Consumer Behavior
Memory
Application of
Consumer Memory to
Brand Knowledge, Brand
Equity and Brand Extension
Consumer Behavior
Memory
Outline
• Keller’s model of brand knowledge
– Brand awareness
– Brand image
• Customer-based brand equity
– What is CBBE?
– How should CBBE be managed?
– How can CBBE be measured?
• Brand extension
Consumer Behavior
Memory
Brand knowledge (Keller)
brand
awareness
brand
knowledge
brand recognition
brand recall
types of brand associations
brand
image
strength of associations
favorability of associations
uniqueness of associations
Consumer Behavior
Memory
Types of brand associations
• Product attributes
– Product-related (intrinsic)
– Non-product-related (extrinsic)
• Product benefits
– Functional
– Psychosocial
• Attitudes
Consumer Behavior
Memory
In-class exercise:
Brand schema for Clorox
Draw your associative network for Clorox. Do this
by thinking of all the associations that you have with
this brand. How strong and favorable are the various
associations, and which ones are unique to the
brand?
Consumer Behavior
Memory
Customer-based brand equity
and its management
• customer-based brand equity as the differential effect
of brand knowledge on consumers’ reactions to the
marketing of the brand;
• building CBBE:
– choosing brand identities
– developing supporting marketing programs to create strong
brand awareness and establish a desired brand image
– leveraging secondary associations
– importance of consistency over time and across markets
Consumer Behavior
Memory
Measurement of CBBE
• direct approach: experiments in which consumers’
responses to marketing for the brand are compared
with reactions to marketing for fictitious or
unknown products; use of conjoint analysis;
• indirect approach:
– brand awareness: various recognition and recall tasks;
– brand image: qualitative (free association, projective
techniques) and quantitative (strength and favorability)
methods;
Consumer Behavior
Memory
Brand extension
• use of an established brand name to launch a product in a
new product category;
• a brand extension strategy takes advantage of consumers’
awareness of the core brand and the possible transfer of
brand associations to the new product;
• extension evaluations depend on
– the salience of core brand associations in the extension context,
– the relevance of this information, and
– the favorability of inferred associations;
• problems associated with brand extensions are that the
brand image might get diluted and that unsuccessful
extensions can harm the core brand image;
Consumer Behavior
Memory
In-class exercise:
Clorox brand schema and
brand extensions
If Clorox were planning to extend its brand to other
product categories (think about which other
categories would be possible extension candidates),
would the existing associations with Clorox facilitate
or hinder acceptance of the extended brand?