what is Brand equity and its features

1. Brand Equity
• FARQUHAR: The added value a brand provides a
product.
• AAKER: Brand assets (or liabilities) linked to a
brand’s name and symbol that add (or subtract
from) a product or service.
• KELLER: (CBBE) Customer-Based Brand Equity
Model
The differential effect that brand knowledge has
on consumer response to marketing of that brand.
The power of a brand lies within the consumers’
minds.

2. Brand Equity
• The positive differential effect that knowing
the brand name has on customer response to
the product or service.
• Provides:
– More brand awareness and loyalty
– Basis for strong, profitable customer
relationships

3. The Concept of Brand Equity
• The brand equity concept stresses the
importance of the brand in marketing
strategies.
• Brand equity is defined in terms of the
marketing effects uniquely attributable
to the brand.
– Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared to
if the same product or service did not have that
name.

4. The Concept of
Customer-Based Brand Equity
• Customer-based brand equity
– Differential effect
– Customer brand knowledge
– Customer response to brand marketing

5. Determinants of
Customer-Based Brand Equity
– Customer is aware of and familiar with the brand
– Customer holds some strong, favorable, and unique
brand associations in memory

6. Building
Customer-Based Brand Equity
• Brand knowledge structures depend on . . .
– The initial choices for the brand elements
– The supporting marketing program and the manner
by which the brand is integrated into it
– Other associations indirectly transferred to the
brand by linking it to some other entities

7. Benefits of
Customer-Based Brand Equity
• Enjoy greater brand loyalty, usage, and affinity
• Command larger price premiums
• Receive greater trade cooperation & support
• Increase marketing communication effectiveness
• Yield licensing opportunities
• Support brand extensions.

8. Customer-Based Brand Equity
as a “Bridge”
• Customer-based brand equity represents
the “added value” endowed to a product
as a result of past investments in the
marketing of a brand.
• Customer-based brand equity provides
direction and focus to future marketing
activities

9. Brand Equity
No Brand Loyalty
(customer will change)
No Brand Loyalty
(customer will change)
Satisfied Customer
(no reason to change)
Satisfied Customer
(no reason to change)
Satisfied & Switching CostSatisfied & Switching Cost
Values the Brand
(brand as friend)
Values the Brand
(brand as friend)
Devoted
to Brand
Devoted
to Brand

10. CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
1. IDENTITY =
Who are you?

11. Salience Dimensions
• Depth of brand awareness
– Ease of recognition & recall
– Strength & clarity of category membership
• Breadth of brand awareness
– Purchase consideration
– Consumption consideration

12. Performance Dimensions
• Primary characteristics & supplementary features
• Product reliability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price

13. 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, and context of usage
• Personality & values
– Sincerity, excitement, competence, sophistication, & ruggedness
• History, heritage, & experiences
– Nostalgia
– Memories

14. Judgment Dimensions
• Brand quality
– Value
– Satisfaction
• Brand credibility
– Expertise
– Trustworthiness
– Likability
• Brand consideration
– Relevance
• Brand superiority
– Differentiation

15. Feelings Dimensions
• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect

16. 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