Customer Based Brand Equity

March 1, 2016

Recap from last lecture

1. Challenges for brand managers
2. Brand equity concept
3. Strategic brand management process.

Topics to be covered today

1. CBBE
2. Brand Knowledge
3. Brand Awareness
4. Brand Image

Perspective

Approach to Brand equity from

perspective of consumer i.e.
individual consumer or organization

What do brands mean to consumers

How does brand knowledge affect

consumers response to marketing
activity

Power of Brand

Power of brand lies in what consumers have learned, felt, seen, heard
about brand as result of their experiences over time.

Power of brand lies in what resides in minds of the customers.

Challenge for marketing in building strong brand is ensuring that

customers have right of experiences with products & services and their
accompanying marketing programs.

Consumer Based Brand Equity

The differential effect that brand knowledge has on consumer
response to the marketing of that brand.
Keller, 1993

Positive acting favorably to brand

Brand Equity
Negative Acting unfavorable to brand

Differential
effect

brand
knowledge

consumer
response

Brand Equity as Bridge

Brand as reflection
of past

Brands as
direction for future

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

Making a Brand Strong:

Brand Knowledge

Brand knowledge is
the key to creating
brand equity.

Brand knowledge
has two
components:
brand awareness
and brand image.

Brand knowledge
consists of a
brand node in
memory with a
variety of
associations
linked to it.

Sources of Brand Equity

Brand
awareness
Brand
recognition

Brand
image
Strong,
favorable, and
unique brand
associations

Brand recall

2.9

Brand Awareness Advantages

Learning
advantages

Consideration
advantages

Choice
advantages

Register the
brand in the
minds of
consumers

Likelihood
that the
brand will be
a member of
the
consideration
set

Affect
choices
among
brands in the
consideration
set

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)

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.

Summary
1. CBBE
2. Brand Knowledge
3. Brand Awareness
4. Brand Image

Thank you

Dr. Kuldeep C Rojhe

School of Business Management & Liberal Arts
Shoolini University
Village Bajhol, Solan (H.P)
+91 988 204 4749
kuldeeprojhe@shooliniuniversity.com