Customer Based Brand Equity
What is a brand?
--A distinguishing name and/or symbol to
identify and differentiate products from those
offered by competitors.
--Brand equity: the set of assets (or liabilities)
linked to a brand name and symbol that goes
beyond the value provided by the product.
Power of the brand = what resides in the
mind of the consumers
– Differential effect.
– Brand knowledge.
– Consumer response to marketing.
It is a bridge between Reflection Past-
Present-Direction for Future
Advantages of a Strong Brand
Improved perceptions of product performance.
Less vulnerability to competitor threats.
Less vulnerability to market crises.
Enhanced financial performance.
More inelastic consumer response to price increase.
More elastic consumer response to price decrease.
Greater trade cooperation and support.
Increased communication effectiveness.
Potential licensing opportunities.
Brand extension Opportunities.
Value equity – qualti, price, and convenience.
Brand equity – brand awareness, customer brand
attitude, customer perception of brand ethics.
Relationship equity – loyalty programs, special
recognition and treatment programs, community
building programs, and knowledge building
Brand Image - Strength, Favorability, and
Ensure identification of the brand with consumers
and an association with a specific product class or
Establish the totality of brand in consumer’s mind –
linking the tangible and intangible associations with
Elicit proper consumer response.
Convert the response to intense and active loyalty.
Who are you - Brand identity?
What are you – brand meaning?
What about you – think and feel – brand response?
What about you and me – brand relationship or
Brand identity – salience..
Brand meaning – Performance and imagery.
Brand response – judgment and feeling.
Brand relationship – resonance.
Identity or Salience – category identification, need satisfaction.
Brand meaning –
– Performance (characteristics, features, reliability, durability,
serviceability; service effectiveness, efficiency, and empathy; Style,
Design, and Price.
– Imagery (user profile, personality and values, history, heritage and
experience; purchase and usage situation).
– Judgment (quality, credibility, consideration, and superiority) and feeling
(warmth, fun, excitement, security, social approval, self-respect).
Resonance or relationship – loyalty, attachment, community,
A Simple Conceptual Model of Brand Equity
. . . provides positive . . . and benefits both
A good brand . . . consumer responses . . . target customers and firm
Product, Price, Community, Communication Brand Awareness Customer Benefits
and Distribution Programs
Core Product/ Strength Firm Benefits
Service – Relevant
– Consistent marketing costs
– Memorable Opportunity for
– Distinctive brand extensions
Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis
Creates a tree structure of brands in
There are positive and negative associations at
each level (avoid or fix the negative levels)
– Corporate (Duke)
– Family (Fuqua)
– Individual (MBA)
– Modifier (Daytime)
J&J is corporate, P&G is not. Thus, benefits
tend to be abstract (safety) and transfer across
Marketing Programs to Build Brand Equity
In class branding exercise
• Investigate and find answers to the six brand
building blocks –
4. Judgment – quality, credibility, consideration, &
6. Resonance – loyalty, attachment, community,