Course: MBA III SEM

Subject: Brand Management (Marketing Specialization)

Subject code: MBM302
Unit: 3
Faculty name: Ms. Surbhi Chauhan

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Topics covered:
Brand Equity: Developing a Brand Equity Measurement System,
Measuring Sources of Brand Equity: Capturing Customer Mind-Set.
Measuring Outcomes of Brand Equity: Capturing Market Performance.
Indirect and Direct Measures of Brand Equity: Qualitative, Exploratory
Research Quantitative, Experimental Approaches to Measure Brand
Equity.
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Brand Equity Measurement System

A system design to effectively measure source and outcome of branding strategies there
by providing a set of information, which can be delivered to concern decision makers to
act on, is called a brand equity measurement system.
Developing a Brand Equity Measurement and Management System :
Marketers have various tools at their part to build a strong consumer based brand
equity. Through this tool, they have developed many strategically important marketing
communication programs. It is important for survival of brand to understand these
marketing

programmes and implement these effectively. If these programs have been

able to induce a positive image and increased brand knowledge among consumer then, it
can be concluded that strategy employed is successful. A deliberate effort has to be
carried out to measure success of marketing communication programs. This deliberate
effort should be in direction of effective and efficient measurement system and also ways
to manage these systems.
Why Measure Brand Equity?

Measuring brand equity allows a company to establish a baseline and track changes

in its brand equity over time.

A company can better understand and therefore determine if equity in a given brand

can be leveraged or transferred to an entirely new product or service category.

A company may want to measure its brand equity to aid in assigning a monetary

value to a brand.

Although there is a broad consensus among marketers for need to measure brand equity,
but not many of them are aware among them know how to make full use of it.
The whole process starting from finalizing of marketing program to end result in form of
financial cash flow is evaluate through the brand value chain. It basically sets out chart of
build up to brand equity. First value step is to set up marketing investment where the
current brand equity is analyzed and program designed.
It is always good to conduct an audit of whatever process developed to track
efficiency and measure proper utilization of investor money. This can be done with
respect to product brand, usually in form of survey after any purchase. This is tracking
for brand awareness, brand image, brand performance and brand appeal with respect to
consumer. Next it tracks overall feeling associated with brand purchase and specific
attributes which has created an impression. Another form of tracking is corporate brand
tracking a sort of umbrella tracking where you track everyone in the family. This sort of
tracking tries to understand tracking in co-relation between individual brand and
consumer perception of the company.
These are the basic steps to developing a Brand Equity Measurement and
Management System:
1. Clarify Brand Equity Perspective :
Brand equity can be viewed from several different perspectives. It is an important
aspect i.e. How much more will a consumer pay for a product or service that is
branded over a product or service that is generic. A softer perspective is that of
brand extension where consideration is given to the value that a brand lends to
the introduction of other products, or considers the reverse dynamic of the impact
of a new product or service on the existing brand., or considers the reverse
dynamic of the impact of a new product or service on the existing brand.

2. Determine Brand Equity Research Goals

Brand equity market research can be seen as these three stages: Tracking,
exploring change, and extending brand power. Market research that focuses on
tracking makes comparison among competitive brands or products against a
benchmark. While exploring change is the research goal, in this customer brand
attitude is tapped regarding branding decisions that might result in repositioning
or renaming products or services. A deeper examination of extending brand
power is carried out when substantive additions to a brand are considered.
3. Understand Customer Brand Attitude
A customer-based perspective in the measurement of brand equity focuses on the
experiences that consumers have with a brand. The stronger the brand, the
stronger the customer's attitude toward the products or services associated with
the brand. When customers use a product or service, they experience overall
brand quality and tend to infer certain brand attributes. If these experience
measures are positive than customer want to repurchase the brand and thus brand
loyalty can be maintained.

4. Identify Brand Equity Components to Measure

Brand awareness, brand reach, and brand image association, these are some basic
measures of brand equity to evaluate. Brand awareness is an indicator of how
branding efforts spotlight a product or service. Brand reach indicates how far
and wide that spotlight shines and brand image association reveals what the
brand promises and what it stands for in the eyes of consumers.

