MGTC21: Chapter 2 Notes
Customer-Based Brand Equity
- model incorporate theoretical advances and managerial practices in understanding and influencing consumer behavior
- approaches brand equity from the perspective of the consumer. Understand needs and wants of the customer
- two questions marketers face what do brands mean to customers? And how does the brand knowledge of consumers affect
their response to marketing activity
- basic premise of CBBE model is power of brand lies in customers have learned, felt, seen and heard about the brand. Power
of brand lies in what resides in the minds on the consumer
- CBBE is defined as differential effect that brand knowledge has on consumer response to the marketing of the brand
- Brand Equity as a bridge
o Brand equity provides marketers with a vital strategic bridge from their past to their future
o Brand equity can provide focus and guidance, providing a means to interpret past marketing performance and
design future marketing programs
Making a Brand Strong: Brand Knowledge
- brand knowledge is key to creawting brand equity because it creates differential effect and drives brand equity
- Associative Network Memory model views memory as consisting of a network of nodesa dn connective links, nodes is
information and links are the strength of the association
- Brand Awareness have to components. Brand awareness and brand image. Related to the strength of the brand node or
trace in memory, which we can measure as the consumer’s ability to identify the grand under different conditions
- Brand image is consumers’ perception about a brand, as reflected bythe brand associations held in memory. Brand
associations are the informational nodes containing meaning. Ex. Apple is, user friendly, creative.
Sources of Brand Equity
- CBBE occurs when consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable,
and unique brand associations in memory
- Brand awarenss alone is enough in some cases. Most other cases the strength and favorability and uniqueness of brand
association play a critical role in differential response and makes up brand equity
- Brand Awareness
o Consists of brand recognition and brand recall. Brand recognition is ability to confirm prior exposure to brand
when they see it in store. Brand recall is ability to retrieve the brand from memory when given product category.
o Many consumer decisions made at point of purchase so brand recognition is more important. However brand
recall more important if decision made away from point of purchase
Learning advantages – influences the formation and strength of asosciations
Consideration advantage – increase likelihood that the brand will be a member of the consideration set.
Choice advantages – can affect choices among brands in consideration set even if there are no
associations to those brands. Ex. Only buy name brand clothing. Elaboration-likelihood model consumers
rely on brand awareness when have low involvement.
o Creating brand awareness is increasing the familiarity of the brand through repetition, more effective for brand
recognition than recall
o Brand recall requires linkages in memory to appropriate product categories or other purchase or consumption
cues. Ex. Slogan or jingle associated with the brand. Also logo and symbols. Forging strong associations with
appropriate product category.
o Brand attributes are descriptive features that characterize a product or service
o Brand benefits are the personal value and meaning that consumers attach to the product or service attributes.
o Desirability depends on relevance, distinction and believable of brand. Requires cost
o Deliverability depends on 3 factors, the actual or potential ability of the product to perform, current or future
prospects of communications that performance and the sustainability of the actual and communicated over time.
o Essense of brand positioning is brand has a sustainable competitive advantage or unique selling point. Strong and
unique associations are critical to brand’s success. Some category association may also be linked to the brand.
Building a Strong Brand: The four steps of brand building
1. Ensure identification of the brand with customers and an association in their mind with a specific product class or customer
need. (who are you) brand identity
2. Firmly establish the brand meaning in the minds of customers by linking tangible and intangible brand associations with
certain properties. (what are you) brand meaning 3. Elicit proper customer repsonses to brand identification and meaning (what about you) brand response
4. Convert brand response to create an intense, active loyalty relationship between customers and the brand. (what about
you and me) brand relationships
Brand building blocks
1. Brand Salience – measures awareness of the brand.
a. Breadth and depth of awareness – depth referes to likeliness for brand element to come to mind and ease.
Breadth measure the range of purchase and usage situations in which brand element comes to mind
b. Product Category Structure – how product categories are organized in memory. It’s a hierarchy in their mind.
c. Strategic Implications – maybe best way to increase sales is to increase the breadth of brand awareness and
situations in which consumers would consider