Branding

Week 1

Keller chapter 2 (51-91) Brand Equity

CBBE

The basic premise of the CBBE model is that the power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time. In other words, the power of the brand lies in what resides in the minds of customers. ( Marketers should provide customers with the right type of experiences and design their marketing programs so that the desired thoughts, images, beliefs, perceptions and so on, become linked to the brand.

Definition of CBBE: the differential effect that brand knowledge has on consumer response to the marketing of that brand. A brand has positive CBBE when customers react more favorably to a product and the way it is marketed when the brand is identified.

Hence, high CBBE enhances acceptance of new product extensions, price increases, new distribution channels, withdrawal of ad support, etc.

The associative network memory model

Definition of Brand awareness: Brand awareness is related to the strength of the brand node or trace in memory, which we can measure as the consumer’s ability to identify the brand under different conditions.

Definition of Brand image: Brand image is consumers’ perceptions about a brand, as reflected by the brand associations held in consumer memory. In other words, this is the “meaning of the brand” for consumers. For example, Apple has an image of being “user friendly”, “creative”, “innovative”, “fun”, “cool”, etc.

Sources of Brand equity

CBBE occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable and unique brand associations in memory. In some cases, brand awareness alone is enough to create favorable consumer response (in low-involvement decisions), but in most cases all or most associations need to be strong, favorable and unique.

Brand recognition: Consumers’ ability to confirm prior exposure to the brand when given the...