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Measuring Sources of Brand Equity

:
Capturing Customer Mind-Set
Group
Members
Maryum Dawar
Noreen Khalid
Salman Tariq
Mujeeb Ur
Rehman

Measuring Sources of Brand Equity: Capturing
Customer Mind-Set

Presentation Goals & Objectives

1. Describe effective qualitative research techniques
for tapping into consumer brand knowledge.
2.
Identify effective quantitative research
techniques for measuring brand
awareness,
image, responses, and relationships.
3.
Profile and contrast some popular brand equity
models.

Qualitative Research Techniques
 Qualitative research techniques often identify possible
brand associations and sources of brand equity.
 These are relatively unstructured measurement approaches
that permit a range of both questions and answers and so
can often be a useful first step in exploring consumer
brand and product perceptions.
 This section next reviews a number of qualitative research
techniques for identifying sources of brand equity such as
brand awareness, brand attitudes, and brand attachment.

Free Association
 The simplest and often the most powerful way to profile brand
associations is free association task.
 Subjects are asks what comes to mind when they think of the
brand, without any more specific probe or cue than perhaps the
associated product category. (“What does the Rolex name mean to
you?”)
 Marketers can use the resulting associations to form a rough
mental map for the brand.
 Marketers use free association tasks to identify the range of
possible brand associations in consumers’ minds.

Two main issues to consider  Types of probes to give to subjects. and uniqueness of brand associations. favorability.Free Association  It also provide some rough indication of the relative strength.  How to code and interpret the resulting data. .  Coding responses in terms of the order of elicitation— whether they are early or late in the sequence—at least gives us a rough measure of their strength.

.  P-T is useful when deeply rooted personal motivations or personally or socially sensitive subjects are at issue.Projective Techniques  Projective techniques are diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters.  In result consumers will reveal some of their true beliefs and feelings. They often provide useful insights that help to assemble us a more complete picture of consumers and their relationships with brands.  P-T don’t always yield results as powerful.

 Bubble exercises Comparison Tasks  In which we ask consumers to convey their impressions by comparing brands to people. or even other brands. Archetypes  Archetype research is one technique for eliciting deeply held consumer attitudes and feelings. occupations. countries.  Researcher identifying key brand personality associations.  Rapaille believes children experience a significant initial exposure to an element of their world called the “imprinting moment. fabrics. activities. animals.” The pattern that emerges when we generalize these imprinting moments .Kind of Projective Techniques Completion and Interpretation Tasks  Classic projective techniques use incomplete or ambiguous stimuli to elicit consumer thoughts and feelings.

That’s why we need new techniques to get at hidden knowledge—to get at what people don’t know they know. “A lot goes on in our minds that we’re not aware of.”  ZMET is “a technique for eliciting interconnected constructs that influence thought and behavior.” said former Harvard Business School professor Gerald Zaltman.  “Most of what influences what we say and do occurs below the level of awareness.Zaltman Metaphor Elicitation Technique  ZMET is based on a belief that consumers often have subconscious motives for their purchasing behavior.” .

 The technique is based on the idea that “most social communication is nonverbal” and. [which] people can use . to represent thoughts that are tacit. .  Using ZMET. Zaltman teases out consumers’ hidden thoughts and feelings about a particular topic.” and “sacred and profane. and deep metaphors.” “container. approximately two-thirds of all stimuli received by the brain are visual. Some common deep metaphors include “transformation. thematic. as a result. which often can be expressed best using metaphors. .”  ZMET focuses on surface.” “connection.” “journey. implicit.” . and unspoken.  Zaltman defines a metaphor as “a definition of one thing in terms of another.

 It has been used to measure the type of emotional response consumers exhibit when presented with marketing stimuli.  For example.  Neurological research has shown that people activate different regions of the brain in assessing the personality traits of people than they do when assessing brands.  One major research finding to emerge from neurological consumer research is that many purchase decisions appear to be characterized less by the logical weighing of variables and more . including brands.Neural Research Methods  Neuromarketing is the study of how the brain responds to marketing stimuli. some firms are applying sophisticated techniques such as EEG (elector encephalograph) technology to monitor brain activity and better gauge consumer responses to marketing.

 We can measure it in different ways. . (open-ended Response)  marketers can give consumers a variety of pictures or a stack of magazines and ask them to assemble a profile of the brand.Brand Personality and Values  Brand personality is the human characteristics or traits that consumers can attribute to a brand.

honest. Ruggedness (outdoorsy and tough) . and cheerful) 2. and up-to-date) 3. wholesome. Sincerity (down-to-earth. Sophistication (upper class and charming) 5. spirited. Competence (reliable. imaginative.The Big Five. Excitement (daring. and successful) 4. 1. intelligent.

 In marketing. embedded research.  Advocates of the ethnographic approach have sent researchers to consumers’ homes in the morning to see how they approach their days. given business travelers digital cameras and diaries to capture their feelings when in hotel rooms.Ethnographic and Experiential Methods  Ethnographic research uses “thick description” based on participant observation. site visits. and conducted “beeper studies” in which . the goal of ethnographic research is to extract and interpret the deep cultural meaning of events and activities through various research techniques such as consumer immersion. etc. shop-a longs.

.  Qualitative nature of the data.Qualitative Research Techniques Summary  Q-R-T are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. Its Drawbacks are:  Samples sizes are too small. there may be questions of interpretation.  Different researchers examining the same results from a qualitative research study may draw different conclusions.  The range of possible Q-R-T is limited only by the creativity of the marketing researcher.

