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2007CengageLearningInc.Allrightsreserved.Nopartofthisworkmaybyreproducedorusedinanyformorby
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Chapter2:MarketingCommunicationsChallenges:
EnhancingBrandEquity,InfluencingBehavior,andBeing
Accountable
(pp.2141)
MarketingCommunicationsChallenges:EnhancingBrandEquity,InfluencingBehavior,and
BeingAccountable:ChapterOverview
Marketingresearchersandpollstersareconstantlysurveyingpeopleabouttheirlikesanddislikes,theirvotingintentions,
theirthoughtsaboutwhichactorsshouldwinAcademyAwards,andonandon.Needlesstosay,pollstersalsoinvestigate
consumers'thoughtsandfeelingstowardbrands.HarrisInteractive,theworld'stwelfthlargestmarketresearchfirm,
conductsanannualpollthatrequestsAmericanconsumerstoindicatewhichbrandstheyconsiderbest.Arecentpoll
involvedonlineinterviewswithnearly2,400adults.Intervieweeswereaskedasinglequestion:Wewouldlikeyouto
thinkaboutbrandsornamesofproductsandservicesyouknow.Consideringeverything,whichthreebrandsdoyou
considerthebest?Intervieweeswere,inotherwords,askedtospontaneouslyidentifyuptothreebrandsthatthey
personallyregardedasthebest.Resultsfromthepollidentifiedthefollowing10brandsasthosemostoftenmentioned
asbest:1
Brand

Ranking

CocaCola

Sony

Toyota

Dell

Ford

KraftFoods

PepsiCola

Microsoft

Apple

Honda

10

Criticsofthisformofonequestionpollingsuggestthatsuchpollsarenottrueindicatorsoftheequityofabrand.Ford
Motors,foroneexample,isanythingbutoneoftheworld'sbestbrandswhenbest

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RichardLevine/Alamy
isbasedonobjectiveindicatorssuchasprofitability,marketshare,salesgrowth,andconsumerconfidence.Howcouldan
exciting,innovativebrandsuchasApplebebeatenoutbyeightotherbrands,includingthosethatarebasicallyrestingon
pastlaurels(thinkFord,Dell,etc.)?
Itwouldseemthatthisbestbrandssurveyismoreameasureofbrandawarenessthanofbrandequityandreflectspast
achievementsratherthancurrentperformance.2Inotherwords,whenaskedtospontaneouslyidentifythethreebestbrands
thatcometomind,manyrespondents,especiallyinreplytoanonlinesurvey,wouldmentionthosebrandsthatcome
easiestandquickesttomind.Yetthistopofmindrecall,thoughcertainlyagoodindicatorofbrandawareness,isnot
equivalenttoameasureofabrand'sstrength,value,orequity.Thischapterdiscussesindetailtheconceptsofbrand
awarenessandbrandequity,anduponcompletingyourreadingofthismaterialyouwillfullyappreciatewhymere
awarenessisanecessarybutinsufficientindicatorofbrandequity.

MarketingCommunicationsChallenges:EnhancingBrandEquity,InfluencingBehavior,and
BeingAccountable:ChapterObjectives
ChapterObjectives
Afterreadingthischapteryoushouldbeableto:
1.Explaintheconceptofbrandequityfromboththecompany'sandthecustomer'sperspectives.
2.Describethepositiveoutcomesthatresultfromenhancingbrandequity.
3.Appreciateamodelofbrandequityfromthecustomer'sperspective.
4.Understandhowmarcomeffortsmustinfluencebehaviorandachievefinancialaccountability.

Introduction
Thepreviouschapterintroducedthephilosophyandpracticeofintegratedmarketingcommunications(IMC)andthen
presentedaframeworkforthinkingaboutallaspectsofthemarcomprocess.Youwillrecallthatthisframeworkincluded
fourcomponents:(1)asetoffundamentaldecisions(targeting,positioning,etc.),(2)agroupofimplementationdecisions
(mixingelements,creatingmessages,etc.),(3)twotypesofoutcomesresultingfromthesedecisions(enhancingbrand
equityandaffectingbehavior),and(4)aregimenforevaluatingmarcomresultsandtakingcorrectiveaction.Thischapter
focusesonthethirdcomponentinthisframework,namely,thedesiredoutcomesofmarcomefforts.

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Thebasicissuesaddressedarethese:Whatcanmarketingcommunicatorsdotoenhancetheequityoftheirbrandsand,
beyondthis,affectthebehavioroftheirpresentandprospectivecustomers?Also,howcanmarketingcommunicators
justifytheirinvestmentsinadvertising,salespromotions,andothermarcomelementsanddemonstratefinancial
accountability?Thechapterfirstdiscussestheconceptofbrandequityandexploresthistopicfrombothcompanyand
customerperspectives.Afollowingsectionthenaddressestheimportanceofaffectingbehavior,includingadiscussionof
accountability.

BrandEquity
Abrandexistswhenamarketingentityi.e.,aproduct,aretailoutlet,aservice,orevenageographicalplacesuchasan
entirecountry,region,state,orcityreceivesitsownname,term,sign,symbol,design,oranyparticularcombinationof
theseelementsasaformofidentification.Withoutarecognizablebrand,aproductisbutamerecommodity.Manymarcom
expertsareofthemindsetthatallproductscanbebranded.Oneobserverhasevenclaimedthatthewordcommodityis
anopenadmissionofmarketingbankruptcy.3
Butabrandismorethanjustaname,term,symbol,andsoon.Abrandiseverythingthatonecompany'sparticularoffering
standsforincomparisontootherbrandsinaproductcategory.Abrandrepresentsasetofvaluesthatitsmarketers,senior
companyofficials,andotheremployeesconsistentlyembraceandcommunicateforanextendedperiod.4Forexample,
VolvoisvirtuallysynonymouswithsafetyCrayolacrayonsstandforfunAbsolutvodkaencapsulateshipnessHarley
Davidsonembodiesfreedomandruggedindividualism(seeIMCFocus)Sonyrepresentshighqualityanddependability
ChanelNo.5meanseloquenceToyota'sPriuspersonifiesenvironmentalconsciousnessandRolexwatchesrepresent
mastercraftsmanshipandsophistication.Eachofthesebrandshasembracedandcommunicatedaparticularsetofvalues.
Allofthesebrandspossesshighequitybecauseconsumersbelievethesebrandshavetheabilityandwillingnesstodeliver
ontheirbrandpromises.5
Theconceptofbrandequitycanbeconsideredbothfromtheperspectiveoftheorganizationthatownsabrandandfrom
thevantagepointofthecustomer.Wewilldevotemorediscussiontobrandequityfromthecustomerperspective,butit
willbeusefultoinitiallyexaminetheconceptfromthestandpointofthemarketingorganizationthatownsabrand.

AFirmBasedPerspectiveonBrandEquity
Thefirmbasedviewpointofbrandequityfocusesonoutcomesextendingfromeffortstoenhanceabrand'svaluetoits
variousstakeholders.Asthevalue,orequity,ofabrandincreases,variouspositiveoutcomesresult.Theseinclude(1)
achievingahighermarketshare,(2)increasingbrandloyalty,(3)beingabletochargepremiumprices,and(4)earninga
revenuepremium.6Thefirsttwooutcomesarestraightforwardandrequirenofurtherdiscussion.Simplyput,higherequity
brandsearngreaterlevelsofcustomerloyaltyandachievehighermarketshares.Thethirdoutcome,beingabletocharge
premiumprices,meansthatabrand'selasticityofdemandbecomeslesselasticasitsequityincreases.Phraseddifferently,
brandswithmoreequitycanchargehigherpricesthanbrandswithlessequity.Considerhouseholdbrandsofpaint,suchas
theSearsbrandversustheMarthaStewartorRalphLaurenbrands.ThequalitydifferentialbetweentheSearsbrandandthe
designerbrandslikelyisconsiderablylessthanisthepremiumpricedifferentialthatthedesignerbrandscommand.This
pricedifferentialisbrandequityinaction.
Thefourthoutcome,namely,earningarevenuepremium,isanespeciallyinterestingresultofachievinghigherlevelsof
brandequity.Revenuepremiumisdefinedastherevenuedifferentialbetweenabrandeditemandacorresponding
privatelabeleditem.Withrevenueequalingtheproductofabrand'snetpricevolume,abrandedgoodenjoysarevenue
premiumoveracorrespondingprivatelabelitemtothedegreeitcanchargeahigherpriceand/orgenerategreatersales
volume.Inequationform,therevenuepremiumforbrandbcomparedtoacorrespondingprivatelabelitem,pl,isas
follows:

