5.2 Brand equity measurement models

Brand equity measurement models help companies assess and improve their brand's value. These tools, like Keller's CBBE and Aaker's Brand Equity Ten, provide frameworks to evaluate brand awareness, loyalty, and market performance.

By applying these models, businesses can identify strengths and weaknesses in their brand strategy. This allows them to make data-driven decisions, enhance customer relationships, and ultimately increase their brand's worth in the marketplace.

Brand Equity Measurement Models

Brand equity measurement models

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• Keller's Brand Equity Model (CBBE) focuses on brand knowledge and how it drives differential effects in the minds of consumers utilizes a hierarchical approach with six brand building blocks (salience, performance, imagery, judgments, feelings, resonance) to assess brand equity and develop strategies for improvement
• Aaker's Brand Equity Ten measures brand equity through ten dimensions across five categories including loyalty measures (price premium, satisfaction/loyalty), perceived quality/leadership measures (perceived quality, leadership/popularity), associations/differentiation measures (perceived value, brand personality, organizational associations), awareness measures (brand awareness), and market behavior measures (market share, price and distribution indices) to provide a comprehensive view of brand performance
• BrandZ Model by Millward Brown employs a hierarchical model with five levels of brand dynamics (presence, relevance, performance, advantage, bonding) emphasizing the importance of brand relationships and consumer bonding in building strong brand equity and loyalty over time
• Brand Asset Valuator (BAV) by Young & Rubicam measures brand equity across four key dimensions (differentiation, relevance, esteem, knowledge) to provide insights into a brand's current strength and future potential for growth and success in the market

Application of Keller's Brand Equity Model

• Keller's Brand Equity Model (CBBE) is a hierarchical approach with six brand building blocks that can be used to assess a brand's equity
  1. Salience measures brand awareness and recall among target consumers (Nike's "Just Do It" slogan)
  2. Performance evaluates how well the product/service meets customers' functional needs (Tide's superior cleaning power)
  3. Imagery assesses the extrinsic properties of the product/service, including user profiles and purchase/usage situations (Harley-Davidson's rebellious image)
  4. Judgments focuses on customers' personal opinions and evaluations of the brand (Patagonia's commitment to sustainability)
  5. Feelings captures customers' emotional responses and reactions to the brand (Coca-Cola's association with happiness and joy)
  6. Resonance measures the level of synchronization between the customer and the brand (Apple's loyal fan base)
• To assess a brand's equity using CBBE:
  1. Evaluate the brand's performance across each of the six building blocks to identify strengths and weaknesses (Starbucks' strong brand salience and resonance)
  2. Develop strategies to address weaknesses and leverage strengths for improved brand equity (McDonald's focusing on healthier menu options to address performance concerns)
  3. Monitor progress over time to ensure the brand is building equity effectively and adjust strategies as needed (Amazon regularly tracking customer satisfaction and loyalty)

Effectiveness of Aaker's Brand Equity Ten

• Aaker's Brand Equity Ten provides a comprehensive approach to measuring brand equity by covering both perceptual and market-based measures across five categories and ten dimensions
  • Loyalty measures assess price premium and customer satisfaction/loyalty (Apple's premium pricing and loyal customer base)
  • Perceived quality/leadership measures evaluate perceived quality and leadership/popularity (Mercedes-Benz's reputation for high-quality vehicles)
  • Associations/differentiation measures gauge perceived value, brand personality, and organizational associations (Patagonia's eco-friendly brand personality)
  • Awareness measures determine brand awareness among target consumers (Coca-Cola's near-universal brand recognition)
  • Market behavior measures track market share, price, and distribution indices (Nike's dominant market share in athletic footwear)
• Strengths of Aaker's Brand Equity Ten include its well-rounded view of brand performance and ability to benchmark against competitors, while weaknesses involve the time and resources required to collect data across all dimensions and the need for careful interpretation and analysis to derive actionable insights (Procter & Gamble using Brand Equity Ten to compare Tide's performance against competitors)

Interpretation of brand equity results

• Identify strengths and weaknesses in brand equity dimensions to leverage strengths for differentiation and competitive advantage (Airbnb's strong brand personality and perceived value) and address weaknesses through targeted marketing initiatives and product improvements (McDonald's introducing healthier menu options to improve perceived quality)
• Benchmark brand performance against competitors to identify areas of outperformance or underperformance (Tesla's leadership in electric vehicles compared to traditional automakers) and develop strategies to close performance gaps and maintain a competitive edge (Pepsi investing in product innovation to compete with Coca-Cola)
• Track brand equity over time to monitor changes in brand equity dimensions (Apple's consistent brand strength over the years), assess the impact of marketing initiatives (Old Spice's successful "The Man Your Man Could Smell Like" campaign), and adjust strategies as needed to ensure continued brand growth and success (Lego adapting to changing consumer preferences and embracing digital experiences)
• Use brand equity insights to inform key strategic decisions such as brand positioning and value proposition (Dove's "Real Beauty" campaign), marketing mix elements (product, price, place, promotion) (Nike's premium pricing and innovative product designs), resource allocation and investment priorities (Coca-Cola's focus on global marketing initiatives), and brand extension and portfolio management (Virgin's successful brand extensions across multiple industries)