Measuring Sources of Brand Equity:

Capturing Customer Mind-Set

Group
Members
Maryum Dawar
Noreen Khalid
Salman Tariq
Mujeeb Ur
Rehman

Measuring Sources of Brand Equity: Capturing

Customer Mind-Set

Presentation Goals & Objectives

1. Describe effective qualitative research techniques

for tapping into consumer brand knowledge.
2.
Identify effective quantitative research
techniques for measuring brand
awareness,
image, responses, and relationships.
3.
Profile and contrast some popular brand equity
models.

Qualitative Research Techniques

Qualitative research techniques often identify possible
brand associations and sources of brand equity.
These are relatively unstructured measurement approaches
that permit a range of both questions and answers and so
can often be a useful first step in exploring consumer
brand and product perceptions.
This section next reviews a number of qualitative research
techniques for identifying sources of brand equity such as
brand awareness, brand attitudes, and brand attachment.

Free Association
The simplest and often the most powerful way to profile brand
associations is free association task.
Subjects are asks what comes to mind when they think of the
brand, without any more specific probe or cue than perhaps the
associated product category. (What does the Rolex name mean to
you?)
Marketers can use the resulting associations to form a rough
mental map for the brand.
Marketers use free association tasks to identify the range of
possible brand associations in consumers minds.

Free Association
It also provide some rough indication of the relative
strength, favorability, and uniqueness of brand
associations.
Coding responses in terms of the order of elicitation
whether they are early or late in the sequenceat least
gives us a rough measure of their strength.
Two main issues to consider
Types of probes to give to subjects.
How to code and interpret the resulting data.

Projective Techniques

Projective techniques are diagnostic tools to uncover the true

opinions and feelings of consumers when they are unwilling or
otherwise unable to express themselves on these matters.
In result consumers will reveal some of their true beliefs and
feelings.
P-T is useful when deeply rooted personal motivations or
personally or socially sensitive subjects are at issue.
P-T dont always yield results as powerful. They often provide
useful insights that help to assemble us a more complete
picture of consumers and their relationships with brands.

Kind of Projective Techniques

Completion and Interpretation Tasks

Classic projective techniques use incomplete or ambiguous stimuli
to elicit consumer thoughts and feelings.
Bubble exercises
Comparison Tasks
In which we ask consumers to convey their impressions by
comparing brands to people, countries, animals, activities, fabrics,
occupations, or even other brands.
Researcher identifying key brand personality associations.
Archetypes
Archetype research is one technique for eliciting deeply held
consumer attitudes and feelings.
Rapaille believes children experience a significant initial exposure
to an element of their world called the imprinting moment. The
pattern that emerges when we generalize these imprinting moments

Zaltman Metaphor Elicitation Technique

ZMET is based on a belief that consumers often have

subconscious motives for their purchasing behavior. A
lot goes on in our minds that were not aware of, said
former Harvard Business School professor Gerald
Zaltman.
Most of what influences what we say and do occurs
below the level of awareness. Thats why we need new
techniques to get at hidden knowledgeto get at what
people dont know they know.
ZMET is a technique for eliciting interconnected
constructs that influence thought and behavior.

 The technique is based on the idea that most social

communication is nonverbal and, as a result, approximately
two-thirds of all stimuli received by the brain are visual.
Using ZMET, Zaltman teases out consumers hidden thoughts
and feelings about a particular topic, which often can be
expressed best using metaphors.
Zaltman defines a metaphor as a definition of one thing in
terms of another, [which] people can use . . . to represent
thoughts that are tacit, implicit, and unspoken.
ZMET focuses on surface, thematic, and deep metaphors. Some
common deep metaphors include transformation, container,
journey, connection, and sacred and profane.

Neural Research Methods

Neuromarketing is the study of how the brain responds to
marketing stimuli, including brands.
For example, some firms are applying sophisticated techniques
such as EEG (elector encephalograph) technology to monitor
brain activity and better gauge consumer responses to marketing.
It has been used to measure the type of emotional response
consumers exhibit when presented with marketing stimuli.
Neurological research has shown that people activate different
regions of the brain in assessing the personality traits of people
than they do when assessing brands.
One major research finding to emerge from neurological
consumer research is that many purchase decisions appear to be
characterized less by the logical weighing of variables and more

Brand Personality and Values

Brand personality is the human characteristics or traits
that consumers can attribute to a brand.
We can measure it in different ways. (open-ended
Response)
marketers can give consumers a variety of pictures or a
stack of magazines and ask them to assemble a profile of
the brand.

The Big Five.

1. Sincerity (down-to-earth, honest,
wholesome, and cheerful)
2. Excitement (daring, spirited, imaginative,
and up-to-date)
3. Competence (reliable, intelligent, and
successful)
4. Sophistication (upper class and charming)
5. Ruggedness (outdoorsy and tough)

Ethnographic and Experiential Methods

Ethnographic research uses thick description based on
participant observation.
In marketing, the goal of ethnographic research is to
extract and interpret the deep cultural meaning of events
and activities through various research techniques such as
consumer immersion, site visits, shop-a longs, embedded
research, etc.
Advocates of the ethnographic approach have sent
researchers to consumers homes in the morning to see
how they approach their days, given business travelers
digital cameras and diaries to capture their feelings when
in hotel rooms, and conducted beeper studies in which

Qualitative Research Techniques

Summary

Q-R-T are a creative means of ascertaining consumer

perceptions that may otherwise be difficult to uncover.
The range of possible Q-R-T is limited only by the
creativity of the marketing researcher.
Its Drawbacks are:

Samples sizes are too small.

Qualitative nature of the data, there may be questions of
interpretation.
Different researchers examining the same results from a
qualitative research study may draw different conclusions.

