Customer-based Brand

Equity (CBBE)
Measuring the value of your brand in the eyes of consumers
Customer-Based Brand Equity
• A model that approaches brand equity from the perspective of the
consumer
• The power of a brand lies in what resides in the minds of the
customers
• The differential effect that brand knowledge has on consumer
response to the marketing of that brand
The Four Steps of Brand Building
1. Ensure identification of the brand with customers and an
association of the brand in customers’ minds with a specific product
class or need (Brand Identity)
2. Firmly establish the totality of brand meaning in the minds of
customers by strategically linking a host of tangible and intangible
brand associations with certain properties (Brand Meaning)
The Four Steps of Brand Building
3. Elicit the proper customer responses to this brand identification
and brand meaning (Brand Responses)
4. Convert brand response to create an intense, active loyalty
relationship between customers and the brand (Brand
Relationships)
The CBBE Model
CUSTOMER-BASED BRAND EQUITY (CBBE MODEL)
The CBBE Model
• Brand Salience measures awareness of the brand
• Brand Performance describes how well the product or service meets
customers’ more functional needs (i.e. to what extent does the brand
satisfy utilitarian, aesthetic, and economic customer needs and wants
in the category)
• Brand Imagery is the way people think about a brand abstractly
The CBBE Model
• Brand Judgments are customers’ personal opinions about and
evaluations of brands
• Brand Feelings are customers’ emotional responses and reactions to
the brand
• Brand Resonance describes the nature of the relationship the brand
has with the customer (if they are in sync)
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Remember:

• A highly salient brand has both depth and breadth of awareness such
that customers always make sufficient purchases as well as always
think of the brand across a variety of settings in which it could
possibly be employed or consumed.
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Definition of Terms

• Reliability measures the consistency of performance over time and from purchase
to purchase.
• Durability is the expected economic life of the product.
• Serviceability is the ease of repairing a product if needed (speed, accuracy, care of
product delivery and installation, promptness, courtesy, and helpfulness of
customer service and training, the quality of repair service and time involved.
• Service Effectiveness measures how well the brand satisfies the customers.
• Service Efficiency describes the speed and responsiveness of service.
• Service Empathy is the extent to which service providers are seen as trusting,
caring and having the customer’s interest in mind.
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Brand Imagery

• Brand imagery depends on the extrinsic properties of the product or

service, including the ways in which the brand attempts to meet
customer’s psychological or social needs.

• It is a way consumers think about a brand abstractly rather than what

it really is.
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Brand Judgment

• Brand judgments are customers’ personal opinions about and evaluations

of the brand, which consumers form by putting together all the different
brand performance and imagery.

• Perceived brand quality

• Perceived brand credibility
• Perceived brand consideration
• Perceived brand superiority.
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Definition of Terms

• Brand credibility describes the extent to which customers see the

brand as credible in terms of three dimensions:
1. Competent, innovative and market leader (brand expertise)
2. Dependable and keeping customer interest in mind (brand
trustworthiness)
3. Fun, interesting and worth spending time with (brand likability)
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Brand Feelings

• Brand feelings are customers’ emotional responses and reactions to the

brand.

• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Brand Resonance

• Dimensions of brand resonance:

• Behavioral loyalty in terms of repeat purchase and “share of category
requirement”
• Attitudinal attachment in terms of positive attitudes of customers toward
the brand.
• Sense of community or the feeling of kinship of one customers to other
users of the brand.
• Active engagement or customer’s willingness to invest time, energy, money
beyond the purchase of the brand, e.g. joining a club specifically for the
brand.
CUSTOMER-BASED BRAND EQUITY (CBBE
MODEL)
• Remember:

• Brand resonance is achieved when customer lifetime value (CLV) is

created.

• CLV is the sum of the lifetime values of all customers.

• Positive CLV is achieved with a well planned and executed customer

relationship management (CRM)
CUSTOMER-BASED BRAND EQUITY (CBBE MODEL)
Cases in Point
• The value of Starbucks brand using the CBBE model
https://prezi.com/q14br9on8ctc/brand-equity-study-of-starbucks/
• Apple’s declining brand equity?
http://www.forbes.com/sites/darcytravlos/2013/01/19/is-apple-
losing-its-brand-equity/#786d682b2641
Assessment
Using the CBBE model, conduct a survey to determine brand equity of
any of the following brands: Nike, Jansport, DLSUD. You may refer to
the sample survey of MacDonald’s as your guide.
• “Top brands have charisma” - Hermawan Kartajaya, President of
World Marketing Association
• “A charismatic brand does not only provide emotional, intellectual or
even functional value. It provides the spiritual values that become
the basis for the formation of a spiritual bond between that brand
and its customers.”
• Religion is not the issue. A brand to be spiritual must manage to
develop integrity, honesty, and decency. It is a scandal-free brand.
Corporate governance and business ethics must be its basic
foundations.
“A good product is not enough to provide competitive advantage. Only
brands can tap into the emotional needs of consumers and create a
bond with them."
Jamie Lord