You are commenting using your Facebook account. Notify me of new comments via email. Notify me of new posts via email. Main menu Skip to content. Brian Monger There are two basic approaches to measuring customer-based brand equity. Relationships among brand associations can be measured by two general approaches: Table 1 summarises the different measurement alternatives for customer-based brand equity. Also, how would you run the multivariate analysis on the following: Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: Email required Address never made public.
Correct discrimination of brand as having been previously seen or heard. Compare characteristics of associations with those of competitors indirect measure Ask consumers what they consider to be the unique aspects of the brand direct measure. Compare patterns of associations across consumers indirect measure Ask consumers conditional expectations about associations direct measure.
Compare characteristics of secondary associations with those for a primary brand association indirect measure Ask consumers directly what inferences they would make about the brand based on the primary brand association direct measure. Marketing activity can contribute to creating a familiar brand name and a positive brand image in different ways.
Although managers often evaluate marketing mix actions in terms of their short-term effects on sales, they must recognize that these actions also affect brand awareness and associations and thus also have a long-term impact on sales.
That is, because consumers' responses to marketing activity depend on what they remember and know about a brand, short-term marketing mix actions, by changing brand knowledge, necessarily affect the success of future marketing mix actions. Finally, the different types of customer-based brand equity were discussed by considering the effects of brand knowledge on brand loyalty and consumer response to product, price, and promotion strategies, with particular emphasis placed on understanding consumer response to brand extensions.
The public is invited to enjoy partial access to msi. Marketing Topics Priority Topics. This report is not currently available online. To purchase a print copy of the full report, please contact pubs msi.
Login Register for Full Access. The Lincoln-Mercury division of the Ford Motor Company best known brand throughout the late s to was the Mercury Cougar - first used as a twin to the Ford Mustang and later a personal luxury coupe sharing its platform with its midsize Torino lineup until when its entire midsize lineup at the time branded as the Montego was rebadged as part of the Cougar lineup which went viral from a base coupe to a station wagon until the early s when L-M repositioned its midsized lineup by rebadging the Cougar under the Marquis nameplate.
In the early s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F. The aging Taurus , which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F," the Five Hundred , Freestar , and Fusion.
By , the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. In practice, brand equity is difficult to measure. Because brands are crucial assets, however, both marketers and academic researchers have devised means to contemplate their value.
David Aaker , a marketing professor and brand consultant, highlights ten attributes of a brand that can be used to assess its strength. Aaker doesn't weight the attributes or combine them in an overall score, as he believes any weighting would be arbitrary and would vary among brands and categories. Rather he recommends tracking each attribute separately. Marketing executive Bill Moran has derived an index of brand equity as the product of three factors:. In using it, the agency surveys consumers' perspectives along four dimensions:.
Utilizing a statistical regression analysis of the factors driving the cash flow multiple and thus share price, the variance in Familiarity and Favorability above or below the base expected level is analyzed. As a point in time analysis, this method is used for brand equity valuation of a company based on its current Familiarity and Favorability, Revenue and Market Cap.
The output of the analysis provides the end user with two pieces of data:. Marketers use conjoint analysis to measure consumers' preference for various attributes of a product, service, or provider, such as features, design, price, or location. By including brand and price as two of the attributes under consideration, they can gain insight into consumers' valuation of a brand—that is, their willingness to pay a premium for it.
Event method is applied to determine the stakeholder interest or value assessed in a brand before, during or after an event. The result was that the stock market response was favorable to brand announcements when consumers were familiar with the brand and held the brand in high esteem. The same applied to low familiarity and low esteem brands, which as Keller explains, was "because there was little to risk and much to gain…" p.
This approach determined that lesser known brands may benefit from event sponsorships as a brand-building exercise but customers may have associations with the event sponsors or brand associations that could determine affective attitudes. Ultimately, high equity counterparts will yield stronger results due to their market familiarity. In the restaurant sector, for example, returns of branding are contemporaneous. The high-tech sector showed no contemporaneous effects and brand equity is realized in the future with significant delay.
One of the challenges in managing brands is the many changes that occur in the marketing environment. The marketing environment evolves and changes, often in very significant ways. Shifts in consumer behavior, competitive strategies, government regulations, and other aspects of the marketing environment can profoundly affect the fortunes of a brand.
Besides these external forces, the firm itself may engage in a variety of activities and changes in strategic focus or direction that may necessitate adjustments in the way that its brands are being marketed.
Consequently, effective brand management requires proactive strategies designed to at least maintain - if not actually enhance - brand equity in the face of these different forces. As a company's major enduring asset, a brand needs to be carefully managed so its value does not depreciate. Marketers can reinforce brand equity by consistently conveying the brand's meaning in terms of. Both of these issues - brand meaning in terms of products, benefits, and needs as well as brand meaning in terms of product differentiation - depend on the firm's general approach to product development, branding strategies, and other strategic concerns.
Any new development in the marketing environment can affect a brand's fortune. Nevertheless, a number of brands have managed to make impressive comebacks in recent years. Often, the first thing to do in revitalizing a brand is to understand what the sources of brand equity were to begin with.
Are positive associations losing their strength or uniqueness? Have negative associations become linked to the brand? Then decide whether to retain the same positioning or create a new one, and if so, which new one. Without question, the most important consideration in reinforcing brands is the consistency of the marketing support that the brand receives - both in terms of the amount and nature of marketing support.
Brand consistency is critical to maintaining the strength and favorability of brand associations. Brands that receive inadequate support, in terms of such things as shrinking research and development or marketing communication budgets, run the risk of becoming technologically disadvantaged or even obsolete. Consistency does not mean, however, that marketers should avoid making any changes in the marketing program.
The customer‐based brand equity scale is developed based on the five underlying dimensions of brand equity: performance, value, social image, trustworthiness and commitment. In empirical tests, brands that scored higher on the customer‐based brand equity scale generally had higher prices.
Conceptualizing, Measuring, and Managing Customer-Based Brand Equity The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer re- .
Oct 04, · Dr. Brian Monger There are two basic approaches to measuring customer-based brand equity. The 'indirect" approach attempts to assess potential sources of customer-based brand equity by measuring brand knowledge (i.e., brand awareness and brand image). 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.
Customer-based brand equity occurs when the consumer is aware of and familiar with the brand and holds some favorable, strong, and unique brand associations in memory. The paper considers how customer-based brand equity is built, measured, and managed. 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.