measuring brand equity
DESCRIPTION
The presentation is based on the measurement methods of brand equityTRANSCRIPT
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MODULE 5
METHODS OF
MEASURING BRAND EQUITYBY
PARTHA SARATHI CHATTERJEE
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Introduction
• Marketers need to construct detailed “mental maps” of consumers.
• This is to understand what exists in their minds concerning brands-– Thoughts– Feelings– Perceptions– Images– Beliefs– Attitudes
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Introduction
• As a result, many large companies conduct exhaustive research studies to learn as much as possible about consumers.
• It is very important for the Brand Manager to understand what customers Know, Think and Feel about various brands.
• It involves measuring sources of Customer Based Brand Equity. This involves measuring– Brand Awareness and– Brand Image
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Methods for Measuring Brand Equity:
• Qualitative Techniques
• Quantitative Techniques
• Comparative Methods
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Qualitative Research Techniques
• Qualitative Research Techniques are relatively unstructured measurement approaches whereby a range of possible consumer responses is permitted.
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Qualitative Research Techniques
• The various qualitative research Techniques are:
1. Free Association
2. Projective Techniques
3. Experimental Methods
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Qualitative Research Techniques
1. Free Association
• The purpose of free association tasks is to identify the range of possible brand associations in consumers’ minds.
• They may also provide a rough indication of the relative strength, favorability and uniqueness of brand associations.
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Qualitative Research Techniques2. Projective Techniques• Projective Techniques are diagnostic tools to
uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves.
• Here the subject is given an incomplete or ambiguous stimulus that might not make sense by itself.
• Eg. Rorschach Test
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Qualitative Research Techniques2. Projective Techniques• Types of Projective Techniques:– Completion & Interpretation Tasks– Comparison Tasks» Brand Personality and Values
– The Big Five: factors of Brand personalitya. Sincerityb. Excitementc. Competenced. Sophisticatione. Ruggedness
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Brand Personality Scale Measures
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Qualitative Research Techniques
3. Experimental Methods• These methods involve approaches which go
beyond traditional qualitative techniques to research consumers in their natural environment.
• Eg. Giving a Polaroid camera to a business traveler to document their feelings and actions in hotel rooms etc.
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Quantitative Research Techniques
• Quantitative research typically employs various types of scale questions so that numerical representations and summaries can be made.
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Quantitative Research Techniques
• The Quantitative Techniques involves the measurement of the following:
1. Brand Awareness
2. Brand Image
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Quantitative Research Techniques
1. Brand Awareness• Brand Awareness is related to the Strength of
the brand in memory of the consumers.• Brand Recognition: Here the Consumers are able
to discriminate a stimulus- a word, object, image etc as something they have previously seen.
• Brand Recognition relates to consumers’ ability to identify the brand under various circumstances and can involve the identification of any of the brand elements.
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Quantitative Research Techniques
1. Brand Awareness• Brand Recall: Brand recall relates to the
consumer’s ability to identify the brand under a variety if circumstances..
• With brand recall, consumers must retrieve the actual brand element from memory with some relative probe or cue.
• Measures of Brand Recall: a. Unaided Recallb. Aided Recall
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Quantitative Research Techniques
1. Brand Awareness• Brand Recall: Brand Recall can provide some
insight into category structure and brand positioning in consumer’s mind.
• The category structure that exists in consumers’ minds- as reflected by brand recall performance- can have profound implications for consumers choice and ,marketing strategy.
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Quantitative Research Techniques
2. Brand Image• Strong, favourable and unique associations provide
the foundation for customer-based brand equity. • It is important to measure the lower-level
considerations related to consumer perceptions of specific performances and imagery attributes relative to a brand.
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Quantitative Research Techniques
2. Brand Image• Beliefs: these are descriptive thoughts that a
person holds about something.• The qualitative research approaches described
previously are useful in understanding the different types of specific brand associations making the brand image.
• The belief associations have to be measured on the basis of strength, favorability and uniqueness to understand its contribution in brand equity.
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Quantitative Research Techniques
• Multidimensional Scaling (MDS):• It is a procedure to determine the perceived
relative images of a set of objects, such as products or brands.
• MDS transforms consumer judgments of similarity or preference into distances represented in perceptual space.
• Respondents can base their similarity between brands on any basis- tangible or intangible.
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Quantitative Research Techniques
• Brand Response• The purpose of measuring the higher level
considerations is to find out how consumers combine all of the specific, lower-level considerations about the brand in their minds to form different types of brand responses and evaluations.• Purchase Intentions: Another measure related to
brand attitudes and considerations is Purchase Intentions.
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Quantitative Research Techniques
• Brand Relationships:• It can be characterized in terms of brand
resonance and offered possible measures or each of the four key dimensions:• Behavioral Loyalty• Attitudinal Attachment• Sense of Community• Active Engagement.
• Behavioral Loyalty• Brand Substitutability
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Comparative Methods
Comparative methods are research studies or experiments that examine consumer attitudes and behaviour towards a brand to directly estimate the benefits arising from having a high level of awareness and strong, favourable and unique brand associations.
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Comparative Methods
There are two types of comparative methods:
– Brand-based comparative approaches
– Marketing-based comparative approaches
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Comparative Methods• Brand-based comparative approaches: • Consumers may interpret the marketing activity of
a product with a general product category knowledge.
• It is very important to examine how the consumers evaluate a proposed new campaign.
• Brand-based comparative approaches help in understanding the brand purchase or consumption research for a new or existing products, as long as the brand identification can be hidden in some way for unbranded control group.
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Comparative Methods• Marketing-based Comparative Approaches:
• Marketing-based comparative approaches hold the brand fixed and examine consumer response based on changes in the marketing program.
• It can be applied in other ways by assessing consumer response to different;• Advertising Strategies• Executions• Or media plans
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Comparative Methods
• Marketing-based Comparative Approaches:
• This is further sub divided into 2 methods:
• Conjoint Analysis
• Holistic Methods
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Comparative Methods• Marketing-based Comparative Approaches:• Conjoint Analysis:
• It is a survey based multivariate technique that enables to profile the consumer decision process.
• Consumer preferences to specifically designed product profiles are obtained.
• The profiles are made up of set of attributes as statistically derived by the conjoint formula, called part value.
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Comparative Methods• Marketing-based Comparative Approaches:• Holistic Methods:• It places an overall value on the brand.• It attempts to “net out” various considerations to
determine the unique contribution of the brand.• Residual Approach- it examines the brand value by
subtracting consumer’s brand preference (based on physical attributes) from their overall brand preferences.• Valuation Approach- places a financial value on the
brand equity for accounting purposes, mergers and acquisitions etc.
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