5. Qualitative and Quantitative Approaches to Brand Equity Data

Brand equity measurement will include both qualitative and quantitative approaches.
Qualitative and quantitative research techniques are design to understand the
source of brand equity from consumers perspective. Qualitative techniques are
used to research and analyze brand association consumer has towards the brand, using
techniques like free association, story-telling, etc.; it can bring out true feelings. On
another hand quantitative research techniques are used to understand brand awareness
in respect to recognition and recall and also through scaling precise measurement for
source.
Basic approaches to develop brand equity measurement system:
1. The brand value chain:
It is a structured approach to assessing the sources and outcomes of brand equity and the
manner in which marketing activities create brand value. The brand value chain is based
on several basic premises.
The brand value creation process begins when the firm invests in a marketing program
targeting actual or potential customers. Any marketing program that can be attributed to
brand value development, either intentional or not, comes into this category such as
product research development, and design; trade or intermediary support; and marketing
communications. The value stages are:

Customer mind set

Market performance
Shareholder value
Product value
Market place conditions

2. Brand equity charter:

Provides general guidelines to marketing managers within the company as

well as key marketing partners outside the company

Should be updated annually

Brand equity charter components:

Define the firms view of the brand equity

Describe the scope of the key brands
Specify actual and desired equity for the brand
Explain how brand equity is measured
Suggest how brand equity should be measured
Outline how marketing programs should be devised
Specify the proper treatment for the brand in terms of trademark usage,
packaging, and communication

3. Brand equity report :

Assembles the results of the tracking survey and other relevant performance
measures
To be developed monthly, quarterly, or annually
Provides descriptive information as to what is happening with the brand as well as
diagnostic information on why it is happening

4. Brand equity responsibilities :

Organizational responsibilities and processes that aim to maximize long-term

brand equity
Establish position of VP or Director of Equity Management to oversee
implementation of Brand Equity Charter and Reports
Ensure that, as much as possible, marketing of the brand is done in a way that
reflects the spirit of the charter and the substance of the report

Measuring sources of brand equity: Capturing customer mind set

For any marketers, it is of supreme importance to understand a consumer mind and also
current level of brand knowledge among consumers because this understanding lays
foundation for formulation of marketing communication strategies. Hypothetically,
marketers should be able to construct such mind print; but as this knowledge resides in
consumer mind, task become difficult. Marketers should be able to measure how much
marketing programs have succeeded in changing customer buying habits. The solution is
to develop techniques, which can convert emotional data into qualitative and quantitative
data for analysis. A particular attention is required to design measurement system for
source of brand equity.
One of the primary measurement system is capturing the response of
customer with the help of basic questionnaire format, where in, they are
asked to express feeling with regards to particular feature of brand and overall
experience in using a service.
Another qualitative research technique looks to capture consumer behavior in
understanding the purchase decision. Here questions are asked, to understand how
the consumer came to purchase decision, what factors they consider, is there a
particular time of the year do they make this purchase, etc.

With the help of brand association by asking open end questions, like what first
comes to your mind when the brand name is mentioned. Here response from
consumer can be a good indicator of individual emotional connection with the
brand. Marketer should consider in deploying this free association technique is
question design, that is they should start from overall brand image and then
moving on to questions with precise reference. Another consequential point to
remember here is related with coding of information, as questions are moving
from general to very exact.
Capturing customer mind set:
It concludes everything that exists in the mind of the customer i.e. Thoughts, feelings,
experience, image, belief, and attitude. From the following methods a marketer can
capture and understand the customer mind:
1. Free Association
This qualitative technique simply involves asking participants what comes to mind when
they think of the brand. Additional probing questions, like those below, are helpful in
gaining deeper understanding.
o

What do you like best?

What do you dislike?

Is there anything unique about the brand?

Who do you think uses the brand?

When and where is the brand used?

Why is the brand used?

How is the brand used?

Advantages: It is Simple and Powerful method of research.

Technique: use the information to form a rough mental map for the brand,
Gives idea of the strength, favourability and uniqueness of associations.
8

E.g. what does Nokia mean to you?

What comes to mind when thinking of the particular brand?

