Building Brand Equity Level

8/7/2019 Building Brand Equity Level

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BuildingCustomer-BasedBrand Equ ity

Creating brandresonance requIres

carefully sequencedbrand-building

efforts.

B U Ito i N G A ST R ON G BRA N D with great equity provides a host ofpossiblebeneflts.to a firm, suchas greater customer loyalty and less vulnerability to competitive marketing actions or marketing crises;larger margins) more favorable customer response to price increases and decreases: greater trade Orinter-rnediary cooperation and support, increased marketing communication effectiveness; and licensing andbrand extension opportunities.

Companies are interested in building strong brands with great-equi.ty, but getting there isn't alwayseasy. To build brand equity, companies must startwith the basics. What makes a brand strong? How doyou build a strong brand? To help answer these questions. I developed a model of brand building calledthe customer-based brand equity (CBBE) mod I,which maps out what brand equity is ana how itshouldbest be built, measured, and managed.

The' eBBE model was designed to' be comprehensive, cohesive, well-grounded, up to date, andactionable. TIle premise of this model is that the power of a brand lies inwhat customer havelearned,felt, seen, and heard about the brand over time. The power of a brand is in what resides in the minds ofeustomers. Marketers' centiruring challenge inbuilding a strong beand is to ensure customers have theright types of experiences with products and services and their accompanying marketing programs 50the desired thoughts, feelings, images, perceptions, and attitudes become linked, to thebrand.The Four Steps

Building a strong brand, according to the CBBEmodel, can be thought of as a serie of steps, whereeach step is contingent 'Onsuccessfully achieving the previous step. the first step is to ensure identifica-tion of the brand w:ith customers and an association of the brand in customers' minds with a specificproduct class .01' customer need. The second step is to firmly establish the brand meaning in the mindsof customers (i.e., by strategically linking a host of tangible and intangible brand associations). The thirdstep is to elicit the proper customer responses to this brand identity and brand meaning. The final stepis to convert brand response to create an intense, active loyalty relationship between customers and thebrand.

The following tour steps represent fundamental questions that customers invariably ask aboutbrands=-either implicitly or explicitly: (1) Who areyou? (brand identity) (2) What are you? (brandmeamng)(3)What do 1 think or feel about you? (bra!ld responses) (4) What kind of association and how much of a con-nection would I like to have with you? ( b rand re la t ion sh ip s )

The steps : i : n this "branding ladder" iO]]DW all order, from identity to meaning to responses to rela-tionships. Meaning cannot be establlshed without first creating identity; responses cannot occur unlesscompanies develop the right brand meaning; and a relationship cannot be forged without getting theproper responses from customers.

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EXECU T IVE b r i e fin gA comprehensive new .approach, the customer-based brand equity (eBBE) model. lays out a series of steps for buildi ng a strong brand(l) establ ish the proper brand identity, (2) create the appropriate brand meaning, (3) elicit the right brand responses, and (4) forge appropriate brand relat ionships with customers. The eBBE model also depends on six brand-building blocks-salience, performance. imagerjudgments, feelings, and resonance-that help provide the foundation f.or successful brand development.

Six Brand-Building BlocksImagine the foundation o.f a strong brand as a logically con-

structed set of six "brand-building blocks" with customers:sal ience; peJ jonnan,ee, imagery, j i ldgrne/'l.ts, feelings, and resonance.Then assemble these building blocks in a brand pyramid. To cre-ate significant brand equity, it's crucial to put the right brand-building blocks in place and then reach the pinnacle of the pyra-mid. This brand-building processis illustrated in Exhihitsl and 2,Brand Identity

Achieving the right brand identity requires creating brandsalience with customers. Brand salience relates to aspects ofbrand awareness: Row often and easily is the brand evokedunder various situations or ciircumstances? To what extent is thebrand easily recalled or recognized? What types of cues orreminders are necessary? How pervasive is this brand aware-ness? Brand awareness refers to the customers' ability to recalland recognize the brand. Building brand awareness meansensurin$ that customers understand, the product or service cate-gory where the brand competes and creating clear links to prod-ucts or services sold under the brand name. At a broader level, itmeans making sure customers know which of their "needs" thebrand is designed to satisfy. What basic functions does thebrand provide to customers?

Criteria for brand identity. Two key dimensions distin-guish brand awareness-depth and breadth, Depth of brandawa [ e11eSB refers to how easily customers can recall OT .recognizethe brand, Breadth refers to the range of purchase and consump-tion situations where the brand comes to mind. A highly salientbrand is one with both depth and breadth o:fbrand awareness(i.e., customers make sufficient purchases. and always think oftb.e brand across a variety ofsettings).

