Leveraging Secondary Brand Associations

Question 1

Secondary Brand Associations

Answer 1

Brands can (1) borrow equity by (2) associating/linking themselves with other sources

Question 2

Strong associations (3 + SFU)

Answer 2

1. Awareness and knowledge of entity
2. Meaningfulness of the knowledge of entity
3. Transferability of the knowledge of entity

Question 3

Who is affected by secondary associations?

Answer 3

1. Those who lack the ability or motivation to judge product attributes
2. Loyal customers, time pressure, uneducated, male, conservative

Question 4

Types of Secondary Associations (8)

Answer 4

1. Events (sponsorships)
2. 3rd party sources (awards, reviews)
3. Company
4. Countries (ex. patriotism, Idaho potatoes, Chanel)
5. Distribution Channels (inferences based on access, store atmosphere, price and promotion, cross-category assortment, within-category assortment)
6. Co-branding (aka brand alliance, brand bundling; ex. McDonald’s + Disney); ingredient branding (ex. Teflon non-stick pan
7. Licensing (ex. Harry Potter)
8. Endorsements (high visibility, useful associations; AmEx + Jerry Seinfeld)

Question 5

Cognitive Consistency

Answer 5

What is true for the entity must be true for the brand; can affect existing brand associations

Question 6

Positives of Secondary Brand Associations

Answer 6

1. Unique positioning, borrow expertise from each other, expand brand meaning, reduce introduction cost
2. Consumer pull, greater sales at higher margins, more stable customer demand
3. Protecting trademark (licensing), brand exposure

Question 7

Negatives of Secondary Brand Associations

Answer 7

1. Loss of control, brand equity dilution, negative feedback effects, lack of brand focus/clarity
2. High communication cost, not sustainable competitive advantage
3. Risk of over exposure and tainting (licensing), may distract attention from brand (endorsement)