Chapter Three CBBE 4 Stu

Chapter Outline Chapter Objectives
 Definition of Brand Equity and At the end of this chapter

CBBE students should be able to:
 Customer Knowledge  Define Brand Equity
Brand Awareness  Analyze customers
Brand Image knowledge
 Sources of Brand Equity  Differentiate brand
 CBBE Models awareness from brand
Brand Asset Valuator image
Aaker Model  Identify sources of brands
Brandz  Develop CBBE of a
Resonance Model hypothetical firm’s product
or brand
1
 When a commodity becomes a brand, it is said to
have ‘equity’.
 A name becomes a brand when consumers

associate it with a set of tangible and intangible
benefits
 BE defined in terms of the marketing effects

uniquely attributable to the brand.
2
Awareness
Loyalty Familiarity
Image &
Preference Personality
Brand Equity
Availability Association
3
A set of brand assets and liabilities linked with a particular
brand name and/or symbol that adds or subtracts value.
 Positive brand equity : brand asset adds value
 Negative brand equity: is liability subtracts value
 The goodwill
 Feel, and act with respect to the

brand.
4
5
 CBBE is the differential effects that brand knowledge has on consumer response to
the marketing of that brand.
 CBBE occurs when the consumer has high level of awareness and
familiarity with the brand and holds some strong, favorable, and
unique brand association in memory.
 A brand is said to have +ve CBBE, when Customers

respond more favorably to a particular brand 6
7
For low involvement purchases
Only brand awareness and familiarity might be sufficient to
create positive customers’ response
e.g. Fair & Lovely, LUX etc.
For high involvement purchases

◦ Customers should be convinced that a particular brand delivers
substantially better and unique product or service (to expect
favorable customers’ response) i.e. brand equity is essential
8
◦ Enjoy greater brand loyalty, usage, and affinity
◦ Command larger price premiums
◦ Receive greater trade cooperation & support
◦ Increase marketing communication effectiveness
◦ Yield licensing opportunities
◦ Support brand extensions
 Positive Brand equity contains important benefits:
◦ Brand loyalty : the extent to which customers stick to a particular brand

◦ Brand awareness: includes brand/name recall and brand/ name
recognition
◦ Perceived quality: the brand is taken as an attribute of quality
◦ Brand association with perceived quality
9
 What makes a brand strong? and
 How do you build a strong brand?
10
What causes brand equity to exist? How do marketers create it?
11
Brand Brand
Brand
Recognition Recall
Awareness
12
13
Cont’d
14
 Favorable position that customers give to a particular brand as a
result of its equity
 The value of a brand comes from its ability to gain an exclusive,
positive and prominent meaning in the minds of a large number
of consumers” (Kapferer 1997).
Besides marketers’ efforts, it can be acquired through:

◦ Customers’ direct experience with product
◦ Customers exposure to non-commercial information source
◦ Inferences made from the brand name
◦ Secondary associations e.g. associating the brand with a company, country,
celebrity etc.
Strength of Brand Associations.

Favorability of Brand Associations.
Uniqueness of Brand Associations.
15
Free association
Attributes
Use imagery
Western, American, blur
 . Usage imagery
Product related Appropriate for outdoor work
Blue denim, shrink-to-fit, collar, hard working, & casual social situation
cotton fabric, button-fly, traditional, strong,
two-horse patch, small red rugged & masculine Brand Personality
pocket tag Honest, classic,
contemporary, approachable,
independent & universal
LEVI’S
501
Functional Symbolic
High quality, long lasting Feeling of self
& durable Experimental confidence & assurance
Confortable, fitting
& relaxing to wear
Benefits 16
3.4
 1. Brand Asset Valuator
 2. AAKER Model
 3. BRANDZ
 4. Brand Resonance
17
3.4.1 Brand Asset Valuator
18
Four key components – or pillars – of equity,
according to BAV
1. Differentiation: measures the degree to which a

brand is seen as different from other.
2. Relevance: Measures the breadth of a brand’s

appeal
3. Esteem: measures how well the bran is regarded &

respected
4. Knowledge: measures how familiar & intimate

consumers are with the brand
19
 Viewed by Uni of Californiya- Berkeley, professor
David Aaker
There are a set of five categories of Brand assets &
liabilities which add value to the product.
These are
 Brand loyalty
 Brand awareness
 Perceived quality
 Brand association
 Other proprietary asset
20
3.4.3 Brandz Model
21
22
 The brand resonance model looks at building a brand as a
sequence of steps, each of which is contingent on
successfully achieving the objectives of the previous one.
 The model describes how to take these competitive

advantages and create intense, active loyalty
relationships with customers for brands;
23
4. Relationship = Intense, active loyalty
What about you & me?
3. Resonance= Positive, accessible reactions

What about you?
Strength, favorabilit
and uniqueness of
brand associations.
2. Meaning=
What are you?
1. Identity= Deep, broad

Who are you? brand awareness
24
25
Brand performance
 How well does the brand rate on objective assessments of
quality?
 To what extent does the brand satisfy utilitarian, aesthetic,

and economic customer needs and wants in the product or
service category?
The product itself is at the heart of brand equity, because

 it is the primary influence on what consumers experience
with a brand,
 what they hear about a brand from others, and
 what the firm can tell customers about the brand in their
26
communications.
Perceived quality measures are inherent in many approaches to brand
equity.
Brand credibility describes the extent to which customers see the brand
as credible in terms of three dimensions: perceived expertise,
trustworthiness, and likability.
Brand consideration depends in large part on the extent to which strong
and favorable brand associations can be created as part of the brand
image.
Superiority measures the extent to which customers view the brand as
unique and better than other brands. Do customers believe it offers
advantages that other brands cannot? 27
28
29
CBBE model of
McDonald’s
30
31
32
33
CHAPTER’S REVIEW QUESTIONS
1. Pick a brand. Attempt to identify its sources of brand equity.
Assess its level of brand awareness and the strength,
favorability, and uniqueness of its associations.
2. Which brands do you have the most resonance with? Why?
3. Can every brand achieve resonance with its customers?

Why or why not?
4. Pick a brand. Assess the extent to which the brand is

achieving the various benefits of brand equity.
5. Which companies do you think do a good job managing

their customers? Why? 34

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Chapter Outline Chapter Objectives

 Definition of Brand Equity and At the end of this chapter

 A name becomes a brand when consumers

 BE defined in terms of the marketing effects

 Feel, and act with respect to the

 A brand is said to have +ve CBBE, when Customers

For high involvement purchases

 Positive Brand equity contains important benefits:

◦ Brand loyalty : the extent to which customers stick to a particular brand

 How do you build a strong brand?

Besides marketers’ efforts, it can be acquired through:

Strength of Brand Associations.

 1. Brand Asset Valuator

1. Differentiation: measures the degree to which a

2. Relevance: Measures the breadth of a brand’s

3. Esteem: measures how well the bran is regarded &

4. Knowledge: measures how familiar & intimate

 The model describes how to take these competitive

3. Resonance= Positive, accessible reactions

1. Identity= Deep, broad

 To what extent does the brand satisfy utilitarian, aesthetic,

The product itself is at the heart of brand equity, because

 what they hear about a brand from others, and

2. Which brands do you have the most resonance with? Why?

3. Can every brand achieve resonance with its customers?

4. Pick a brand. Assess the extent to which the brand is

5. Which companies do you think do a good job managing

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