2. Projective Techniques
In some specific circumstances consumers may not wish to offer their true opinions and
feelings about a brand. Other times, participants may feel obligated to provide
expected responses. In these situations, projective techniques can help uncover true
participant opinions and feelings about a brand. Generally, projective techniques present
participants with vague information and then ask them to help make sense of it. During
this process, participants often disclose their true thoughts and opinions.
Advantages: This is helpful to uncover the true opinions and feelings of the consumers
Disadvantages of Projective Techniques:
1. Highly trained interviewers and skilled interpreters are needed.
2. Interpreters bias can be there.
3. It is a costly method.
The respondent selected may not be representative of the entire population
Technique: Subjects are presented with an incomplete stimulus and ask them to complete
it or they give consumers an ambiguous stimulus and ask them to make sense of it.
E.g. Ink blot tests, completion and interpretation tasks, comparison tasks
Important Projective Techniques
1. Word Association Test.
2. Completion Test.
3. Construction Techniques
9

4. Expression Techniques
1. Word Association Test:
An individual is given a clue or hint and asked to respond to the first thing that
comes to mind. The association can take the shape of a picture or a word. There
can be many interpretations of the same thing. A list of words is given and you
dont know in which word they are most interested. The interviewer records the
responses which reveal the inner feeling of the respondents. The frequency with
which any word is given a response and the amount of time that elapses before the
response is given are important for the researcher. For eg : Out of 50 respondents
20 people associate the word Fair with Complexion.
2. Completion Test:
In this the respondents are asked to complete an incomplete sentence or story. The
completion will reflect their attitude and state of mind.
3. Construction Test:
This is more or less like completion test. They can give you a picture and you are
asked to write a story about it. The initial structure is limited and not detailed like
the completion test. For eg: 2 cartoons are given and a dialogue is to written.
4. Expression Techniques: In this the people are asked to express the feeling or
attitude of other people.

10

3. Zaltman Metaphor Elicitation Technique:

Technique:
In this technique, Subjects are asked to think in advance about the research topic and to
select a minimum of 12 images from their own sources that represent their thoughts and
feelings about the research topic. These images are brought with them for a one on one
two hour interview with an administrator who uses advanced interview techniques to
explore the images with the subject and reveal hidden meanings through guided
conversation. Subjects then use a computer program to create a collage with the images
that communicate their subconscious thoughts and feelings about the topic. Researchers
compile the findings in an interactive multimedia computer application. After the
interviews key themes or constructs are identified, the data is coded and a consensus map
of the most important constructs is assembled.

Advantages:
This is helpful in uncovering the subconscious motives for purchasing behaviour
4 . Brand Personality
Brand personality involves having participants assign human characteristics or traits to a
brand. This can be accomplished by numerous methods, but the simplest is to ask openended questions like:o

If the brand was a person, what would it be like?

What would it do?

What would it wear?

11

Information collected from brand personality techniques can be used to build a brand
profile or persona.
Brand personality and values
Brand personality is the human characteristics or traits that consumers can attribute to a
brand.
Advantages: The Big Five technique can assess brand personality more definitively
Technique: Soliciting open ended responses to a probe eg. If a brand was a person what
would it be like, what would it do, where would it live, what would it wear, who would it
talk to if it went to a party? Another method involves marketers giving consumers a
variety of pictures and ask them to assemble a profile of the brand.
5. Experimental methods :
In this researcher focus on the natural environment of the consumers, by tapping more
directly in to their actual home , work or shopping behaviors . These methods provide the
effectiveness to the qualitative programmes as the researcher might be able to elicit more
meaningful response from the consumers.
Advantages: To identify how people communicate and interact in real life situations.
Technique: Researchers are sent into consumers homes to see how subjects approach
their days, they also give business travellers cameras and diaries to capture their feelings
when in hotel rooms and have also conducted beeper studies in which subjects are
instructed to write down what they are doing when they are p

12

6. Brand recognition:
Brand recognition is the consumers' ability to identify the existence of a specific brand.
Simple brand recognition methods involve presenting consumers with

a set items

visually or orally, and then asking if they recognize any of them. Responses can range
from simple yes or no responses to rating questions. Other more indirect methods for
assessing brand recognition include intentionally altering visual brand elements to see
what, if any, impact that may have on brand recognition.