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Ithasbeendemonstratedthatgrocerybrandspossessinghigherequitygeneratehigherrevenuepremiums.Inturn,thereisa
strongpositivecorrelationbetweentherevenuepremiumsbrandsenjoyandthemarketsharestheyrealize.7Theabilityto
chargehigherpricesandgenerategreatersalesvolumeisdueinlargeparttomarcomeffortsthatbuildfavorableimagesfor
wellknownbrands.Inotherwords,manyprivatelabelbrandswhichareitemsthatcarrythenamesofretailoutlets
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possesslevelsofqualitythatareequivalenttomanufacturers'nationalbrandsnevertheless,manyconsumerspreferthe
moreexpensivenationalbrandsandbuythemregularlyratherthanpurchasinglessexpensiveprivatebrands.These
nationalbrandsthusenjoyarevenuepremiumbecausetheypossesshigherequity,whichisatributetoeffectivemarcom
efforts.
Finally,anotherformoffirmbasedbrandequityissomewhatakintothenotionofrevenuepremiumjustdescribed.We
mightlabelthisuniqueformtastepremiumbrandequity.Onlyasinglepublishedstudyhasdocumentedthisunique
formofequity,soitwouldbeinappropriatetotreatthisdistinctivetypeofbrandequitywiththesamestatureasthefour
wellestablishedformsthatwerepreviouslydescribed.
ThefastfoodchainMcDonald'swasthefocusofastudyinvolvingthetasteperceptionsofasampleofpreschoolchildren
fromlowincomebackgrounds.8Thestudydesignhadthechildrentastetwoversionseachoffiveproducts(hamburger,
chickennugget,frenchfries,milk/applejuice,andcarrot).Inoneversion(theMcDonald'spackagingversion),each
productwaspresentedtothepreschoolchildreninapackagewithMcDonald'spackaginggraphics.Inthesecondversion
(theplainwhitepackagingversion),thesameproductswerepresentedinpackagesabsentMcDonald'sidentification.
(Notethatthisplainwhiteversionmightberoughlyequatedwiththeprivatelabelbrandsinthecaseoftherevenue
premiumformofbrandequity.)Withtheexceptionofcarrots,whicharenotsoldatMcDonald'srestaurants,allotheritems
wereactualMcDonald'sproducts,regardlessofwhethertheywerepresentedtothechildreninMcDonald'spackagesorin
theplainwhitepackages.Aftertastingbothversionsofeachproduct,thepreschoolerswereinstructedtoindicatewhether
they(1)hadnopreferencebetweenthetwoversions,(2)preferredthetasteoftheMcDonald'sversion,or(3)preferredthe
tasteoftheplainwhiteversion.Itisimportanttonotethatresearchassistantsdidn'tactuallyaskchildrenwhetherthey
preferredtheMcDonald'sversionortheplainwhiteversion,butrathersimplyhadthemidentifywhichitemtheyliked
more,thefood/drinklocatedontheleftorrightsideofthetrayonwhichthetwoversionswereplaced.
Table2.1presentsstudyresultsintermsofthreepercentagesforeachofthefiveproducts:(1)thepercentageofchildren
whoconsideredthefood/drinkitemwiththeMcDonald'spackagingtotastethebest,(2)thepercentagewhothoughtthe
twoversionstastedthesameorgavenoanswerwhenaskedTellmeiftheytastethesame,orpointtothefood(drink)that
tastesthebesttoyou,and(3)thepercentagewhoconsideredthefood/drinkitemintheplainwhitepackagingtotastethe
best.
ThepercentagesinTable2.1makeitclearthattheparticipatingpreschoolerspreferredthetasteofallfivefoodanddrink
itemswhentheyweretastedinthecontextofMcDonald'spackaginggraphicsovertheidenticalfood/drinkitemswhen
tastedinthecontextofplainwhitepackaginggraphics.ThepercentageofchildrenpreferringMcDonald'sfrenchfrieswas
Table2.1Children'sTastePreferences(Inpercents)
Foodor
DrinkItem
Hamburger

Preferred
ThoughttheTwoVersionsTastedtheSameor
McDonald'sVersion
GaveNoAnswer

PreferredthePlain
whiteVersion

P
value*

48.3%

15.0%

36.7%

.33

Chicken
nugget

59.0

23.0

18.0

<.001

Frenchfries

76.7

10.0

13.3

<.001

Milkorapple
juice

61.3

17.7

21.0

<.001

Carrot

54.1

23.0

23.0

.006

*Theprobabilitylevelbasedonatestofsignificantdifferenceamongthepercentages.Pvaluesof.05orlessare
conventionallyconsideredstatisticallysignificant.

Table2.1Children'sTastePreferences(Inpercents)

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awhopping76.7percent.Evenforcarrots,whichisnotaMcDonald'smenuitem,54.1percentconsideredthesampled
carrotbettertastingwhenitwasservedinaMcDonald'spackageversusthe23.0percentwhopreferredthecarrotwhen
servedinaplainwhitepackage.
Theseresultsconvincinglyindicatebrandequityinaction.SimplyplacingproductsinwellidentifiedMcDonald's
packagingledchildrentoregardtheseitemstobesuperiortastingincomparisontoidenticalitemsinplainwhite
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packages.Moreover,additionalanalysesrevealedthatpreferencefortheMcDonald's(versusplainwhite)versionofthe
food/drinkitemswasespeciallystrongamongthosechildrenwholivedinhomeswithmoretelevisionsetsandwhomore
frequentlyatefoodfromMcDonald's.Aswillbeindicatedinthefollowingsectiononconsumerbasedbrandequity,these
resultsdemonstratetherolethatthespeakforitselfandmessagedrivenapproachesplayinenhancingabrand'sequity.

ACustomerBasedPerspectiveonBrandEquity
FromtheperspectiveofthecustomerwhetheraB2BcustomeroraB2Cconsumerabrandpossessesequitytothe
extentthatpeoplearefamiliarwiththebrandandhavestoredinmemoryfavorable,strong,anduniquebrand
associations.9Associations(or,moretechnically,mentalassociations)aretheparticularthoughtsandfeelingsthat
consumershavelinkedinmemorywithaparticularbrand,muchinthesamefashionthatweholdinmemorythoughtsand
feelingsaboutotherpeople.Forexample,whatthoughts/feelingscomeimmediatelytomindwhenyouthinkofyourbest
friend?Youundoubtedlyassociateyourfriendwithcertainfeatures,strengths,andperhapsfrailties.Likewise,brandsare
linkedinourmemorieswithspecificthoughtandfeelingassociations.10
Anotherwayofthinkingaboutbrandequityisthatitconsistsoftwoformsofbrandrelatedknowledge:brandawareness
andbrandimage.Subsequentcoverageofcustomerbasedbrandequitydescribesindetaileachofthesetwoaspectsof
brandknowledgeandbuildsthediscussionaroundFigure2.1.Itwillbeusefulbeforereadingontothoroughlyexamine
thisfigure.