The brand must not only be "top ofrnind" and have sufficient"min d share," but itmust also d o so at th e right time and place.Formany brands, {hekey question is not whether or not customers canrecall the brand, but rather where and when do they think of thebrandyand how easily and often do they think of it? In particular,many brands and products axe ignored o r forgotten at possibleusage situations. Increasing the salience of the brand inthose set-rings can help drive consumption and increase sales volume,Brand Meaning

To give meaning to a brand, It's important to create a brandimage and establish what the brand is characterized by and'should stand for in customers' minds. Although a myriad of dif-ferent types of brand associations are possible, brand meaningbroadly can be distinguished. in terms ofmore functional, per-formance-related considerations vs, more abstract, imagery-

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related considerations. These brand associations C01l 1 be formeddirectly trom a customer's own experiences and contact with thbrand through advertising or some other sour e of information(e.g, word of mouth).

Performance. The product, is the heart ofbrand equity. It ithe primary influence of what consumers experience, what theyhear about; and what the firm tens customers about the brand.Designing and delivering a product thatfuUy satisfies con-sumer needs and wants is a prerequisite for successful market-ing, regardless of whether the product is a tangible good, serv-ice, 01' organization, To create brand, loyally and resonance, cansumers' 'experiences with the product must meet, if not surpass,their expectations.

Brarrd performance is the way the product or serviceattempts to meet customers' more functional needs. It refers tothe intrinsic properties of.the brand, including inherent productor service characteristics. How well does the brand rate onobjective assessments of quality? To what extent does the brandsatisfy utilitarian, aesthetic, and economic customer needs andwants in the product or service category?

The performance attributes. and, benefits making up func-tionality will vary by category. However, five important types oattributes and benefits often underlie brand performance:

1. Primary characteristics and supplementary features.Customers have beliefs about the levels at which the primarycharacteristics of the product operate (e.g.,low; medium,high, or very high), Tbey also may have beliefs as to special,perhaps even patented, features or secondary elements of aproduct that complement these primary characteristics,

2, Product reliability, durability, and serviceability.Reliabili ty refers to the consistency of performance overtime and from purchase to purchase. Durability is theexpected economic life ofthe product. Serviceability refersto the ease of servicing the product if it need repair. Thus,perceptions of product performance are affected by factorssuch as the speed, accuracy, and care of product deliveryand installation; the promptness, courtesy, and helpfulnessof customer service and training; and the quality of repairservice and the time involved,

3. Service effectiveness, efficiency, and empathy, Customershave performance-related associations related to serviceinteractions they have with brands. Service effectivenessrefers to how completely the brand satisfies customers'service requirements, Service efficiency refers to how theseservices are delivered in terms of.speed and re-sponsiveness


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Service empathy occurs when service providers are seen astrusting, caring, and with customer's interests in mind.

4. Style and design. Consumers may have associations withthe product that go beyond its functional aspects to moreaesthetic considerations such as its size, shape, materials,and color involved. Performance also may depend on sen-sory aspects such as how a product looks, feels, and even'how it sounds or smells.

5. Price. The pricing policy for the brand can create associa-tions in consumers' minds with the relevant price her orlevel for the brand in the category (e.g., low, medium, orhigh priced) as we.llas with its corresponding price volatili-ty O r variance (e.g., frequently or Infrequently discounted),Brand performance transcends just the "ingredients" that

make up th e product or service to encompass aspects of thebrand that augment these ingredients. Any of these different per-formance dimensions canhelp differentiate the brand. Often thestrongest brand positioning involves performance advantages,and only rarely ean a brand ov rcome severe deficiencies' here.

Imagery. Brand meaning also involves brand imagery,which deals with the extrinsic properties of the product Or erv-ice, including the ways the brand. .attempts to meet customers'more abstract psychological or social needs. Four categories ofbrand imagery stand out:L User profiles, Imagery may cause customers to have a pro-

file or mental image of users or idealized users.Associations ofa typical or idealized brand. user may bebased 011 descriptive demographic factors (e.g., gender, age,race, or income) or more abstract psychographic factors(e.g., attitudes toward life, careers, possessions, socialissues, or political institutionsjJn a-B2Bsetting, userimagery might relate to the size or type of organization. Ucustomers believemany people use a brand, they may thenview the brand as "popular" or a "market leader."

2. Purchase and usage situations. Associations of a fypicalpurchase situation may be based on type of channel (e.g.,department store, specialty store, Or Internet); specific store(e.g., Macy's, Foot Locker, Fogdcg.com), eas of purchase,or associated rewards ..Associations of a typical usage situa-tion rnay depend on when or where the brand is used (e.g.,time of day, inside, outside the horne) and type of activitywhere the brand is used (e.g., formal, 'informal),

3. Personality and values, Brand personality is often relatedto.more descriptive usage imagery, but involves more con-textual information. Jennifer Aaker identifies five dimen-sions of brand.personality: (1) sincerity (e.g.) down to earth,honest, wholesome, cheerful); (2) excitement (e.g., daring,spirited, imaginative, 'up-to-date); (3) competence (e.g. reli-able, mtelligent, successful): (4) sophistication (e.g., upper

class, charming): and (5) ruggedness (e.g., outdoorsy,tough). (SeeAdditional Reading, page 19.)