7. Brand Recall
Brand recall refers to how well a brand is connected with a product/service type or class.
There are two primary types of brand recall techniques: unaided and aided. Unaided
recall is consumers' ability to recall brand information without any prompting.
Conversely, aided recall utilizes various oral or visual stimuli designed to help consumers
recall the brand. The stimuli can be very broad or specific depending on the research
objectives. Utilization of any one of these three quantitative brand research techniques
help organizations collect brand intelligence for more successful decision-making.

8. Brand Awareness:
Awareness level measures whether consumers know about and are familiar with a
company, organization, product, or service.

13

9. Brand Image:
Brand Image includes the totality of consumers' opinions about, experiences with, and
attitudes toward a company or organization and their brand as compared with that of
competitors. Market Street Research often measures a company's brand image by asking
consumers, decision-makers, or key markets to rate the company and its competitors on
factors they consider important, such as:
10. Brand recognition:
Brand recognition is the consumers' ability to identify the existence of a specific brand.
Simple brand recognition methods involve presenting consumers with

a set items

visually or orally, and then asking if they recognize any of them. Responses can range
from simple yes or no responses to rating questions.
11. Brand Recall
Brand recall refers to how well a brand is connected with a product/service type or class.
There are two primary types of brand recall techniques: unaided and aided. Unaided
recall is consumers' ability to recall brand information without any prompting.
Conversely, aided recall utilizes various oral or visual stimuli designed to help consumers
recall the brand. The stimuli can be very broad or specific depending on the research
objectives.

14

Measuring Outcomes of Brand Equity: Capturing market performance

Various methods can be identified to examine consumer attitudes and behavior toward a
brand to directly estimate the benefits arising from having a high level of awareness and
favorable associations.

Comparative Approaches-

1. Brand based comparative approaches guide about the changes in an element of

a brand or marketing activity and its impact on the target brand versus
competitors existing or fictitious brand. Two separate set of consumers /
respondents are used for this purpose.

2. Marketing based comparative approaches guides about changes in different

elements of a brand or marketing activity for the target brand or comparative
brands. The testing is done on same set of respondents.

Valuation Approach-

It attempts to place overall value on the brand in financial terms. There are various
methods and measure to determine brand equity across the products.
The basic methods are :

Holistic methods are designed to analyze the total effect of brand equity. These
methods will provide necessary tools to measure outcome of brand equity.
Holistic method is used to determine financial value or definite utility value of the
brand. Holistic method looks to measure consumer brand preference over
consumer brand response. Residual holistic approach measures brand equity after
subtracting physical attributes of the brand. Valuation holistic approach looks to
measure brand equity in financial term which is important during valuation of
whole firm in activities of merger/acquisition, fund raising etc.

15

 Comparative methods tend to analyze effects of consumer perception towards

brand in respect to marketing programs, in terms of change in brand awareness.

Comparative methods are research methods which measure brand equity

associated with brand association and high level of brand awareness.

Comparative methods are again of different types depending on usage of

marketing. Brand based comparative methods looks to measure consumer
response against same marketing program for different brands.

Marketing based comparative method looks to measure consumer response for

same brand under different marketing program.

Conjoint comparative method looks to combine bothbrand based comparative

method and marketing based comparative method. Each method has its
application and drawbacks.

Brand based comparative method, as mentioned, tries to examine consumers

response to identical marketing response to different brand in the same product category.
This could be competitors brand, any non-existing brand or preferred brand in that
category. A classic example of such comparative method is experiment conducted by
Larry Percy; in which consumer were ask to map beer taste and preference. In one first
instance brand name were disclosed whereas on second instance brand name was not
disclosed. Consumer showed more loyalty when brand name was disclosed. Brand based
method really isolated true value of brand name and this concept especially holds true
when there is a change in marketing program from past efforts.

Marketing based method tries to understand consumer response under different

marketing promotions. Here focus is to understand how much influence
marketing program has on brand performance. One such experiment would be to
16

understand consumer response at different price levels; this will reveal level of
tolerance before consumer switch to another brand. Marketing based method
would also be effective in understanding consumer response to similar marketing
program across various geographical locations. The main advantage of marketing
based method is that it can be applicable to any marketing program. However
drawback of this method is that it is difficult to separate whether consumer
preference is towards the brand or product category in general, meaning the price
premium discovered may applicable to other brand in similar product category
also.

