CHAPTER9:

MEASURINGSOURCESOFBRANDEQUITY:CAPURINGCUSTOMERMINDSETKevinLaneKellerTuckSchoolofBusinessDartmouthCollege1QualitativeResearchTechniquesFreeassociationWhatdoyoulikebestaboutthebrand?Whatareitspositiveaspects?Whatdoyoudislike?Whatareitsdisadvantages?Whatdoyoufinduniqueaboutthebrand?Howisitdifferentfromotherbrands?Inwhatwaysisitthesame?2FreeAssociationsLEVI’S501Highquality,longlasting,anddurableBluedenim,shrink-to-fitcottonfabric,button-fly,two-horsepatch,andsmallredpockettagFeelingsofself-confidenceandself-assuranceComfortablefittingandrelaxingtowearHonest,classic,Contemporary,approachable,independent,anduniversalAppropriateforoutdoorworkandcasualsocialsituationsWestern,American,bluecollar,hard-working,traditional,strong,rugged,andmasculineBENEFITSATTRIBUTESSymbolicUsageImageryUserImageryBrandPersonalityFunctionalProduct-RelatedExperiential3QualitativeResearchTechniquesProjectivetechniquesDiagnostictoolstouncoverthetrueopinionsandfeelingsofconsumerswhentheyareunwillingorotherwiseunabletoexpressthemselvesonthesematters4ProjectiveTechniquesConsumersmightfeelthatitwouldbesociallyunacceptabletoexpresstheirtruefeelingsProjectivetechniquesarediagnostictoolstouncoverthetrueopinionsandfeelingsofconsumersExamples:CompletionandinterpretationtasksComparisontasks5Newapproach:ZMETZaltmanMetaphorElicitationTechnique(ZMET)ZMETis“atechniqueforelicitinginterconnectedconstructsthatinfluencethoughtandbehavior.”6ZMETTheguidedconversationconsistsofaseriesofstepsthatincludessomeorallofthefollowing:StorytellingMissedimagesSortingtaskConstructelicitationThemostrepresentativepictureOppositeimagesSensoryimagesMentalmapSummaryimageVignette7BrandPersonalityandValuesBrandpersonalityreferstothehumancharacteristicsortraitsthatcanbeattributedtoabrand.TheBigFiveSincerity(down-to-earth,wholesome,andcheerful)Excitement(daring,spirited,imaginative,andup-to-date)Competence(reliable,intelligent,andsuccessful)Sophistication(upperclassandcharming)Ruggedness(outdoorsyandtough)JenniferAaker,19978IdentifyingKeyBrandPersonalityAssociations

BUSH KERRYCoffee Dunkin’Donuts StarbucksTechnology IBM AppleAuto Ford BMWRetail Kmart TargetFastFood McDonald’s Subway2004U.S.presidentialelection,randomsampleofundecidedvoters9ExperientialMethods

Bytappingmoredirectlyintotheiractualhome,work,orshoppingbehaviors,researchersmightbeabletoelicitmoremeaningfulresponsesfromconsumers.Advocatesoftheexperientialapproachhavesentresearcherstoconsumers’homesinthemorningtoseehowtheyapproachtheirdays,givenbusinesstravelersPolaroidcamerasanddiariestocapturetheirfeelingswheninhotelrooms,andconducted“beeperstudies”inwhichparticipantsareinstructedtowritedownwhatthey’redoingwhentheyarepaged.10QuantitativeResearchTechniquesAwarenessImageBrandresponsesBrandrelationships11AwarenessRecognitionAbilityofconsumerstoidentifythebrand(anditselements)undervariouscircumstancesRecallAbilityofconsumerstoretrievetheactualbrandelementsfrommemoryUnaidedvs.aidedrecall12AwarenessCorrectionsforguessingAnyresearchmeasuremustconsidertheissueofconsumersmakingupresponsesorguessing.StrategicimplicationsTheadvantageofaidedrecallmeasuresisthattheyyieldinsightintohowbrandknowledgeisorganizedinmemoryandwhatkindofcuesorremindersmaybenecessaryforconsumerstobeabletoretrievethebrandfrommemory.Theimportantpointtonoteisthatthecategorystructurethatexistsinconsumers’minds—asreflectedbybrandrecallperformance—canhaveprofoundimplicationsforconsumerchoiceandmarketingstrategy.13ImageAskopen-endedquestionstotapintothestrength,favorability,anduniquenessofbrandassociations.Theseassociationsshouldberatedonscalesforquantitativeanalysis.14BrandResponsesResearchinpsychologysuggeststhatpurchaseintentionsaremostlikelytobepredictiveofactualpurchasewhenthereiscorrespondencebetweenthetwointhefollowingcategories:PurchaseIntentionsAction(buyingforownuseortogiveasagift)Target(specifictypeofproductandbrand)Context(inwhattypeofstorebasedonwhatpricesandotherconditions)Time(withinaweek,month,oryear)15BrandRelationshipsBehavioralloyaltyBrandsubstitutabilityOtherbrandresonancedimensionsForexample,intermsofengagement,measurescouldexploreword-of-mouthbehavior,onlinebehavior,andsoforthindepth16ComprehensiveModelsof

