In this report, author Keller outlines the Customer-Based Brand Equity (CBBE) model to help management build brands. The CBBE model provides a benchmark by which brands can assess their progress in building their brand, as well as guidance for marketing research initiatives. To provide perspective, the article also relates the CBBE model to other leading models of brand equity.
To help answer both questions, this article develops a model for brand building, the Customer-Based Brand Equity model. While a number of useful perspectives regarding brand equity have been put forward, the Customer-Based Brand Equity model offers a unique perspective on what brand equity is and how best to build, measure and manage it. The Customer-Based Brand Equity model was developed with this broad set of objectives in mind.
The basic premise of the model is that the power of a brand lies in what customers have learned, felt, seen and heard about the brand over time. The rest of the paper outlines in detail how this "brand knowledge" should be created and how the brand building process should be handled. Building a strong brand, according to the customer-based brand equity model, can be viewed in terms of a series of steps, in which each step is dependent on the successful completion of the previous step.
The fourth and final step is to convert brand response to create an intense, active loyalty relationship between customers and brand.
Brand-Building Blocks
Brand awareness also involves linking the brand – brand name, logo, symbol, etc. – to certain associations in memory. Depth of brand awareness refers to how easily customers can recall or recognize the brand. Breadth of brand awareness refers to the range of purchase and consumption situations in which the brand comes to mind.
In other words, it is important that the brand is not just "top of mind". Thus, brand performance refers to the internal properties of the brand in terms of the internal characteristics of the product or service. Thus, a number of different types of associations related to performance and images can be associated with the brand.
Brand judgments. Brand judgments focus on customers' personal opinions and evaluations about the brand. In other words, customers can form judgments about the company or organization behind the brand. Brand credibility refers to the extent to which the brand as a whole is seen as trustworthy in terms of three dimensions - perceived expertise, trustworthiness and likeability.
In other words, to what extent the brand is seen as: (1) competent, innovative and market leader (brand expertise); (2) reliable and sensitive to customers' interests (brand reliability); and (3) fun, interesting, and worth spending time with (brand endorsement). Brand superiority. Finally, superiority relates to the extent to which customers see the brand as unique and better than other brands. In other words, customers believe that the brand offers benefits that other brands do not.
The heat. Warmth refers to soothing types of feelings – the extent to which a brand gives consumers a sense of calmness or serenity. Excitement. Excitement refers to the extent to which a brand makes consumers feel energized and experiencing something special. In addition, it is important that they are accessible and immediately thought of by consumers when they think of the brand.
Brand resonance refers to the nature of the relationship customers have with the brand and the extent to which they feel they are 'in harmony' with the brand. The brand can also take on a broader meaning for the customer in terms of a sense of community.
Brand-Building Implications
Applications
The question to ask is: to what extent does marketing activity influence the key dimensions of brand resonance: consumer loyalty, attachment, community or commitment to the brand. In those cases where it is difficult to create a diverse set of feelings and image associations, marketers may not be able to obtain the 'deeper' aspects of brand resonance (e.g. active engagement). However, by taking a broader view of brand loyalty, marketers may be able to gain a more holistic appreciation of their brand and how it connects with consumers.
By defining the right role for the brand, higher levels of brand resonance should be achieved. In recent years, a number of brand pioneers have encountered difficulties, faltered and in some cases even lost their market leadership position. Montgomery Wards, Revlon, Miller Lite and Kellogg's have all experienced market declines and a diminishment of brand equity — even their existence — in recent years.
Competitive actions, consumer shifts, environmental changes, and other similar forces can change the nature of brand associations, often quite quickly. As a result, consumers' judgments and feelings about the brand become less positive, and the brand's resonance begins to dissipate. Even strong brands must constantly engage in brand building activities to maintain or increase their equity. Failing brands can run into problems due to various aspects of brand building.
Strong brands blend product performance and imagery to create a rich, varied, but complementary set of consumer responses to the brand. By appealing to both rational and emotional concerns, a strong brand provides consumers with multiple entry points to the brand while reducing competitive vulnerability. Lavish, expensive "shock" advertising campaigns may have helped register the brand name - facilitating brand recognition - but failed to connect it with the corresponding line of business (eg, Outpost.com), causing brand recall issues . Unfortunately, this step is one that many brand marketers tend to skip in their misguided rush to establish an image for the brand (eg, as evidenced by the many "dot com" brands whose target markets have no idea what they are do not).
It is difficult for consumers to appreciate the benefits and uniqueness of a brand unless they have some kind of frame of reference about what the brand is supposed to do and who or what it is supposed to compete with. Similarly, it is difficult for consumers to achieve higher levels of positive responses without having a reasonably complete understanding of the various dimensions and characteristics of the brand. For example, with regard to brand awareness, it is important to first establish category identification in some way before considering strategies to expand brand breadth by focusing on the needs satisfied or the benefits the brand provides.
Relationship to Other Models
Appendix. Candidate Measures of Brand-Building Blocks
If this brand were not available, it would make little difference to me if I had to use another brand.
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