Application of Keller’s Brand Equity Model in Destination Branding
Context
Volkan ÜLKE
Abstract
Because of highly competitive destination markets, destination branding techniques are
becoming popular among destination marketing organizations. Destination marketing
organizations tend to leverage their destination brand value to other products associated with
the destination brand.
The purpose of this study was to apply and extend the concept of Keller’s customer-based
brand equity model to destination brand measurement. This study has the following
objectives: to develop a valid and reliable model of consumer-based destination brands, to
empirically assess the dimensions of the destination brand construct, to test the relationship
among dimensions in a destination brand construct, and to validate the model construct. And
to emphasize emotional memories affect on the destination brand.
Introduction
In literature brand simply defined as powerful means of differentiation, and that
differentiation is a significant competitive marketing strategy (Kapferer, 1997; Keller, 2003).
The extension of the brand concept from products to service industries such as tourism offers
implications for resort and travel destination management (Buhalis, 2000). Destination
branding is considered a vital aspect of current destination management practice, as
broadening tourist opportunities and travel locations have resulted in the increased
substitutability and lack of differentiation amongst some destinations (Pike, 2005). Many
tourism organizations for countries, cities, and regions have emerged to promote their
destinations. Destination marketing tends to emphasize attributes of a destination, e.g.
splendid resorts and hotels, unique culture, heritage and friendly people. These attributes are
used so often they are no longer differentiators (Morgan, 2004). Many state destination
organizations have created logos and slogans for their destinations to differentiate from others
and promote themselves. Their slogans can be categorized by five different types: “1) Buy us
because we are good, 2) Common attribute-based, 3) Unique attribute-based, 4) Exclusive
appeal, 5) Average Joe and they are created toward their target markets.” (Lee et al., 2006) A
number of destination branding success stories were introduced in Destination branding:
creating the unique destination proposition. These examples include New York, Tasmania,
Australia, Canada, New Orleans, Louisiana, Texas, and Oregon (Morgan, 2004). Currently,
branding techniques have become “powerful tools” for tourist destination marketers because a
brand can identify and distinguish the destination through a positive image. The brand can
create a positive identity and image of a destination that ties tourists to it emotionally (Cai,
2002; Gnoth et al., 2007).
The purpose of this study was to apply and extend the concept of Keller’s customer-based
brand equity model to destination brand measurement. This study has the following
objectives: to develop a valid and reliable model of consumer-based destination brands, to
empirically assess the dimensions of the destination brand construct, to test the relationship
among dimensions in a destination brand construct, and to validate the model construct. And
to emphasize emotional memories affect on the destination brand. Even seventeen years
paased over, you can still see the collapsed buildings, bullet scars everywhere in Sarajevo.
The war may be over, but the marketing may go on in a country with precious little to profit
from other than the painful memories of the past.
Literature Review
Brand/Braning
Branding has the propensity to distinguish one product from another by creating different
brand elements, “name, logo, symbol, and package design” and it can create value for a firm
resulting in financial profit (Keller, 1998). The American Marketing Association (2008)
defined “a brand as name, term, sign, or combination of them intended to identify the goods
and services of one seller or group of sellers and to differentiate them from those of the
competition.” A brand for a new product is shaped by creating a new name, logo, or symbol
and as a result of this it receives “awareness, reputation, and prominence in the marketplace”
(Keller, 2002). Aaker’s (1991) widely accepted definition of a brand is “to identify the goods
or services of whether one seller or a group of sellers, and to differentiate those goods or
services from those of competitors.” (p.7)
Unlike product markets, a destination brand is more likely to be a corporate or umbrella brand
because it allows the destination’s individual operators’ brands to have certain qualities or
attributes (Gnoth, 2007). Tourists perceive a destination as a product. They evaluate the
attributes of the destination through both cognitive and affective processes (Baloglu &
McCleary, 1999). Cai (2002) stated that "destination branding is a strategic combination of a
consistent mix of brand elements to identify and distinguish a destination through positive
image building and unlike typical goods and services, the name of a destination brand is
relatively fixed by the actual geographical name of the place.”(p.722). Research has
emphasized a unique combination of functional, symbolic, and experiential elements of a
brand to create a unique destination identity (Dredge & Jenkins, 2003). Products associated
