Conceptualizing, Measuring, and Managing Customer-Based Brand

1.
Conceptualizing, measuring, and managing customer-based brand

equity
This paper introduces the concept of customer-based brand equity, defined as the differential
effect that brand knowledge has on consumer response to marketing activity for that brand.
A brand is said to have positive (negative) customer-based brand equity when consumers
react more (less) favourably to marketing mix activity for the brand, as compared to when the
same marketing activity is attributed to a hypothetical or unnamed version of the product or
service.
Brand Knowledge: In this paper it is defined in two components according to an associative
network memory model, i.e. brand awareness and brand image (set of brand associations).
Brand awareness consist of again two components, brand recognition and brand recall. Brand
associations are conceptualized in terms of their characteristic either by the level of
abstraction, qualitative nature, favourability or strength, or in terms of relationship with the
other associations by redundancy, competitive superiority and leverage.
Building brand equity: Building brand equity requires some efforts and by creating a familiar
brand name and a positive brand image. i.e. favourable, strong, and unique brand
associations (Maggi as an example in Indian context). Different strategies can be opted in
order to build brand equity. First is in terms of choosing initial brand identifiers ( brand name,
logo and symbol) and how brand identifiers are supported by and integrated into the
marketing of a brand.
Two basic approaches to build a brand are discussed:
I. The indirect approach measures brand knowledge (brand awareness and
elements of brand image) to assess the potential sources of brand equity
II. The direct approach measures the effects of the brand knowledge on
consumer response to marketing activity. Examples of both types of
approaches were provided.
Managing brand equity: Managing and maintaining a built up brand equity requires broad
and long term view of marketing decisions. managers often evaluate marketing mix actions
in terms of their short-term effects on sales, they must recognize that these actions also affect
brand awareness and associations and thus also have a long-term impact on sales. That is,
because consumers' responses to marketing activity depend on what they remember and
know about a brand, short-term marketing mix actions, by changing brand knowledge,
necessarily affect the success of future marketing mix actions.
different types of customer-based brand equity were discussed by considering the effects of
brand knowledge on brand loyalty and consumer response to product, price, and promotion
strategies, with particular emphasis placed on understanding consumer response to brand
extensions.
2. Consumer Research Insights on Brands and Branding: A JCR Curation

This work summarises the critical aspects of how consumers respond to a brand in 5 critical
themes and explore each theme in an effective manner:
1. The pleasure and/or pain of brands
2. Brand attachment and loyalty
3. Consumer relevance and distinctiveness in branding
4. Consumer communication about brands
5. Managerial branding considerations
1. The pleasure and/or pain of brands: Not all consumers ascribe to the positive qualities
of brands, some customers actively dislike the brands and branding in general.
Brand compatibility: It is defined as the extent to which individuals have similar brand
preferences, and that influences the life satisfaction. If brand compatibility is high, the level
of satisfaction is also high and vice-versa. Thus, it establishes the fact that brand compatibility
plays a major role in becoming either the pleasure or the pain of a brand, and gives the other
insight from this research that same factor that leads to better compatibility of one person
may not be same for other one and leads to the polarization within the brand.
2. Brand attachment and loyalty: This JCR research provides comprehensive meta-
analysis of factors affecting when and how different types of brand relationships
increase loyalty. For instance, research suggests that crowded environment can have
a positive impact on the consumer behaviour as crowded environment may lead to a
consumer not interacting with others but it also causes them to become more
attached with the brands as an alternative way of maintaining longingness. However,
there are exceptions like if crowd is of the familiar people who know each other or an
individual is interdependent. Identifying the consumer reaction in different situation
gives marketing manager a much practical value on how consumers will behave in
different places and in particular times.
3. Consumer relevance and distinctiveness in branding: Distinctiveness and relevance

are the key elements in any brand definition. There is a popular belief that social
connectedness leads to greater brand definition however in recent researches it is
established that it acts as a deal breaker in long term, diminishing the brand image.
This is substantiated with the example of consumers feeling of cultural distinctiveness
in a foreign location can lead to consumer preferences for more culturally aligned
brands.
4. Consumer communication about brands: It emphasises on the importance of
communication channels and the analysis and planning of the messages.
Understanding what when, where, how and why consumers decide to share
information or opinions are the key questions.
It also implies on the use of speech act theory to identify distinct elements that to greater
consumer sharing of messages (“Break toh banta hai” by KitKat). When consumers
communicate about the brand to others by speaking vs writing, they develop deeper self-
brand connections.
5. Managerial branding considerations: Managers make numbers of decisions daily basis
related to building, measuring, managing and protecting their brands. A thorough
understanding of consumer behaviour is important to guide that decision making.
It demonstrates the detrimental effect caused on a reputed authentic brand by
“copycats” ( the one who tries to replicate the brand) and at the same time, the
benefits for the copycats when they make out of category imitation.
Other future research directions that are crucial for a brand:

1. Brand Emotions and feelings: It is defined as the set of emotions that consumers hold
for a brand and how well can a brand can stir positive emotions. And for that it
summarises the questions that should be the focus of research to understand the
emotions of a customer about a brand.
2. Brand intangibles: Brand intangibles are those associations that are not directly
associated with the product, service, function or performance, for example, people
behind the company, legacy, etc.
3. Brand Positioning: It’s an established tool for branding. Positioning is defined as how
a consumer think or feel about the brand vs set of competitor brands in same industry.
Gaining clear understanding of empowerment, enlightenment and engagement
across the customer franchise for brand is important in order to rightly position itself
for consumers who are not attached to brands beyond purchase and consumption.
4. Brand Purpose, story-telling and narratives: It is one of the ways of providing an
holistic account of what brand is all about.
5. Brand Measurement: As techniques like consumer survey become obsolete, this
section emphasises on newer techniques of understanding emotions of consumers
like focus groups.

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1.

Conceptualizing, measuring, and managing customer-based brand

2. Consumer Research Insights on Brands and Branding: A JCR Curation

3. Consumer relevance and distinctiveness in branding: Distinctiveness and relevance

Other future research directions that are crucial for a brand:

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