Chapter 2 Brand Equity 2024

Chapter 2
Brand Equity
Content
2.1 Overview of brand equity
2.2 Dimensions of brand equity
2.3 Measuring brand equity

2.1 Overview of brand equity
2.1.1 Defining Brand Equity
Brand equity is the added Brand equity are a Brand equity is defined as
value endowed on collection of intangible a set of elements such as
products and services that assets associated with the brand associations,
brand provides for name and symbol of a market fundamentals and
customers and brand, contributing to marketing assets that
stakeholders such as either increase or help distinguish one
employees, shareholders, decrease the value of a brand from another.
community… product or service. Tiwari (2010)
(Bùi Văn Quang, 2023) (David Aaker, 2000)
Separation of “brand value” and “brand equity”
Criteria Brand value Brand equity
Definition Brand value is the net present value of future cash Brand equity is a set of perceptions, knowledge
flows from a branded product minus the net and behaviour on the part of customers
present value of future cash flows from a similar that creates demand and/or a premium price
unbranded product. for a branded product.
.
Scope The value of every asset, whether tangible or Elements such as the brand associations,
intangible market fundamentals and marketing
assets
Measurement brand value can be measured in financial terms, more subjective and is based on consumer
providing a clearer picture of the brand's worth in perceptions and experiences, making it difficult
monetary terms to quantify objectively
Ownership specific to a particular owner and reflects a specific to each consumer and reflects their
Perspective company-based perspective individual perceptions and experiences with the
brand
Source: Tiwari (2010). Separation of Brand Equity and Brand Value. Global Business Review, 11(3),
421–434. doi:10.1177/097215091001100307
2.1.2 The Role of Brand Equity
1 Customer Loyalty
Strong brand equity can influence customer loyalty, as
customers are more likely to choose a familiar and trusted
brand.
2 Competitive Advantage
Brand equity can provide a company with a competitive
advantage, as it can help differentiate the brand and
command a premium price.
3 Customer Relationships
Effective brand management can help a company build
and maintain strong customer relationships, which can
lead to repeat business and positive word-of-mouth.
Aaker’s model: Customer-

Based brand equity (CBBE)
Source: Aaker, D. A. (1992). The Value of Brand

Equity. Journal of Business Strategy, 13(4), 27–
32. doi:10.1108/eb039503
2.2 Dimensions of Brand Equity
Brand Associations
Brand Awareness Perceived Quality
Brand awareness refers to the Perceived quality is the customer's Brand associations, or brand
ability of potential customers to judgment about a product's overall image, include anything linked in
recognize or recall a brand as a excellence or superiority, which customers' memory to a brand,
member of a particular product can provide value by differentiating such as product attributes,
category. the brand and supporting a higher customer benefits, and brand
price. personality.
1 3
2
Brand Brand
recognition recall
2.2 Dimensions of Brand Equity (cont.)
Brand Loyalty Other Brand Assets
Other brand assets, such as patents, trademarks,
Brand loyalty generates value by reducing
and channel relationships, can provide strong
marketing costs, leveraging trade, and
competitive advantages and help protect brand
discouraging competitors from spending resources
equity from competitors.
to attract satisfied and loyal customers.
4 5
Keller's Brand Equity Model
Brand Salience Brand Performance Brand Imagery

Keller's model emphasizes the Brand performance focuses on Brand imagery refers to the
importance of brand salience, the ability of the brand to meet extrinsic properties of the
which refers to the awareness customers' functional needs, product or service, including
and recognition of a brand in including product features, the ways in which the brand
the minds of consumers. reliability, and service. attempts to meet customers'
psychological or social needs.
Keller's Brand Equity Model (cont.)
Brand Judgments
Brand judgments focus on customers' personal opinions and
evaluations of the brand, including its quality, credibility,
consideration, and superiority.
Brand Feelings
Brand feelings refer to the emotional responses and reactions
that customers have towards the brand, which can be both
positive and negative.
Brand Resonance
Brand resonance is the ultimate relationship and level of
identification that customers have with a brand, reflecting their
loyalty and engagement.
2.3 Measuring brand equity
Definition
A brand equity measurement system is
defined as a set of research procedures
designed to provide timely, accurate,
and actionable information for
marketers regarding brands so that they
can make the best possible tactical
decisions in the short run as well as
strategic decisions in the long run.
Brand Tracking Studies
Measure “where the brand is now” and whether marketing
programs are having their intended effects
1 Brand Awareness & Usage

Measures consumer awareness and consideration
of brands.
2 Brand Imagery
Assesses brand associations and perceptions.
3 Brand Feelings
Evaluates emotional connections with the brand.
Brand Tracking Studies
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Chapter 2

2.1 Overview of brand equity

2.2 Dimensions of brand equity

2.3 Measuring brand equity

2.1.1 Defining Brand Equity

Aaker’s model: Customer-

Source: Aaker, D. A. (1992). The Value of Brand

Brand Salience Brand Performance Brand Imagery

1 Brand Awareness & Usage

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