Quantitative Research
Techniques

 In order to make more confident and

defensible strategic and tactical
recommendations marketers usually go for
quantitative research techniques.
Quantitative research aims to+ prove or
disprove.

Brand Awareness

It is related with how easily can consumers

recall a brand name, logo, symbol, character, or
packaging under different conditions.
Marketers use several measures of awareness of
brand elements

Recognition
Brand recognition requires consumers to identify
the brand under a variety of circumstances. The
most basic recognition test gives consumers a set
of individual items visually or orally and ask
them whether they think theyve previously seen
or heard of these items.
Brand recognition is especially important for
packaging.

A brand name with a high level of awareness

will be recognized under less than ideal
conditions. Consider the following list of
incomplete names (i.e., word fragments). Which
ones do you recognize?
1. D _ _ N E _
2. K O _ _ K
3. D _ L T _
4. G _ L L _ T _ _
5. H _ _ S H _ Y
6. N _ K _

1.
2.
3.
4.
5.
6.

DISNEY
K O DAK
D EL T A
G I L L E T TE
H ERS H E Y
N IK E

Brand Recall

Brand recall refers to the ability of the

consumers to correctly generate and
retrieve the brand in their memory.
Often tested through surveys or
interviews, brand recall is tested by asking
participants questions such as "name as
many car models as possible" .

Unaided Recall

The moderator asks respondents to

recall information without the aid of a
cue or prompt.
Here are examples.

Please tell me all the brands of

mobile phones you can think of.

aided Recall

The moderator tells or shows specific

prompts to respondents, and then asks
a question. The prompt stimulates
memory associations. Here is an
example.

Please look at these brands: A, B, C,

and D. Which one do you use?

Correction for guessing

Any research measure must consider

the issue of consumers making up
responses or guessing. That problem
may be especially evident with certain
types of
aided awareness or recognition
measures for the brand.

One market research firm, Oxtoby-Smith,

conducted a benchmark study of awareness of
health and beauty products.
In the study, the firm asked consumers
questions like this:
The following is a list of denture adhesive
brand names. Please answer yes if youve
heard the name before and no if you havent.
Okay? Orafix? Fasteeth? Dentu-Tight?
Fixodent?

Equity engine
Its a modeling technique which measures the strength
of a brand in terms of its emotional and functional
benefits as perceived by the consumer.
Its a practical management tool generated with which
marketers can assess a brand's strength, determine
specific actions to improve or protect their brand and
monitor marketing programs over time.
It evaluates and measures how individual consumers
perceive the three main drivers of a brand's value.

Brand Value
Affinity: The consumer's emotional relationship with
the brand is the most difficult of these to measure.
Performance: is measured using functional attributes
specific to the market e.g. for beer it might be
alcohol content, how refreshing it is etc.
Price: The consumer's perceptions ofprice.

Brand Equity
Equity Engine expresses brand equity as a
combination of the functional benefits
delivered by the brand (performance) and the
emotional benefits (affinity).
Performance as a function of product and
service attributes.
Affinity as a function of the brand
identification (the closeness customers feel to
the brand), approval (the status the brand
enjoys among a wider social context of

Total Quality Management has driven genuinely

bad products and services out of the market.
Those that remain are all of satisfactory quality,
meaning that the customer now faces a
bewildering array of good alternatives. In
response to this, the basis for the final purchase
decision has expanded from simply, "What will
you do for me?" to, "What will you do for me
and mean to me?"

 There are two promising candidates for how this equity

can be measured:
The first type of approach measures equity in terms of
"outcomes," such as the extent to which customers are
prepared to stake their personal or professional
reputation behind a brand by recommending it to others
or the price premium they are prepared to pay.
The second type of approach measures equity in terms
of the scale and nature of the utility that the brand
delivers to customers.

 "willingness to recommend to a friend" is the single

most reliable measure of brand equity.
"net promoter" score (the number of people willing to
recommend your brand minus those who are not
willing to do so) provides an accurate predictor of
your company's growth prospects.
The limitation of "outcome" approaches is that, while
they may accurately quantify how much brand equity
you enjoy, they provide limited insight into what
creates this equity.

 Another approach tries to quantify the extent of

brand equity by measuring the degree of "relevant
differentiation" provided.
"Relevant differentiation" measures the success of
marketing in terms of the extent to which two goals
have been achieved maximization of the
perceived fit between your brand and your customer's
needs; and maximization of the perceived
differentiation of your brand versus its competitors.

 A high relevant differentiation score provides insight

into why a certain brand is perceived to be uniquely
capable of meeting customer needs.
Following are profiles of a number of well-established
brand equity models that seek to identify the scale
and sources of brand equity.

Equity Builder
Equity Builder, the methodology focus on establishing
the emotional component of brand equity.

Kevin Lane Keller's Model

Kevin
Lane
Keller
mirrors
the
Equity
Engineapproach by seeing the brand as a blend of
the rational and the emotional, measured in terms of
performance characteristics and imagery.
Customers' relationship to a brand can be plotted in
terms of their altitude on the pyramid of engagement
and their relative bias towards a rationally dominant
or emotionally dominant relationship.

Brand Dynamics

This approach characterizes the relationship that a

customer has with a brand into one of five stages:
presence, relevance, performance, advantage, and
bonding.

 "Presence" customers have only a basic awareness of

the brand while "bonded" customers are intensely
loyal, at least in their attitudes.

Winning Brands
It begins from a behavioral observation of brand equity.
Brand equity is measured in terms of a customer's frequency of purchase and
the price premium paid.
Once favorable behavior is observed, the methodology seeks to analyze the
attitudinal characteristics of those customers.

Thank You!