34 consumer, i.e. showing “strong resistance to counter-persuading attempts” (Schiffman & Kanuk, 1997).
Another approach to appeal to the needs of the customer, and possibly activate latent ones, is that of image transfer: an increase in psychological commitment towards a brand can be derived from the use of tapping into e.g. sports loyalty through the image transfer sought to be derived from sponsorship. Arguably, endorsing one or more entities will also have the potential of being of useful input into the process undergone by those attracted to a brand and to some extent those that are only aware of it.
Having described what constitutes loyalty and what different types of loyalty exist, as viewed through the loyalty typology model, the understanding of the appearance of a given target group have been enhanced as to recognize that there is more to loyalty than mere behaviour. A knowledge of this complemented with an understanding of what stages of loyalty a target group may be in, what have led them there, as well as, what variables that may drive them to a higher stage, will serve as a to recognize that decision making, and affecting this through a given brand attitude strategy, stand in relation to exactly how loyal the given target is. Thus, knowing the barriers to loyalty and its drivers one can emphasize upon the ultimate manifestation of loyalty, namely the brand equity.
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6.1 THE DEVELOPMENT OF BRAND EQUITY
One definition generally given to brand equity is that it refers to the managerial and marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product (or service) did not have a brand name. According to Keller (2009; 638) it can be built in three major ways; 1) through the initial choice of the brand elements making up the brand, 2) via marketing activities and the design of the marketing program, and 3) through the leverage of secondary associations that link the brand to other entities and brands. All such actions relate to the attempt to position ones brand at the most optimal way in the mindset of the consumer.
Therefore, brand positioning is central to communicating to the target audience and can be defined as the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind (Kotler, P & Keller, K, 2006).
As a concept brand equity can be approached and utilized at three different levels: the firm-, product-, and consumer level:
• Firm Level – At which the brand is considered to be a financial asset. When measuring brand equity at this level one seeks to calculate the value of the brand as an intangible asset.
For example, if one was to take the value of the firm, as derived by its market capitalization – and then subtract tangible assets and "measurable" intangible assets – the residual would be the brand equity.
• Product Level – The classic product level brand measurement example is to compare the price of a non-branded product with that of an “equivalent” branded product. The deviation in price, ceteris paribus, is the value generated by the brand.
• Consumer Level – This is an approach with a more psychological orientation. By mapping the mind of the customer, the goal is to find out what the customer associates with a specific brand. The variables upon which measurement is conducted are awareness and brand image – the latter is also referred to as brand associations.
In this paper focus will be on the consumer level as this is where loyalty towards a brand and the drivers behind this are conceptualized in the most satisfactory manner, while being the level at which competitive brands of relative equal price are best compared as based upon associations.
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6.2 KELLER’S CUSTOMER BASED BRAND EQUITY PYRAMID
In the quest to analyze the brand equity of the case company and the drivers of this within the product category, Keller’s (2001) Customer Based Brand Equity Pyramid (CBBEP) model will be applied throughout the paper.
The model highlights a natural sequence implying that meaning cannot be created unless identity have been created, that responses cannot occur unless meaning has been developed, and that a sound relationship cannot be formed unless the proper responses are present. As such, the model offers a hierarchical approach to building and measuring brand equity, which is well suited for the purpose of the paper in terms of analyzing, measuring and improving brand equity.
Brand Identity measures the awareness of a brand and is determined by how often, and under which circumstances, customers think about a specific brand and thereby to what degree the brand is top of mind. By striving to link brand, logo, symbols, etc. to certain associations the awareness of the brand will relatively increase. Keller proposes two variables on which measurement of awareness can be based upon: the depth and breadth of awareness (a highly salient brand is one that possesses a high degree of both depth and breadth of brand awareness).
• Depth of awareness; referring to how easily a customer can recall a brand. In terms of this measure, there is an important distinction between unaided and aided recall of a brand.
• Breadth of awareness; referring to the range of purchase and consumption situations in which the brand comes to mind through recognition.
Consumer Brand Resonance Consumer Judgements
Consumer Feelings
Brand Performance Brand Imagery
1. Identity = Who are you?
2. Meaning = What are you?
3. Responses = What about you?
4. Relationship = What about you and me?
Deep, Broad Brand Awareness Strong, favourable, &
Unique Associations Positive, Accessible
Responses Intense, Active
Relationships
Figure 6.1 — Customer Based Brand Equity Pyramid (Keller 2001) Brand Salience
37 As such, the ability to recognize and recall a brand is considered a prerequisite to the formation of brand associations and the resulting intentions to buy.
Brand Meaning is based upon brand performance and brand imagery.
Brand performance is a measure of how well a product or service meets the consumers more functional needs. Five important types of attributes (descriptive features that characterize a product or service) and benefits (the personal value and meaning that consumers relate to the product or service) often lie behind brand performance; primary characteristics and supplementary features, reliability, serviceability, style and design, and finally price (Keller, 2008; 65).
Brand imagery is based upon the more extrinsic properties of the product as to what degree it meets the psychological and social needs of the user. As such, brand imagery is the way the brand is thought of, rather than what it actually does (ibid). Given the intangible nature of this variable in the CBBE imagery associations can be formed by user experience, but also from advertising or word of mouth. The main intangible sources of brand imagery are user profiles, purchase and usage situations, personality and values, and history, heritage, and experiences.
Both brand performance and brand imagery can be scrutinized through a three step approach for assessing the brand meaning of the given associations. The steps can be characterized and profiled as below and should be present in the ranked order:
• Strength – How strongly is the brand identified with a brand association?
• Favorability – How important or valuable is the brand association to customers?
• Uniqueness – How distinctively is the brand identified with the brand association?
Brand Responses concern the thoughts and feelings of customers towards the brand and are based upon brand judgments and brand feelings.
Brand judgments concern how customers combine all performance and imagery associations to a complete opinion. Thus, it is the consumer’s personal opinions and evaluations of the brand.
According to Keller the most important judgments about a brand are quality, credibility, consideration, and superiority.
Brand feelings are the emotional responses and reactions with respect to the brand. These feelings concern how the brand affects the customer’s feelings (positively or negatively) about themselves and their relationship with others and are as such an estimate of the worth of the brand as social currency (Keller, 2008; 68).
38 Brand Relationship addresses the relationship between the individual and the brand and the degree to which the consumer identifies with the brand. Resonance is characterized by the psychological bond the consumer has with the brand, as well as, the behavioral activity that occurs (Keller, 2008;
72). Overall, the brand relationship can be categorized through intensity and activity; intensity refers to the strength of the attitudinal attachment (as perceived in the Loyalty Typology) of the consumer, as well as, identification with a brand community, while activity is characterized by behavioral loyalty (also defined through the similar aspects as in the Loyalty Typology) and engagement in the brand through non-purchase or usage situations (ibid).
Considering brand equity on a consumer level reflects a customer centric approach to the relationship between the consumer and the brand. This approach is considered ideal as a brand constantly is scrutinized by its target group as to evaluate to what degree it offers value. Brand equity is not a constant and as such, the underlying variables should be known and monitored in order for the company to be able to offer an identity with real meaning, as to spawn a response from the consumer that ultimately will lead to a relationship between the consumer and the product that is based upon a strong brand relationship.
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