Market researchers are sometimes overly fond of charts, models, and graphs—but for good reason. Take customer-based brand equity , for example: Usually designed as a pyramid, customer-based brand equity shows businesses how to lay the foundation that creates a positive attitude toward a brand, and how to capitalize on attitudes and loyalties of their customers.
Here are the basics. The most common model for customer-based brand equity is the one created by marketing professor Kevin Lane Keller in his book, Strategic Brand Management. Keller puts the model in a four-level pyramid, with the middle two layers being divided equally between two factors. In short, it quantifies both the depth and the breadth of customer awareness of a brand. This is done by appropriate brand awareness and image.
Second step is connection, by churning out predictable, reliable and quality performance during each purchase. Next create emotional connection with customer using brand offering and brand image as to generate response from the customer. The emotional level response in form of positive reaction or opinion brand creates long term, sustainable and healthy relationship. Both these brands have become synonymous with search engine and entertainment in mind of customers. When brand is able to achieve sense of oneness with its consumer then it can be said that strong brand has been created.
Companies tend to benefit a lot, in terms loyalty as consumer will stick to the brand no matter what price premium they have to shell out.
These consumers become sort of brand ambassador and recommending usage of brand. There by creating consumer based brand equity. To Know more, click on About Us. Take both performance and imagery into account, and create a "brand personality. Your customers' responses to your brand fall into two categories: Your customers constantly make judgments about your brand and these fall into four key categories:.
Customers also respond to your brand according to how it makes them feel. Your brand can evoke feelings directly, but they also respond emotionally to how a brand makes them feel about themselves. According to the model, there are six positive brand feelings: First, examine the four categories of judgments listed above. Consider the following questions carefully in relation to these:. Next, think carefully about the six brand feelings listed above.
Which, if any, of these feelings does your current marketing strategy focus on? What can you do to enhance these feelings for your customers? Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult — and the most desirable — level to reach. You have achieved brand resonance when your customers feel a deep, psychological bond with your brand. For example, what can you do to encourage behavioral loyalty? Consider gifts with purchase, or customer loyalty programs.
Ask yourself what you can do to reward customers who are champions of your brand. What events could you plan and host to increase customer involvement with your brand or product?
List the actions that you could take. Julie has recently been put in charge of a project to turn around an under-performing product. The product is a high quality, fair trade, organic tea, but it's never achieved the sales and customer loyalty that the organization expected.
Julie decides to use the brand equity pyramid to think about the turnaround effort. After careful analysis, she knows that she is marketing in the correct category, but she realizes that her marketing efforts aren't fully addressing customer needs. She decides to change the message from "healthy, delicious tea," to "delicious tea, with a conscience," which is more relevant and meaningful to her target market.
Next, Julie examines the product's meaning, and looks at how the company communicates that meaning to its customers. The performance of the tea is already moderately high; it's a single-source, fair trade tea of a higher quality than the competition's product. After assessing the organization's service effectiveness, Julie is disappointed to find that many of her representatives lack empathy with customers who complain.
So, she puts everyone through a comprehensive customer service class to improve responses to customer complaints and feedback. Last, Julie decides to post to the company's website personal stories from the fair trade farmers who grow and pick the tea. By doing this, she aims to educate customers on how beneficial this practice is for people around the world.
After going over the four brand response judgments, Julie realizes that perceived quality might be an issue. The tea itself is high quality, but the pack size is smaller than the ones her competitors use. Julie doesn't want to lower the price, as this might affect how customers assess quality, so she decides to offer more tea in each box in order to surpass customer expectations.
Building customer-based brand equity doesn’t happen overnight, which is why Keller’s model is so succinct. By starting at the bottom and letting customers get to know your business little by little, you create a trustworthy, likeable, and ultimately successful brand.
Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY .
Customer Based Brand Equity Imagine walking in aisle of a typical super market (Shaw’s, Costco etc) to purchase salt, there are many offerings but choice is “Morton”. It is a simple example but a great situation to understand brand and brand equity. Professor Nader Tavassoli of London Business School contrasts traditional approaches to branding - where brands are a visual identity and a promise to customers - to brands as a customer experience delivered by the entire organisation. The course offers a brand workout for your own brands, as well.
Customer Based Brand Equity is a way of analyzing the value of particular brand in the minds of the customers. The element of branding happens to increase the popularity of the brands with the consumers and the end customers and also increases the ch/5(14K). Brand equity is very important to marketers of consumer goods and services. Brand equity facilitates in the effectiveness of brand extensions and brand introductions. This is because consumers who trust and display loyalty toward a brand are willing to try to adopt brand extensions. While there have been methods to measure the financial value of brand equity, measurement of customer‐based.