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Chapter 2

Customer Based Brand Equity

Customer Based Brand Equity

CBBE is formally defined as the differential effect that the brand knowledge has on consumer responses to the marketing of that brand.

Brand Equity as a Bridge

According to the CBBE model power of the brand lies in the mind of the consumers and what they have learned and experienced about the brand overtime. Brand Equity provides marketers as Strategic bridge in the form of :

Brand Equity as Strategic Bridge

Brand as a reflection of the past: Dollars spent on Marketing should not be viewed as expenses but as investment. Brands as Direction for the Future: Brand Knowledge created overtime by marketing investments dictates brand future direction.

Making a Brand Strong: Brand Knowledge

Brand knowledge is the key to creating brand equity. The model of memory developed by psychologists known as associative network memory model. Model represents the strengths of association between the information and the brand.

Sources of Brand Equity

1. Brand Awareness Brand Awareness consist of Brand Recognition and Brand Recall. 2. Brand Image Brand image is created by marketing program that link strong, favorable, and unique associations to the brand memory.

Brand Awareness Advantages

1. Learning advantages:
Register the brand in the minds of consumers

2. Consideration advantages:
Likelihood that the brand will be a member of the consideration set

3. Choice advantages:
Affect choices among brands in the consideration set

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)

The Four Steps of Brand Building

1. Ensure identification of the brand with customers and an association of the brand in customers minds

3. 4.

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

Four Questions Customers ask of Brands

2. 3.

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)

Customer-Based Brand Equity Pyramid


What about you and me?





What are you?


1. IDENTITY = Who are you?

Brand Salience
Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily the brand is evoked under various situations. To what extent brand has top of the mind recall?
How pervasive is the brand awareness?

Breadth and Depth of Awareness

The depth of brand awareness concerns the likelihood that the brand will come to mind and the ease with which it does so. The breadth of brand awareness concerns the range of purchase and usage situation in which the brand comes to mind.

Product Category Structure

Steps/Hierarchy in Product Category Structure

First Consumer will distinguish between flavor and non flavor beverages. Then they distinguish between alcoholic and nonalcoholic beverages. Nonalcoholic beverages are further distinguished in consumers mind (e.g., coffee or tea) Alcoholic beverages are further distinguished whether they are wine, beer etc.

Strategic Implications of Product Hierarchy

Through Product Hierarchy Brand awareness can be improved. Can Gauge the better understanding for product positioning. Brand must be marketed at the right time and at the right place.

Brand Performance
Brand performance relates to the ways in which product or service attempts to meet customers more functional needs. Brand Performance Dimensions can serve as a means by which the brand is differentiated. Five important dimensions or attributes that underlie brand performance are:

Brand Performance Dimensions

Primary ingredients/characteristics supplementary features Product reliability, serviceability Style and design Price durability, and and

Service effectiveness, efficiency and empathy

Brand Imagery
Brand imagery deals with the extrinsic properties of the product or service. Brand imagery is how people think about the brand abstractly, rather then what the brand actually does. Imagery is related to more intangible aspects of the brand.

Imagery Dimensions/Categories
User profiles
Demographic and psychographic characteristics Actual or aspirational Group perceptionspopularity

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

Brand Judgment

Brand judgment focus customer personal opinions and evaluations with regard to the brand.

Brand Judgment Dimension

Brand Quality

Brand Credibility Expertise (Competent, innovative and market leader) Trustworthiness (dependable and keeping customer interest in mind) Likeability (Fun, interesting and worth spending time with)

Brand Judgment Dimension

Brand Consideration Brand consideration is more awareness. then mere

Brand consideration depends on how appropriate and meaningful customer find the brand. Brand consideration largely depends on how brand association is created.

Brand Judgment Dimension

Brand Superiority Superiority relates to the extent to which customer view the brand as unique and better then then others. (Differentiation)

Feelings Dimensions
Warmth : Consumer may feel sentimental, warmhearted or affectionate about the brand.
Fun: Brand makes consumer feel amused, lighthearted, playful and cheerful etc. Excitement: Brand make consumer feel energized or feeling of something special. Security: Brand produces the feeling of safety, control and self-assurance.

Feelings Dimensions
Social Approval: Brand results in having positive response from others. Self-respect: Brand makes consumer feel better about themselves.

Brand Resonance
Brand resonance is the ultimate relationship and level of identification the consumer has with the brand. Resonance is the depth of psychological bond the consumer has with the brand.

Brand Resonance Dimensions/Categories

Behavioral Loyalty The first dimension of brand resonance is behavioral loyalty in terms of repeat purchases Attitudinal Attachment Consumer should go beyond having positive attitude to viewing the brand as something special.

Example: Consumer may state that they love their brand, describe it as their favorite possessions view the brand as little pleasures that they look forward to.

Brand Resonance Dimensions/Categories

Sense of Community Brand community describes consumers as a part of certain community. Identification with a brand community may reflect an important social phenomena. Consumer feel kinship or affiliation with other people associated with the brand.

Brand Resonance Dimensions/Categories

Active Engagement Strongest affiliation of brand loyalty is when consumer are willing to invest time, energy, money and other resources.