CHAPTER 2:

CUSTOMER-BASED BRAND EQUITY

or the Kellers Brand Equity Model

 Customer-Based Brand Equity

 “ The differential effect that brand knowledge

has on consumer response to the marketing of
that brand.”
 Tool highlights 4 steps that you can follow to
BUILD and MANAGE a brand that customers
will support

Keller, 1993

2.2
 CBBE model
Basic Premise
 Branding Ladder
 Building blocks - to guide a firm’s marketing
program
 Power of brand resides in the minds of its
customers
Also called the Brand Resonance Model
 Customer-Based Brand Equity
( build right type of experience around your brand )
 Differential effect

 Brand knowledge

 Consumer response to marketing

Example :- At one time Hitachi & GE jointly owned a factory in England which made
identical televisions – Hitachi sold twice as many sets as GE despite the premium price
 Making a Brand Strong:
Brand Knowledge

 Brand knowledge is the key to creating brand

equity.
 Brand knowledge consists of a brand node in
memory with a variety of associations linked to it.-
Ex:- Mc Donald – Ronald , convenient, kids , fast
food , toys
 Brand knowledge has two components:

-Brand awareness and

-brand image.
2.5
 Sources of Brand Equity
 Brand awareness ex:- intel inside
 Brand recognition
 Brand recall

 Brand image
Strong, favorable, and unique brand associations
ex:- What comes to mind first
Bata :- durability , cheap & best , comfort

One needs to establish a high level of brand awareness & a positive brand image in
consumer memory.

2.6
Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
RESONANCE What about you and me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
2.7 Who are you?
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
 Customer-Based Brand Equity Model
(Brand Objective at Each Stage )

Consumer- INTENSE, ACTIVE

LOYALTY
Brand
Resonance

te
RATIONAL &

u
Consumer
ute

Consumer EMOTIONAL

Ro
Judgments Feelings REACTIONS
Ro

n al
l
na

ti o
POINTS-OF-
tio

o
PARITY &

m
Ra

Brand Brand POINTS-OF-

E
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
 Application:
Identify the Key Drivers of Brand Equity

J-1
P-1
P-1

J-1
P-2

J-2
11

11
P-

J-
3

3
P-

J-
Performance Judgment
P-10
J-4
P-4 0.65 J-1
0
0.49

R-2
R-1
R-1
P-

J-

J-
P-

9
9

11
5
5

J-8
P-8

J-6
P-6

R-
J-7
P-7

3
R-
Resonance
R-10
R-4

0.17 0.66
I-12

R-
I-1

F-1
F-1

R-
I-2

F-2

5
R-8
1

11

R-6
I-1

R-7
F-
I- 3

3
F-
0.58
0.24
Imagery
I-10

I- 4 F-1
Feelings F-4
0
I- 9

F-
I-5

F-
9

5
I- 8

F- 8
I- 6

F-6
I-7

F-7
Four Steps :-
 
BRAND IDENTITY :- ensure identification of the brand

BRAND MEANING:- tangible & intangible brand association with

certain properties .

BRAND RESPONSES:- proper customer responses to this brand

identification & brand meaning

BRAND RELATIONSHIPS:- convert brand response to create an

intense , active loyalty relationship between customers & the brand.
2.11
 Brand Building Implications
 Customers own brands.
 Don’t take shortcuts with brands.
 Brands should have a duality.( appeal both head &
heart )
 Brands should have richness.
 Brand resonance provides important focus.

2.12
 Rolex CBBE Pyramid Ultimate Social Status:
Extermely loyal consumers,
high repeat purchase
Rate .Much affiliation &
Attachment.
Part of Elite Society
Resonance

Extermely high Quality:

The best watches in the Exclusive & Self-Rewarding
World .Max quality, Feelings of success & high
Innovation & design social status .
Social Approval & Self Respect
Judgments Feelings

Luxury Product : Classic & Achievement image :

Handcrafted timepieces Elite Luxury image
Performance Imagery Through sports & cultural
Made from premium material
Perpetual technology Ambassadors
Official crown logo Status symbol
Exceptional customer service Classic heritage

Salience
High Awareness :
Most commonly recalled luxury watch
 Points of Parity
 Swiss watchmaker
 Durable
 Fine materials
 Quality Craftmenship
 Accurate
 Attractive
 Point of Difference
 History & heritage
 Crown
 Exclusive imagery
 Premium Price
 Innovation
 Distribution
 Interesting facts
 During World War II Rolex watches had already
acquired enough prestige that american pilots bought
them to replace their inferior standard issue watches.
When pilots were captured, their watches were
confiscated but upon writing to Rolex and describing
the circumstances of their loss, Rolex replaced the
watches free of charge. American servicemen heard
about Rolex when stationed in Europe during WWII
and this helped open up the American market to
Rolex after the war
 Rolex in murder case
 The arrest of his murderer. When a body was found in the
English Channel in 1996 by a fisherman a Rolex wristwatch was
the only identifiable object on the body. Since the Rolex
movement had a serial number and was engraved with special
markings every time it was serviced, British police traced the
service records from Rolex, and Ronald Joseph Platt was
identified as the owner of the watch and the victim of the murder.
In addition British police were able to determine the date of death
by examining the date on the watch calendar and since the Rolex
movement had a reserve of two to three days of operation when
inactive and it was fully waterproof, they were able to determine
the time of death within a small margin of error
 Counterfeiting
Counterfeiting Rolex watches has become a sophisticated industry

There are more fake Rolex watches on this planet than all
other fakes combined,
 Assignment
Product Category
-Organic Tea

- Protein Bar / Powder

- Bakery Shop/service

- online tuition service

 Develop the CBBE for the model in order to

help and build and manage the brand