BrandAwareness
Brandawarenessisanissueofwhetherabrandnamecomestomindwhenconsumersthinkaboutaparticularproduct
categoryandtheeasewithwhichthenameisevoked.Stopreadingforamomentandconsiderallthebrandsoftoothpaste
thatcomeimmediatelytoyourmind.
ForstudentsintheUnitedStates,CrestandColgateprobablycametomindimmediately,becausethesebrandsarethe
marketshareleadersamongAmericanbrandsoftoothpaste.PerhapsyoualsothoughtofAquafresh,Mentadent,andArm&
Hammerinsofarasthesebrandsalsoobtainalargeshareoftoothpastepurchases.ButdidyouconsiderCloseUp,
Pepsodent,orAim?Maybesoprobablynot.Thesebrandsarenotaswidelyknownorfrequentlypurchasedasaretheir
moresuccessfulcounterparts.Assuch,theyhavelowerlevelsofawarenessthan,say,ColgateandCrest.Nowrepeatthe
sameexerciseforbrandsofathleticfootwear.YourshortlistprobablycontainsNike,Reebok,Adidas,andmaybeNew
Balance.WhataboutKSwiss,Vans,Converse,Puma,andAsics?Again,theselatterbrandspossesslowerlevelsof
awarenessformostpeopleand,assuch,havelessequityvisvisabrandsuchasNike.
Brandawarenessisthebasicdimensionofbrandequity.Fromthevantagepointofanindividualconsumer,abrandhasno
equityunlesstheconsumerisatleastawareofthebrand.Achievingbrandawarenessistheinitialchallengefornew
brands.Maintaininghighlevelsofbrandawarenessisthetaskfacedbyallestablishedbrands.
Figure2.1showstwolevelsofawareness:brandrecognitionandrecall.Brandrecognitionreflectsarelativelysuperficial
levelofawareness,whereasbrandrecallindicatesadeeperform.Consumersmaybeabletoidentifyabrandifitis
presentedtothemonalistorifhints/cuesareprovided.However,fewerconsumersareabletoretrieveabrandnamefrom
memorywithoutanyreminders.Itisthisdeeperlevelofawarenessbrandrecalltowhichmarketersaspire.Through
effectiveandconsistentmarcomefforts,somebrandsaresowellknown

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Figure2.1ACustomerBasedBrandEquityFrameworkAdaptedfromKevinLaneKeller,Conceptualizing,
Measuring,andManagingCustomerBasedBrandEquity,JournalofMarketing57(January1993),7.
thatvirtuallyeverylivingpersonofnormalintelligencecanrecallthebrand.Forexample,ifaskedtomentionnamesof
luxuryautomobiles,mostpeoplewouldincludeMercedesBenzonthelist.Askedtonamebrandsofathleticfootwear,
mostpeoplewouldmentionNike,Reebok,andperhapsAdidas.
Themarcomimperativeistomovebrandsfromastateofunawareness,torecognition,ontorecall,andultimatelytotop
ofmindawareness(TOMA).Thispinnacleofbrandnameawareness(i.e.,TOMAstatus)existswhenyourcompany's
brandisthefirstbrandthatconsumersrecallwhenthinkingaboutbrandsinaparticularproductcategory.Figure2.2
illustratesthisbrandawarenessprogression,fromanabsenceofbrandawareness(unawareofbrand)toTOMAstatus.

BrandImage
Theseconddimensionofconsumerbasedbrandknowledgeisabrand'simage.Brandimagerepresentstheassociations
thatareactivatedinmemorywhenpeoplethinkaboutaparticularbrand.AsshowninFigure2.1,theseassociationscanbe
conceptualizedintermsoftype,favorability,strength,anduniqueness.
Toillustratethesepoints,itwillbehelpfultoconsideraspecificbrandandtheassociationsthataparticularconsumerhas
storedinmemoryforthisbrand.(ItwillbeinstructivetoreferbacktoFigure2.1beforereadingthefollowingdescription.)
ConsiderthecaseofHenryandtheMcDonald'sfastfoodchain.Nowa27yearoldcollegegraduatelivinginChicago,
HenryhasbeeneatingatMcDonald'ssincehewastwoyearsold.Hecanbedescribedasalifelongloveroffastfoodand
ofMcDonald'sinparticular.Hismouthvirtuallysalivates(laPavlov'sdog)whenthenameMcDonald'sismentioned.He
vividlyremembersgoingtoaMcDonald'sinhishometownwithhisparentsandsiblings.Nothingwasmoreenjoyable
thangoingtotheirlocalMcDonald'sonacoolautumndayafterrakingleavesanddoingotherchores.RonaldMcDonald,
thegoldenarches,andthepungentsmellofburgersandfriesaresomeofthethoughtsthatimmediatelyenterhismind.He
especiallylovesMcDonald'sfriesandconsidersthemsuperiortothoseavailableinotherchains.Ashehasbecomemore
matureandhealthconscious,heisespeciallypleasedthatMcDonald'sfriesnowarefreeoftransfats.Healsolikesthe
simpledcorthatiscommontoMcDonald's.Andhecan'tforgetallof

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Figure2.2
TheBrandAwarenessPyramidDavidA.Aaker,ManagingBrandEquity(NewYork:FreePress,1991),62.
thegoodtimesthatheandhishighschoolfriendshadwhenenjoyingeachother'scompanyafterschoolorfollowing
footballandbasketballgames.TothisdayHenrylovesMcDonald's.Abouttheonlythinghedislikesisthefactthatclerks
sometimesarepoorlytrained,inefficient,andnotparticularlyfriendly.
AllofthesethoughtsandfeelingsrepresenttypesofassociationsinHenry'smemoryaboutMcDonald's.Allofthese
associations,withtheexceptionofoccasionalmediocreserviceandrudeemployees,representfavorablelinkswith
McDonald'sasfarasHenryisconcerned.TheseassociationsareheldstronglyinHenry'smemory.Someoftheassociations
areuniqueincomparisontootherfastfoodchains.OnlyMcDonald'shasgoldenarchesandRonaldMcDonald.Noother
fastfoodchainhas,inHenry'smind,friesthattastenearlyasgoodasMcDonald's.
FromthisillustrationandinthecontextofthespecificelementsportrayedinFigure2.1,wecanseethatHenryassociates
McDonald'swithvariousattributes(e.g.,goldenarches)andbenefits(e.g.,greattastingfries),andthathepossessesan
overallfavorableevaluation,orattitude,towardthisbrand.TheseassociationsforHenryareheldstronglyandare
favorableandsomewhatunique.McDonald'swouldlovetohavemillionsofHenrysinitsmarket,whichitundoubtedly
does.TotheextentthatHenryistypicalofotherconsumers,itcanbesaidthatMcDonald'shashighbrandequity.In
contrasttoMcDonald's,manybrandshaverelativelylittleequity.Thisisbecauseconsumersare(1)onlyfaintlyawareof
thesebrandsor,worseyet,arecompletelyunawareofthemor(2)evenifaware,donotholdstrong,favorable,andunique
associationsaboutthesebrands.
Althoughabrand'simageisbasedonavarietyofassociationsthatconsumershavedevelopedovertime,brandsjustlike
peoplecanbethoughtofashavingtheirownuniquepersonalities.Researchhasidentifiedfivepersonalitydimensions
thatdescribemostbrands:sincerity,excitement,competence,sophistication,andruggedness.11Thatis,brandscanbe
describedaspossessingsomedegreeofeachofthesedimensions,rangingfromthedimensiondoesn'tdescribethebrand
atalltothedimensioncapturesthebrand'sessence.Forexample,onebrandmayberegardedashighinsincerityand
competencebutlowinsophistication,excitement,andruggedness.Anotherbrandmayepitomizesophisticationand
excitementbutberegardedaslackinginallotherdimensions.

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Thefivebrandrelatedpersonalitydimensionsaredescribedandillustratedasfollows.Bearinmindthateachillustration
attemptstocaptureasinglepersonalitydimensionwheninfactbrands,likepeople,aremultifacetedwithrespecttotheir
personalitycharacteristics.
1.SincerityThisdimensionincludesbrandsthatareperceivedasbeingdowntoearth,honest,wholesome,andcheerful.
SincerityispreciselythepersonalitythatDisneyhasimbuedinitsbrand.
2.ExcitementBrandsscoringhighontheexcitementdimensionareperceivedasdaring,spirited,imaginative,andup
todate.TheAppleiPhoneperhapsepitomizedthispersonalitydimensionwhenitwasintroducedin2007amidmuch
fanfareandevenconsumerfrenzy,aspurchaserssoughttobeamongthefirsttoownthisuniquecellphone.
3.CompetenceBrandsscoringhighonthispersonalitydimensionareconsideredreliable,intelligent,andsuccessful.In
theautomobilecategory,fewbrandsareperceivedasmorecompetentthanToyota.Toyotasarenotparticularlyexcitingor
rugged,butconsumersregardthemasreliableandcompetent.J.D.Power,anorganizationthatsurveysautomobileowners
toassesslevelsofsatisfaction,annuallyreportsthatToyotaisatornearthetopofsatisfactionratings.This,ofcourse,is
duetothebrand'soverallsuccessandreliability.
4.SophisticationBrandsthatareconsideredupperclassandcharmingscorehighonthesophisticationdimension.
Luxuryautomobiles,jewelryitems,expensiveperfume,andhighendkitchenappliancesarejustsomeofthemanyproduct
categoriesthatincludebrandsthatscorehighonthesophisticationscale.Inthejewelrycategory,forexample,Rolexand
Cartierarewellknownsophisticatedbrands.
5.RuggednessRuggedbrandsarethoughtofastoughandoutdoorsy.L.L.BeanandPatagoniatypifyretailersthatoffer
brandsregardedasruggedandoutdoorsy.Intheautomobilecategory,theHondaElement,withitsappealtoyoung,
outdoororientedconsumers,isanotherexampleofabrandthatwouldscorehighontheruggednessdimension.