Conjoint method allows simultaneously study of brand as well as marketing

program. This method also employs statistical calculation making it possible to
study many attributes or association at one time. Disadvantage of this method is
that too much experimentation will may increase consumer expectation with
respect to the brand.

17

Indirect and Direct Measures of Brand Equity

One such measurement system relies on indirect method, where emotional level
changes in consumer are sorted and recorded.
Other system rather relies on direct measurement method where in consumer
response towards brand in terms of sales etc are measured and analyzed.
Qualitative and quantitative research techniques are design to understand the
source of brand equity from consumers perspective. Qualitative techniques are used
to research and analyze brand association consumer has towards the brand, using
techniques like free association, story-telling, etc.; it can bring out true feelings. On
another hand quantitative research techniques are used to understand brand awareness in
respect to recognition and recall and also through scaling precise measurement for source
of brand equity is done.

Qualitative techniques:
Qualitative techniques are helpful to collect consumer perceptions that may be difficult to
access, and there are a vast number of techniques that can be employed. However, there
are a couple of disadvantages. First, qualitative research collects input from a small
sample size and may not be projectable to broader populations. Second, qualitative
findings are based on researcher interpretations that may be influenced by their level of
experience and expertise. That is why it is critical to work with highly experienced and
skilled qualitative research specialists.

18

There are three common qualitative techniques that can be utilized to identify
sources of brand equity:

1. Free Association
This qualitative technique simply involves asking participants what comes to mind when
they think of the brand. Additional probing questions, like those below, are helpful in
gaining deeper understanding.
o

What do you like best?

What do you dislike?

Is there anything unique about the brand?

Who do you think uses the brand?

When and where is the brand used?

Why is the brand used?

How is the brand used?

Advantages: Simple, Powerful

Technique:
what comes to mind when thinking of the particular brand?
E.g. What does Nokia mean to you?
use the information to form a rough mental map for the brand
gives idea of the strength, favourability and uniqueness of associations

19

2. Projective Techniques
In some specific circumstances consumers may not wish to offer their true opinions and
feelings about a brand. Other times, participants may feel obligated to provide expected
responses. In these situations, projective techniques can help uncover true participant
opinions and feelings about a brand. Generally, projective techniques present participants
with vague information and then ask them to help make sense of it. During this process,
participants often disclose their true thoughts and opinions.
Advantages: Uncovering the true opinions and feelings of the consumers
Disadvantages of Projective Techniques:
4. Highly trained interviewers and skilled interpreters are needed.
5. Interpreters bias can be there.
6. It is a costly method.
The respondent selected may not be representative of the entire population
Technique: Subjects are presented with an incomplete stimulus and ask them to complete
it or they give consumers an ambiguous stimulus and ask them to make sense of it.
E.g. Ink blot tests, completion and interpretation tasks, comparison tasks
Important Projective Techniques
5. Word Association Test.
6. Completion Test.
7. Construction Techniques
8. Expression Techniques
12. Word Association Test: An individual is given a clue or hint and asked to
respond to the first thing that comes to mind. The association can take the shape
of a picture or a word. There can be many interpretations of the same thing. A list
20

of words is given and you dont know in which word they are most interested.
The interviewer records the responses which reveal the inner feeling of the
respondents. The frequency with which any word is given a response and the
amount of time that elapses before the response is given are important for the
researcher. For eg : Out of 50 respondents 20 people associate the word Fair
with Complexion.
13. Completion Test: In this the respondents are asked to complete an incomplete
sentence or story. The completion will reflect their attitude and state of mind.
14. Construction Test: This is more or less like completion test. They can give you a
picture and you are asked to write a story about it. The initial structure is limited
and not detailed like the completion test. For eg: 2 cartoons are given and a
dialogue is to written.
15. Expression Techniques: In this the people are asked to express the feeling or
attitude of other people.

Zaltman Metaphor Elicitation Technique:

Technique:
Subjects are asked to think in advance about the research topic and to select a minimum
of 12 images from their own sources that represent their thoughts and feelings about the
research topic. These images are brought with them for a one on one two hour interview
with an administrator who uses advanced interview techniques to explore the images with
the subject and reveal hidden meanings through guided conversation. Subjects then use
a computer program to create a collage with the images that communicate their
subconscious thoughts and feelings about the topic. Researchers compile the findings in
an interactive multimedia computer application. After the interviews key themes or
constructs are identified, the data is coded and a consensus map of the most important
constructs is assembled.
Advantages:
21

Uncovering the subconscious motives for purchasing behaviour

3. Brand Personality
Brand personality involves having participants assign human characteristics or traits to a
brand. This can be accomplished by numerous methods, but the simplest is to ask openended questions like:o

If the brand was a person, what would it be like?

