CUSTOMER-BASED BRAND EQUITY

(CBBE)
 Customer-Based Brand Equity
 Two questions:
 WHAT MAKES A STRONG BRAND?
 HOW DO YOU BUILD A STRONG BRAND?
 TO GET THE ANSWER CBBE MODEL IS INTRODUCED.
 IT PROVIDES UNIQUE POINT OF VIEW AS TO WHAT BRAND
EQUITY IS & HOW IT SHOULD BEST BE BUILT, MEASURED
AND MANAGED.
 CONSUMER PERSPECTIVE OF BRAND EQUITY
 MARKETERS FACES TWO QUESTIONS:
 WHAT DO DIFFERENT BRANDS MEAN TO CONSUMERS?
 HOW DOES THE BRAND KNOWLEDGE OF CONSUMERS
AFFECT THEIR RESPONSE TO MARKETING ACTIVITY?
 Customer-Based Brand Equity
 THE BASIC PREMISE OF CBBE MODEL IS THAT THE POWER
OF A BRAND LIES IN WHAT RESIDES IN THE MINDS OF
CUSTOMERS.

 THE CHALLENGE IN BUILDING STRONG BRAND:

 TO ENSURE THAT CUSTOMERS HAVE THE RIGHT TYPE OF
EXPERIENCES WITH PRODUCTS AND SERVICES AND THEIR
ACCOMPANYING MARKETING PROGRAMS SO THAT THE
DESIRED THOUGHTS, FEELINGS, IMAGES, BELIEFS,
PERCEPTION, OPINIONS AND SO ON BECOME LINKED TO THE
BRAND.
 Customer-Based Brand Equity
 CBBE IS DEFINED AS THE DIFFERENTIAL EFFECT THAT
BRAND KNOWLEDGE HAS ON CONSUMER RESPONSETO
THE MARKETING OF THAT BRAND.
 A POSITIVE CBBE WHEN CUSTOMERS REACT MORE
FAVOURABLY
 A NEGATIVE CBBE IF CUSTOMERS REACT LESS FAVOURABLY TO
THE MARKETING ACTIVITY.

 THREE KEY INGREDIENTS TO THIS DEFINITIONS:

1. DIFFERENTIAL EFFECT
2. BRAND KNOWLEDGE
3. CONSUMER RESPONSE TO MARKETING
 CBBE…
 FIRST - BRAND EQUITY ARISES FROM DIFFERENCES IN
CONSUMER RESPONSE
 SECOND- THE DIFFERENCES IN RESPONSE ARE A RESULT OF
CONSUMERS’ KNOWLEDGE ABOUT THE BRAND, THAT IS,
WHAT CONSUMER HAS LEARNED, FELT, SEEN, AND HEARD
ABOUT THE BRAND AS A RESULT OF THEIR EXPERIENCES
OVER TIME.
 THIRD-THE DIFFERENTIAL RESPONSE BY CONSUMERS THAT
MAKES UP THE BRAND EQUITY IS REFLECTED IN
PERCEPTIONS, PREFERENCES AND BEHAVIOUR RELATED TO
ALL ASPECTS OF THE MARKETING OF A BRAND.

 BLIND TASTE TESTS: SAME PRODUCT TO TWO DIFFERENT GROUP,

ONE WITHOUT KNOWING THE BRAND, ONE KNOWS THE BRAND
–THERE WILL BE A DIFFERENCE IN OPINIONS
MARKETING ADVANTAGES OF STRONG BRANDS
 IMPROVED PERCEPTIONS OF PRODUCT PERFORMANCE
 GREATER LOYALTY
 LESS VULNERABILITY TO COMPETITIVE MARKET ACTIONS
 LESS VULNERANILITY TO MARKETING CRISES
 LARGER MARGINS
 MORE INELASTIC CONSUMER RESPONSE TO PRICE
INCREASES
 MORE ELASTIC CONSUMER RESPONSE TO PRICE DECREASES
 GREATER TRADE COOPERATION & SUPPORT
 INCREASED MARKETING COMMUNICATION EFFECTIVENESS
 POSSIBLE LICENSING OPPORTUNITIES
 ADDITIONAL BRAND EXTENSION OPPORTUNITIES.
 BRAND EQUITY AS A BRIDGE
 BRIDGE FROM THEIR PAST TO THE FUTURE

 BRANDS ARE REFLECTION OF THE PAST

 ALL MONEY SPENT SHOULD BE CONSIDERED AS
INVESTMENTS IN WHAT CONSUMERS LEARNED, FELT,
EXPERIENCED AND SO FORTH ABOUT THE BRAND.