StefanSollfors/Alamy

EnhancingBrandEquity
Ingeneral,effortstoenhanceabrand'sequityareaccomplishedthroughtheinitialchoiceofpositivebrandidentity(that
is,viatheselectionofagoodbrandnameandlogo)butmostlythroughmarketingandmarcomprogramsthatforge
favorable,strong,anduniqueassociationswiththebrandintheconsumer'smind.Itisimpossibletooverstatethe
importanceofeffortstoenhanceabrand'sequity.Brandsthatarehighinqualityandrepresentgoodvaluepotentially
possesshighequity,buteffectiveandconsistentmarcomeffortsareneededtobuildonandmaintainbrandequity.
Afavorablebrandimagedoesnothappenautomatically.Sustainedmarketingcommunicationsaregenerallyrequiredto
createfavorable,strong,andperhapsuniqueassociationsaboutthebrand.Forexample,itcouldbeclaimedthatoneofthe
world'sgreatestbrands,CocaCola,islittlemorethancoloredsugarwater.Thisbrandneverthelesspossessesimmense
brandequitybecauseitsmanagersareevermindfuloftheneedforcontinualadvertisingexecutionsthatsustaintheCoca

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Colastoryandbuildtheimagearoundtheworld.IntheUnitedStatesalone,theCocaColaCompanyinarecentyear
commanded43percentof

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thecarbonatedsoftdrinkmarket,whichtotalsover$50billioninrevenue.CokeClassic(Coke)heldanindividualbrand
shareofnearly18percent,whereasitsnearestcompetitor,Pepsi,hadaboutan11percentshare.12Consumersdon'tbuythis
coloredsugarwatermerelyforitstastetheyinsteadpurchasealifestyleandanimagewhenselectingCokeoverother
availablebrands.Itiseffectiveadvertising,excitingsalespromotions,creativesponsorships,andotherformsofmarketing
communicationsthatareresponsibleforCocaCola'spositiveimageandmassivemarketshare.CocaColaoutperforms
PepsinotbecauseCokeisnecessarilyabettertastingproduct,butbecauseithasdevelopedamorepositiveimagewith
greaternumbersofconsumers.Forafascinatingreviewofevidencesupportingthiscontention,readtheIMCFocusinsert
anditsdiscussionofanewtechnologycalledneuroscienceanditsapplicationincommerce,whereitisreferredtoas
neuromarketing.

RolexWatchU.S.A.,Inc.
Whatactionscanbetakentoenhanceabrand'sequity?Becauseabrand'sequityisafunctionofthefavorability,strength,
anduniquenessofassociationsheldinconsumers'memoriesaspreviouslydetailedinthecontextofFigure2.1the
simpleansweristoforgestronger,morefavorable,anduniqueassociations.Butthisbegsthequestionofhowthisistobe
accomplished.Inactuality,associationsarecreatedinavarietyofways,someofwhichareinitiatedbymarketers(e.g.,via
advertising)andothersthatarenot.13Thefollowingdiscussionidentifiesthreewaysbywhichbrandequitymaybe
enhancedandlabelsthesethe(1)speakforitselfapproach,(2)messagedrivenapproach,and(3)leveragingapproach.

EnhancingEquitybyHavingaBrandSpeakforItself
Asconsumers,weoftentrybrandswithouthavingmuch,ifany,advanceknowledgeaboutthem.Consumersform
favorable(orperhapsunfavorable)brandrelatedassociationsmerelybyconsumingabrandabsentanysignificantbrand
knowledgepriortotheusageexperience.Ineffect,thebrandspeaksforitselfininformingconsumersofitsquality,
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desirability,andsuitabilityforsatisfyingtheirconsumptionrelatedgoals.Consumerslearnhowgood(orbad)brandsare
andwhatbenefitstheyarecapable(orincapable)ofdeliveringbytryingandusingtheproducts.Itisapparentthatinthe
speakforitselfapproach,marketingcommunicatorsplayalimitedroleotherthanby,perhaps,creatingattractivepointof
purchasematerialsorappealingsalespromotionsthatmotivateconsumerstotryabrand.

ImagecourtesyofTheAdvertisingArchives

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i.m.c.Focus:NeuromarketingandtheCaseofWhyCocaColaOutsellsPepsi

CocaCola(Coke)andPepsiaretwowellknowncarbonatedbeveragesthathavebeenmarketedfor
over100years.Thesebrandshavebeenlockedinfiercebattlesfordecades,describedsometimesasthecolawars.One
sensationalbattlebeganin1975whenPepsisponsoredanationaltastetesttodeterminewhichbrand,CokeorPepsi,was
regardedasbettertasting.Followingthistesting,Pepsiundertookanadvertisingcampaign(calledthePepsiChallenge)
thatdirectlycomparedPepsiwithCokeandclaimedtheresearchevidence(i.e.,socalledblindtastetests)revealedthat
consumerspreferPepsioverCoke.IfinfactPepsiisabettertastingbeveragethanCoke,whyisCocaColathehigher
sellingandmorepopularbeverage?Forananswer,let'sentertheworldofneuromarketingandthetechnologyofbrain
imaging.
Neuromarketingisaspecificapplicationofthefieldofbrainresearchcalledneuroscience.Neuroscientistsstudyactivation
ofthebraintooutsidestimuliwiththeuseofbrainscanningmachinesthattakefunctionalmagneticresonanceimages
(fMRIs)whenindividualsvisuallyorotherwiseemploytheirsensesuponexposuretostimuli.16BrainscanswithfMRI
machinesrevealwhichareasofthebrainaremostactivatedinresponsetoexternalstimuli.Withthisbriefdescriptionin

