(2.1) - (2.3) Conceptualizing brand equity & CBBE components

Question 1

What is brand equity?

Answer 1

Differential effect that the knowledge of a brand has on customers’ attitudes and behaviors towards the branded product == the added value of the brand to the product

Question 2

How to describe the knowledge out of the Journal of Marketing?

Answer 2

Marketing is an underestimated domain, but has more citations than Albert Einstein

Question 3

Explain the associative network memory model

Answer 3

Memory as network of:
- nodes = stored info/concepts
- connecting links = strentg of association between nodes
Network can be activated to induce brand-related behavior: trigger nodes, make them spread to other nodes, the spread is determined by the strength and number of network linkages

Question 4

What are the 2 components of brand knowledge?

Answer 4

• Brand Awareness = ability to identify the brand, existence and connectedness of brand nodes&raquo_space; likelihood and easy with which a brand name will come to mind.
• Brand Image = perceptions about the brand that are reflected by the brand associations in consumer theory&raquo_space; meaning of the brand

Question 5

Explain the 2 components of brand awareness

Answer 5

• Brand recognition
  The degree to which consumers can confirm prior exposure to the brand when provided with a brand element ex. advertising icons, mascots
• Brand recall
  The degree to which consumers can retrieve the brand from memory without a brand cue when given:
  > Brand category
  > Perceived needs
  > Purchase or usage situation

Question 6

Why does brand awareness matters?

Answer 6

It is the necessary condition before anything else!
* Learning advantage: first step is to create the node in the consumer memory
* Consideration advantage: likelihood of being part of the customers evoked set, which influences purchase decisions
* Choice advantage: even affects decisions about brands if no other brand associations exist ex. in low involvement decisions: heuristics to only buy familiar, well established brands

Question 7

How is brand image build?

Answer 7

The whole set of associations linked to the brand that are hold in the memory – any potential encounter with the brand has the chance to build those associations.

Question 8

What are the different type of brand associations?

Answer 8

• Attributes = features that characterize the brand, related to the performance and appearance&raquo_space; could be concrete or more abstract
• Benefits = personal value that the customer associated with a brand and its usage
  > Functional, the practical, utilitarian kind
  > Experimental, self oriented and enjoyment-related needs
  > Symbolic, needs for social approval and self-expression

Question 9

Give 3 important dimensions of brand associations

Answer 9

1) Favourability - valence
2) Strength - intensity
3) Uniqueness - distinctiveness

Question 10

Explain the Favourability - valence dimension of brand associations

Answer 10

> Positive, negative or neutral feelinds about the brand

Question 11

Explain the strength - intensity dimension of brand associtations

Answer 11

> Amount of processed information about the brand
Nature or quality of the processing

Question 12

Explain the uniqueness - distinctive dimension of brand associations

Answer 12

> How many associations are shared with competing brands?
Relates to the USP, unique selling position of the brand
Which compelling reason is offered for buying that particular brand
» Shared associations become “category membership”