 BRANDS AS A DIRECTION FOR THE FUTURE

 THE BRAND KNOWLEDGE, CREATED OVER TIME BY THESE
MARKETING INVESTEMENTS DICTATES APPROPRIATE AND
INAPPROPRIATE FUTURE DIRECTIONS FOR THE BRAND.
MAKING A BRAND STRONG: BRAND KNOWLEDGE
 BRAND KNOWLEDGE IS THE KEY TO CREATING BRAND
EQUITY- (CBBE MODEL)
 THEREFORE, MARKETERS NEED AN INSIGHTFUL WAY TO
REPRESENT HOW BRAND KNOWLEDGE EXISTS IN
CONSUMER MEMORY.

 PSYCHOLOGISTS – THE ASSOCIATIVE NETWORK

MEMORY MODEL
 IT VIEWS MEMORY AS CONSISTING OF A NETWORK OF NODES
AND CONNECTING LINKS, IN WHICH NODES REPRESENT
STORED INFORMATION OR CONCEPTS AND LINKS
REPRESENT THE STRENGTH OF ASSOCIATION BETWEEN THIS
INFORMATION OR CONCEPTS.
 BRAND KNOWLEDGE…
 CONSISTENT WITH ASSOCIATIVE NETWORK MEMORY
MODEL, BRAND KNOWLEDGE IS CONCEPTUALIZED
HERE AS CONSISTING OF A BRAND NODE IN MEMORY
WITH A VARIETY OF ASSOCIATIONS LINKED TO IT.

BRAND BRAND
AWARENESS IMAGE

BRAND
KNOWLEDGE
 BRAND AWARENESS & IMAGE…
 BRAND AWARENESS IS RELATED TO THE STRENGTH OF
THE BRAND NODE OR TRACE IN MEMORY, AS REFLECTED
BY CONSUMERS’ ABILITY TO IDENTIFY THE BRAND UNDER
DIFFERENT CONDITIONS.

 BRAND AWARENESS IS NECESSARY BUT NOT ALWAYS

SUFFICIENT STEP IN BUILDING BRAND EQUITY. OTHER
CONSIDERATION SUCH AS BRAND IMAGE ALSO COMES
INTO PLAY.

 BRAND IMAGE CAN BE DEFINED AS PERCEPTIONS ABOUT

ASSOCIATIONS HELD IN CONSUMER MEMORY.
BRAND AWARENESS & IMAGE…
 IN OTHER WORDS, BRAND ASSOCIATIONS ARE THE
OTHER INFORMATIONAL NODES LINKED TO THE
BRAND NODE IN MEMORY AND CONTAIN THE
MEANING OF THE BRAND FOR CONSUMERS.

 ASSOCIATION COME IN ALL FORMS AND MAY

REFLECT CHARACTERISTICS OF THE PRODUCT OR
ASPECTS INDEPENDENT OF THE PRODUCT ITSELF.
 BRAND IMAGE…

CLEANLINESS QUALITY

VALUE
SERVICE
McDONALD’S

FOR KIDS
FAST FOOD
SOURCES OF BRAND EQUITY
 CBBE occurs when the consumer has a high level of
awareness and familiarity with the brand and holds some
strong favorable and unique brand associations in memory.
 Brand Awareness consists of brand recognition and brand
recall.
BRAND
AWARENESS

BRAND BRAND
RECOGNITION RECALL
SOURCES OF BRAND EQUITY
 Brand recognition relates to consumers’ ability to
confirm prior exposure to the brand when given the brand as
a cue.
 Brand recall relates to consumers’ ability to retrieve the
brand from memory when given the product category, the
needs fulfilled by the category, or a purchase or usage
situation as a cue.
 It requires that consumers correctly generate the brand from
memory when given a relevant cue.
 Consequences of Brand Awareness
 Learning Advantages:
 Influences the formation and strength of brand associations that make
up a brand image.
 Nature of brand node in memory
 First step is it get register the brand in the minds of consumers.