with a destination brand carry not only the destination brand image but also the qualities and
attributes of the products themselves. This kind of destination brand character is often
considered brand extension and plays a significant role in building on the “halo effect,”
stating that consumers transfer their country image to the product when evaluating unfamiliar
products and the country image serves as a halo directly and indirectly on the products (Han,
1989). In some cases, destination brand research has followed a marketing approach from a
retail perspective; however, these were at the conceptual level of exploration (Cai, 2002). In
terms of destination brand management, various means to communicate the brand message
effectively have been suggested (Jago et at., 2003). However, specific effects on destination
brand management, such as the assessment of brand impact, have not been investigated.
Measuring the effectiveness of brands is a crucial aspect of successful long-term destination
management. It has been suggested that the effectiveness of destination brands can be
measured from a customer perspective. Furthermore, empirical research that focuses on
experienced travelers and their perception of the destination brand should be employed to
measure the effects of brands on the customer (Blain et al., 2005).
Keller (2002) classified the benefits of a “strong” brand into 4 different categories: productrelated effects, price-related effects, communication-related effects and channel-related
effects. Product-related effects of brand include consumer product evaluations, consumer
confidence, perceptions of quality, and purchase rate positively related to a brand name. If
consumers are well aware of a brand, their attitude and their purchase intention toward the
brand are increased. Price-related effects refer to the fact that brand leaders have higher priced
positions and consumers have a lower level of price sensitivity toward those leaders.
Communication-related effects refer to how the evaluation of brand advertising can be
positively biased when consumers have positive feelings toward a brand which is a wellknown and well-liked brand. The effect of the well-known brand, which is most likely to have
competitive advantage in marketing activities, is the channel-related effect. Brands are
valuable assets and tools influencing consumer behavior which includes awareness, choice,
use, satisfaction, recommendation, trust and loyalty. They reduce information search costs and
risk for consumers and deliver quality, values, promises, and lifestyle enhancement (Kotler &
Armstrong, 1996).
Customer based brand equity
The concept of brand equity has been a popular and important marketing concept since 1980.
The concept of brand equity, however, has been defined by various researchers for different
purposes resulting in a number of definitions (Keller, 1998). The emergence of brand equity
has raised the importance of marketing strategies and provided focus for managers and
researchers (Keller, 2003).
The Marketing Science Institute (1989) described brand equity in the perspective of
customers as “…the value that is added by the name and rewarded in the market with better
profit margins or market shares. It can be viewed by customers and channel members as both
a financial asset and as a set of favorable associations and behaviors.”
Aaker (1991) defined “brand equity as a set of brand assets and liabilities linked to a brand, its
name and symbol add to or subtract from the value provided by a product or service to a firm
and/or that firm’s customers.” His approach to brand equity is viewed as a managerial and
corporate strategy perspective. He stated that the assets and liabilities linked to a brand’s
name or symbol can be grouped into five dimensions: brand loyalty, brand awareness,
perceived quality, brand associations, and other proprietary brand assets. He suggested that
we can generate brand equity by strengthening those dimensions.
Keller (1998), who approached the concept of brand equity from the perspective of the
consumer, defined “customer-based brand equity as the differential effect that brand
knowledge has on the consumer or how customers respond to the marketing of that brand.”
He also suggested that as customers respond more favorably to a product whose brand is
identified, the brand has positive customer-based brand equity and it exists when the
consumer has a high level of awareness and familiarity and strong, favorable, and unique
brand associations in their memory (Keller, 2002). The brand is established through the
proper identity, the appropriate brand meaning, the right brand responses, and the appropriate
brand relationships with customers by establishing six core brand values: brand salience,
brand performance, brand imagery, brand judgments, brand feelings, and brand resonance
(Keller, 2001). ). Keller (2003) described brand equity as ‘‘a multidimensional concept and
complex enough that many different types of measures are required. Multiple measures
increase the diagnostic power of marketing research’’ (p. 477). He noted that, from a
marketing perspective, brand equity is referred to as consumer-based brand equity. Recently,
the concept of brand equity has been employed to measure how consumers assess a brand
overall (Ford, 2005).
Keller (2002) summarized the benefits created by strong brand equity as follows (p.xii):

Improved perceptions of product performance

Greater loyalty

Less vulnerability to competitive marketing actions and marketing crisesLarger
margins

More inelastic consumer response to price increases and more elastic consumer
response to price decreases

Greater trade cooperation and support

Increased marketing communication effectiveness

Licensing opportunities and additional brand extension opportunities
Research on destination branding began to emerge after the first journal article on this subject
was published in 1998 (Gnoth, 1998). Studies on destination image have been plentiful. Even
though many destinations have adapted branding strategies for marketing their products and
services, there is no clear conceptualization on branding a destination (Gnoth et al., 2007).
Tasci & Kozak (2006) discussed the concepts ‘brand’ and ‘image’. They concluded that these
are related concepts and brand is referred to as “a product of marketing activities of
destination authorities” while image is considered as “more of a product of consumer
perception” as it plays the role of a sub-concept of a destination brand. In other words, if the
image of a destination is positive, the brand would be more effective in the market. The brand
would influence awareness, choice, satisfaction, recommendation and loyalty. Many
destination organizations use destination branding as their main strategy because a strong
brand creates value added to the seller and buyer as it builds strong brand equity (Cai, 2002).
Morgan et al. (2004) discussed many successful destination branding initiatives and suggested
destinations can become brands which have “celebrity value” and “emotional appeal.”
Recent definitions of brand equity have evolved and include the added value of name and
expand to a broad set of attributes that drives customer choice (Faircloth, 2001). Faircloth
(2001) stated that “brand equity actually represents a product’s position in the minds of
consumers in the marketplace.”
Strong brand equity tends to convey premiums such as more favorable customer response to
price change, brand extension and licensing opportunities (Keller, 2001). Kim et al. (2003)
examined the relationship between brand equity and a hotel firm’s financial performance
using the dimensions of customer-based brand equity (brand loyalty, brand awareness,
perceived quality, and brand image). Kim et al. (2008) also investigated a direct relationship
between hotel brand equity and customers’ revisit intention with all dimensions of brand
equity (brand loyalty, perceived quality, and brand awareness/association) and perceived
value as a mediating role in building the brand equity in customer-based brand equity
approach. Overall attitudinal loyalty to a specific hotel brand is considered customer-based
brand equity and behavioral loyalty is cited as hotel revisit intention which results in brand
equity. They found that brand equity perceived by customers can have significant influence
on a hotel firm’s financial performance. Brand loyalty and brand awareness / association
increase revisit intension.
Recent studies have highlighted the need to refine and measure the consumer-based brand
equity construct (Yoo & Donthu, 2001). De Chernatony and McDonald (2003) indicated that
an instrument to measure brand equity from a customer perspective has been lacking despite
the increasing importance of the brand equity concept. Similarly, there is a need for a
destination brand measure (Blain et al., 2005). The concept of customer-based brand equity
and its measurement have emerged in tourism and hospitality settings. Destinations are far
more multi-dimensional than consumer goods and other types of services (Pike, 2005). Low
and Lamb 2000) noted that researchers hypothesized that consumer perceptions of brands are
multi-dimensional, yet many of the dimensions identified appear to be very similar.
Elements of the Keller model
Brand equity, as defined by Keller (1993), occurs when a brand is known and has some
strong, favourable and unique associations in a consumer’s memory. As shown in Figure 1,
the CBBE model identifies four steps for building a strong brand. In this branding ladder,
each step is dependent on successfully achieving the previous – from brand identity to brand
meaning, brand responses and finally brand relationships. These steps in turn consist of six
brand building blocks – salience, performance, imagery, judgments, feelings and resonance.
The ultimate aim is to reach the pinnacle Keller’s brand equity model
of the CBBE pyramid – resonance – where a completely harmonious relationship exists
between customers and the brand.
Keller’s (2003) argument is as follows. The first step in building a strong brand is to ensure
the correct brand identity. The purpose is to create an identification of the brand with
customers, and an association in their minds with a specific product class or need. To do this,
brand salience must exist, which represents aspects of brand awareness and the range of
purchase and consumption situations in which the brand comes to mind. The salience building
block is therefore made up of two sub-dimensions – need satisfaction and category
identification.
The Keller model is focused primarily on an individual’s perceptions of brands in the
assessment of brand equity, but in a destination context these other influencers can have an
impact on brand equity as well. ……………………………….
The second step establishes brand meaning by linking tangible and intangible brand
associations. Brand meaning is therefore characterised in either functional (brand
performance) or abstract (image-related) associations. Functional attributes are:

primary ingredients and supplementary features;

product reliability, durability and serviceability;

service effectiveness, efficiency and empathy;

style and design; and

price.
Image associations relate to the extrinsic properties of the product:

user profiles;

purchase and usage situations;

personality and values; and

history, heritage and experiences (Keller, 2003).
organisational buying context (as argued by other researchers such as Lynch and de
Chernatony, 2004), but suggests that different types of feelings and imagery to those specified
by Keller, may be required in a destination brand equity model. Brand relationships constitute
the final step in the pyramid where brand response is converted to create an intense, active
loyalty relationship between customers and the brand. The pinnacle of the pyramid is
resonance, which refers to the nature of the relationship between the customer and the brand.
It is described as having four elements: behavioural loyalty, attitudinal attachment, sense of
community and active engagement (Keller, 2001).
Customer loyalty generating factors have also been found to be important to the success of
industrial brands (Michell et al., 2001). Unlike consumer markets, the gain or loss of a few
customers can significantly impact an industrial manufacturer’s bottom line. This makes
brand loyalty particularly important as it is, in some respects, firm loyalty (Gordon et al.,
1993). Changes for one individual product may affect perceptions of all products and cause a
distributor to switch suppliers in all categories after a poor experience with an individual good
(Gordon et al., 1993). While there is a lack of research to confirm the existence of attitudinal
attachment and a sense of community in industrial markets, there is evidence of active
engagement. Hutton (1997) found willingness to communicate about the brand and make
brand referrals. He also found that some organisational buyers had developed such a strong
relationship with the brand they were willing to extend to other products with the same brand
name. In order to assess the applicability of the Keller model in a destination branding and
identify insights and challenges of such an application, we undertake Sarajevo and Mostar
visitors.
Study Methods
Each construct in the destination brand model requires scale items that are destinationspecific. Reis and Judd (2000) noted that ‘‘the psychometric approach relies on aggregate
patterns of data to evaluate a proposed measurement model’’ (p. 341). Hence, multiple items
for each dimension are useful to examine construct validation and check the consistency level
of a respondent’s self-report of each dimension. Multiple items were used to measure each
dimension of destination brand salience, destination brand imagery , destination brand
performance, destination brand judgment, destination brand feelings and destination brand
resonance.
In this study questionnaires will be used which is scled by Boo, Busser and
Baloglu (2009). Their model was tested for Las Vegas and Atlantic City visitors with an
online survey. By using same question we will conduct a survey for Sarajevo and Mostar.
And Results will evaluated according to Keller (2003) customer-based brand equity model. It
is accepted to see right side of the model which reflects emotional affects has major path way
between salience of brand and customer
destination brand resonance. Survey results will
analyzed by structural equation model (SEM).
Performance
Judgments
salience
Resonance
Imagery
Feelings
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