Keller’s Customer-Based Brand Equity model Type of model: Author(s): Domain: Brand model (process model) K.L. Keller Brand-added value/ brand equity Relationships: Intense active loyalty | Positive accessible reactions | Points of parity & points of difference what about you and me? | Response: what about you? | Meaning: what are you? | Identity: who are you? Deep, broad brand awareness Figure 1: The Customer-Based Brand Equity model Kevin Lane Keller’s Customer-Based Brand Equity model depicts the process that goes into building strong brands. This model is set in the realm of brandadded value (customer-based brand equity, i.e. the added value a brand offers customers/ consumers), which Keller defines as follows: the differential effect that consumers’ brand knowledge has on their response to the marketing of that brand. The model is made up of a number of steps that should be taken in a fixed order. It describes six dimensions of brand equity: brand salience, brand performance, brand imagery, consumer judgements, consumer feelings and brand resonance. The highest level of brand equity is realized when the top of the pyramid is attained (brand resonance). In Keller’s view, resonance comes about when the consumer has a high level of awareness of and familiarity with the brand and holds some strong, favourable, and unique brand associations in memory. The following provides an explanation of the six dimensions identified by Keller: 1. Brand salience: the first step in the development of a strong brand involves describing its identity, and revolves around the question: who am I? In order to successfully negotiate this first hurdle, the people in charge will have to ensure that consumers will be able to identify with the brand. A clear associative link between the brand and a specific product class/ product category has to be established in the mind of the consumer. That will enable the con- 1 sumer to place the brand in context when confronted with it in advertising, and also provides a solid footing for the building of brand awareness and knowledge. Salience refers to how familiar consumers are with a brand. Is the brand easily recognizable, is it a ‘top-of-mind brand’ and/ or is it recalled spontaneously. But what is more important is whether the brand is actively considered when consumers find themselves in purchase and/ or consumption situations. A high level of salience means that a consumer has knowledge of both the depth and width of a brand. Depth refers to the ease with which a brand can be activated in the consumer’s brain, while width refers to the extent to which this happens when the consumer is making a purchase decision. Brand salience is a precondition for moving up on the brand pyramid. 2. Brand performance and brand imagery: when brand salience has been realized, the process moves on to the next steps in the development of brand meaning. This second step basically answers the question: what am I? This question can be answered using intrinsic (tangible) and extrinsic (intangible) characteristics of a brand. Intrinsic characteristics refer to the degree to which a product/ service is seen to perform by consumers, and extrinsic characteristics say something about how consumers think about a brand. Boosting overall brand equity requires an active focus on both brand performance and brand imagery. After all, all brand associations eventually converge in these two mainstays. Raising brand performance starts by delivering a product/ service that dovetails with current consumer needs, followed by attempts to surpass the triggered consumer expectations. Brand imagery can be increased by tailoring to consumers’ psycho-social needs. Imagery refers to what people think about a brand (in terms of values and meaning) and not so much about what exactly the product does or can do (in terms of functionality). Brand imagery can be raised directly (brand experience) or indirectly (advertising). In the end, these two dimensions will have to bring about certain brand associations that are strong, positive and unique (in that order). The scores on these dimensions can be considered important indicators for possible future brand loyalty. 3. Brand judgements and brand feelings: after realizing strong, positive and unique brand associations, you can continue up towards the top of the pyramid. This third step deals with the way consumers think and feel about a brand. This step basically contains the responses to the efforts from step 2 (performance and imagery). The brand is evaluated and judged at this stage, formulating a certain attitude towards/ opinion of the brand. There are two important dimensions at play here: brand judgements (rational) and brand feelings (emotional). The former denotes the opinion consumers have 2 of a brand, and how they evaluate the brand. Their opinion is formed rationally, and based on three criteria: quality, reliability and superiority. Brand feelings are emotional reactions by consumers to brands and their marketing efforts. What feelings does the brand evoke in the consumer, and in the social environment? Are these feelings intense or not, positive or negative? These feelings can be so strong that they even continue to affect brand observation during actual use of the product. These feelings are based on a number of factors: In successive order: warmth, pleasure, tension, security, social acceptance and self-respect. 4. Brand resonance: when all conditions from step 3 have been met, and the consumer has acquired a positive idea of the brand in both a rational and an emotional sense, we have a solid base from which to jump into the last stage. This stage answers the question whether the consumer is willing to enter into a (lasting) relationship with a brand. If so, we will have achieved true brand loyalty. The consumer identifies him/herself with the (values of the) brand to a considerable degree, and is willing to invest in a relationship. That can come across in repeat purchases, reduced susceptibility to information from competing brands, and even in paying a possible price premium. Brand resonance is the ultimate relationship between a brand and a consumer. The closeness of that bond between brand and consumer can be measured using four factors: (behavioural) loyalty, emotional bond, being a member of a brand community, and active brand involvement. High scores on these factors denote truly strong brands, such as Coca-Cola, Apple and Harley-Davidson. Reference(s) Keller, K.L. (2002), Strategic brand management; building, measuring and managing brand equity. Prentice Hall, Upper Saddle River, N.J. * Keller, K.L., Apéria, T., Georgson, M. (2008), Strategic brand management; a European perspective. Prentice Hall, Harlow, U.K. * * : Available in the EURIB library. © 2009 EURIB (www.eurib.org) 3