4. History, heritage, and experiences. Finally, brands may takeon associations with their past and certain noteworthy eventsin the brand history. These types of associations may involvedistinctly personal. experiences or be related to past behav-iors and experiences of others. Associations with history, her-itage, and experiences involve more specific, concrete exam-pIes that transcend the generalizations of usage imagery.

4. Rel ll lIonships=W h a t a b ou t y o u an d r n a ?

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Criteria for brand meaning. Regardless of the typeinvolved, the.brand associations making up the brand imageand meaning can.be profiled according-to three key dimensions:(1) strength (how strongly the brand is identified with a brandassociation), (2) favorability (how important or valuable thebrand association is to customers), and (3) uniqueness (howdistinctively the brand is identified with the brand association).

Successful results on these dimensions produce the mostpositive brand responses, theunderpinning of intense and activebrand loyalty. To create brand equi ty , the brand must havestrong favorable, and unique brand associations-in that order,It doesn't matter how unique a brand association is if customersdon't evaluate the association favorably, and it doesn't matterhow desirable a brand association is LInless customers actuallyrecall it and link it to the brand, At the same time, not allassocia-tions arefavorable, and not all favorable associations are unique,

Strong brands typically have firmlyestablished stro.ng,favorable, and unique brand associations with consumers,which areessential.for building customer-based brand equity,Examples include Volvo, Michelin (safety), Intel (performance,compatibility), Marlboro (westernimagery), Coke (Americana,refreshment), Disney (fun, magical, family entertainment), Nike(innovative products, peak athletic performance), and BMW(styling, driving pedormance).B ran d R espon se s

To implement the CBBE'model, companiesmust pay atten-tion.to how customers respond to the brand, its marketing activ-i ty; and sources of information (i.e., what customersthink or feelabout the brand). These brand responses can be distinguishedaccording to brand [udgments and brand feelings (depending onwhether they stem from the head or heart).

[udgments. Brand judgments focus on customers' personalopinions about the brand based on how they' put together differ-ent performance and imagery associations, Customers maymake all types of judgments with res_pect to a brand, but fourtypes of summary judgments are particularly crucial to creating.astrong brand (in ascending order of importance),1. Quality. Customers may hold a host of attitudes toward

brands, but the mostimpontant relate to the brand's per-ceived quality. Other quality-related attitudes pertain toperceptions of value arid satisfaction.

2. Credibility, Brand credibility refers to the extent the brandas a whole is seen.as credible in terms of three dimensions:expertise (e.g., competent, innovative, amarket leader),trustworthiness (e.g., dependable, keeping customer inter-ests in min d), and likeability (e.g., fun, interesting, WOFthspending time with).

3, Consideration. Favorable brand attitudes and credibilityare important, but customers must also seriously considerpurchasing or using the brand. Consideration depends inpart on how personally relevant customers, lind the brand(i.e., whether customers view:the brandas appropriate andmeaningful to them).

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4. Superiority. Finally, brand judgments depend on whethercustomers view the brand as unique and better than otherbrands; Do customers believe the brand offers advantagesthat other brands cannot? Superiority is Critical for buildingintense and active relationships with customers and willdepend on the number and nature of unique brand associa-tions that make up the brand Irnage.

Feelings. Customers' emotional reactions to the brand. relatto the social currency the brand evokes, What feelings does themarketing program for the brand evoke? How does' the brandaffect customers' feelings about themselves and their relation-ship with others? These feelings can be mild, intense, positive,or negative in nature. Kahle and colleagues point out six impor-tant types of feelings related to brand building. The first threeare more experiential and immediate, increasing in level ofintensity: the latter three are more private and enduring, mcreasmginlevel of gravlty:1, Warmth. The brand makes consumers feel peaceful, senti-

mental, warmhearted, or affectionate.2. Fun. The brand makes consumers feel upbeat, amused,

lighthearted, joyous, playful, or cheerful.3. Excitement. Consumers feel energized about the brand and

believe they are experiencing something special, Brands thaevokeexcitement may result inconsumers feeling a sense oelation o r 1 1 : sensation that the brand. is cool O r sexy,

4 , Security. The brand produces a feel.i.ngof safety, comfort,and self-assurance without worry or concerns about thebrand.

