Brand Management

Chapter 2
Brand Equity
Brand equity?

Differential effect that brand

knowledge has on consumer
response to the marketing of
that brand
Chapter 2: Brand Awareness

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1. Brand awareness

The ability of a
potential buyer
to recognize or
recall a brand
Brand Awareness Level:

T.O.M

RECALL

RECOGNITION

UNAWARE 5
BRAND IDENTITY

Structure of brand identity:

• Core identity
• Extended identity

Extended identity

Core
Identity

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Perceived quality

Perceived quality refers to

customers’ evaluation
about a product’s quality
and values that is different
from objective quality
Perceived quality

Perceived Value Perceived quality

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Product price and perceived quality

• Price influences perceived quality and benefits that

customers believe they can get in purchasing products
• Perceived quality is not a fixed number, it depends on
what customers think and how customers feel about
products

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 PERCEIVED QUALITY
• Technical quality: materials ; technology; skill;
manufacturing process, workers….

• Perceived quality: depend on perceived value of

customers and the gap between the expectation and the
satisfaction in purchasing.

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Brand Association

• A brand association
can be anything
linked in memory to
a brand

• Brand associations
consist of all brand-
related thoughts,
feelings,
perceptions, smells,
colors, music,
images,
experiences, beliefs
and attitudes
• The association can be created by various
factors which relate to product’s characteristics
– Brand as a particular product
– Brand as an organization
– Brands as a certain person
– Brand as a symbol

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Stages of customer loyalty

Genuine
loyalty

Potential
loyalty

Neutral loyalty

Unconscious loyalty
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Measure customer loyalty

• Purchasing behavior measure: the number

of repeated purchasing

• Customer satisfaction measure

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