The document discusses identifying and measuring consumer-brand relationships. It defines a brand relationship as the combination of a specific brand image and the attitude of the brand. It identifies five universal brand relationships - Reinforcement, Identification, Role Model, Self-Differentiating, and Playful - that have emergent properties. These relationships are not additive and impact financial returns. Relationship equity, which is the combined effect of the relationships, influences sales to market cap ratio, operating profit, and stable franchise size. Different relationships contribute to acquiring and maintaining franchise.
2. How do you access Consumer-Brand Relationships ?
How do you define their parameters ?
How do you measure them reliably ?
•
•
•
•
Understanding Brand Relationships is just like understanding any
other relationship.
Observe the attitudes and behaviors that the relationship gives rise
to, and from those deduce the nature of the relationship.
In the Consumer-Brand Relationship - as in all relationships – there
are two participants, two sets of attitudes that are being expressed,
two sets of behaviors that have to be observed before any
deductions can be made.
We ne e d to lis te n to bo th s id e s o f “the c o nve rs a tio n”
3. Listening to both sides of the conversation
There is a dialogue between brand and consumer going on inside the
consumer’s mind. In most research we elicit and measure only one
side of that dialogue – the one that reflects consumers’ attitudes
toward the brand - brand image. But there is a second side to this
dialogue going on, which reflects the brand’s attitudes toward the
consumer, which are a measure of how someone feels as a result of
interaction with the brand. Essentially, we need to ask the consumer
not only what s/he thinks of the brand, but also what the brand thinks
of him or her.
•Not just Bra nd Pe rc e p tio ns - what you tell consumers about your
brand – but also Bra nd A
ttitud e s - what you make your brand tell
consumers about themselves
•Not just Bra nd Us e - what the consumer does with your brand- but
also Bra nd Ex p e rie nc e s - what your brand does with the consumer.
4. Brand
Brand
Relationship is
Relationship is
defined by the
defined by the
combination of a
Brandcombination of aby the
R
elationships are defined
combination of Brand Perceptions and
specific orbrand
specific brand
Brand Perceptions
Brand Perceptions
Brand Attitudes Experiences
image with a
image with a
specific attitude
specific attitude
of the brand;
of the brand;
5. Brand Perception Factors
R
elaxed and S
tylish
Fun
Cool
Easy
Friendly
Stylish
Different
P
ositive Differentiation
Distinctive
Unique
Charism
a
Dynamic
Excitingly Innovative
Leader
Progressive
F
unctionality
Performs well
Gives Satisfaction
E otional Values
m
Love it
Fits my life
COPYRIGHT 2012 BRANDYIELD CONSULTING LLC
6. Brand Attitude/Experience Factors
•
M
entoring
Challenges Me To Think
Differently
Teaches Me
Inspires Me
Shares My Values
•
There F M
or e
•
P
leasure
Appreciates My Business
Is Recommended By People I
Care About
Responds To My Needs
Has My Interests At Heart
Brings Back Good Memories
Provides A Little Treat For Me
Excites Me
COPYRIGHT 2012 BRANDYIELD CONSULTING LLC
•
S
elf-E
xpression
•
S
elf-E
steem
Simplifies My Life
Helps Me To Express Myself
Frees Me To Be Myself
Makes Me Look Good To
Others
Makes Me Feel Good About
Myself
7. ABra nd Re la tio ns hip is defined by the conjunction of one
dimension of brand perception (image, personality, attributes…)
and a dimension of brand attitude or experience
Brand Attitudes/
Experiences
Brand Perceptions
Performance/
Satisfaction
Emotional
Attachment
Charisma
Positive
Differentiation
Relaxed &
Stylish
SelfSelfEsteem Expression
Mentoring
There For
Me
Pleasure
8. •
In theory, the number of possible brand relationships is determined
by the combinatorial possibilities of the two sets of component
factors. In practice, of course, not all combinations have a relational
logic to them. Beyond that, we further screened possible
relationships for emergent properties, that is relationships that have
properties that neither of the separate components do. In practice
this meant that we were looking for relationships which have
incremental predictive power over that of both of the separate
components.
