Branding Equity

Question 1

2 definitions of Brand Equity

Answer 1

1) Market outcomes for a product with its brand vs a product without it.
2) Differential effect brand knowledge has on consumer response to its marketing.

Question 2

2 Methods to Financially Assess

Answer 2

1) Consumer Level: Basically impossible to do. Survey same product to see how much people are willing to pay for it branded or not.
2) Firm Level: acquisition of another firm and look at multiples of assets.

Question 3

4 perspectives from consumers for brand equity.

Answer 3

1) Brand Awareness
2) Brand Attitude
3) Brand Knowledge
4) Brand Loyalty

Question 4

2 Contexts of Brand Awareness

Answer 4

1) In-store: “unseen = unsold” (cocktail phenomenon)
2) In-Memory: “considered set”

Question 5

Brand “Meaning”

Answer 5

Reputation. Equity built on positioning and memories.

Question 6

5 Returns on Brand Equity

Answer 6

1) Communication (breaks through noise)
2) Assessment of Quality (the “ambiguity” issue)
3) Growth
4) Channel Power
5) Loyalty

Question 7

Way to grow your brand (Growth Potential)

Answer 7

Leverage name to enter new categories.

Question 8

3 Reasons to extend brand name instead of starting new

Answer 8

1) Awareness & Liking
2) Trustworthiness
3) Specific Associations (Brand means something)

Question 9

4 Reasons not to extend brand name

Answer 9

1) Generalization of failure. (1 line goes down then it hurts the entire brand)
2) Can dilute brand
3) Incompatibility of extension (can’t overcome existing reputation)
4) Differentiation (minimalize cannibalizations)

Question 10

6 considerations around Brand Sensitivity

Answer 10

1) Product Type (search, experience, credence)
2) Consumer Goals (prestige vs utilitarian)
3) Risk-aversion (will rely on brand)
4) Variation in functional attributes across brands (make tradeoffs, brand less important)
5) Consumer expertise (don’t rely on brand name)
6) Company Assets (Does company have hard assets)