3.

Customer-Based Brand Equity

Brand Resonance and the Value Chain

2.1
Understanding the behaviour of doctors:
Two good books that provide some insights

Video interview with Dr. Jerome Groopman 5.5

Jean-Noel Kapferer

3
 Doctors do not prescribe
products but brands
Science comes to us not in the form of the international
scientific denomination of the chemical compound, but in
the form of its brand name: Zantac, Tagamet, Clamoxyl,
Prozac, Viagra and so on.

Pharma one would expect, is dominated by the ideology

of progress through science and those prescribing drugs
are rational and make, what they perceive as the best
choice for the patient.

Normally, this should imply a product-driven market, in

which brands are a forbidden word.
4
 Not strange at all...
Brands have personality

Research by J N Kapferer and others have shown that medicines have a

personality, as do all brands.

By “personality” we mean that both generalist doctors and specialists

find it possible to attribute human personality traits to medicines.

Not only did they not refuse to answer questions about brand personality,
but statistical data analysis shows that some of the personality traits they
ascribed to drugs were correlated with prescription levels.

5
It is the brand and not the Product
A product, an active ingredient cannot be dynamic or
closed; a brand can be.

Thus brands of drugs do have a mental existence and

influence in the minds of the prescribers.

Doctors may recognise two products themselves as

being totally identical and see two brands as fully similar
in functional benefits they deliver, respondents
prescribed one three times more frequently than the
other.
Daniel Kahneman: The Israeli American Psychologist / Economist who won the Novel
Prize for Economics in 2002.
The psychological phenomena around judgement and decision-making,
establishing a new way of thinking about human
6
errors based on heuristics and biases.
Status: The Intangible Dimension

The chosen brand was endowed with significantly

more “status” than the less chosen one.

Status is an intangible dimension created by

impressions of leadership, of presence, of proximity to
the doctors, of intensity of communication.

This is entirely a creation of marketing.

Once created, this serves as a competitive edge

against “me-too” products.

7
Customer-Based Brand Equity

 “The differential effect that brand

knowledge has on consumer response
to the marketing of that brand.”

- Kevin Lane Keller

2.8
 Customer-Based Brand Equity

 Differential effect
 Differences in consumer response
 Brand knowledge
 A result of consumers’ knowledge about the brand
 Consumer response to marketing
 Choice of a brand
 Recall of copy points from an ad
 Response to a sales promotion
 Evaluations of a proposed brand extension

• Beer may start tasting better if identified

• Clothes may seem to fit better
• The car may tend to drive more smoothly
• The wait in the bank line may seem shorter

2.9
 Brand Equity as a “Bridge”

 Reflection of past investments in the marketing of a brand

 Direction for future marketing actions or programs

2.10
 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.
 Brand knowledge has two components:

brand awareness
and
brand image.

2.11
 Possible Associations
with the Apple Brand Name
Brand knowledge consists of a brand node in
memory with a variety of associations linked to it.
 Sources of Brand Equity
 Brand awareness
 Brand recognition
 Brand recall
 Brand image
 Strong, favorable, and unique brand associations

2.13
 Brand Awareness Advantages

 Learning advantages
 Register the brand in the minds of consumers
 Consideration advantages
 Likelihood that the brand will be a member of the
consideration set
 Choice advantages
 Affect choices among brands in the consideration set

2.14
 Establishing Brand Awareness

 Increasing the familiarity of the brand through repeated

exposure (for brand recognition)
 Forging strong associations with the appropriate product
category or other relevant purchase or consumption
cues (for brand recall)

2.15
 Creating a Positive Brand Image

 Brand Associations
 Does not matter which source of brand association
 Need to be favorable, strong, and unique
 Marketers should recognize the influence of these other sources
of information by both managing them as well as possible and by
adequately accounting for them in designing communication
strategies.

Brand attributes are those descriptive features that characterise a

product or service.

Brand benefits are the personal value and meaning that

consumers attach to the product or service attributes.

