Brand Equity Measurement:

Brand Equity tends to be measured by the value of the product features and price when including a
brand name; however there are indirect approaches to measuring a brand’s equity by assessing
potential sources such as brand knowledge and customer mindset. Normally, most evaluations of brand
equity involve utility estimation. Specifically, it is measured by value (utility) of a product’s features and
price level and also measure the overall utility of a product when including brand name.

According to customer based brand equity perspectives, the indirect approach to measuring brand
equity attempts to assess potential sources for brand equity by measuring customer mindset or brand
knowledge.

Techniques of measuring brand equity

Qualitative Research Technique:

(a) Free Association: Through this technique, the consumers are asked about the elements that
come to their mid when consider about a particular brand. The most powerful way to profile
brand associations, is by investigating what comes to the mind of the consumer when they think
about the brand or the associated product category. This investigation is done without any
specific probe or consumer narrates to help form a rough mental map for the brand. The results
of this investigation indicates the favorability, uniqueness and relative strength of brand
associations (e.g., “What comes to mind when you think of Elemis skincare products?” or “What
does Elemis mean to you?”)

 Like in Apple the associations are:

1. User Friendly
2. Educational
3. Fun
4. Macintosh
5. Innovative
6. Apple logo

(b) Projective Technique: Through this technique the consumers are provided with different
pictorial images, sketches, models etc. to find out their area of likings and preferences. In
situations where consumers are unwilling or unable to express themselves, diagnostic tools
(completion and interpretation tasks, archetypes, and comparison tasks) to uncover their
 opinions and feelings are employed by presenting them with ambiguous stimuli to make sense
of and record their responses.

(c) Ethnographic Observation Approach:

Ethnographic research is a qualitative research approach that involves observing variables in
their natural environments or habitats in order to arrive at objective research outcomes. As the
name suggests, ethnographic research has its roots in ethnography which is the in-depth study
of people, cultures, habits and mutual differences.  Data gathered by participant observation.
Consumers are unobtrusively observed shopping for and consuming products to ascertain and
interpret the cultural meaning of these events and their activities. Proctor & Gamble is an
example of a company that utilizes ethnographic and observational approaches by spending
time with consumers in their homes to see how products are used and experienced with their
permission.

Quantitative Research Technique: Through this technique consumers may be asked to rank
product and brand. These techniques focus on brand awareness and the perception that
consumers have of the brand. Here, the recognition and recollection are crucial. It can be
measured quantitatively to understand the following aspects /variables of the brand:

1. Awareness: Related to the strength of a brand in memory, as reflected by consumer’s

ability to identify various brand elements (i.e. brand name, logo, symbols, character and
slogan).

2. Recognition: Consumers will be able to discriminate a stimulus word, object, image, etc.
Brand recognition relates to consumer’s ability to identify the brand under a variety of
circumstances and can involve identification of any of the brand elements.

3. Recall: Brand recall relates to consumers ability to identify the brand under a variety of
circumstances.

4. Image: Brand awareness is an important first step in building brand equity, but usually not
sufficient. The most important perspective is its image, as reflected by the associations that
consumers hold toward the brand.