Customer-BasedBrandEquityBranddynamicsEquityenginesYoung&Rubicam’sBrandAssetValuator(BAV)17BrandDynamicsTheBrandDynamicsmodeladoptsahierarchicalapproachtodeterminethestrengthofrelationshipaconsumerhaswithabrand.Thefivelevelsofthemodelare:PresenceRelevancePerformanceAdvantageBonding18EquityEnginesThismodeldelineatesthreekeydimensionsofbrandaffinity—theemotionalandintangiblebenefitsofabrand—asfollows:Authority:Thereputationofabrand,whetherasalong-standingleaderorasapioneerininnovationIdentification:TheclosenesscustomersfeelforabrandandhowwelltheyfeelthebrandmatchestheirpersonalneedsApproval:Thewayabrandfitsintothewidersocialmatrixandtheintangiblestatusitholdsforexpertsandfriends19Young&Rubicam’sBrandAssetValuator(BAV)TherearefivekeycomponentsofbrandhealthinBAV—thefivepillars.Eachpillarisderivedfromvariousmeasuresthatrelatetodifferentaspectsofconsumers’brandperceptionsandthattogethertracetheprogressionofabrand’sdevelopment.DifferentiationEnergyRelevanceEsteemKnowledge20240,000+consumersUpto181categories137studies40countries8years56differentbrandmetricsCommonmethodologyBrandAsset?Valuator(BAV)21FourPrimaryAspects

HowBrandsAreBuiltKnowledge

Theculminationofbrandbuildingefforts;acquisitionofconsumerexperienceEsteem

Consumerrespect,regard,reputation;afulfillmentofperceivedconsumerpromiseRelevance

RelatestousageandsubsumesthefivePsofmarketing;relatestosaleDifferentiation

Thebasisforconsumerchoice;theessenceofthebrand,sourceofmargin22Room

togrow...Brandhaspowertobuildrelevance.D>R0102030405060708090100DifferentiationRelevanceHealthyBrandsHaveGreaterDifferentiationthanRelevanceExamples:

HarleyDavidsonYahoo!AOLWilliams-SonomaIkeaBloombergBusinessNews23R>D0102030405060708090100DifferentiationRelevanceUniquenesshasfaded;pricebecomesdominantreasontobuy.BrandswithgreaterRelevancethanDifferentiationAreinDangerofBecomingCommodities

Examples:

ExxonMott’sMcDonald’sCrestMinuteMaidFruitoftheLoomPeterPan(peanutbutter)24E>K0102030405060708090100EsteemKnowledgeBrandisbetterlikedthanknown.MoreEsteemthanKnowledgeMeans,“I’dliketogettoknowyoubetter”Examples:

CoachleatherwearTagHeuerCalphalonMovadoBlaupunktPellaWindowsPalmPilotTechnics25K>E0102030405060708090100EsteemKnowledgeBrandisbetterknownthanliked.TooMuchKnowledgeCanBeDangerous:

“Iknowyouandyou’renothingspecial”

Examples:

PlymouthTVGuideSpamWoolworthsChryslerMaxwellHouseNationalEnquirerSanka26BrandAsset?ValuatorLeadingBrandStrengthDifferentiationRelevanceLaggingBrandStatureEsteemKnowledgeATwo-DimensionalFrameworkforDiagnosingBrands:ThePowerGrid27PowerLeadersNewNiche/UnrealizedPotentialDecliningLeadersUnfocusedBRANDSTRENGTH(DifferentiationandRelevance)BRANDSTATURE(EsteemandKnowledge)ErodedBrandHealthIsCapturedonthePowerGridBase:USATotalAdultsBAV200028BRANDSTATUREBRANDSTRENGTHBase:USATotalAdultsBAV1999020406080100020406080100PlymouthBazookaIvorySnowPertRolaidsKedsHowardJohnsonTWAGreyhoundArizonaIcedTeaAeropostaleNewman’sOwnSundanceChannelDreamWorksBloombergBusinessNewsCDnowIKEACoca-ColaOceanSprayNikePepperidgeFarmM&MsDisneyJeopardy!HallmarkSanPellegrinoSunMicrosystemsWiredQuestTelecommNokiaiVNetGrocerIridiumUSA1999PowerGridSample29

Y&RResonanceResearch

Usage

Loyalty(60%)

Attachment(30%)

Community

Engagement

ResonanceACE

(10%)

15%Base:2001BAVData30050100050100BrandStatureBrandStrengthAttachedLoyalCommunityResonanceEngagedNon-LoyalsResonanceEngagedCommunityAttachedLoyalUsersNon-LoyalUsersBase:BAVUSAAdults2001DifferentiationY&RResonanceResearchwithBAV31AverageU.S.PackagedGoodsBrandProportionofConsumersConsumerLoyalty7%Bonded32%Advantage35%Performance43%Relevance76%Presence38%19%17%13%20%32CommonaltyBetweentheBasicBAVModelandtheCBBEFrameworkBAV’sknowledgerelatestoCBBE’sbrandawarenessandfamiliarity.BAV’sesteemrelatestoCBBE’sfavorabilityofbrandassociations.BAV’srelevancerelatestoCBBE’sstrengthofbrandassociations(aswellasperhapsfavor