ACCORDING TO KELLER

Motivation for Customer-Based Brand Equity Model

arent always sure how to build one. CBBE model was designed to be
comprehensive

Marketers know strong brands are important but

cohesive
well-grounded up-to-date actionable

Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Thoughts Feelings Images Perceptions Attitudes
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Building Customer-Based Brand Equity

Building a strong brand involves a series of steps as part of a branding ladder
A strong brand is also characterized by a logically

constructed set of brand building blocks.

Identifies areas of strength and weakness Provides guidance to marketing activities

CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

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Salience Dimensions
Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership Breadth of brand awareness Purchase consideration(range of purchase) Consumption consideration(usage situations)

Product Category Structure needs to be appreciated(Ex:- Beverages)

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Performance Dimensions
meet customers more functional needs. underlie brand performance are:-

Relates to the way in which the product attempts to 5 important types of attributes and benefits that 1. Primary characteristics & supplementary features

2. Product reliability, durability, and serviceability

3. Service effectiveness, efficiency, and empathy 4. Style and design 5. Price
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1. Primary Ingredients & Supplementary Features

Ex: Bread-grain, yeast flavors, texture, nutrition

content(carb, protein, fibre etc) with few other distinguishing features Ex:-Toaster Oven-housing of plastic & metal, an oven pan, power cord, clear glass door with optional features for safety, buzz when ready etc Ex:- Portable CD Player-AM/FM stereo radio, one cassette deck, 2 speaker drives, ability to record, AC power cord, batteries. Features like clock, extra bass may be desired. Hence , levels of ingredients differ based on customer beliefs

Brand Performance
2.Product
Reliability-consistency of

3. Service
Effectiveness-satisfying

performance over time & from purchase to purchase. Durability-expected economic life Serviceability-ease of service if it needs repair

customers service requirements Efficiency-speed & responsiveness in delivery Empathy-trustworthy, caring & having customers interest in mind

Brand Performance(contd.)
4. Style & Design- aesthetic considerations such as

size, shape, materials, and color involved & sensory aspects looks, feels, smells or sounds as well. 5. Price- Pricing Policy creates associations in consumer minds about relevant price tier or level for the brand. Categorizing the price of the brand, firmness/flexiblity in pricing(discounts) and product category knowledge are based on this aspect.

Brand Imagery
Refers to intangible aspects of the brand
Deals with extrinsic properties of the product or

service. Formed directly from a consumers own experiences and contact with the product, brand, target market, or usage situation Formed indirectly through the depiction of these same considerations, as communicated in advertising/WOM

Imagery Dimensions-4
User profiles
Actual or aspirational Group perceptions popularity

Categories of Intangibles
Demographic & psychographic characteristics

Purchase & usage situations

Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories
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User Profiles
Demographic & Psychographic factors result in a profile by

customers of actual users or more aspirational, idealized users Demographic factors: Gender-Marlboro Cigarettes(masculine) Eva Deo (Feminine) Age-Pepsi Cola(younger than Coke) Race Income
Psychographic factors:- (popularity) Attitudes towards life Careers Possessions Social Issues Political Institutions

Purchase & Usage Situations

Situations/Conditions of Purchase Type of channel-sold through dept. stores, specialty stores,

internet etc Specific stores-Shoppers Stop, ebay, etc Ease of purchase & associated rewards-Home Delivery, Inner Circle Card etc Usage Situation Time (day, week, month, year, etc.) Location (inside/outside home), and Type of activity/context of usage (formal/informal) ExamplesSnickers packed with peanuts-satisfies as a healthy, filling snack Big Bazaar-Wednesday shopping-homemakers market Dominos -delivery

Brand Personality
Sincerity-down-to-earth, honest, wholesome, and cheerful Excitement-daring, spirited, imaginative, and up-to-date Competence-reliable, intelligent, successful Sophistication-upper class and charming Ruggedness-outdoorsy and tough

For instance Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd. Infosys represents uniqueness, value, and intellectualism. Dove as honest, feminist and optimist; Hewlett Packard brand represents accomplishment, competency and influence

History, heritage and experiencesmay take on associations to their Nostalgia-brands

past and certain noteworthy events in the brand history Memories-distinctly personal experiences and episodes or be related to past behaviors and experiences of friends, family, or others.
For instance-there may be associations to aspects of the marketing program for the brand, the color of the product or look of its package, the company or person that makes the product and the country in which it is made, the type of store in which it is sold, the events for which the brand is a sponsor, and the people who endorse the brand.

Judgment Dimensions
Brand quality
Value Satisfaction

Brand credibility
Expertise

Trustworthiness
Likability

Brand consideration
Relevance

Brand superiority
Differentiation
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Brand Judgement
Focus on customers personal opinions and

evaluations w.r.t the brand Put together different performance and imagery associations of the brand to form different kinds of opinions
Four Types- Quality, Credibility, Consideration,

and Superiority

Brand Judgement
Brand Quality
Brand Attitudes Perceptions of value and

Brand Credibility
Refers to the extent to which

satisfaction

Ex:- Sheraton Hotels-certain associations that matter may be location convenience, room comfort, design, and appearance, service quality of staff, recreational facilities, food service, security, prices, and so on

the brand is seen as credible in terms of perceived expertise (competent, innovative, and a market leader), trustworthiness (dependable and keeping customer interests in mind), and likability (fun, interesting, and worth spending time with)

Brand Judgement
Brand Consideration
How appropriate, relevant

Brand Superiority
How the brand is viewed as

and meaningful the brand is to the customer Is a crucial filter in building brand equity Strong & favorable associations should be created

unique and better than other brands Helps build intense and active relationships with customers Depends on the no. and nature of unique associations that make the brand image

Feelings Dimensions

Brand Feelings customers emotional responses and reactions w.r.t the brand Six important types of brand-building feelings: 1. Warmth-soothing 2. Fun-upbeat 3. Excitement-energized 4. Security-safety 5. Social approval-acknowledgement 6. Self-respect-sense of pride
The first 3 types are experiential and immediate, increasing in level of intensity The latter 3 types of feelings are private and enduring, increasing in level of gravity
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Resonance Dimensions
Refers to the nature of the relationship and the extent to which customers feel they are in sync with the brand. Ex:- Harley-Davidson, Apple, and eBay brands with high resonance Characterized by-(Intensity of deep bonds with customer) and (level of Activity generated by this loyalty)
Brand Resonance categories:-

1. Behavioral loyalty 2. Attitudinal attachment 3. Sense of community 4. Active engagement

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Brand Resonance
Behavioral loyalty
Frequency and amount of repeat purchases

Attitudinal attachment
Love brand (favorite possessions; a little pleasure)

Proud of brand

Sense of community
Kinship Affiliation

Active engagement
Seek information Join club Visit web site, chat rooms

Brand Resonance-Examples
MTV-rebellious and irreverent manner attracted the

youth Harley-Davidson-sponsors HOG (free 1 year membership, magazine, emergency road service etc) True Apple customers in the U.S. have the brand's logo tattooed onto their bodies In Finland, Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user- friendly menu system used by Nokia phones.

Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED