The associations that consumers have with something that can be managed professionally (e.g. a product, service, person, name, term, design, symbol, or any other feature)
Brand equity
The differential effect that the knowledge about a brand and the engagement towards it have on consumer responses to the marketing of that brand
Evaluation without brand information
Blind test
Evaluation with brand information
Open test
VW Sharan I (1995–2000) was 1,000 - 2,500 € more expensive than Seat Alhambra I (1996–2000) and Ford Galaxy I (1995–2000)
1991–2006 joint venture between VW and Ford (50:50) ; new company Autoeuropa Automóveis (Palmela / Portugal)
1995 was the start of production of the VW Sharan and the Ford Galaxy (since 1996, the Seat Alhambra has also been also produced)
VW and Ford jointly developed and produced an identical car that was sold under separated brands
Number of registrations in Germany
VW Sharan
Seat Alhambra
Ford Galaxy
Brands have two effects
Price effect (you can ask a price premium)
Sales effect (you sell more units)
The Toyota Corolla costs $400 more and its sales were 5 times (!) higher than the GM Geo / Chevrolet Prizm
Mercedes Citan and Dacia Dokker both start at above €15,000, while Renault Kangoo starts below €9,000
First-rate soloists tend to prefer old violins in open tests, but are unable to distinguish old from new at better than chance levels in blind tests
Gillette was the leading brand for razors in both 1925 and 1985 in the USA
The Joseph Schlitz Brewing Company was once the largest producer of beer in the world, known for the slogan "The beer that made Milwaukee famous"
In 1974, Schlitz reduced brewing time from 12 days to 4 and began using corn syrup instead of barley malt, leading to an image problem and declining sales
In 1976, Schlitz tried to combat declining sales through aggressive discounting, which made people think of the brand as cheap beer, causing sales to drop further
In 1978, Schlitz restored the old formula and former ad campaign, but it was too late
The number of brands in Germany increased from 460,000 to 765,000 over the last 10 years
Brands are one of a company's most valuable assets
Three major firms publish annual brand equity rankings: Interbrand, Millward Brown, and Brand Finance
Brand value estimates from different firms are highly divergent, and there is often little agreement on the direction of change
Brand functions from a consumer perspective
Identification of the source of the product (responsibility)
Risk reduction
Search cost reduction
Symbolic device
Brand knowledge
Brand awareness (ability to identify the brand under different conditions)
Brand image (perceptions about a brand as reflected by the brand associations in a consumer's memory)
Types of brand associations
Attributes
Benefits
Attitudes
Brand knowledge
Associative models: What comes to mind when you think of Freixenet?
Freixenet
sparkling
wine
Spanish
passionate
sophisticated
bottle
Brand awareness
Ability to identify the brand under different conditions
Brand image
Perceptions about a brand as reflected by the brand associations in a consumer's memory
Types of brand associations
Attributes
Benefits
Attitudes
Brand recognition
A consumer's ability to confirm prior exposure to the brand when given the brand as a sensory cue
Brand recall
A consumer's ability to retrieve the brand when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue
Brand recognition: Missing letters
N_ke
Me____es Be_z
So_y
A_ _ le
Mic_o_o_t
Awareness >> Recognition
Awareness >> Recall
Brand awareness: Unaided recall
cars
search engines
family entertainment film companies
running shoes
Brand awareness: Aided recall
all cars
family cars
German family cars
smartphones
easy-to-use and reliable smartphones
When thinking of a high-performance German sportscar manufacturer, which brand comes to your mind?
When thinking about an easy-to-use smartphone operating system, which brand comes to your mind?