2.1,CHAPTER 2: CUSTOMER-BASED BRAND EQUITY,Kevin Lane Keller Tuck School of Business Dartmouth College,2.2,Customer-Based Brand Equity,“The differential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993,2.3,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,2.4,Brand Equity as a “Bridge”,Reflection of past investments in the marketing of a brand Direction for future marketing actions or programs,2.5,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.,2.6,Sources of Brand Equity,Brand awareness Brand recognition Brand recall Brand image Strong, favorable, and unique brand associations,2.7,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,2.8,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),2.9,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.,2.10,The Four Steps of Brand Building,Ensure identification of the brand with customers and an association of the brand in customers minds Establish the totality of brand meaning in the minds of consumers Elicit the proper customer responses to the brand identification and brand meaning Convert brand response to create an intense, active loyalty relationship between customers and the brand,2.11,Four Questions Customers ask of Brands,Who are you? (brand identity) What are you? (brand meaning) What about you? What do I think or feel about you? (brand responses) What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships),2.12,2.14,Salience Dimensions,Depth of brand awareness Ease of recognition and recall Strength and clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration,2.15,Depth and Breadth Importance,The product category hierarchy shows us not only the depth of awareness matters but also the breadth. The brand must not only be top-of-mind and have sufficient “mind share,” but it must also do so at the right times and places.,2.16,Product Category Structure,To fully understand brand recall, we need to appreciate product category structure, or how product categories are organized in memory.,2.17,Performance Dimensions,Primary characteristics and supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price,2.18,Imagery Dimensions,User profiles Demographic and psychographic characteristics Actual or aspirational Group perceptionspopularity 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,2.19,Judgment Dimensions,Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likeability,Brand consideration Relevance Brand superiority Differentiation,2.20,Feelings Dimensions,Warmth Fun Excitement Security Social Approval Self-respect,2.21,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,Application: Identify the Key Drivers of Brand Equity,2.24,Brand Building Implications,Customers own brands. Dont take shortcuts with brands. Brands should have a duality. Brands should have richness. Brand resonance provides important focus.,2.25,Creating Customer Value,Customer-brand relationships are the foundation of brand resonance and building a strong brand. The customer-based brand equity model certainly puts that notion front and center.,2.26,Is a company consumer-centric?,Is the company looking for ways to take care of you? Does the company know its customers well enough to differentiate between them? Is someone accountable for customers? Is the company managed for shareholder value? Is the company testing new customer offers and learning from the results?,