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CHAPTER2:CUSTOMER-BASEDBRANDEQUITYKevinLaneKellerTuckSchoolofBusinessDartmouthCollege1Customer-BasedBrandEquity“Thedifferentialeffectthatbrandknowledgehasonconsumerresponsetothemarketingofthatbrand.”Keller,19932Customer-BasedBrandEquityDifferentialeffectDifferencesinconsumerresponseBrandknowledgeAresultofconsumers’knowledgeaboutthebrandConsumerresponsetomarketingChoiceofabrandRecallofcopypointsfromanadResponsetoasalespromotionEvaluationsofaproposedbrandextension3BrandEquityasa“Bridge”ReflectionofpastinvestmentsinthemarketingofabrandDirectionforfuturemarketingactionsorprograms4MakingaBrandStrong:BrandKnowledgeBrandknowledgeisthekeytocreatingbrandequity.Brandknowledgeconsistsofabrandnodeinmemorywithavarietyofassociationslinkedtoit.Brandknowledgehastwocomponents:brandawarenessandbrandimage.5SourcesofBrandEquityBrandawarenessBrandrecognitionBrandrecallBrandimageStrong,favorable,anduniquebrandassociations6BrandAwarenessAdvantagesLearningadvantagesRegisterthebrandinthemindsofconsumersConsiderationadvantagesLikelihoodthatthebrandwillbeamemberoftheconsiderationsetChoiceadvantagesAffectchoicesamongbrandsintheconsiderationset7EstablishingBrandAwarenessIncreasingthefamiliarityofthebrandthroughrepeatedexposure(forbrandrecognition)Forgingstrongassociationswiththeappropriateproductcategoryorotherrelevantpurchaseorconsumptioncues(forbrandrecall)8CreatingaPositiveBrandImageBrandAssociationsDoesnotmatterwhichsourceofbrandassociationNeedtobefavorable,strong,anduniqueMarketersshouldrecognizetheinfluenceoftheseothersourcesofinformationbybothmanagingthemaswellaspossibleandbyadequatelyaccountingforthemindesigningcommunicationstrategies.9TheFourStepsofBrandBuildingEnsureidentificationofthebrandwithcustomersandanassociationofthebrandincustomers’’mindsEstablishthetotalityofbrandmeaninginthemindsofconsumersElicitthepropercustomerresponsestothebrandidentificationandbrandmeaningConvertbrandresponsetocreateanintense,activeloyaltyrelationshipbetweencustomersandthebrand10FourQuestionsCustomersaskofBrandsWhoareyou?(brandidentity)Whatareyou?(brandmeaning)Whataboutyou?WhatdoIthinkorfeelaboutyou?(brandresponses)Whataboutyouandme?WhatkindofassociationandhowmuchofaconnectionwouldIliketohavewithyou?(brandrelationships)11Customer-BasedBrandEquityPyramidRESONANCESALIENCEJUDGMENTSFEELINGSPERFORMANCEIMAGERY4.RELATIONSHIPS=Whataboutyouandme?3.RESPONSE=Whataboutyou?2.MEANING=Whatareyou?1.IDENTITY=Whoareyou?12Sub-DimensionsofCBBEPyramidLOYALTYATTACHMENTCOMMUNITYENGAGEMENTQUALITYCREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIALAPPROVALSELF-RESPECTCATEGORYIDENTIFICATIONNEEDSSATISFIEDPRIMARYCHARACTERISTICS& SECONDARYFEATURESPRODUCTRELIABILITY,DURABILITY&SERVICEABILITYSERVICEEFFECTIVENESS,EFFICIENCY&EMPATHYSTYLEANDDESIGNPRICEUSERPROFILESPURCHASE&USAGESITUATIONSPERSONALITY&VALUESHISTORY,HERITAGE&EXPERIENCES13SalienceDimensionsDepthofbrandawarenessEaseofrecognitionandrecallStrengthandclarityofcategorymembershipBreadthofbrandawarenessPurchaseconsiderationConsumptionconsideration14DepthandBreadthImportanceTheproductcategoryhierarchyshowsusnotonlythedepthofawarenessmattersbutalsothebreadth.Thebrandmustnotonlybetop-of-mindandhavesufficient““mindshare,””butitmustalsodosoattherighttimesandplaces.15ProductCategoryStructureTofullyunderstandbrandrecall,weneedtoappreciateproductcategorystructure,orhowproductcategoriesareorganizedinmemory.16PerformanceDimensionsPrimarycharacteristicsandsupplementaryfeaturesProductreliability,durability,andserviceabilityServiceeffectiveness,efficiency,andempathyStyleanddesignPrice17ImageryDimensionsUserprofilesDemographicandpsychographiccharacteristicsActualoraspirationalGroupperceptions—popularityPurchaseandusagesituationsTypeofchannel,specificstores,easeofpurchaseTime(day,week,month,year,etc.),location,andcontextofusagePersonalityandvaluesSincerity,excitement,competence,sophistication,andruggednessHistory,heritage,andexperiencesNostalgiaMemories18JudgmentDimensionsBrandqualityValueSatisfactionBrandcredibilityExpertiseTrustworthinessLikeabilityBrandconsiderationRelevanceBrandsuperiorityDifferentiation19FeelingsDimensionsWarmthFunExcitementSecuritySocialApprovalSelf-respect20ResonanceDimensionsBehavioralloyaltyFrequencyandamountofrepeatpurchasesAttitudinalattachmentLovebrand(favoritepossessions;““alittlepleasure”)ProudofbrandSenseofcommunityKinshipAffiliationActiveengagementSeekinformationJoinclubVisitwebsite,chatrooms21Customer-BasedBrandEquityModelConsumer-BrandResonanceBrandSalienceConsumerJudgmentsConsumerFeelingsBrandPerformanceBrandImageryINTENSE,ACTIVELOYALTYRATIONAL&EMOTIONALREACTIONSPOINTS-OF-PARITY&POINTS-OF-DIFFERENCEDEEP,BROADBRANDAWARENESS22Application:IdentifytheKeyDriversofBrandEquity0.170.660.240.65P-2PerformanceP-1P-10P-7P-8P-9P-3P-4P-6P-5P-11P-12I-2I-9ImageryI-1I-3I-6I-5I-10I-7I-8I-11I-12I-4F-2FeelingsF-1F-3F-4F-6F-5F-7F-8F-9F-11F-12F-10J-2JudgmentJ-1J-3J-4J-6J-5J-10J-7J-8J-9J-11J-12R-2ResonanceR-1R-3R-4R-6R-5R-10R-7R-8R-9R-11R-120.580.4923BrandBuildingImplicationsCustomersownbrands.Don’’ttakeshortcutswithbrands.Brandsshouldhaveaduality.Brandsshouldhaverichness.Brandresonanceprovidesimportantfocus.24CreatingCustomerValueCustomer-brandrelationshipsarethefoundationofbrandresonanceandbuildingastrongbrand.Thecustomer-basedbrandequitymodelcertainlyputsthatnotionfrontandcenter.25Isacompanyconsumer-centric?Isthecompanylookingforwaystotakecareofyou?Doesthecompanyknowitscustomerswellenoughtodifferentiatebetweenthem?Issomeoneaccountableforcustomers?Isthecompanymanagedforshareholdervalue?Isthecompanytestingnewcustomeroffersandlearningfromtheresults?Sources:LarrySeldenandGeoffreyColvin,2004.26CustomerRelationshipManagement(CRM)Usesacompany’sdatasystemsandapplicationstotrackconsumeractivityandmanagecustomerinteractionswiththecompany27CustomerEquityBlattbergandDeighton(1996)offereightguidelinesasameansofmaximizingcustomerequity:Investinhighest-valuecustomersfirstTransformproductmanagementintocustomermanagementConsiderhowadd-onsalesandcross-sellingcanincreasecustomerequityLookforwaystoreduceacquisitioncostsTrackcustomerequitygainsandlossesagainstmarketingprogramsRelatebrandingtocustomerequityMonitortheintrinsicretainabilityofyourcustomerConsiderwriting

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