Methods OF Measuring Brand Equity
Methods OF Measuring Brand Equity
Methods OF Measuring Brand Equity
OF
MEASURING BRAND
EQUITY
Introduction
Marketers need to construct detailed
mental maps of consumers.
This is to understand what exists in
their minds concerning brands Thoughts
Feelings
Perceptions
Images
Beliefs
Attitudes
Introduction
As a result, many large companies
conduct exhaustive research studies
to learn as much as possible about
consumers.
It is very important for the Brand
Manager to understand what
customers Know, Think and Feel
about various brands.
It involves measuring sources of
Customer Based Brand Equity.
This involves measuring
Quantitative Techniques
Comparative Methods
Qualitative Research
Techniques
Qualitative Research Techniques are
relatively unstructured measurement
approaches whereby a range of
possible consumer responses is
permitted.
Qualitative Research
Techniques
The various qualitative research
Techniques are:
1. Free Association
2. Projective Techniques
3. Experimental Methods
Qualitative Research
Techniques
1. Free Association
Qualitative Research
Techniques
Free association
What do you like best about the brand?
What are its positive aspects?
What do you dislike? What are its
disadvantages?
What do you find unique about the
brand? How is it different from other
brands? In what ways is it the same?
9.8
Qualitative Research
Techniques
Free association
To elicit more structure and guidance, consumers
can be asked further follow-up
questions about what the brand means to them in
terms of the classic journalism who, what,
when, where, why, and how questions:
1. Who uses the brand? What kind of person?
2. What types of situations do they use the
brand?
3. When and where do they use the brand?
4. Why do people use the brand? What do they
get out of using it?
9.9
Free Associations
ATTRIBUTES
User Imagery
Usage Imagery
Western, American,
Appropriate for outdoor
blue collar, hard-working,
Blue denim, shrink-to-fittraditional, strong, work and casual social
situations
rugged, and masculine
cotton fabric, button-fly,
two-horse patch,
Brand Personality
and small red pocket tag
Product-Related
LEVIS
501
High quality, long lasting,
and durable
Functional
Comfortable fitting
and relaxing to wear
Honest, classic,
Contemporary, approachable,
independent, and universal
Feelings of self-confidence
and self-assurance
Symbolic
Experiential
BENEFITS
9.10
Qualitative Research
Techniques
2. Projective Techniques
Qualitative Research
Techniques
2. Projective Techniques
9.13
ZMET
Story telling
Missed images
Sorting task
Construct elicitation
The most representative picture
Opposite images
Sensory images
Mental map
Summary image
Vignette
9.14
9.15
Jennifer Aaker, 1997
KERRY
Coffee
Dunkin Donuts
Starbucks
Technology IBM
Apple
Auto
Ford
BMW
Retail Kmart
Target
Fast Food McDonalds
Subway
Qualitative Research
Techniques
3. Experimental Methods
Experiential Methods
Quantitative Research
Techniques
Awareness
Image
Brand responses
Brand relationships
9.20
Awareness
Recognition
Recall
Ability of consumers to retrieve the
actual brand elements from memory
Unaided vs. aided recall
9.21
Awareness
Strategic implications
Image
9.23
Brand Responses
9.24
Brand Relationships
Behavioral loyalty
Brand substitutability
Other brand resonance dimensions
9.25
Quantitative Research
Techniques
Quantitative research typically
employs various types of scale
questions so that numerical
representations and summaries can
be made.
Quantitative Research
Techniques
The Quantitative Techniques
involves the measurement of the
following:
1. Brand Awareness
2. Brand Image
Quantitative Research
Techniques
1. Brand Awareness
Quantitative Research
Techniques
1. Brand Awareness
Brand Recall: Brand recall relates to
the consumers ability to identify the
brand under a variety if circumstances..
With brand recall, consumers must
retrieve the actual brand element from
memory with some relative probe or
cue.
Measures of Brand Recall:
a. Unaided Recall
b. Aided Recall
Quantitative Research
Techniques
1. Brand Awareness
Brand Recall: Brand Recall can provide
some insight into category structure and
brand positioning in consumers mind.
The category structure that exists in
consumers minds- as reflected by brand
recall performance- can have profound
implications for consumers choice
and ,marketing strategy.
Quantitative Research
Techniques
2. Brand Image
. Strong, favourable and unique
associations provide the foundation for
customer-based brand equity.
. It is important to measure the lower-level
considerations related to consumer
perceptions of specific performances and
imagery attributes relative to a brand.
Quantitative Research
Techniques
2. Brand Image
. Beliefs: these are descriptive thoughts
that a person holds about something.
. The qualitative research approaches
described previously are useful in
understanding the different types of
specific brand associations making the
brand image.
. The belief associations have to be
measured on the basis of strength,
favorability and uniqueness to
Quantitative Research
Techniques
Multidimensional Scaling (MDS):
It is a procedure to determine the
perceived relative images of a set of
objects, such as products or brands.
MDS transforms consumer judgments of
similarity or preference into distances
represented in perceptual space.
Respondents can base their similarity
between brands on any basis- tangible
or intangible.
Quantitative Research
Techniques
Brand Response
The purpose of measuring the higher
level considerations is to find out how
consumers combine all of the specific,
lower-level considerations about the
brand in their minds to form different
types of brand responses and
evaluations.
Purchase Intentions: Another measure
related to brand attitudes and
considerations is Purchase Intentions.
Quantitative Research
Techniques
Brand Relationships:
It can be characterized in terms of brand
resonance and offered possible
measures or each of the four key
dimensions:
Behavioral Loyalty
Attitudinal Attachment
Sense of Community
Active Engagement.
Behavioral Loyalty
Brand Substitutability
Comparative Methods
Comparative Methods
There are two types of comparative
methods:
Brand-based comparative approaches
Comparative Methods
Brand-based comparative
approaches:
Consumers may interpret the marketing
activity of a product with a general
product category knowledge.
It is very important to examine how the
consumers evaluate a proposed new
campaign.
Brand-based comparative approaches
help in understanding the brand
purchase or consumption research for a
new or existing products, as long as the
Comparative Methods
Marketing-based Comparative
Approaches:
Marketing-based comparative
approaches hold the brand fixed and
examine consumer response based on
changes in the marketing program.
It can be applied in other ways by
assessing consumer response to
different;
Comparative Methods
Marketing-based Comparative
Approaches:
This is further sub divided into 2
methods:
Conjoint Analysis
Holistic Methods
Comparative Methods
Marketing-based Comparative
Approaches:
Conjoint Analysis:
It is a survey based multivariate technique
that enables to profile the consumer
decision process.
Consumer preferences to specifically
designed product profiles are obtained.
The profiles are made up of set of attributes
as statistically derived by the conjoint
formula, called part value.
Comparative Methods
Marketing-based Comparative
Approaches:
Holistic Methods:
It places an overall value on the brand.
It attempts to net out various
considerations to determine the unique
contribution of the brand.
Residual Approach- it examines the brand
value by subtracting consumers brand
preference (based on physical attributes)
from their overall brand preferences.
Valuation Approach- places a financial
value on the brand equity for accounting