Strategic Brand Management Essay

2363 words - 10 pages

Chapter 2
Customer-Based Brand Equity

Overview

This chapter defines the concept that is the focus of the book. Customer-based brand equity (CBBE) is the differential effect that brand knowledge has on consumer response to the marketing of that brand. Brand knowledge is a function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions of and associations for the brand. Building awareness requires repeatedly exposing consumers to the brand as well as linking the brand in consumer memory to its product category and to purchase, usage and consumption situations. Creating a positive brand image requires ...view middle of the document...

Benefits derived from a brand may relate to the functional advantages it provides, the symbolic information it conveys, or the experiential feelings it produces. Attitudes, which represent the highest level of brand associations, reflect consumers’ overall evaluations of a brand and, consequently, often determine their behavior toward it.

The strength of associations depends upon the relevance of information consumers encounter about the brand and the consistency with which the information is presented over time. Favorability is a function of the desirability or value of the associations in attitude formation and decision-making, and of their deliverability or performance probability.

The chapter then outlines the Customer-Based Brand Equity Model, which maintains that building a strong brand involves a series of logical steps: 1) establishing the proper brand identity, 2) creating the appropriate brand meaning, 3) eliciting the right brand responses, and 4) forging appropriate brand relationships with customers. Specifically, according to this model, building a strong brand involves: 1) establishing breadth and depth of brand awareness; 2) creating strong, favorable, and unique brand associations; 3) eliciting positive, accessible brand responses; and 4) forging intense, active brand relationships. Achieving these four steps, in turn, involves establishing six brand building blocks – brand salience, brand performance, brand imagery, brand judgments, brand feelings, and brand resonance.

The strongest brands excel on all six of these dimensions and thus fully execute all four steps in building a brand. With the CBBE model, the most valuable brand building block, brand resonance, occurs when all the other core brand values are completely “in sync” with respect to customers’ needs, wants, and desires. In other words, brand resonance reflects a completely harmonious relationship between customers and the brand. With true brand resonance, customers have a high degree of loyalty marked by a close relationship with the brand such that customers actively seek means to interact with the brand and share their experiences with others. Firms that are able to achieve resonance and affinity with their customers should reap a host of valuable benefits, e.g., greater price premiums and more efficient and effective marketing programs.

Then, the implications of the CBBE model are described: some of: consumers own brands, brand managers should not take shortcuts in building a brand, brands should appeal to consumers’ rational and emotional sides, brands should have richness in order to facilitate strong bonds with consumers, and achieving brand resonance should be a key point of focus for marketers.

The chapter concludes by discussing ways for creating customer value through Customer Relationship Management. Also, the concept of “Customer Equity” is introduced and the current research in this area is described (Blattberg & Colleagues; Rust,...

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