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Customer-based

Brand Equity
(CBBE)
Measuring the value of your brand in the
eyes of consumers
Learning Outcomes
• Understand the Customer-based Brand Equity (CBBE) Model
• Use the CBBE model to measure the brand equity of a local brand
Brand Equity

• Refers to the total value of the brand as a separate


asset.
• It is the aggregate of assets and liabilities attached
to the brand name and symbol which results in the
relationship customers have with the brand.

Source: https://www.feedough.com/brand-equity/
Customer-Based Brand Equity
• A model that approaches brand equity from the perspective of the
consumer
• The power of a brand lies in what resides in the minds of the
customers
• The differential effect that brand knowledge has on consumer
response to the marketing of that brand
The Four Steps of Brand Building

1 2 3 4

Ensure identification of Firmly establish the Elicit the proper Convert brand response
the brand with customers totality of brand meaning customer responses to to create an intense,
and an association of the in the minds of customers this brand identification active loyalty
brand in customers’ minds by strategically linking a and brand meaning relationship between
with a specific product host of tangible and (Brand Responses) customers and the brand
class or need (Brand intangible brand (Brand Relationships)
Identity) associations with certain
properties (Brand
Meaning)
The CBBE Model
CUSTOMER-BASED BRAND EQUITY (CBBE MODEL)
The CBBE Model

Brand Performance describes how


well the product or service meets
customers’ more functional needs
Brand Salience measures awareness Brand Imagery is the way people
(i.e. to what extent does the brand
of the brand think about a brand abstractly
satisfy utilitarian, aesthetic, and
economic customer needs and
wants in the category)

Brand Resonance describes the


Brand Judgments are customers’ Brand Feelings are customers’
nature of the relationship the brand
personal opinions about and emotional responses and reactions
has with the customer (if they are in
evaluations of brands to the brand
sync)
CUSTOME • Remember:
R-BASED
• A highly salient brand has both depth and
BRAND breadth of awareness such that customers
EQUITY always make sufficient purchases as well as
always think of the brand across a variety of
(CBBE settings in which it could possibly be
MODEL) employed or consumed.
• Brand Imagery
CUSTOME
R-BASED • Brand imagery depends on the extrinsic
properties of the product or service,
BRAND including the ways in which the brand
EQUITY attempts to meet customer’s psychological
or social needs.
(CBBE
MODEL) • It is a way consumers think about a brand
abstractly rather than what it really is.
• Brand Judgment

CUSTOME • Brand judgments are customers’ personal


R-BASED opinions about and evaluations of the brand,
which consumers form by putting together all
BRAND the different brand performance and imagery.
EQUITY
(CBBE •

Perceived brand quality
Perceived brand credibility
MODEL) • Perceived brand consideration
• Perceived brand superiority.
• Definition of Terms

CUSTOME • Brand credibility describes the extent to


R-BASED which customers see the brand as credible in
terms of three dimensions:
BRAND
1. Competent, innovative and market leader
EQUITY (brand expertise)
(CBBE 2. Dependable and keeping customer interest
in mind (brand trustworthiness)
MODEL) 3. Fun, interesting and worth spending time
with (brand likability)
• Brand Feelings

CUSTOME • Brand feelings are customers’ emotional


responses and reactions to the brand.
R-BASED
BRAND • Warmth
EQUITY • Fun
(CBBE • Excitement
MODEL) • Security
• Social approval
• Self-respect
• Brand Resonance

CUSTOME • Dimensions of brand resonance:


• Behavioral loyalty in terms of repeat purchase
R-BASED and “share of category requirement”
BRAND • Attitudinal attachment in terms of positive
attitudes of customers toward the brand.
EQUITY • Sense of community or the feeling of kinship of
(CBBE one customers to other users of the brand.

MODEL) • Active engagement or customer’s willingness to


invest time, energy, money beyond the
purchase of the brand, e.g. joining a club
specifically for the brand.
CUSTOMER-BASED BRAND EQUITY
(CBBE MODEL)
Cases in Point

The value of Starbucks brand using Apple’s declining brand equity?


the CBBE model http://www.forbes.com/sites/darcytravlo
https://prezi.com/q14br9on8ctc/bra s/2013/01/19/is-apple-losing-its-brand-
nd-equity-study-of-starbucks/ equity/#786d682b2641
Assessment
Using the CBBE model, conduct a
survey to determine brand equity of
DLSUD. You may refer to the sample
survey of McDonald’s as your guide.

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