The Importance Of Customer-Based Brand Equity

Register to read the introduction… A brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. A brand is said to have negative customer-based brand equity if consumers react less favorably to marketing activity for the brand under the same circumstances. There are three key ingredients to this definition. First, brand equity arises from differences in consumer response. If no differences occur, then the brand name product can essentially be classified as a commodity or generic version of the product. Competition would then probably be based on price. Second, these differences in response are a result of consumer’s knowledge about the brand. Brand knowledge consists of all the thoughts, feelings and so on that become associated with customers. Third, the differential response by consumers that makes up the brand eequity is reflected in perceptions, preferences and behavior related to all aspects of the marketing of a …show more content…
Most strong brands employ multiple brand elements. Nike has the distinctive “swoosh” logo, the empowering “Just Do it” slogan, and the mythological “Nike” name based on the winged goddess of victory. Brand elements can be chosen to build as much brand equity as possible. The test of the brand-building ability of these elements is what consumers would think or feel about the product if they only knew about the brand element. There are six criteria in choosing brand elements. The first three (memorable, meaningful, and likable) can be characterized as brand building in terms of how brand equity can be built through the judicious choice of a brand element. The latter three (protectable, adaptable, transferable) are more defensive and are concerned with how the brand equity contained in a brand element can be leveraged and preserved in the face of different opportunities and …show more content…
There are many bases of fit: product-related attributes and benefits, as well as non-product-related attributes and benefits related to common usage situations or user types. Depending on consumer knowledge of the categories, perceptions of fit may be based on technical or manufacturing commonalties or more surface considerations such as necessary or situational complementarity. A successful extension can not only contribute to the parent brand image but also enable a brand to be extended even farther. An unsuccessful extension hurts the parent brand only when there is strong basis of fit between the two. Vertical extensions can be difficult and often require sub-branding strategies, The most effective advertising strategy for an extension emphasizes information about the extension, rather that reminders about the parent