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mind,wecandescriberesearchconductedbyaneuroscientistattheBaylorCollegeofMedicineinTexas,researchthat
mightbedescribedasthe21stCenturyPepsiChallenge.
Thescientist,ReadMontague,performedthisnewfangledPepsiChallengebyscanningthebrainsof40studyparticipants
aftertheytastedintermittentsquirtsofPepsiandCoke.Whenblindastowhichbrandtheyweretasting,Pepsicameout
theclearwinner.Thatis,therewardcenterofthebrain,theventralputamen,revealedamuchstrongerpreferenceforPepsi
versusCokewhenstudyparticipantswereunawareofwhichbrandtheyhadtasted.However,thisresultflipfloppedwhen
Montaguealteredthetestingprocedurebytellingparticipantsthenameofthebrandtheywereabouttotaste.Nowa
differentregionofthebrainwasmoreactivatedandCocaColawasthewinnerinthisnonblindtastetest.Inparticular,
activationinthemedialprefrontalcortexanareaofthebrainassociatedwithcognitivefunctionssuchasthinking,
judging,preference,andselfimagerevealedthatparticipantsnowpreferredCoke.Inshort,withblindtastetests,Pepsi
wasthewinner.Withnonblindtests,Cokeprevailed.What'sgoingon?
Theapparentanswerisadifferenceinbrandimages,withCokepossessingthemoreattractiveimageearnedthroughyears
ofeffectivemarketingandadvertisingeffort.WhenparticipantsknewtheyweretastingCoke,theirpreferenceforthat
brandwasmediatedbypastexperiencesandpositiveassociationsofthebrandmatchingtheirselfimagesasreflectedin
theactivationofthemedialprefrontalcortex.Whencluelessofbrandidentity,therawrewardcenterofthebrain,the
ventralputamen,revealedPepsitobethewinner,presumablybecauseitisasomewhatbettertastingsoftdrink.Most
interestingisthefactthatCocaCola'smarcomeffortshaveenabledthatbrandtorisetothetop.Pastadcampaignssuchas
It'stheRealThing,I'dLiketoBuytheWorldaCoke,andHaveaCokeandaSmilehavepossiblyresonatedmore
positivelywithconsumersthanhasPepsi'smarketing,whichhasconcentratedmoreonaligningthatbrandwith,asit
turnedout,illadvisedcelebritiessuchasMichaelJacksonandBritneySpears.Insum,this21stcenturyPepsiChallenge
furtherdemonstratestheimportanceofeffectivemarcomeffortsandtherolethatapositivebrandimageplaysin
determiningbrandequityandinfluencingconsumerchoices.
SOURCES:EdwinColyer,TheScienceofBranding,Brandchannel,March15,2004,http://brandchannel.com.(accessed
March22,2004)CliveThompson,There'saSuckerBorninEveryMedialPrefrontalCortex,TheNewYorkTimes,
October26,2003,http://rickross.com(accessedJuly20,2004)DavidWahlberg,AdvertisersProbeBrains,RaiseFears,
TheAtlantaJournalConstitution,February1,2004,http://cognitiveliberty.org(accessedJuly20,2004)MelaniWells,
InSearchoftheBuyButton,Forbes.com,September1,2003,http://forbes.com(accessedJuly20,2004)TheCola
Wars:OveraCenturyofColaSlogans,Commercials,Blunders,andCoups,http://geocities.com/colacentury(accessed
July21,2004).

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EnhancingEquitybyCreatingAppealingMessages
Marcompractitionersintheirvariouscapacitiescanbuild(orattempttobuild)positivebrandrelatedassociationsviathe
dintofrepeatedclaimsaboutthefeaturesabrandpossessesandthebenefitsitdelivers.Thistypeofbrandequitybuilding
canbethoughtofasthemessagedrivenapproach.Suchanapproachiseffectiveifmarcommessagesarecreative,
attentiongetting,believable,andmemorable.Needlesstosay,thespeakforitselfandmessagedrivenapproachesneednot
beindependentthatis,consumers'associationsrelatedtoaparticularbrandresultbothfromwhatthey'velearnedfirsthand
aboutabrandthroughusageandwhatthey'veacquiredthroughexposuretothebrand'smarcommessages.

EnhancingEquityviaLeveraging
Athirdequitybuildingstrategythatincreasinglyisbeingusedisleveraging.14Brandassociationscanbeshapedand
equityenhancedbyhavingabrandtieinto,orleverage,positiveassociationsthatalreadyarecontainedintheworldof
people,places,andthings.Thatis,thecultureandsocialsystemsinwhichconsumerslearnaboutbrandsandhow
marketingcommunicationstakeplaceareloadedwithmeaning.Throughsocialization,peoplelearnculturalvalues,form
beliefs,andbecomefamiliarwiththephysicalmanifestations,orartifacts,ofthesevaluesandbeliefs.Theartifactsof
culturearechargedwithmeaning,whichistransferredfromgenerationtogeneration.Forexample,theLincolnMemorial
andEllisIslandaresignsoffreedomtoAmericans.ToGermansandmanyotherpeoplethroughouttheworld,thenow
crumbledBerlinWallsignifiedoppressionandhopelessness.Comparatively,yellowribbonssignifycrisesandhopesfor
hostagereleaseandthesafereturnofmilitarypersonnel.Pinkribbonssignalsupportforbreastcancervictims.Redribbons
havegrownintoaninternationalsymbolofsolidarityonAIDS.TheBlackLiberationflagwithitsred,black,andgreen
stripesrepresentingblood,achievement,andthefertilityofAfricasymbolizescivilrights.
Marketingcommunicatorsdrawmeaningfromtheculturallyconstitutedworld(i.e.,theeverydayworldfilledwithsigns
andartifactssuchastheprecedingexamples)andtransferthatmeaningtoconsumergoods.Marketingcommunicators
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engageinmeaningtransferwhentheyconnectaconsumergoodwitharepresentationoftheculturallyconstitutedworld.
Theknownpropertiesoftheculturallyconstitutedworldthuscometoresideintheunknownpropertiesoftheconsumer
goodandthetransferofmeaningfromworldto[consumer]goodisaccomplished.15
Statedalternatively,thisaccountsaysthatmarketingcommunicatorsleveragemeaningandcreateassociationsfortheir
brandsbyconnectingthemwithotherobjectsthatalreadypossesswellknownmeaning.Figure2.3portrayshowbrands
leverageassociationsbyformingconnectionswith(1)otherbrands,(2)places,(3)things,and(4)people.Thereare
numerouswaysforleveragingfavorablebrandassociations,andFigure2.3isagoodstartingpointforappreciatingthese
options.(ItwillbebeneficialtostudyFigure2.3beforereadingon.)
LeveragingAssociationsfromOtherBrands
Amongotherformsofleveraging,Figure2.3showshowabrandcanleverageassociationsfromotherbrands.Inrecent
yearstwobrandsoftenenterintoanalliancethatpotentiallyservestoenhancebothbrands'equityandprofitability.You
needonlylookatyourbankcard(e.g.,Visa)toseethatitlikelycarriesthenameofanorganizationsuchasyourcollegeor
university.Thetwohaveenteredintoanalliance,oracobrandingrelation,fortheirmutualbenefit.Yourcollegeor
universityperhapsalignsitselfwithotherorganizationsbynamingacademicbuildingsandathleticfacilitiesforthe
organizationthatprovidesfinancialsupport.
Examplesofbrandingalliancesarevirtuallyendless,manyofwhichyouhaveobservedasaneverydayparticipantinthe
marketplace.Thecommonthemeisthatbrandsenteringintoalliancesdosoongroundsthattheirimagesaresimilar,that
theyappealtothesamemarketsegment,andthatthecobrandinginitiativeismutuallybeneficial.Themostimportant
requirementforsuccessfulcobrandingisthatbrandspossessacommonfitandthatthecombinedmarcomeffortsmaximize
theadvantagesoftheindividualbrandswhileminimizingthedisadvantages.17Ithasbeendemonstratedthatalliancesare
mosteffectivewhenbothpartnersexperienceincreasedequityfromformingapartnership.18

