Motivation forCustomer-Based Brand Equity Model

Marketers know strong brands are important but aren’t always sure how to build one.

CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable

Complex,Varied

MarketingActivity

Comprehensive,Robust

MarketingMeasures

Detailed,Rich

MarketingModels

MARKETING PLANNING PROCESS

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

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

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

Salience Dimensions

Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness Purchase consideration Consumption consideration

Performance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

Imagery Dimensions User profiles

Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity

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

Judgment Dimensions Brand quality

Value Satisfaction

Brand credibility Expertise Trustworthiness Likability

Brand consideration Relevance

Brand superiority Differentiation

Feelings Dimensions

Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions 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

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

Application:Identify the key drivers of brand equity

0.17 0.66

0.24

0.65

P-2

P-2

PerformancePerformance

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P-7

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P-3

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12

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ImageryImagery

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FeelingsFeelings

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12

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JudgmentJudgment

J-1J-1

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J-10J-10

J-7J-7

J-8J-8

J-9J-9

J-11

J-11 J-12

J-12

R-2R-2

ResonanceResonance

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R-11 R-1

2R

-12

0.58

0.49