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Customer Based Brand Equity Cbbe

This document discusses Customer-Based Brand Equity (CBBE) and how it is created. It defines CBBE as the differential effect that brand knowledge has on consumer response to marketing for that brand. Brand knowledge consists of brand awareness and brand image, which are developed through strong, favorable, and unique brand associations. Building brand equity requires marketers to establish brand identification, brand meaning, proper customer responses, and loyalty through brand performance and imagery. The goal is to create brand resonance by developing judgments, feelings, and loyalty among customers.

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95 views

Customer Based Brand Equity Cbbe

This document discusses Customer-Based Brand Equity (CBBE) and how it is created. It defines CBBE as the differential effect that brand knowledge has on consumer response to marketing for that brand. Brand knowledge consists of brand awareness and brand image, which are developed through strong, favorable, and unique brand associations. Building brand equity requires marketers to establish brand identification, brand meaning, proper customer responses, and loyalty through brand performance and imagery. The goal is to create brand resonance by developing judgments, feelings, and loyalty among customers.

Uploaded by

rajat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Customer based

brand Equity
CBBE
Customer based Brand Equity
 The
power of the brand lies in what resides in the
minds of the customer

“Customer-based brand equity is the differential


effect that brand knowledge has on consumer
response to the marketing of the brand”
- Keller
Customer-Based Brand Equity
 Differential effect
 Differences in consumer response
 Brand knowledge
 A result of consumers’ knowledge about the brand
 Consumer response to marketing
 Choice of a brand
 Recall of copy points from an ad
 Response to a sales promotion
 Evaluations of a proposed brand extension

2.3
CBBE through taste test
Colt
Pabst

Coors
Guinness

Miller Lite

Budweiser

When the drinker knows what he is drinking


CBBE through taste Blind test

Coors
Pabst Guinness
Miller Lite
Colt
Budweiser

When the drinker does not knows what he is drinking


Brand Equity as a “Bridge”

 Reflection of past investments in the marketing of a brand


 Direction for future marketing actions or programs

2.6
Making a Brand Strong: Brand Knowledge
 Brand knowledge is the key to creating brand
equity.
 Brand knowledge consists of a brand node in
memory with a variety of associations linked to it.
 Brand knowledge has two components: brand
awareness and brand image.

2.7
E.g. Apple
User Friendly
Educational
Macintosh

Fun
Innovative

Friendly
Creative

Ipod/iPad/iphone
Steve Jobs Apple logo
Sources of Brand Equity
 Brand awareness
 Brand recognition
 Brand recall
 Brand image
 Strong, favorable, and unique brand associations

2.9
Brand Awareness Advantages
 Learning advantages
 Register the brand in the minds of consumers
 Consideration advantages
 Likelihood that the brand will be a member of the
consideration set
 Choice advantages
 Affect choices among brands in the consideration set

2.10
Establishing Brand Awareness
 Increasing the familiarity of the brand through
repeated exposure (for brand recognition)
 Forging strong associations with the appropriate
product category or other relevant purchase or
consumption cues (for brand recall)

2.11
Creating a Positive Brand Image
 Brand Associations
 Does not matter which source of brand association
 Need to be favorable, strong, and unique
 Marketers should recognize the influence of these
other sources of information by both managing them
as well as possible and by adequately accounting for
them in designing communication strategies.

2.12
The Four Steps of Brand
Building
1. Ensure identification of the brand with customers and an
association of the brand in customers’ minds
2. Establish the totality of brand meaning in the minds of
consumers
3. Elicit the proper customer responses to the brand
identification and brand meaning
4. Convert brand response to create an intense, active loyalty
relationship between customers and the brand

2.13
Four Questions Customers ask of
Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel about
you? (brand responses)
4. What about you and me? What kind of
association and how much of a connection
would I like to have with you? (brand
relationships)

2.14
RESONANCE

Judgments Feelings

Performance Imagery
Performance Dimensions
 Primary characteristics and supplementary features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price

2.17
Imagery Dimensions - Intangible
 User profiles
 Demographic and psychographic characteristics
 Actual or aspirational
 Group perceptions—popularity

 Purchase and usage situations


 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usage

 Personality and values


 Sincerity, excitement, competence, sophistication, and ruggedness

 History, heritage, and experiences


 Nostalgia
 Memories

2.18
Judgment Dimensions
 Brand quality  Brand consideration
 Value  Relevance
 Satisfaction
 Brand superiority
 Brand credibility  Differentiation
 Expertise
 Trustworthiness
 Likeability

Customers personal opinion about the brand

2.19
Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect

Customers emotional response or reaction to the brand

2.20
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 website, chat rooms

2.21
Resonance – Harley Davidson
CBBE – Coca Cola
CBBE - Pepsi
Brand Building Implications
 Customers own brands.
 Don’t take shortcuts with brands.
 Brands should have a duality.
 Brands should have richness.
 Brand resonance provides important focus.

2.25

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