Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity Flashcards
What is “customer-based brand equity (CBBE)”?
Keller’s framework to understand how brand equity operates at the level of the individual consumer. He defines it as the “differential effect of brand knowledge on consumer response to the marketing of the brand.” Simply put, it’s the impact that consumers’ knowledge and perceptions of a brand have on their response to brand-related marketing activities
What 3 main areas are emphasized by the concept of CBBE?
- Differential Effect: How consumer response to a brand differs from their response to the same marketing for a fictitious or generic product.
- Brand Knowledge: The cognitive and emotional responses associated with the brand, divided into brand awareness and brand image.
- Consumer Response: Observable outcomes such as brand choice, attitudes, and purchase behaviors in response to marketing.
What is Brand Awareness?
Consumers’ ability to confirm prior exposure to a brand when they see it. It helps with in-store decision-making when consumers recognize brands on the shelf.
What is Brand Recall?
Consumers’ ability to retrieve a brand from memory when given a product category or situational cue problem. It’s especially crucial when decisions are made away from the point of purchase.
Why does Awareness matter? 3x reasons.
- Consideration Set Inclusion: Higher awareness increases the chances that the brand will be considered in purchase decisions.
- Decision Heuristics: Especially in low-involvement scenarios, consumers may favor familiar brands with higher awareness.
- Brand Image Formation: Awareness is a precondition for building a detailed and favorable brand image.
What is Brand Image?
strong, favorable, unique associations in memory; encompasses the associations that consumers hold regarding a brand, which can be influenced by marketing efforts
What 3 associations can Brand Image be categorized into?
o Attributes: Product features (product-related) and external characteristics like price, packaging, and usage context (non-product-related).
o Benefits: The value the consumer derives, further classified as functional (practical utility), experiential (sensory satisfaction), and symbolic (social or identity-based).
o Attitudes: Overall brand evaluations that influence future brand-related behavior.
What are the Key Dimensions of Brand Associations
- Favorability: Positive or negative evaluations of associations.
- Strength: The robustness of connections between the brand and its associations, reinforced through consumer experience and marketing.
- Uniqueness: The distinctive qualities of the brand that separate it from competitors, often forming the basis for its unique selling proposition (USP).
What are the 3x types of Attributes?
Product-related attributes – ingredients necessary for performing the product or service functions sought by the consumer (ie. physical composition or service requirements)
Non-product-related attributes – external aspects of the product or service that relate to its purchase or consumption (ex/ price info, packing/product appearance info/user imagery/usage imagery)
Brand personality attributes: can be “youthful”, “colorful”, “gentle”, etc often based on the inferences about the user and usage situation
What are the 3x types of Benefits?
- Functional benefits – correspond to product-related attributes; the intrinsic advantages of product or service consumption; these benefits are often linked to pretty basic needs (psychological & safety) and involve a desire for problem removal or avoidance
- Experiential benefits – usually correspond to product-related attributes; satisfy experiential needs such as sensory pleasure; relate to what it feels like to use the product or service
- Symbolic benefits – usually correspond with non-product-related attributes; relate to underlying needs for social approval or personal expression and outer-directed self-esteem; more extrinsic advantages of product or service consumption
What are the managerial implications of “Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal Of Marketing”?
- Adopt a Broad View of Marketing Decisions: Every aspect of the marketing mix—product design, pricing, distribution, and promotion—should contribute to building or reinforcing brand knowledge.
- Define Desired Knowledge Structures: Brands should clarify what they want consumers to know and feel about the brand, setting goals for awareness, association types, and brand image.
- Invest in Long-Term Brand Building: Brand equity requires sustained efforts over time, not just short-term tactics.
- Leverage Secondary Brand Associations Carefully: Brands can strategically leverage existing associations with companies, countries, or celebrities to build equity. However, over-reliance can dilute or even damage brand equity if these secondary associations change unfavorably.
- Continually Measure Brand Knowledge: Tracking brand awareness, associations, and consumer perceptions helps in understanding and adjusting the brand’s position.
- Maintain Cohesive Brand Image: Inconsistent messages or a lack of congruence among brand associations can confuse consumers and weaken brand equity.
What are the strategic implications of “Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal Of Marketing”?
- Pricing Strategy: High brand equity allows brands to command premium prices and have more inelastic price sensitivity.
- Distribution Strategy: Strong brands attract consumer interest, which may justify wider distribution or strategic partnerships with select retailers.
- Promotional Strategy: Brands with high equity can optimize advertising efforts, achieving greater impact with potentially fewer exposures.
Brand Loyalty: Ultimately, a well-managed brand with strong equity not only attracts consumers but also fosters loyalty, leading to repeat purchases and resilience against competitive actions.
How is Brand Equity measured in “Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal Of Marketing”?
- Indirect Approach: This approach measures brand knowledge (awareness and image) through consumer surveys and qualitative assessments:
o Brand Awareness: Assessed through recall and recognition tests, response latencies (how quickly consumers recall the brand), and “top-of-mind” accessibility.
o Brand Image: Measured by identifying types of associations (attributes, benefits, attitudes) and evaluating their favorability, strength, and uniqueness. - Direct Approach: This approach measures the impact of brand knowledge on consumer response to actual marketing efforts. Typical methods include:
o Blind Tests: These assess the differential impact of brand knowledge by comparing consumer responses to branded versus unbranded versions of a product.
o Conjoint Analysis: A technique to examine consumer preferences across brand and non-brand elements, which helps identify the influence of brand name on product choices.
How is Customer Based Brand Equity built in “Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal Of Marketing”?
To build strong brand equity, brands must foster brand awareness and create favorable, strong, and unique associations. Keller outlines several strategies for achieving this:
1. Selecting Brand Identities:
o Brand names, logos, symbols, and slogans should be memorable, distinct, and easily linked to the brand’s intended associations.
o Keller suggests that brand names be simple (easy to remember), familiar (easier to recognize), and distinctive (to stand out among competitors).
2. Marketing Programs to Build Brand Associations:
o Product-Related Associations: Product quality, features, and user experience contribute to forming foundational brand associations.
o Non-Product-Related Associations: Price, distribution channels, user and usage imagery, and personality traits help create a complete and differentiated brand profile.
o Promotion: Advertising, promotions, and endorsements reinforce existing associations and create new, unique brand perceptions.
3. Leveraging Secondary Associations:
o Keller notes that brands can benefit from secondary associations by aligning with entities such as companies (brand identity), countries of origin, distribution channels, celebrities, or events. For example, Nike gains associations with athleticism through endorsements by top athletes.
How does “Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal Of Marketing” suggest you build brand identity?
- Selecting Brand Identities:
o Brand names, logos, symbols, and slogans should be memorable, distinct, and easily linked to the brand’s intended associations.
o Keller suggests that brand names be simple (easy to remember), familiar (easier to recognize), and distinctive (to stand out among competitors).