 Consideration Advantages
 Brand awareness increases likelihood that the brand will be a member of the
consideration set
 Choice advantages
 High level of brand awareness can affect choices among brands in the
consideration set.
 Brand Image
 A positive brand image is created by marketing programs that link
strong, favorable and unique associations to the brand in memory.
 Created through market-controlled as well as other ways like direct
experience, WoM, from brand itself, etc.
 Create very strong association and unique brand associations

 Points of Difference:
 “Reason Why”
 Points of Parity:
 “No Reason Why no”
 Customer-Based Brand Equity Model

 Marketers know strong brands are important but

aren’t always sure how to build one.
 CBBE model was designed to be …
 comprehensive
 cohesive
 well-grounded
 up-to-date
 actionable
 Building
Customer-Based Brand Equity

 Building a strong brand involves a series of steps

as part of a “branding ladder”

 A strong brand is also characterized by a logically

constructed set of brand “building blocks.”
 Identifies areas of strength and weakness
 Provides guidance to marketing activities
Steps of Brand Building
 Ensure identification of the Brand with customers and an association
of the brand in customer’s mind with a specific product class or
customer need (Identification)

 Firmly establish the brand meaning by strategically linking tangibles

and intangible brand associations with certain properties
(Meaning)

 Elicit (evoke) proper responses from customers from the Brand

meaning and identification. (Response)

 Convert brand response to create an intense, active loyalty

relationship between customers and the brand. (Relationship)
CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS =
RESONANCE What about you & me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?
 Salience Dimensions

 Create brand salience with customer.

 Relates to aspects of the brand awareness – ability
to recall & recognize the brand.

 Depth of brand awareness

 Ease of recognition & recall
 Strength & clarity of category membership

 Breadth of brand awareness

 Purchase consideration
 Consumption consideration
 Salience Dimensions
 A highly salient brand is one that has depth &
breadth of brand awareness, such that customers
always make sufficient purchases as well as think of
the brand across a variety of settings in which it
could possibly be employed or consumed.

 It’s a important first step in building brand equity.

BRAND MEANING
 It can be broadly distinguished in terms of more
functional, performance-related considerations
versus more abstract, imagery-related
consideration
Performance Dimensions
 Relates to the ways which the product or service
attempts to meet customers’ more functional needs
 Important type of benefits/attributes that often
underlie brand performance are:
 Primary characteristics & supplementary features

 Product reliability (consistent performance), durability

(expected eco. Life), and serviceability (ease of servicing).
 Service effectiveness, efficiency, and empathy

 Style and design

 Price
 Imagery Dimensions
 Attempts to meet psychological or social needs of
customers
 Four major types of intangibles linked to a brand are:
1. User profiles
 Demographic & psychographic characteristics
 Actual or aspirational
 Group perceptions -- popularity
2. Purchase & usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of
usage
3. Personality & values
 Sincerity, excitement, competence, sophistication, & ruggedness
4. History, heritage, & experiences
 Nostalgia
 Memories
 BRAND MEANING
 Helps to produce brand responses.

 Refers to how customers respond to the brand and all its

marketing activity and other sources of information

 Related to what customers think or feel about the brand.

