CUSTOMERBASED BRAND EQUITY LECTURE 9

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CUSTOMER-BASED BRAND EQUITYLECTURE 9
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Customer-Based Brand Equity

• A brand equity exercise
• Find one other person to talk with about Disney
• Spend about 5 minutes talking about brand
  associations with Disney.
• Keep a list of all brand associations you have.

Customer-Based Brand Equity Slide 1
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Customer-Based Brand Equity

• Brand equity comes in various types
• Financial
• Behavioral
• Psychological
• Kellers argues a brands success is related to
  what resides in the hearts and minds consumers.
• Coke is more than plants, syrup, water and
  delivery trucks.
• Coke is refreshing, red, old-fashioned, and
  Christmas.

Customer-Based Brand Equity Slide 2
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Customer-Based Brand Equity

• Model developed by Kevin Keller (1991) that
  explains how what consumers know about a brand
  leads to success.
• A model of structure, not process.
• Strong conceptual basis, immense practicality
• The goal of brand managers is to develop a brand
  that consumers
• are familiar with, and
• have some favorable, strong, and unique brand
  associations in memory.

Customer-Based Brand Equity Slide 3
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Customer-Based Brand Equity
Brand Recall
BRAND AWARENESS
Brand Recognition
BRAND KNOWLEDGE
BRAND IMAGE
DIMENSIONS OF BRAND KNOWLEDGE Adapted from
Keller (1993)
Customer-Based Brand Equity Slide 4
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Customer-Based Brand Equity

• Customer-based brand equity is the differential
  effect of brand knowledge on consumer response to
  the marketing of a brand.
• Important aspects of the definition
• Differential effect
• Brand Knowledge
• Consumer Response (perceptions, preferences,
  behavior)

Customer-Based Brand Equity Slide 5
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Customer-Based Brand Equity

• Brand Awareness - A consumers ability to
  confirm prior exposure to the brand when given
  the brand as a cue
• Brand Recall The ability of an individual to
  retrieve a brand when provided with some type of
  product category related cue.
• Brand Recognition The ability of a person to
  verify that they have been exposed to a brand
  when prompted with the brand itself.

Customer-Based Brand Equity Slide 6
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Customer-Based Brand Equity

• Recall recognition
• (Aaker Figure 1-5)
• Brand Awareness
• Affects the composition of consideration set or
  evoked set
• May influence choice in low-involvement settings
• Influences formation of brand associations

Customer-Based Brand Equity Slide 7
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Customer-Based Brand Equity

• Brand Image A persons perceptions of a brand
  held as associations in memory. Associations
  vary along the following
• Type of Association
• Attributes (Non-Product Related, Product Related)
• Benefits (Functional, Experiential, Symbolic)
• Attitudes
• Favorability of Association
• Strength of Association (quantity quality of
  processing)
• Uniqueness of Association

Customer-Based Brand Equity Slide 8
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Customer-Based Brand Equity

• Some Ideas about Brand Associations
• Consistent brand associations are best
• Improves recall of brand associations
• Helps learning of new information
• Develops cohesive brand image
• Brand associations are built over time
• Direct experience with brand
• Indirect experience with brand
• Communications from the company

Customer-Based Brand Equity Slide 9
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Customer-Based Brand Equity

• Basic issues regarding management of equity
• Nature of knowledge structures
• Actions available to company to capitalize on
  structures
• Some guidelines
• Use an expanded, long-term view of marketing
  activities
• Figure out first what you want in your customers
  minds
• Consider all options to influence knowledge
  structures
• Consider extensions within context of core image
• Keep track of progress

Customer-Based Brand Equity Slide 10
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Customer-Based Brand Equity

• Measuring customer-based brand equity
• Indirect approach measures actual brand
  knowledge
• Direct approach measures impact of brand
  knowledge on marketing of the brand
• Indirect Approach - Awareness
• Recognition of brand name or degraded version of
  name
• Recall with various cues (e.g., drinks, soft
  drinks, carbonated beverages, colas)
• Response latencies
• Ordering of brand name recall

Customer-Based Brand Equity Slide 11
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Customer-Based Brand Equity

• Indirect Approach Brand Image Associations
• Qualitative approaches (free association tasks,
  projective techniques)
• IAT (Implicit Association Test)
• Multi-attribute attitude models (Fishbein and
  Ajzen)

• Ao Attitude toward object
• bi strength of belief that object
• has attribute i
• ei evaluation of attribute i
• n number of salient attributes

Customer-Based Brand Equity Slide 12
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Multi-Attribute Attitude Models

• This view suggests that attitudes are based on
  persons beliefs about the attitude object.
• Two basic components of M-AAM
• Beliefs - perceived associations between the
  attitude object and various features or
  attributes.
• Salience - importance assigned to attribute
• Various formulas exist.
• Fishbein Model
• Ideal-Point Model

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Multi-Attribute Attitude Models

• Using the Fishbein Model
• 1. Elicit salient beliefs.
• 2. Select focal salient beliefs
• 3. Develop measures of ei and bi (3 to -3)
• Buying hamburgers made my way is..(Very
  Good/Very Bad)
• How likely is that Wendys hamburgers can
  be made my
• way..(Very Likely/Very Unlikely)
• 4. Administer measures of ei and bi
• 5. Develop averages of all ei and bi
• 6. Calculate attitude values

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Multi-Attribute Attitude Models
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Attitudes and Behavior

• Theory of Reasoned Action

Social Norms
Behavioral Intentions
Behavior
Attitudes
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Customer-Based Brand Equity

• Direct Approach
• Experimentation
• Consumers respond to marketing of a brand (price,
  packaging, advertising, spokesperson, etc.)
• Condition 1 Brand is identified
• Condition 2 Brand is fictitious or unnamed
• Compare responses across two groups
• Conjoint Analysis

Customer-Based Brand Equity Slide 13