Brand equity

Report

Results
◦ In general beer drinkers were not able to
differentiate between different brands of beer in a
blind test
◦ In general beer drinkers were not able to identify
their favorite brand in a blind test
◦ Brand identification influenced evaluation
 Overall preference
 Attributes

Approaches to conceptualize brand equity
◦ Why look at brands? (Brand effects)
◦ Brand equity


Brand associations (differentiation)
Brand awareness (identification)


”Brand equity is the added value endowed
by the brand to the product”
Brand elements (sources to brand equity)
◦ Brand Associations
◦ Brand Awareness

Brand associations





Brand associations are memory nodes linked
directly or indirectly to a brand name in long term
memory
A brand image is the set of associations linked to
a brand name
Different types of associations
Primary and secondary associations
Desirable qualities of brand associations
6
McDonald’s
7
Burger
King
Sandwich
USA
Fastfood
”Subway”
Coca Cola
French fries
McDonald’s
Downtown
Ronald
McDonald
BigMac
Capitalism
Wait in
lines
Regret
I’m lovin’ it
Unhealthy
food
Fun
8
Product attributes
 Non-product related attributes
◦ packaging, warranties, price,
users, etc.
 Brand benefits
◦ Functional (problem solving)

9
10
11
Product attributes
 Non-product related attributes
◦ packaging, warranties, price,
users, etc.
 Brand benefits
◦ Functional (problem solving)
◦ Symbolic (status)

12
Symbolic brand benefits
13
14
Product attributes
 Non-product related attributes
◦ packaging, warranties, price,
users, etc.
 Brand benefits
◦ Functional (problem solving)
◦ Symbolic (status)
◦ Experiential (sensory/hedonic)

15
Experiential brand benefits
16
17
Product attributes
 Non-product related attributes
◦ packaging, warranties, price,
users, etc.
 Brand benefits
◦ Functional (problem solving)
◦ Symbolic (status)
◦ Experiential (sensory/hedonic)
 Situations

18
User situation
19
20

Brand associations




Brand associations are memory nodes linked
directly or indirectly to a brand name in long term
memory
A brand image is the set of associations linked to
a brand name
Different types of associations
Primary and secondary associations
21
Primary
assosiations
High quality
Prestige
Mercedes
High quality
BMW
Prestige
High quality
Prestige
Audi
22
”Family-sporty”
Primary
associations
Secondary
assosiations
Royal / offical
Large cars
Respected
Competent
Joy of driving
Well equiped
Large engine
Sporty
Winter
Quattro
Efficient
Design
Silent/no noice
Formal
High quality
Prestige
Mercedes
Driving
experience
High quality
BMW
Selfconfidence
Prestige
Driving
experience
High quality
Intelligent
Prestige
Audi
23



Favorability
Strength
Uniqueness
24




Why be interested in brand awareness?
Different forms of awareness
Consequences of awareness
Influencing awareness (Marketing
implications)


Customers do seldom intentionally seek
information
Information overload
◦ People used to spend time to save money, now they
spend money to save time

Depth
◦ recognition
◦ Recall

Breadth
◦ different use and buying situations


Ask not what the brand can evoke; Ask what
can evoke the brand?
Use and purchase situations
Choice sit.
Prod.cat.
Brand
Attributes
Choice sit.
Prod.cat.
Brand
Attitudes
Benefits
Memory in brand evaluation
Attributes
Attitudes
Benefits
Memory in brand evocation
Prod. category?
Choice
situation?
Volvo
Attributes?
Attitudes?
Benefits?
Choice
situation?
Family car
Volvo
Attributes?
Attitudes?
Benefits?
Family car
New car when
the first baby
arrives?
Volvo
Attributes?
Attitudes?
Benefits?
Family car
New car when
the first baby
arrives?
Volvo
Safety
Attitudes?
Benefits?
Family car
New car when
the first baby
arrives?
Volvo
Safety
Attitudes?
Solid, reliable
Family car
New car when
the first baby
arrives?
Volvo
Safety
Traditional
Solid, reliable
Prod.cat.
Situation 1
Situation 2
Apple
6.2
8.3
3.0
Chocolate
6.9
3.7
1.6
Cookie(chocolate)
6.3
4.4
3.6
Ice cream
5.1
3.0
1.9
Pizza
3.3
4.4
8.1
Pop corn
7.0
2.4
7.9
Chips
8.0
2.2
8.2
Ratneshwar & Shocker (1991)



Awareness and communication
Awareness and associations
Awareness and choice and evaluation
processes




Consideration set/Choice sets
Liking (mere exposure)
Decision Heuristic
Perceived Quality
Total set of brands
Awareness set
Consideration set
Choice set



Discussion of the effects of the latest ad
campaign
Results
So, what is the effect for us?





Before
Retrieval: 13%
Consideration: 8%
Choice: 4%
Intention: 3.39





After
Retrieval: 58%
Consideration: 27%
Choice: 5%
Intention: 3.40




Hey, Subway is running an ad campaign
What is the effect for us?
Results
Implications?





Before
Retrieval: 28%
Consideration: 14%
Choice: 5%
Intention: 4.83





After
Retrieval: 60%
Consideration: 46%
Choice: 19%
Intention: 5.67



Exposure/awareness
Recall of a brand can not be viewed in
isolation independent from its reference
frame
Memory:
◦ Brand retrieval
◦ Also retrieves the relevant comparison set

Study Question:
◦ What are the consequences of increasing the
retrieval probability

Results



”mere exposure”
Information availability
Sosial desirability

Message complexity
(Anand and Sternthal, 1990)
◦ Execution strategy (Haugtvedt et al., 1994)
◦ Competitive situation


Individual factors
Repetition and learning
◦ The truth effect


Information regarding previously used brands
are more easily accessed in memory
Small brands are also typically less exposed
in the stores
Learning advantage for large and
well-known brands


Social desirability influences people’s
attitudes and actions
Deviations from socially acceptable
behavior are met with sanctions
We often infer appropriate behavior in
different situations by observing others
”Where all think alike, no one thinks very much”
- Walter Lippmann

Buys the brands one know
◦ # of brands
◦ time

Cue for quality
◦ with or without experience

Exposure
◦ Facilitate initial exposure
◦ Maximize accidental exposure
◦ Maintain exposure

Relevance
◦ Emphasis on self-relevance
◦ Situational relevance

Stimuli characteristics
◦ Vividness
◦ Salience (unusual, novel)

Comprehension
◦
◦
◦
◦
Knowledge/involvement
Remembering
Miscomprehension
Exposure environment




Pride & Ferrell: Ch. 12
Park, Jaworski & MacInnes (1986).
Keller, Kevin L. (2008): Strategic Brand
Management, 3rd edition, Upper Saddle River,
NJ: Pearson Prentice Hall.
Nedungadi, Prakash (1990): Recall and
Consumer Consideration Sets: Influencing
Choice without Altering Brand Evaluation,
Journal of Consumer Research, 17(3), 263-76.

similar documents