Motivation for

Customer-Based Brand Equity Model

• Marketers know strong brands are

important but aren’t always sure how to
build one.
• CBBE model was designed to be …
– comprehensive
– cohesive
– well-grounded
– up-to-date
– actionable 1
 MARKETING PLANNING PROCESS

Complex,
Varied
Marketing
Activity

Detailed, Comprehensive,
Rich Robust
Marketing Marketing
Models Measures
 Rationale of
Customer-Based Brand Equity Model

• Basic premise: Power of a brand resides in the

minds of customers
• Challenge is to ensure customers have the right
types of experiences with products & services and
their marketing programs to create the right
brand knowledge structures:
– Thoughts
– Feelings
– Images
– Perceptions
– Attitudes
3
 Building
Customer-Based Brand Equity

• Building a strong brand involves a series of steps

as part of a “branding ladder”
• A strong brand is also characterized by a logically
constructed set of brand “building blocks.”
– Identifies areas of strength and weakness
– Provides guidance to marketing activities

4
CUSTOMER-BASED BRAND EQUITY PYRAMID

4.4. RELATIONSHIPS
RELATIONSHIPS ==
RESONANCE What
Whatabout
aboutyou
you&&me?
me?

3.3. RESPONSE
RESPONSE ==
JUDGMENTS FEELINGS
What
Whatabout
aboutyou?
you?

2.2. MEANING
MEANING ==
PERFORMANCE IMAGERY What
Whatare
areyou?
you?

1.1. IDENTITY
IDENTITY ==
SALIENCE
Who
Whoare
areyou?
you? 5
 Salience Dimensions

• Depth of brand awareness

– Ease of recognition & recall
– Strength & clarity of category membership

• Breadth of brand awareness

– Purchase consideration
– Consumption consideration

6
 Performance Dimensions

• Primary characteristics & supplementary

features
• Product reliability, durability, and
serviceability
• Service effectiveness, efficiency, and
empathy
• Style and design
• Price 7
 Imagery Dimensions
• User profiles
– Demographic & psychographic characteristics
– Actual or aspirational
– Group perceptions -- popularity

• Purchase & usage situations

– Type of channel, specific stores, ease of purchase
– Time (day, week, month, year, etc.), location, and context of usage

• Personality & values

– Sincerity, excitement, competence, sophistication, & ruggedness

• History, heritage, & experiences

– Nostalgia
– Memories
8
 Judgment Dimensions
• Brand quality
– Value
– Satisfaction

• Brand credibility
– Expertise
– Trustworthiness
– Likability

• Brand consideration
– Relevance

• Brand superiority
– Differentiation
9
 Feelings Dimensions

• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect

10
 Resonance Dimensions
• Behavioral loyalty
– Frequency and amount of repeat purchases
• Attitudinal attachment
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand

• Sense of community
– Kinship
– Affiliation

• Active engagement
– Seek information
– Join club
– Visit web site, chat rooms
11
Customer-Based Brand Equity Model

Consumer- INTENSE,
INTENSE,ACTIVE
ACTIVE
LOYALTY
LOYALTY
Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

POINTS-OF-
POINTS-OF-
PARITY
PARITY&&
Brand Brand POINTS-OF-
POINTS-OF-
Performance Imagery DIFFERENCE
DIFFERENCE

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY, & EMPATHY HISTORY, HERITAGE,
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
 I-10
I-10
P-10
P-10
111
9 11
II--99
II--1 -11
PP-
PP--9

2 22
II--112
II--88
PP--11
PP--88

I-7
I-1
I-7 P-7
I-1 P-1
P-7
P-1

Imagery
II--22
II--66
PP--22
PP--66

Performance
II--33 PP--3
II--5 PP-
3
5 -55

0.17

II--44
PP--44

0.24
0.65

0
FF--110
JJ--1100

0.66

1111 1111
9 9
FF-- JJ--
FF--9 JJ--9

22 22
FF--11 JJ--11
FF--88 JJ--88

F-7 J-7
J-1
F-7 J-7
F-1
F-1 J-1
Feelings
Judgment
Application:

JJ--22
FF--66 JJ--66
FF--22

FF--3 JJ--3
3
JJ--
3
FF--
55 55
J-4

F-4
J-4

F-4
R-10
R-10

11
0.58
0.49

-11
99
RR-
RR--

22
RR--11
RR--88

R-7
R-1
R-7
R-1
Identify the key drivers of brand equity

Resonance

RR--22
RR--66

RR--
RR-
33
-55
R-4
R-4