5. Social approval. Consumers have positive feelings aboutthe reactions of others (i,e, when consumers feel others lookfavorably on their appearance Or behavior) to the brand,Approval may occur when others directly acknowledge theconsumer using the brand or when the product itself isattributed to consumers.

6, Self-respect. This occurs when the brand makes consumersfeel better about themselves, creating a sense of pride,accomplishment, or f4lfjll:ment.Criteria for brand responses, Although all types of customer

responses are possible when driven from both the bead and heart,ultimately what matters is how positive they are. Additionally,they must be accessible and come to mind when, consumers thinkof the brand. Brand judgments andefeelings can only favorablyinfluence consumer behavior if consumers internalize or think ofpositive responses in any of their encounters with the brand,Bra.nd Re la ti onsh ips

'The final step focus s on the relationship and level of per-sonal identification the customer has with the brand. Brand res-onance refers to the nature of the relationship customers have


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With the brand and whether they feel in synch with the brand.It is characterized.by the depth 9 the psychological bond cus-tomers have with the brand as well as how much activity thisloyalty engenders. "Brandresonance can be broken down intofour categories:1. Behavioralloyalty, Repeat purchases and the amount or

share of category volume attributed to the brand are themain attributes of behavioral loyalty. How often do cus-tomers purchase a brand and how much do they purchase?For bottom-line profit results, the brand must generate suf-ficient purchase frequencies and volumes.

2. Attitudinal attachment. Some customers may buyout ofnecessity if the brand is the only product readily accessibleor is the only one they can afford to buy. To create reso-11'l"l1Ce,the brand must be perceived as something special ina broader context. For example, customers with a great dealof attitudinal attachment to a brand may state they "love" itand describe it as one of;their favorite possessions or viewit as a "little pleasure" they look forward to.

3. Sense of community Identification with a brand communi-ty may help customers feel akinship with other peopleassociated withthe brand. These connections may involvefellow brand USerSor customers or instead may be employ-ees or representatives of the company.

4. Active engagement. Perhaps the strongest affirmation ofbrand Ioyalty is when customers are willing to invest time,energy, money or other resources into the brand beyondthose expended during purchase or consumption. For exam-ple; customers may choose to join a club centered on a brandor receive updates and exchange correspondence with otherbrand users or forma] or informal representatives of thebrand. They may mi:t brand-related Web sites or participateinmat rooms. Inthis case, Customers themselves becomebrand evangelists and help to communicate about the brandand strengthen the brand ties of others. Strong attitudinalattachment and/ or sense of community are typically neces-sary for active engagement with the brand to occur.Criteria for brand relationships. Brand relationships involve

two dlmensions=-intensity and activity Intensity is the strengthof the attitudinal attachment and 1i8IlSeo f community, Activityrefers to how frequently the Consumer buys and uses the brand,aswell as engagesin other activitie-snot 'related to purchase andconsumption on a day-to-day basis. Examples of brands withhigh resonance include Harley-Davidson, Apple, and eBay.Brand-Building Implications

With the eSBE model, the strongest brands excel in all sixof the brand-building blocks. The most valuable building block,brand resonance, occurs when illthe other brand-buildingblocks are completely insynch with customers' needs, wants,and desires. (SeeExhibit 3.) Simply put, brand resonance reflectsa completely harmonious relationship between customers and

C o n s u n e rj u d g m e n t s

B r a n di m a g ~ r y

C o n s u m e rf e e l i n g s

B r a n dp e r f o r m a n c e

the brand. A brand with the tight identity and meaning canresult ina customer believing the brand is relevant to them. Thestrongest brands will be the ones to which those consumersbecome so a-ttached that they, ineffect, become evangelists andaotrvelyseek means to interact with the brand and share theirexperiences with of hers ,

A carefully constructed and sequenced brand-buildingeffort based on the CHIlE model can help companies achieve'brand resonance. Firms that are abletoachieve resonance andaffinity with their customers should r.eap a host of valuable ben-efits, such as greater price premiums and more efficient andeffective marketing progrcmn.s. Using the CBBE model, mar-keters can better assess how brand-building efforts are progress-ing and can create successful marketing .research initiatives .Additional ReadingAaker Jennifer (1997), "Dimensions of Brand Personality"

J li lu ma l a fM a rk eti ng R es ea rc h, 34 (August), 347-357.Kahle, LyM, Basil Poulos, andAjay Sukhdial (1998), "Changes in

Social Values inthe United States During the Past Decade,"Journ .a l o f A4 l ie r ti si l1g Researc l , (February z.Mareh), 35~41.

About the AuthorKevin Lane Keller is theE.B. Osborn Professor ofMarketing a t theAmos Tuck School of Business at Dartmouth College. He may bereached at [email protected].

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mailto:[email protected]:[email protected].

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Building Brand Equity Level