Quantitative Research Techniques .

 In order to make more confident and defensible strategic and tactical recommendations marketers usually go for quantitative research techniques.  Quantitative research aims to+ prove or disprove. .

character. • Marketers use several measures of awareness of brand elements . symbol.Brand Awareness • It is related with how easily can consumers recall a brand name. or packaging under different conditions. logo.

The most basic recognition test gives consumers a set of individual items visually or orally and ask them whether they think they’ve previously seen or heard of these items.  Brand recognition is especially important for packaging.Recognition  Brand recognition requires consumers to identify the brand under a variety of circumstances. .

A brand name with a high level of awareness will be recognized under less than ideal conditions. Which ones do you recognize? 1.. Consider the following list of incomplete names (i. G _ L L _ T _ _ 5. H _ _ S H _ Y 6. D _ L T _ 4. K O _ _ K 3. word fragments). N _ K _ .e. D _ _ N E _ 2.

4. DISNEY K O DAK D EL T A G I L L E T TE H ERS H E Y N IK E . 2.1. 5. 3. 6.

.Brand Recall Brand recall refers to the ability of the consumers to correctly generate and retrieve the brand in their memory. brand recall is tested by asking participants questions such as "name as many car models as possible" . Often tested through surveys or interviews.

Here are examples. “Please tell me all the brands of mobile phones you can think of.” .Unaided Recall The moderator asks respondents to recall information without the aid of a cue or prompt.

and D. The prompt stimulates memory associations.aided Recall The moderator tells or shows specific prompts to respondents. B. “Please look at these brands: A. Which one do you use?” . Here is an example. C. and then asks a question.

Correction for guessing Any research measure must consider the issue of consumers making up responses or guessing. . That problem may be especially evident with certain types of aided awareness or recognition measures for the brand.

Okay? Orafix? Fasteeth? Dentu-Tight? Fixodent?” .One market research firm. the firm asked consumers questions like this: “The following is a list of denture adhesive brand names. In the study. Oxtoby-Smith. Please answer yes if you’ve heard the name before and no if you haven’t. conducted a benchmark study of awareness of health and beauty products.

Equity engine  It’s a modeling technique which measures the strength of a brand in terms of its emotional and functional benefits as perceived by the consumer.  It evaluates and measures how individual consumers perceive the three main drivers of a brand's value.  It’s a practical management tool generated with which marketers can assess a brand's strength. . determine specific actions to improve or protect their brand and monitor marketing programs over time.

 Performance: is measured using functional attributes specific to the market e. for beer it might be alcohol content.g.Brand Value  Affinity: The consumer's emotional relationship with the brand is the most difficult of these to measure. . how refreshing it is etc.  Price: The consumer's perceptions of price.

approval (the status the brand enjoys among a wider social context of .Brand Equity  Equity Engine expresses brand equity as a combination of the functional benefits delivered by the brand (performance) and the emotional benefits (affinity).  Affinity as a function of the brand identification (the closeness customers feel to the brand).  Performance as a function of product and service attributes.

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"What will you do for me?" to.Total Quality Management has driven genuinely bad products and services out of the market. "What will you do for me — and mean to me?" . Those that remain are all of satisfactory quality. In response to this. meaning that the customer now faces a bewildering array of good alternatives. the basis for the final purchase decision has expanded from simply.

." such as the extent to which customers are prepared to stake their personal or professional reputation behind a brand by recommending it to others or the price premium they are prepared to pay. There are two promising candidates for how this equity can be measured:  The first type of approach measures equity in terms of "outcomes.  The second type of approach measures equity in terms of the scale and nature of the utility that the brand delivers to customers.

.  The limitation of "outcome" approaches is that. they provide limited insight into what creates this equity. "willingness to recommend to a friend" is the single most reliable measure of brand equity.  "net promoter" score (the number of people willing to recommend your brand minus those who are not willing to do so) provides an accurate predictor of your company's growth prospects. while they may accurately quantify how much brand equity you enjoy.

 Another approach tries to quantify the extent of brand equity by measuring the degree of "relevant differentiation" provided. and maximization of the perceived differentiation of your brand versus its competitors. .  "Relevant differentiation" measures the success of marketing in terms of the extent to which two goals have been achieved — maximization of the perceived fit between your brand and your customer's needs.

.  Following are profiles of a number of well-established brand equity models that seek to identify the scale and sources of brand equity. A high relevant differentiation score provides insight into why a certain brand is perceived to be uniquely capable of meeting customer needs.

. the methodology focus on establishing the emotional component of brand equity.Equity Builder  Equity Builder.

Kevin Lane Keller's Model  Kevin Lane Keller mirrors the Equity Engine approach by seeing the brand as a blend of the rational and the emotional. .  Customers' relationship to a brand can be plotted in terms of their altitude on the pyramid of engagement and their relative bias towards a rationally dominant or emotionally dominant relationship. measured in terms of performance characteristics and imagery.

relevance. and bonding. performance. advantage. .Brand Dynamics  This approach characterizes the relationship that a customer has with a brand into one of five stages: presence.

. "Presence" customers have only a basic awareness of the brand while "bonded" customers are intensely loyal. at least in their attitudes.

Winning Brands  It begins from a behavioral observation of brand equity.  Brand equity is measured in terms of a customer's frequency of purchase and the price premium paid. the methodology seeks to analyze the attitudinal characteristics of those customers. .  Once favorable behavior is observed.

Thank You! .