Module 2 Flashcards
(CBBE)
Customer-Based Brand Equity
Customer-Based Brand Equity
“The differential effect that brand knowledge has on consumer response to the marketing of that brand.”
Answers two main questions:
What makes a brand strong?
How do you build a strong brand?
CBBE answers these questions from the perspectives of the consumer – as an individual and as an organization.
When does a brand have POSITIVE CBBE?
When consumers react favorably to a product and the way it is marketed when the brand is identified - than when it is not identified.
When does a brand have NEGATIVE CBBE?
A brand has NEGATIVE CBBE if consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.
There are 3 key “ingredients” to CBBE:
- Differential Effect
- Brand Knowledge
- Consumer Response to Marketing
Differential Effect
Differences in consumer response
Brand Knowledge
A result of consumers’ knowledge about the brand
Consumer Response to Marketing
perceptions, preferences, & behavior related to all aspects of brand marketing
Marketing Advantages Of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to marketing crises
Larger margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Greater trade cooperation and support
Increased marketing communication effectiveness
Possible licensing opportunities
Additional brand extension opportunities
Consumer knowledge drives the differences that manifest themselves in terms of…
…brand equity.
Brand equity provides marketers with a vital strategic __ from their past to their future.
bridge
Brands as a Reflection of the Past
Marketers should consider all the dollars spent on manufacturing and marketing products each year not as “expenses” but rather as “investments” in what consumers learned, felt and experienced about the brand.
Quality of brand building is more important than quantity.
Brands as a Direction for the Future
Past results can be interpreted to design future marketing programs. The brand knowledge that marketers create over time dictates appropriate and inappropriate future directions for the brand.
Brand knowledge is the key to creating brand equity because…
…it creates the differential effect that drives brand equity.
Associative Network Memory Model
Views memory as a network of nodes and connecting links
Nodes
stored information & concepts
Links
associations between information or concepts
Brand knowledge has two components:
Brand Awareness
Brand Image
Brand Awareness
The strength of the brand “node” in memory.
The consumer’s ability to identify the brand under different conditions.
Brand Image
Consumer’s perceptions about a brand. It is reflected by the brand associations held in the consumer’ memory
Customer-based brand equity occurs when the consumer:
- Has high levels of awareness & familiarity with the brand.
- Holds strong, favorable & unique brand associations in memory.
In some cases (low involvement) brand awareness alone is enough to create…
…favorable consumer responses.
In other cases, however, the strength, favorability, and uniqueness of brand associations play a critical role in determining the differential response that makes up brand equity.
Brand Awareness consists of…
Brand Recognition
Brand Recall
Brand Recognition
consumer’s ability to confirm prior exposure to a brand when cued (eg: POP displays)