Brand equity
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2.1 Definition
Brand equity is defined as the differential effect that brand awareness and brand associations have on consumer response to the marketing of that brand. The marketing includes advertising, distribution, pricing and promotion as well as new products and brand extensions (for a review of concepts and methods, see Keller (2003) Chapter 10 and Agarwal and Rao 1996).
2.2 Methods
Self-reports
Overall brand evaluation (also known as attitude toward the brand):
What do you think of ___?
Unappealing 1 2 3 4 5 6 7 Appealing
Low quality 1 2 3 4 5 6 7 High quality
Unpleasant 1 2 3 4 5 6 7 Pleasant
Purchase intentions: Likelihood of buying the brand or likelihood of switching from the brand to another brand.
I will certainly buy _____ in the next three months
Disagree 1 2 3 4 5 6 7 Agree
Purchase behavior:
I am extremely loyal to ________
Disagree 1 2 3 4 5 6 7 Agree
I buy _________
At every purchase occasion, from time to time, never
(circle most appropriate answer)
Customer satisfaction:
I am fully satisfied with ____
Disagree 1 2 3 4 5 6 7 Agree
Experiments
Blind testing:
Have two groups of consumers make choice decisions, one group with the branded product and the other group with the unbranded product. Alternatively, you may brand the target product with its actual brand or with a competitor's brand and compare the results.
Dollarmetric
- Brand X is priced at __.
- How much extra would you be willing to pay to obtain brand Y?..