A Process Model of Brand Equity Co-

Creation

A presentation by:
Varqa Shamsi Bahar
Presentation Outline
• Introduction to Co-Creation

• A process Model of Brand Co-Creation

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Co-creation’s simplistic meaning

Co-creation signifies team work

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 Scenarios of co-creation

1. Application of co-creation between an

advertising firm and the client.
2. Acer laptops designed, manufactured,
assembled by different co-creators.
3. Joint ventures apply the co-creation process.
4. Co-branding co-creating value.

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 Definition of Co-Creation

“Co-creation is a process by which products,

services and experiences are developed jointly
by companies and their stakeholders, opening
up a whole new world of value” (Ramaswamy,
2009).

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Focus: Co-creation involving company and
customer

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Focus: Co-creation involving company and
customer

A presentation by Varqa Shamsi Bahar 7

Focus: Co-creation involving company and
customer

A presentation by Varqa Shamsi Bahar 8

Focus: Co-creation involving company and
customer

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 Final words about co-creation

• Co-creation is not about the company “building a product

and the consumers will come to buy it”.

• Co-creation is about the company “building a product with

the consumers, and they are already there to buy it”.

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 Introduction: Co-creating brand equity

• Businesses often understand that strong brands are

built over a passive or reactive result of marketing
intervention (Brown, Koznets, and Sherry, 2003).

• However, a vast body or research criticizes this

understanding and states that strong brands are
built via a process of co-creation involving a number
of players including brand managers and consumers
(Sherry, 1999; Coupland, Iacobucci, and Arnould,
2005).
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 Key brand Assets by Aaker (1996)

Brand
Loyalty

Brand
Associations

Brand Assets

Brand
Awareness

Product
Design
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 Key brand Assets: Product Design

• Product design occurs when a company undergoes

consumer research and understands the needs and
wants of consumer. In consequence, the R&D
department designs a product/service which
addresses their consumer needs and wants.

• Discussion: What is the difference between design

and style?

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 Key brand Assets: Brand Awareness

• Creating an identity for the product by utilizing the

brand identity elements.

• via the process of communication, awareness is

created (brand recognition and brand recall).
– Need, category, usage, purchase.

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Key brand Assets: Brand associations

Pre-
consumption
associations

Brand
Associations
Post-
consumption
associations

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 Key brand Assets: brand associations

• Pre-consumption associations are formed via

communications about a brand from the company, or WOM
from friends and family.
• At this stage informational beliefs are formed by the
information provided by others.
• Post-consumption associations - the consumption of a
branded product/service can result in a consumer
developing a new set of brand associations called post
consumption associations.
• At this stage informational beliefs are confirmed and
descriptive beliefs are formed.
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Key brand Assets: Brand associations

Performance

Expectations

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Key brand Assets: Customer Loyalty

Behavioral
Loyalty
Attitudinal
Loyalty

Customer
Satisfaction

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 5 step process of brand equity co-creation

1. The development of a new product with unique

product attributes.
2. The creation of brand awareness through marketing
and other communications.
3. Consumer interpretation of marketing and other
communications to form pre-consumptions brand
associations.
4. Consumption of the product and the formation of post-
consumption associations.
5. Satisfaction leading to customer loyalty.
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 Brand Equity Co-creation steps

Pre- Post
Product/servi- Brand Customer
consumption consumptions
ce Design Awareness Loyalty
associations associations

Company Customer
Driven Driven
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 Conclusion

• The key feature of this model is the way in which

control of brand equity moves out of the hands of the
company into those of the consumers after the first
three stages.
• Hence, both the company and the consumer co-
create brand equity.

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