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