2.16
 The Four Steps of Brand Building

1. Ensure identification of the brand with customers and an

association of the brand in customers’ minds with a
specific product class or customer need
2. Establish the totality of brand meaning in the minds of
consumers by strategically linking a whole host of
tangible and intangible brand associations with certain
properties
3. Elicit the proper customer responses to this brand
identification and brand meaning
4. Convert brand response to create an intense, active
loyalty relationship between customers and the brand

2.17
 Four Questions Customers ask of Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel about you?
(brand responses)
4. What about you and me? What kind of association and
how much of a connection would I like to have with
you? (brand relationships)
4. Relationships – Intense,
What about you & me?
Resonance active loyalty

3. Response – Positive,
What about you? Judgements Feelings
accessible reactions

2. Meaning – Strong, favourable and

What are you? Performance Imagery unique brand association

1. Identity – Salience Deep, broad

Who are you? Brand awareness
2.18
Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
Resonance What about you and
me?

3. RESPONSE =
Judgements Feelings
What about you?

2. MEANING =
Performance Imagery What are you?

1. IDENTITY =
Salience
Who are you?

2.19
Sub-Dimensions of CBBE Pyramid

Loyalty
Attachment
Community
Engagement

Warmth
Quality credibility Fun
Consideration Excitement
Superiority Security
Social approval
Self-respect

Primary characteristics & User profiles

secondary features Purchase & usage
Product reliability, durability & situations
serviceability Personality & values
Service effectiveness, efficiency & History, heritage
empathy & Experiences
Style and design
Price

Category identification
Needs satisfied
Heineken Resonance Pyramid

2.21
 Salience Dimensions

 Depth of brand awareness

 Ease of recognition and recall
 Strength and clarity of category membership

 Breadth of brand awareness

 Purchase consideration
 Consumption consideration

2.22
 Depth and Breadth Importance

 The product category hierarchy shows us not

only the depth of awareness matters but also the
breadth.
 The brand must not only be top-of-mind and
have sufficient “mind share,” but it must also do
so at the right times and places.

2.23
 Product Category Structure

 To fully understand brand recall, we need to

appreciate product category structure, or how
product categories are organized in memory.

2.24
 Building a strong Brand

Beverages

Water Flavoured

Non-alcoholic Alcoholic

Hot Soft Distilled

Milk beverages Juices drinks Wine Beer Spirits

2.25
Products / Brands Evaluation Process

2.26
Category and Brand Evaluation
by the Doctor by Diagnosis
e.g. Multiple Sclerosis patient
 Performance Dimensions

 Primary characteristics and supplementary

features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price

2.28
 Imagery Dimensions
 User profiles
 Demographic and psychographic characteristics
 Actual or aspirational
 Group perceptions—popularity
 Purchase and usage situations
 Type of channel, specific stores, ease of purchase
 Time (day, week, month, year, etc.), location, and context of usage
 Personality and values
 Sincerity, excitement, competence, sophistication, and ruggedness
 History, heritage, and experiences
 Nostalgia
 Memories

2.29
 Judgment Dimensions
 Brand quality  Brand consideration
 Value  Relevance
 Satisfaction
 Brand credibility
 Brand superiority
 Expertise
 Differentiation
 Trustworthiness
 Likeability

2.30
 Feelings Dimensions
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect

eg. Titan
ICICI Bank
Cadbury’s
Fortune Cooking Oil
2.31
 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 website, chat rooms

2.32
Customer-Based Brand Equity Model

Consumer- Intense, active loyalty

Brand
Resonance

Rational &
Consumer Consumer emotional
Judgments Feelings reactions

Points-of-parity
& points-of-
Brand Brand difference
Performance Imagery

Deep, broad
Brand Salience brand
awareness
 Application:
Identify the Key Drivers of Brand Equity
2

2
P-1

J-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-
P-

J-
9
9

1
5
5
P-8

-1
J-8
P-6

J-6
P-7

J-7

3
R

R-
Resonance
R-10
R-4

0.17 0.66
I-12

R-
F-1
I-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
F-7
I-7
 Brand Building Implications
 Customers own brands.
 Don’t take shortcuts with brands.
 Brands should have a duality.
 Brands should have richness.
 Brand resonance provides important focus.

2.35
 Creating Customer Value
 Customer-brand relationships are the foundation of
brand resonance and building a strong brand.
 The customer-based brand equity model certainly puts
that notion front and center.

2.36
Is a company consumer-centric?

1. Is the company looking for ways to take care of

you?
2. Does the company know its customers well enough
to differentiate between them?
3. Is someone accountable for customers?
4. Is the company managed for shareholder value?
5. Is the company testing new customer offers and
learning from the results?

2.37