M A D S M A D L A D | 23
Week 2 (Lecture 3 & Lecture 4)
Lecture 3 – What is a brand & why does it matter?
Brand: Company Perspective
A brand is:
➔ source of reputation, credibility and power
➔ attracts consumers in a unique way
➔ provides sustainable profit
➔ intangible asset
Brand Equity: derives Customer lifetime value (CLV) and predicts
customer acquisition, retention and loyalty.
Dynamic relationship:
, M A D S M A D L A D | 24
Brand: Consumer Perspective
A brand can be perceived emotionally, symbolically and irrationally
by consumers.
➔ Factors driving symbolic & emotion -based decisions:
o Self-concept, goals, feelings & thoughts
o Self-signaling motives: signaling ideal self -images
(competent, intelligent, moral…)
o Distinguish ourselves (e.g., belonging to a certain social
class, group, community…)
➔ Relational view of self-brand connection (Aaker & Fournier)
o Brands are treated as entities with personality
o Consumers establish relationships with brands
o Overall consumers perceive brands as living entities, that
bring meaning to their life.
➔ Customer-based Brand Equity: differential effect of brand
knowledge on consumer response to the marketing of the
brand.
o A brand has positive CBBE when consumers react more
favorably to an element of the marketing mix for the
Week 2 (Lecture 3 & Lecture 4)
Lecture 3 – What is a brand & why does it matter?
Brand: Company Perspective
A brand is:
➔ source of reputation, credibility and power
➔ attracts consumers in a unique way
➔ provides sustainable profit
➔ intangible asset
Brand Equity: derives Customer lifetime value (CLV) and predicts
customer acquisition, retention and loyalty.
Dynamic relationship:
, M A D S M A D L A D | 24
Brand: Consumer Perspective
A brand can be perceived emotionally, symbolically and irrationally
by consumers.
➔ Factors driving symbolic & emotion -based decisions:
o Self-concept, goals, feelings & thoughts
o Self-signaling motives: signaling ideal self -images
(competent, intelligent, moral…)
o Distinguish ourselves (e.g., belonging to a certain social
class, group, community…)
➔ Relational view of self-brand connection (Aaker & Fournier)
o Brands are treated as entities with personality
o Consumers establish relationships with brands
o Overall consumers perceive brands as living entities, that
bring meaning to their life.
➔ Customer-based Brand Equity: differential effect of brand
knowledge on consumer response to the marketing of the
brand.
o A brand has positive CBBE when consumers react more
favorably to an element of the marketing mix for the