 Brand responses can be distinguished as

 Brand Judgments – arise from head
 Brand Feelings – arise from heart
Brand Judgments
 Refers to how customers put together all different
performance and imagery associations of the brand to form
different kinds of opinions
 Focus on customers’ personal opinions & evaluations
 Judgement Dimensions
 Four major types of brand judgements are:
 Brand quality
 Value
 Satisfaction

 Brand credibility
 Expertise – competent, innovative, mkt. leader
 Trustworthiness – dependable, customer’s interest in mind
 Likability – fun, interesting & worth spending time with

 Brand consideration
 Relevance – extent to which customers view relevant & meaningful
 It’s a crucial filter

 Brand superiority
 Differentiation - Unique and better than other
 Brand Feelings
 Customers’ emotional responses – important types
of brand feelings are:

 Warmth : soothing types of feelings, calm &

peaceful
 Hallmark
 Fun: upbeat types, joyous, high hearted, playful,…
 Disney
 Excitement: energized, alive… MTV
 Security: safety, comfort, self-assurance…
 All Insurance companies
 Brand Feelings
 Social approval: +ve feelings, look favorably etc.
 Mercedes
 Self-respect: feels better about themselves, sense of
pride, accomplishment or fulfillment
 Tide
 How to Achieve It – Brand Feelings
 Many ways to fuel customer emotions through your branding,
though one method, stands out – BRAND EXPERIENCE

 Offering strong brand experiences builds relationships,

memories and positive emotions. Here’s how to make sure
your brand offers effective experiences:
 Target different human senses
 Personalize the experience
 Create emotional content
 After working through the first three rungs, you’ll finally
come to the resonance stage.
BRAND RESONANCE
 Focuses on the ultimate relationship and level of
identification that consumer has with the brand.

 It is characterized in terms of
 Intensity or depth of psychological bond –
strength of attitudinal attachment & sense of
community
 Activity engendered (give rise to) by this
loyalty – related to purchase & consumption
 Resonance Dimensions
 Different categories of brand resonance:

 Behavioral loyalty
 Frequency and amount of repeat purchases

 Attitudinal attachment
 “Love” brand (favorite possessions)
 Proud of brand

 Sense of community
 Kinship
 Affiliation to other people associated with the brand

 Active engagement
 Seek information, willing to invest time, energy, money or other
resources
 Join club
 Visit web site, chat rooms
 How to Achieve It – Brand Resonance

 As we’ve already shown, working through the

bottom stages of the pyramid build toward
resonance. In order to maintain it, however,
focus on the things that sustain it.

 For example:
 Brand loyalty is a common result of reaching
brand resonance.
How to Achieve It – Brand Resonance

 In order to maintain customer loyalty,

do the following:
 Focus on customer support
 Enhance your customer service
 Offer rewards programs
 Adapt to consumer trends
 https://brandequity.economictimes.indiatimes.com/news/ind
ustry/dont-just-think-consumer-think-community-it-helps-
build-brands/77134388
➢ 24th July 2020, Brand Equity, ET
 The author is Global Chief Marketing
Officer, Rebel Foods.
 “Don’t just think consumer, think
community. It helps build brands”
 Build communities and connections
 Let the consumer fall in love with your brand
Once an Apple user,
always an Apple
user!
 They are a feeling, a community, an
experience, an emotion; a sense of
belongingness, and something they have an
emotional and a personal connect with.
 As a business leader you have to
ask yourself, “Am I creating a
consumer environment that is
conducive to loyalty?”
 If the answer is no,
“FIX IT!”
 -American writer and motivational speaker: Steve Maraboli
Customer-Based Brand Equity Model

Consumer- INTENSE, ACTIVE

LOYALTY
Brand
Resonance

RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY, & EMPATHY HISTORY, HERITAGE,
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
 The Key to Branding
 For branding strategies to be successful, consumers
must be convinced that there are meaningful
differences among brands in the product or service
category.

 Consumer must not think that all brands in the

category are the same.
Brand Equity Models

 Brand Asset Valuator

 Aaker Model
 BRANDZ
 Brand Resonance
 Knowledge
Brand Asset Valuator (BAV)

Esteem
Brand Equity
Relevance
Differentiation
Aaker Model – Brand Assets

Brand
loyalty
Brand Brand
associations awareness

Proprietary Perceived
assets quality
The BRANDZ Model

Bonding
Advantage
Performance

Relevance

Presence
Kapferer’s Brand Identity Prism
Brand Resonance Pyramid (CBBE Model)