9. These 5 Universal Brand Relationships have been identified across
multiple brands and categories with e m e rg e nt properties: the
c o m bina tio n o f the two c o m p o ne nts ha s a n e ffe c t g re a te r tha n the s um
o f the ir p a rts
Brand Attitudes/
Experiences
Brand Perceptions
SelfEsteem
SelfExpression
Performance/ R
einforce
Satisfaction
m
ent
Emotional
Attachment
Mentoring
There For
Me
Pleasure
Identification
Charisma
R M
ole odel
Positive
Differentiation
Relaxed &
Stylish
S
elfDifferentiating
P
layful
10. Universal Brand Relationships
•
Reinforcement •
The brand is seen as ha ving s up e rio r p e rfo rm a nc e a nd
p ro vid ing he ig hte ne d c us to m e r s a tis fa c tio n (bra nd p e rc e p tio n).
Use or purchase of the brand m a ke s the c us to m e r fe e l be tte r
a nd s m a rte r (bra nd e x p e rie nc e ) – in his/her own eyes and in
those of others – strengthening the attachment to the brand.
•
Identification
•
There is a ve ry s tro ng a ffe c tio n fo r the bra nd and (or because) it
is e x p e rie nc e d a s e x p re s s ing the c us to m e r’s o wn va lue s a nd
a s p ira tio ns .
•
The brand is a d m ire d fo r its c ha ris m a – a standard of
leadership and innovation, which the customer – by a lly ing
him /he rs e lf with the bra nd - is invite d to s ha re in.
•
Role Model
•
SelfDifferentiating
• The brand is s e e n a s d is tinc tive a nd uniq ue – but not in a distant
or iconoclastic way. The brand’s difference is inclusive of the
c us to m e r, who the re fo re fe e ls d is tinc tive a nd uniq ue to o .
•
Playful
• The brand is like d fo r its re la x e d s ty le ; it demands nothing of the
consumer other than to e x p e rie nc e the p le a s ure it g ive s .
11. Brand Relationships are Not Additive
•
Although an additive model is often a satisfactory, scientifically
parsimonious, way of creating a construct, it does not work for
Consumer Brand Relationships.
•
Consumers’ Brand Perceptions and Brands’ Attitudes are qualitatively
different phenomena, and – like “apples and pears” - they need to be
kept distinct.
•
A Brand Relationship is a two-dimensional construct, defined as the
resultant vector of the two components of the relationship.
•
Visually, we compare Brands’ Relationships using a Brand
Relationship Map
12. Brand Attitude/
Brand Experience
Brand
Relationship
(x,y)
x
A Brand Relationship is defined by the
combination of a specific brand image with a
specific attitude of the brand;
y
The strength of the relationship is a function
of the strength of the two components.
But that function is not a simple additive one.
Brand Perceptions
14. CBR directly Impact the
financial returns of a branded
business
$
Financial &
Market Returns
Brand Perceptions
Brand Perceptions
15. Relationship Equity - The combined effect of the Five
Universal Brand Relationships on financial measures
40.0%
37.0%
32.8%
35.0%
Entertaining/Playful
30.0%
Role Model
25.0%
Self Differentiating
-
20.0%
Reinforcement
14.8%
15.0%
10.0%
5.0%
0.0%
6.4%
9.0%
Identification
16. Relationship Equity and Stable Franchise Size are both very significant
Influences on Sales to Market Cap. multiple.
Relationship
Equity
.48
R2=.42
M
arket Cap.
/ ales
S
.43
S
table
franchise
Stable Franchise is defined as the percentage
of customers saying they use the brand regularly,
less the percentage sayingthey do so only if there
is no alternative.
17. Actual Market Cap. Is a function of Relationship Equity, Operating Profit
and Stable Franchise Size
R
elationship
Equity
.14
2
R =.86
-.22
Operating
Profit
.89
Market
Cap.
.32
Stable
franchise
The negative correlation between Relationship Equity
and Operating Profit reflects the fact that there is a
trade-off between investment in the brand and the
quarterly or yearly earnings statement. Nothing comes
without a cost.
18. to examine the influence of
brand relationships on customer
franchise, we have to break
the latter down into its
component parts
Acquisition
Growth
Brand Perceptions
Brand Perceptions
Retention Maintenance
19. Influence of Brand Relationships on Franchise
Acquisition
4 of the Universal Brand Relationships contribute significantly to trial consideration among nonusers
Entertaining
/
Playful
0.54
0.48
Identification
0.38
0.22
Reinforcement
SelfDifferentiating
Acquisitions
20. Influence of Brand Relationships on Franchise Maintenance
A different combination of relationships are significant influencers of brand preference among
users
0.24
0.16
Maintenance
Identification
Reinforcement
0.10
Role Model