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Figure2.3LeveragingBrandMeaningfromVariousSourcesKevinLaneKeller,BrandSynthesis:The
MultidimensionalityofBrandKnowledge,JournalofConsumerResearch29(March2003),598.Bypermissionofthe
UniversityofChicagoPress.
Ingredientbrandingisaspecialtypeofalliancebetweenbrandingpartners.Forexample,Lycra,abrandofspandexfrom
DuPont,initiatedamultimilliondollarglobaladvertisingefforttoincreaseconsumerownershipofjeansmadewithLycra.
AlongthelinesoftheIntelInsidecampaign,Lycra'sadvertisingfeaturedLycrajeansbyLeviStrauss,Diesel,DKNY,
andotherjeanmanufacturers.DuPontbeganthiscampaigninanefforttodifferentiateitselffromcheaperunbranded
spandexfromAsia.19Otherwellknowninstancesofingredientbrandingincludevariousskiwearbrandsthat
prominentlyidentifytheGoreTexfabricfromwhichtheyaremadeandcookwaremakersthattoutthefactthattheir
skilletsandothercookwareitemsaremadewithDuPont'sTeflonnonstickcoating.Althoughingredientbrandingisin
manyinstancesbeneficialforboththeingredientandhostbrands,apotentialdownsideforthehostbrandisthatthe
equityoftheingredientbrandmightbesogreatthatitovershadowsthehostbrand.Thissituationwouldarise,for
example,ifskiersknewthattheirskijacketwasmadeofGoreTexfabricbuttheyhadnoawarenessofthecompanythat
actuallymanufacturedthejacket.
LeveragingAssociationsfromPeople
Beyondleveragingabrand'simagebyassociatingitselfwithanotherbrand,Figure2.3pointsoutthatabrandcanleverage
itsequitybyaligningitselfwithpeople,suchasitsownemployeesorendorsers.Alaterchapterdiscussestheroleof
endorsersindetail,sonothingmorewillbesaidatthistimeotherthantonotethatbrandassociationswithendorserscan
befabulouslysuccessful(thinkMichaelJordanandGatorade)orpotentiallydisastrous(thinkMichaelVickafterhis
indictmentondogfightingchargesandthebrandsthatdroppedtheirrelationshipswithhotpotatohasteNike,Reebok,
thetradingcardcompanyUpperDeck,andRawlings).
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LeveragingAssociationsfromThings
Otherformsofleveragingincludeassociatingabrandwiththingssuchasevents(e.g.,sponsorshipoftheWorldCup
soccerchampionship)andcauses(e.g.,sponsorshipofasaveDarfurrally).Again,nofurtherdiscussionisdevotedtothese
topicsatthispoint.
LeveragingAssociationsfromPlaces
Finally,abrand'sequitycanbeleveragedbybeingassociatedwithplacessuchasthechannelinwhichabrandis
distributedoracountryimage(labeledcountryoforigininFigure2.3).Imagine,forexample,thedifferenceinabrand's
imageholdingeverythingelseconstant,suchasproductqualityandpriceifabrandwerecarriedinamassmerchandise
store,suchasWalMart,comparedtobeingdistributedinahighenddepartmentstore.Inwhichstorewouldthebrandbe
regardedmorepositively?
Leveragingabrandbyemphasizingitscountryoforiginisapotentiallyeffectivewaytoenhancethebrand'sequity.20For
example,brandswithGermanandSwissheritageoftenareperceivedaroundtheglobeasbeinghighincraftsmanship.
Japaneseelectronicproductsareregardedasunparalleledininnovativeness,quality,anddependability.
Howimportantisabrand'scountryoforigininaffectingitsbrandequityanddeterminingitscommercialsuccess?Frankly,
thereisnosimpleanswerandtheresearchonthisissueismixed.21Nodoubt,someconsumersegmentsplacegreater
importanceonabrand'scountryoforiginthandoothers.Olderconsumers,forexample,aregenerallymoreconcernedwith
whereabrandcomesfromthanaretheirmoreyouthfulcounterparts,whoaremorecomfortablelivinginaglobalworld
andbuyingproductsbasedonconsiderationsotherthanwheretheyaremade.Infact,researchhasshownthatAmerican
collegestudentsaresomewhatcluelessastowherethebrandstheyconsumeoriginate.22Forexample,just4.4percentof
1,000studentsknewthatNokiacellphonesaremadeinFinland(53percentthoughtNokiatobeJapanese),andjust8.9
percentknewLGcellphonesarefromKorea.Nearly50percentthoughtthatAdidasclothingisfromtheUnitedStates
ratherthanitstruehomecountry,Germany.Motorola,alongestablishedAmericanbrand,wasmisperceivedtobe
Japanesebymorethan40percentofrespondents.
Whenabrandleveragesitscountryoforigin,thepotentialexistsforthebrandtobenefitfromthisassociationorpossibly
tosufferifthecountryisperceivedinalessthanpositivelight.Itobviouslyisinbrandmarketers'bestinterestthattheir
countriesoforiginareperceivedfavorably.TheGlobalFocusinsertprovidesalookathowtheworldperceivestheUnited
States.

WhatBenefitsResultfromEnhancingBrandEquity?
Onemajorbyproductofeffortstoincreaseabrand'sequityisthatconsumerbrandloyaltymightalsoincrease.23Indeed,
longtermgrowthandprofitabilityarelargelydependentoncreatingandreinforcingbrandloyalty.Thefollowingquote
fromtworespectedmarketingpractitionerssumsupthenatureandimportanceofbrandloyalty:
Whilemarketershavelongviewedbrandsasassets,therealassetisbrandloyalty.Abrandisnotanasset.
Brandloyaltyistheasset.Withouttheloyaltyofitscustomers,abrandismerelyatrademark,anownable,
identifiablesymbolwithlittlevalue.Withtheloyaltyofitscustomers,abrandismorethanatrademark.A
trademarkidentifiesaproduct,aservice,acorporation.Abrandidentifiesapromise.Astrongbrandisa
trustworthy,relevant,distinctivepromise.Itismorethanatrademark.Itisatrustmarkofenormousvalue.
Creatingandincreasingbrandloyaltyresultsinacorrespondingincreaseinthevalueofthetrustmark.24
Researchhasshownthatwhenfirmscommunicateuniqueandpositivemessagesviaadvertising,personalselling,
promotions,events,andothermeans,theyareabletodifferentiatetheirbrandseffectivelyfromcompetitiveofferingsand
insulatethemselvesfromfuturepricecompetition.25
Marketingcommunicationsplaysanessentialroleincreatingpositivebrandequityandbuildingstrongbrandloyalty.
However,thisisnotalwaysaccomplishedwithtraditionaladvertisingorotherconventionalformsofmarketing
communications.Forexample,Starbucks,

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thevirtualiconforupscalecoffee,doesverylittleadvertising,yetthisbrandhasanearcultlikefollowing.Nevertheless,
Starbuck'schairmanvoicedconcernthateffortstogrowsalesandprofitse.g.,introducingbreakfastitemsinsomestores
andreplacingconventionalespressomakerswithautomaticmachinesmayhavedamagedStarbuck'sreputationfor
providingauniqueconsumptionexperience.26
AnexCEOandchairmanofPepsiCoprovidesuswithafittingsectionconclusioninthefollowingimplicitdescriptionof
theimportanceofthatcompany'seffortstobuildtheequityofitsbrands:
Inmymindthebestthingapersoncansayaboutabrandisthatit'stheirfavorite.Thatimpliessomething
morethansimplytheylikethepackage,orthetaste.Itmeanstheylikethewholethingthecompany,the
image,thevalue,thequality,andonandon.Soaswethinkaboutthemeasurementsofourbusiness,ifwe're
onlylookingatthisyear'sbottomlineandprofits,we'remissingthepicture.Weshouldbelookingat
marketshare,butalsoatwherewestandvisvisourcompetitorsintermsofconsumerawarenessand
regardforourbrands.Youalwaysknowwhereyoustandinthe[profitandlossstatement]becauseyousee
iteverymonth.Butwhatyouneedtoknow,withalmostthesamesenseofimmediacy,iswhereyoustand
withconsumersandyourcustomers.27

CharacteristicsofWorldClassBrands
Somebrandshavesuchexceptionalbrandequitythattheydeservethelabelworldclass.ThewellknownEquiTrend
surveybythemarketresearchfirmHarrisInteractiveisconductedbiannuallyandincludesresponsesfrommorethan
25,000consumerswhocollectively,notindividually,rateover1,000brands.Eachrespondentevaluateseachof80brands
intermsof(1)whetherheorsheisfamiliarwiththebrand,(2)howgoodthebrand'squalityis,and(3)whetherheorshe
wouldconsiderpurchasingthebrand.Thesethreescoresthenarecombinedtoformabrandequityscoreforeachbrand,
withatheoreticalrangefromzeroto100.28Brandsreceivinghighequityscoresarewellknown,perceivedashighquality,
andarelikelypurchasecandidates.
ThemostrecentEquiTrendsurveyrevealsthe10brandsinTable2.2astheoverallhighestequitybrands.Manyofthese
brandsregularlyappearinEquiTrend'stop10rankings.BrandsthatreceivehighequityscoresbasedonEquiTrend's
measuretendtomakestraightforwardpromisestoconsumersanddeliveronthesepromisesoverextendedperiods.Inshort,
thesebrandspossesshighbrandequitybecausetheyarewellknownandpossessstrongandfavorableassociationsin
consumers'memories.
Table2.2TopTenWorldClassBrandsOverall(Among1,030totalbrandsincludedinEquiTrend'sSpring2006
survey)
Brand

Rank

EquityScore

ReynoldsWrapAluminumFoil

80.8

ZiplocFoodBags

79.1

Hershey'sMilkChocolateBars

78.1

KleenexFacialTissues

78.0

CloroxBleach

78.0

WD40SprayLubricant

77.7

HeinzKetchup

77.5

ZiplocContainers

77.2

WindexGlassCleaner

76.9

10

76.6

Campbell'sSoups

Source:Spring2006EquiTrendbrandstudybyHarrisInteractive,
http://www.harrisinteractive.com/news/allnewsbydate.asp?NewsID=1063(accessedJuly26,2007).

