ways -
Personal experience information creates the strongestbrand attributes and benefit association (important to decisionmaking)
WOM and other non-commercial sources ofinformation forms the next strongest associations
Company created sources of information createsweakest associations (advertising)
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
2. Brand Image is created by marketing programs that link strong favorable associations
1. Strength of Brand Associations depends on howmarketing programs affect brand experience
quantity and quality of processing (more deeply a personthinks about the information and relates it to existing brand
knowledge, stronger the associations)
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Sources of BE - Determinants of CBBE
CBBE occurs when consumer has a high levels of:
2. Brand Image is created by marketing programs that link strong favorable associations
1. Two factors affect the strength of the associations1. Relevance of the information
2. Consistency with which the information is presented over time
Recall and salience of brand depends on particular associations
1. The context in which the brand is considered and
2. The retrieval cues that are present and serve as reminders
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Sources of BE - Determinants of CBBE
Brand Image
1. Strength of Brand Associations depends on howmarketing programs affect brand experience
Companies create strong brand associationsthrough a variety of means
Creative communication - brand relatedinformation is related to existing knowledge
Repeated exposure - over time and space, sothat retrieval cues are present as reminders
All marketing programs and brand activitieschosen must affect the strength of brandassociations
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Sources of BE - Determinants of CBBE
Brand Image
2. Favorability of Brand Associations associationsdesirable to the consumer, delivered effectively
D esirability depends on 3 factors
1. How relevant consumers find the brand associations
2. How distinctive they find the association
3. How believable they find the associations
D eliverability depends on 3 factors
1. Actual and potential ability of the product to perform2. Current or future prospects of communicating the performance
3. Sustainability of the actual or communicated performance over time.
Effectively delivered
Cost of delivery, and
Time necessary for to create / change desired associations?
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Sources of BE - Determinants of CBBE
Brand Image is created by marketing programs
1. Unique brand associations should not givereasons for customers not to buy the brandtherefore consider both -
Points of diff erenc e - meaningful points of difference the reason to buy - the associated USP
Points of parity be as good as the competition onother associations (to negate the potential points of difference of competitors)
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Sources of BE - Determinants of CBBE
Brand Image is created by marketing programs1. Unique brand associations - sustainable competitive
advantage USP brand positioning
1. USP - product related / non product related attributes
or benefits (user type, usage situations)Differences can be communicated
explicitly by direct comparison with competitors
Or implicitly highlighted without a competitive point of reference
2. Shared associations with competition helps establish
Category membership and scope of the competition
Shares the Product category attitude - specific beliefs and attitudestowards the category as a whole or a member of the category alsobecome brand associations
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Sources of BE - Determinants of CBBE
Brand Image is created by marketing programs
Unique brand associations valuation is -
situation and context dependent and
varies according to consumer goals
Not all associations are viewed as important, or
viewed by consumers (Color of Fed Ex)
Nor are they equally valued across all purchase orconsumption occasions (Christmas cards by Fed Ex)
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CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
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Salience Dimensions
D epth of brand awareness
Ease of recognition and recall
Strength and clarity of category membership
Breadth of brand awareness with varied
Purchase consideration
Consumption consideration
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Performance Dimensions
Primary characteristics and supplementaryfeatures
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price
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Imagery Dimensions
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, context of usage
Personality & values
Sincerity, excitement, competence, sophistication, ruggedness
History, heritage, & experiences
Nostalgia
Memories
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Judgment Dimensions
Brand quality
Value
Satisfaction
Brand credibility
Expertise
Trustworthiness
Likability
Brand consideration
Relevance
Brand superiority
Differentiation
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Feelings Dimensions
Warmth
Fun
Excitement Security
Social approval
Self-respect
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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 web site, chat rooms
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Customer-Based Brand Equity Model
Consumer-
Brand
Resonance
Brand Salience
Consumer
Judgments
Consumer
Feelings
Brand
PerformanceBrand
Imagery
INTENSE, ACTIVE
LOYALTY
RATIONAL &
EMOTIONAL
REACTIONS
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
DEEP, BROAD
BRANDAWARENESS
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Sub-Dimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITYCREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY & SERVICEABILITYSERVICE EFFECTIVENESS,
EFFICIENCY, & EMPATHY
STYLE AND DESIGN
PRICE
USER PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &VALUES
HISTORY, HERITAGE,
& EXPERIENCES
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Application:
Identify the key drivers of brand equity
0.17 0.66
0.24
0.65Performance
Imagery Feelings
Judgment
Resonance
0.58
0.49
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BuildingCustomer-Based Brand Equity
Brand knowledge structures depend on . . .
The initial choices for the brand elements
The supporting marketing program and the mannerby which the brand is integrated into it
Other associations indirectly transferred to the
brand by linking it to some other entities