What would it do?

What would it wear?

Information collected from brand personality techniques can be used to build a brand
profile or persona.
Brand personality and values
Brand personality is the human characteristics or traits that consumers can attribute to a
brand.
Advantages: The Big Five technique can assess brand personality more definitively
Technique: Soliciting open ended responses to a probe eg. If a brand was a person what
would it be like, what would it do, where would it live, what would it wear, who would it
talk to if it went to a party? Another method involves marketers giving consumers a
variety of pictures and ask them to assemble a profile of the brand.
Experimental methods :
In this researcher focus on the natural environment of the consumers, by tapping more
directly in to their actual home , work or shopping behaviors . These methods provide the
effectiveness to the qualitative programmes as the researcher might be able to elicit more
meaningful response from the consumers.
Advantages: To identify how people communicate and interact in real life situations.
22

Technique: Researchers are sent into consumers homes to see how subjects approach
their days, they also give business travellers cameras and diaries to capture their feelings
when in hotel rooms and have also conducted beeper studies in which subjects are
instructed to write down what they are doing when they are p

Quantitative research
Although quantitative measures are useful to identify and characterize the range of
possible associations to a brand, more quantitative portrait of the brand often is also
desirable to permit more confident and defensible strategic and tactical recommendations.
Quantitative research typically rings out some type of verbal responses from consumers,
quantitative research typically employees various types of scale questions so that
numerical representations and summaries can be made.
Quantitative measures are often the primary ingredient tracking studies that
monitor brand knowledge structures of consumers overtime.

Quantitative market research typically includes customer surveys and questionnaires.

These can be conducted face-to-face with a clipboard and pen, over the telephone, via
post or email, online or via your website. Survey questions have to be carefully
considered so that the results will provide meaningful data. So dont just ask if people
know about your business, ask how often they visit, what products they buy and where
else they go to buy the same products and why
What can quantitative research tell you?

Is there a market for your products and services?

What awareness is there of your product or service?

How many people are interested in buying your product or service?

23

What type of people are your best customers?

What are their buying habits?

How are the needs of your target market changing?

Quantitative Research technique

1. Awareness Brand awareness is related to the strength of a brand in memory, as
reflected by consumers ability to identify various brand elements (i.e., the brand name,
logo, symbol, character, packaging, and slogan) under different conditions.
2. Recognition In short recognition processes require that consumers be able to
discriminate a stimulus a word, object, image, etc. as something they have previously
seen. Brand recognition relates to consumers ability to identify the brand under a variety
of circumstances and can involve identification of any of the brand elements.
3. Recall Brand recall relates to consumers ability to identify the brand under a variety
of circumstances. With brand recall, consumers must retrieve the actual brand element
from memory when given some related probe or cue. Thus brand recall is a more
demanding memory task than brand recognition because consumers are not just given a
brand element and asked to identify or discriminate it as one they had or had not already
seen.
4. Image Brand Awareness is an important first step in building brand equity, but
usually not sufficient. For most customers in most situations, other considerations, such
as the meaning or image of the brand, also come into play. One vitally important aspect
of the brand is its image, as reflected by the associations that consumers hold toward the
brand. Brand associations come in many different forms and can be classified along many
different dimensions.

24

References:
http://marketresearch.about.com/od/market.research.advertising/ht/How-To-MeasureBrand-Equity.htm
http://en.wikipedia.org/wiki/Brand_equity
http://www.assignmentpoint.com/business/marketing-business/measuring-outcomes-ofbrand-equity-capturing-market-performance.html
http://www.citeman.com/1742-brand-value-chain.html#ixzz224vXbira

http://brandvision2009.wordpress.com/2009/07/15/measuring-sources-of-brand-equity%E2%80%93-capturing-consumer-mindset/

Book:

Kelvin Lane Keller Strategic Brand Management second edition, Pearson Publication,
Dorling Kindersley Pvt. Ltd

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