Table2.2TopTenWorldClassBrandsOverall(Among1,030totalbrandsincludedinEquiTrend'sSpring2006
survey)Spring2006EquiTrendbrandstudybyHarrisInteractive,
http://www.harrisinteractive.com/news/allnewsbydate.asp?NewsID=1063(accessedJuly26,2007).
AnotherbrandrankinganalysisisundertakenannuallybyInterbrand,whichranksthe100topglobalbrands.29Itsbrand
rankingmethodisbasedoncalculating(1)thepercentage
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ofacompany'srevenuethatcanbecreditedtoabrand,(2)thestrengthofabrandintermsofinfluencingcustomerdemand
atthepointofpurchase,and(3)theabilityofthebrandtosecurecontinuedcustomerdemandasaresultofbrandloyalty
andrepurchaselikelihood.Onlythosebrandsthatprovidepublicfinancialdata(thusexcludingprivatecompanies)and
thatsecureatleastonethirdoftheirrevenuesfrominternationaloperationsarepotentialcandidatesforinclusionin
Interbrand'srankingsofbestglobalbrands.ThislatterfactoraccountsforwhysomeofthebrandsincludedinTable2.2,
whichconsistsentirelyofAmericanbrands,arenotalsoincludedinInterbrand'stop20list.Table2.3liststhetop20best
brandsbasedonInterbrand'sanalysisinonerecentyear.
Table2.3Interbrand'sTop20GlobalBrands,2007
Rank

Brand

CountryofOrigin

BrandValue($mil)

CocaCola

US

65,324

Microsoft

US

58,709

IBM

US

57,091

GE

US

51,569

Nokia

Finland

33,696

Toyota

Japan

32,070

Intel

US

30,954

McDonald's

US

29,398

Disney

US

29,210

10

Mercedes

Germany

23,568

11

Citi

US

23,443

12

HewlettPackard

US

22,197

13

BMW

Germany

21,612

14

Marlboro

US

21,283

15

AmericanExpress

US

20,827

16

Gillette

US

20,415

17

LouisVuitton

France

20,321

18

Cisco

US

19,099

19

Honda

Japan

17,998

20

Google

US

17,837

Source:InterbrandReport,BestGlobalBrands2007,http://www.interbrand.com/best_brands_2007.asp.

Table2.3Interbrand'sTop20GlobalBrands,2007InterbrandReport,BestGlobalBrands2007,
http://www.interbrand.com/best_brands_2007.asp.

AffectingBehaviorandAchievingMarcomAccountability
WhendiscussinginChapter1theprinciplesunderlyingIMC,onemajorpointofemphasiswasthatmarcomeffortsshould
bedirected,ultimately,ataffectingbehaviorratherthanmerelyenhancingequity.Creatingbrandawarenessandboosting
brandimageservelittlepositiveeffectunlessindividualsultimatelymakepurchasesorengageinsomeotherformof
desiredbehaviorbybehaviorwemeanthatthecustomertakessomeactionsuchascontributingtoacharitable
organization,discontinuingsmoking,votingforapoliticalcandidate,stayingonadietplan,attendingaconcert,working
onatermprojectratherthancontemplatingitsstart,andsoon.Allofthesebehaviors,oracts,contrastwithprebehavioral
cognitionsoremotionswherebyonemerelythinksthatdoingsomethingisagoodideaorfeelsgoodabouttheprospectof
doingsomething.Theproofofthebehavioralpuddingisintheaction.
Marcom'seventualchallengeistoinfluencebehavior,whateverthenatureofthatbehaviormightbe.Tosimplifythe
followingdiscussionwewillhereafterrefertobehavioronlyinthecontextofbusinessorganizationsratherthantalking
aboutmanydifferentformsofbehavior.Fromthisperspective,behavioressentiallyequatestopurchasebehavior.Purchase

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behavioris,ofcourse,acustomerbasedconcept(i.e.,customersbuy,orpurchaseproductsandservices).Fromthe
marketer'sstandpoint,desiredbehaviorfromcustomerscorrespondstosalesvolumeandrevenue,withrevenue
representingthemonetizedequivalentofsalesvolume(i.e.,volumenetprice=revenue).Lookedatinthismanner,
marcom'sobjectiveisultimatelytoaffectsalesvolumeandrevenue.
Theeffectofmarcom,orofitsspecificelementssuchasadvertising,canthusbegaugedintermsofwhetheritgeneratesa
reasonablerevenuereturnonthemarcominvestment.Thisideaofreturnoninvestment,whichiswellknowntoanyone
whohastakenabasiccourseinaccounting,finance,ormanagerialeconomics,isreferredtoinmarketingcirclesasreturn
onmarketinginvestment(ROMI).Inaworldofincreasedaccountability,itisimperativethatmarketingpeopleinall
capacities,includingmarcompractitioners,demonstratethatadditionalinvestmentsin,say,advertisingyieldreturnsthat
meetorexceedalternativeapplicationsofcorporatefunds.Chiefexecutiveofficers(CEOs)aswellaschiefmarketing
officers(CMOs)andchieffinancialofficers(CFOs)areincreasinglyasking,What'smyROMI?Thevastmajorityof
marketingexecutivesconsiderthemeasurementofmarketingperformanceanimportantpriority,andmarketingacademics
alongwithpractitionersareactivelyinvolvedindevisingwaystomeasuremarketingperformancesoastoachieve
financialaccountabilityformarketingactions.30Twoprimarymotivationsunderliethisincreasedfocusonmeasuring
marketingperformance,asexplainedinthefollowingquote:
First,greaterdemandsforaccountabilityonthemarketingfunctionfromtheCEO,theBoard,andother
executivesmandateagreaterfocusonmeasurement.ForaCMOtotrulycommandanequalseatatthe
executivetable,aCMOmustdefineanddeliverquantitativemeasurementsforthecorporation.Andthese
metricsmustbeclearlyandconvincinglycommunicatedtotheappropriateaudiences.Asecond,perhaps
equallyimportantdriveristheimperativeforaCMOtogetbetteratwhattheydo.Asthebudgetbattles
becomemorefrequentanduncomfortable,aCMOcanmakemarketingamoreeffectiveorganizationonly
bymeasuringandunderstandingwhatisworkingandwhatisn't.31

DifficultyofMeasuringMarcomEffectiveness
Thoughmostmarketingexecutivesagreethatmeasuringmarketingperformanceiscriticallyimportant,atthepresenttime
relativelyfeworganizationsaredoingasophisticatedjob.Thisisnotbecausemarketingexecutivesareuninterestedin
determiningwhataspectsoftheirmarcomeffortsareorarenotworkingmosteffectivelyrather,theproblemresideswith
thedifficultyofmeasuringmarcomeffectiveness.Severalreasonsaccountforthiscomplexity:(1)obstaclesinidentifying
anappropriatemeasure,ormetric,ofeffectiveness(2)complicationswithgettingpeoplethroughouttheorganizationto
agreethataparticularmeasureisthemostappropriate(3)snagswithgatheringaccuratedatatoassesseffectivenessand
(4)problemswithdeterminingtheexacteffectthatspecificmarcomelementshaveonthemeasurethathasbeenselectedto
indicateeffectiveness.

AssessingEffectswithMarketingMixModeling
Tounderstandandappreciatethenatureandroleofmarketingmixmodeling(MMM),let'sreturntoourexampleofthe
automobilemarketerthatincreaseditsmarcombudgetforaparticularmodelby25percentoverthepreviousyear'sbudget.
Toadvertiseandpromotethebrand,thefollowingmarcomtoolswereused:(1)advertisingviaTV,magazine,andonline
media(2)sponsorshipofaprofessionalgolftournamentalongwithseveralothersportingandentertainmenteventsand
(3)useofanattractiverebateprogramtoencourageconsumerstobuynowratherthanlater.32
Eachoftheseactivitiescanbethoughtofasindividualelementsconstitutingthebrand'smarcommix.Theissuethat
marketingmixmodelingaddressesisthis:whateffectdideachoftheseelementshaveinaffectingthisautomobilemodel's
salesvolumeinapriorperiod?Marketingmixmodelingemployswellknowneconometricstatisticaltechniques(e.g.,
multivariateregressionanalysis)toestimatetheeffectsthatthevariousadvertising,promotion,

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i.m.c.Focus:HarleyDavidsonAnIronHorseforRuggedIndividualists,IncludingFemales!

