Chapter 2: Customer Based Brand Equity (Questions with complete answers)

Overview Slide> Framework For Building & Managing a Strong Brand correct answers 1. Brand Positioning Model - competitive advantage in the minds of the consumers 2. Brand Resonance Model - how to take this advantage and create intense loyalty relationships with customers & brands 3. Brand Value Chain Model - tracing the value creation process to better understand ROMI 2.1 Positioning correct answers Defining ideal brand knowledge and establishing POP and POD for the right brand identity. Unique, meaningful POD=competitive advantage and "reason to buy" POP, can negate competitors' POD and = "no reason why not" 2.2. Customer Based Brand Equity - Definition correct answers Definition: CBBE is the differential effect that brand knowledge has on a customers response to their marketing and product. Customer's knowledge is a result of what consumers have heard, felt, seen and learned about the brand. Note: If there is no brand equity, the product can be classified as commodity or generic version of the product. Competition would then just be based on PRICE. 2.3. Customer Based Brand Equity - Positive correct answers POSITIVE CBBE: consumer reacts more favorable once the brand is identified. Pro: acceptance of new brand extensions, less sensitive to price increase or withdrawal of ad support and more willing to seek brand in new channels. Marketing success can hang on how CBBE. It can be used to focus and guide marketing activity and offers means of interpreting past marketing performance and designing future marketing programs. Example: Evian's Superloyals. 2.3. Customer Based Brand Equity - Negative correct answers NEGATIVE CBBE: Consumers react less favourably to marketing activity compared with unnamed version of the product. 2.4. Customer Based Brand Equity - 3 Key Ingredients correct answers 1. Differential Effect 2. Brand Knowledge 3. Consumer Response to Marketing "Ultimately what resides in the minds & hearts of the consumer" 2.5. Customer Based Brand Equity - Examples correct answers In blind taste testing, with two groups, where one knows the brand the other doesn't; Inevitably this will turn out with two different results although they sampling the same product, this is brand equity.