Brand Equity

Brand Equity refers to the commercial value that an organization generates from the consumer perception of a specific product and not the product itself

Brand Equity in simple terms refers to a brand’s value. If consumers have a good experience and think of it as exceptional the brand equity increases and are positive and if not then it decreases and is negative

Brand Equity and New Launches

Organizations often take advantage of brand equity to influence consumers so that they can accord the same trust to new launches

Example – Apple

Sources of Brand Equity

1. Brand Awareness

Brand Awareness refers to the degree of recognition that a consumer has about a specific product by its name.

Brand Recognition refers to the ability of a consumer in recognizing a brand or a product because of a distinct symbol, logo, etc.

Brand Recall refers to the likelihood of remembering a brand name instantly

Example – Coca Cola

2. Brand Loyalty

Brand Loyalty refers to the habit of a consumer of buying the same product and not switching to a similar product from the rival brand

Example - Apple

3. Perceived Quality

Perceived Quality refers to the consumer’s perception of the quality of a product with respect to its purpose. The customer also assesses the competitor’s offering for comparative judgment.

Example – Apple packaging

4. Brand Associations

Brand Associations refer to the mind and emotional connections between a brand and people. It forms because of interactions, advertising activities, celebrity endorsements, and product quality

Example – Under Armour – Project Rock

Measuring Sources of Brand Equity refers to designing a measurement system that will help an organization in measuring customer mindset and response regarding specific product features and their overall brand experience.

Measuring Sources of Brand Equity is possible through qualitative and quantitative techniques.

Technique #1 – Free Association

Free Association refers to asking the customers what they think about the brand without any external cue. This helps to assemble a distinct brand profile.

Example - Tesla

Technique #2 – Projective Techniques

Projective Techniques refer to the diagnostic tools that can identify consumer feelings and opinions even when they are unable to express themselves fully.

Types of Projective Techniques

Completion and Interpretation Tasks

Completion and Interpretation Tasks helps in assessing the usage of imagery for a brand.

Comparison Tasks

Comparison Tasks is a technique where consumers are asked to make comparisons as this provides a glimpse into a customer’s psyche regarding a brand.

Technique #3 – Neural Research Methods

Neural Research Methods helps to understand how the mind responds to marketing stimuli by looking at the customer’s reaction to specific products.

Technique #3 – Neural Research Methods (Frito Lay)

Frito lay used EEG to identify the reaction of a person towards the cheese puffs “Cheetos”

Technique #4 – Brand Personality and Values

Brand Personality and Values refer to the customer experience and point-of-view of marketing activities.

Dimensions of Brand Personality

Sincerity

Example – Dairy Milk, Johnson & Johnson

Excitement

Example – Tinder, Durex

Competence

Example – JP Morgan Chase, Google

Sophistication

Example – Apple, Mercedes

Ruggedness

Example - Jeep

Technique #5 – Ethnographic and Experiential Methods

Ethnographic and Experiential Methods help to obtain meaningful responses by tapping a consumer’s workspace, residence, and shopping behavior.

Example – P&G acquiring Gillette and later launching Gillette Guard.

This video is on Brand Equity and it has the following sub-topics.

Time Stamps

0:20 - Brand Equity
5:28 - Measuring Sources of Brand Equity
12:34 - Managing Brand Equity
19:43 - Brand Value
25:11 - Brand Value Chain
26:06 - The Brand Value Chain