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BrandmanagersatHarleyDavidsonMotorCo.ranamagazineadseveralyearsagothatcapturedthe
essenceofthiscompany'sfamousmotorcycles.TheaddepictedadriverlessHarleyDavidsonmotorcycleonanopenroad
intheAmericanWestinafashionreminiscentofawildmustanginasimilarscene.Thead'sheadlinedeclared,Even
CowsKickDowntheFenceOnceinaWhile,andwassupportedwithcopystating:
It'srightthereinfrontofyou,Road,wind,country.AHarleyDavidsonmotorcycle.Inotherwords,
freedom.AchancetoliveonyourowntermsforawhileAnyonewho'sbeenthereknows:Lifeisbetter
ontheoutside.
Thisadvertisingmessagewassubtlebutclear:ifyoucherishfreedom,independence,andperhapsasenseofbeinga
kindredspiritwithothersoflikemind,thenHarleyDavidsonisthemotorcycleforyou.Thecowboyspiritwas
encapsulatedinthispositioning,whichtacitlyequatedHarleymotorcycleswithhorses.(HarleyDavidsonequalsiron
horse.)PotentialpurchasersofHarleymotorcyclesprobablyasyoungstersenvisionedthemselvesridinghorsesin
America'sOldWest.33
WhatmakesHarleyDavidsonmotorcyclessuchauniqueandstrongbrand,indeedabrandofvirtualiconicstatus?
InformedobserversandstudentsofbrandmarketingwouldsuggestthatHarley,moresothanmostbrands,hasadeep
emotionalconnectionwithpresentandprospectiveowners.34AscapturedinthepreviousdescriptionofaHarley
advertisement,thebrandhasbeenmarketedasandhasvirtuallybecomesynonymouswithAmericancultureandvaluesof
personalfreedom,rebelliousness,andruggedindividualism.35Harleyalsohascreatedasenseofbrandcommunityamong
ownersofitsbrand,whosharestrongcomradeship.36Infact,whenHarleycelebratedits100thanniversary,over250,000
individualsfromaroundtheworldcametoMilwaukee,Wisconsin,toparticipateinthebigparty.Needlesstosay,few
brandsanywhereintheworldhavesuchloyalanddevotedfollowers.
AnespeciallyinterestingaspectofHarley'sconsumercommunityisthatithasbecomeincreasinglyfemaleAmerican
womenareafastgrowingsegmentofthemotorcyclebusiness,withannualpurchasesexceeding100,000cycles!37Nearly
oneineightsalesofHarleymotorcyclesistowomen,whichisattributableinlargeparttoHarley'sconcertedeffortto
appealtothefemalesegment.Forexample,itsdealersholdgarageparties,organizedgatheringsatwhichdealer
representativesinformwomenaboutHarleyDavidsonmotorcycles,appealtotheirdreamsofowningamotorcycle,and
attempttoreducetheirfears.38
andothermarcomelementshaveindrivingsalesvolume.Thoughitisbeyondthescopeofthistexttoofferatechnical
explanationofregressionanalysisorofothermoresophisticatedanalytictechniquesusedinMMM,theconceptual
underpinningsarestraightforward.Letusdemonstratethisapproachusingthefollowingmultivariateregressionequation:

where:
Yi=Thenumberofautomobilessoldduringtheperiodofanalysis,designatedasperiodi
X1i=TVadvertisingexpenditures(designatedaselement1)duringtheithperiod

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X2i=Magazineadvertisingexpenditures(element2)intheithperiod
X3i=Onlineadvertisingexpenditures(element3)intheithperiod
X4i=Amountspentsponsoringthegolftourney(element4)intheithperiod
X5i=Amountspentsponsoringother,minorevents(element5)intheithperiod
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X6i=Amountspentonrebates(element6)duringtheithperiod
0 =Baselinesaleswithoutanyadvertisingorpromotions
1 ,2 ,3 ,4 ,5 ,6 =Estimatesoftheindividualeffectsthevariousadvertisingandpromotionelementshadonsales.
Inordertoemploymarketingmixmodeling,arelativelylongseriesoflongitudinaldataisrequired.Thedataforeach
periodwouldincludethelevelofsalesduringthatperiod(Yi)alongwithcorrespondingadvertising,promotion,and
sponsorshipexpendituresforeachprogramelement(X1ithroughX6i).Imagine,forexample,thatourhypothetical
automobilecompanyrecordsweeklysalesandhasmeticulousrecordsofpreciselyhowmuchisspentweeklyoneach
advertisingandpromotionelementforaperiodoftwofullyears.Recordsofthissortwouldproduceasetof104
observations(52weeks2years),whichwouldprovideasufficientnumberofobservationstoproducereliableparameter
estimatesforthevariousprogramelements.
Theanalyticaspectofmarketingmixmodelingyieldsstatisticalevidenceregardingtherelativeeffectsthateachprogram
elementhashadininfluencingsalesofthisparticularautomobilemodel.Managerslearnfromsuchanalysiswhich
elementsareoutperformingothersandcanusethisstatisticalinformationtoshiftbudgetsfromprogramelementto
element.Obviously,moreeffectiveelementswouldinthefuturereceiverelativelygreaterbudgetsvisvistheless
effectiveelements.
Marketingmixmodelinghasbeenusedoffandonfornearlyaquartercentury,butcurrentuseisatahighpointwith
leadingmarketerssuchasProcter&Gamble(P&G)andtheCloroxCompanybenefitinggreatlyfromtheuseofthis
analyticapproach.Inonerecentyear,forexample,P&G'sapplicationofMMMresultedinthatfirm'schanginghowit
spentmorethan$400millionofitsadvertisingandpromotionbudget.39Basedonitsmodeling,P&Gsubstantially
increaseditsadvertisingbudget.Comparatively,Clorox'suseofMMMledittoshiftsomemoneyawayfromadvertising
intopromotions.Theimportantpointisthateachapplicationofmarketingmixmodelingisbasedonauniquesetof
marketingcircumstances.What'sgoodforthegoose(say,P&G)isnotnecessarilygoodforthegander(say,Clorox).One
solutiondoesnot,inotherwords,fitall.
Marketingmixmodelingiswidelyusedbyconsumerpackagedgoods(CPG)companiessuchasP&GandClorox,butit
alsoisbeingusedincreasinglybynonCPGcompaniesintheB2CenvironmentandalsobyB2Bcompanies.Any
companycanemploythetechniquesofmarketingmixmodelingprovideditmaintains(orcanpurchasefromsyndicated
sources)salesdataonaperiodbyperiodbasisaswellasmeticulousrecordsofitsexpendituresonaperiodbyperiodbasis
forallofitsadvertising,promotion,andothermarcomelements.Theexamplewe'vebeenworkingwithfortheautomobile
modelisactuallysimplisticinthatafullmarketingmixanalysiswouldconsidernotjustexpenditureson,say,aparticular
advertisingmediumsuchastelevisionbutwoulddisaggregatethedataforspecifictypesofTVexpenditures(e.g.,network
TVversuscable)andevendifferentdayparts(daytime,primetime,etc.).Thefiner,ormoredisaggregated,thedata,the
betteranalystscandeterminewhichspecificmarketingmixelementsaremostandleasteffectiveindrivingsales.

MarketingCommunicationsChallenges:EnhancingBrandEquity,InfluencingBehavior,and
BeingAccountable:DiscussionQuestions
1.WithreferencetotheMarketingInsightsegmentthatopenedthechapterandinviewofthedetailedsectionon
brandequitylaterinthechapter,explainwhybrandawarenessisanecessarybutinsufficientindicatorofbrand
equity.

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2.UsingtheframeworkinFigure2.1,describeallpersonalassociationsthatthefollowingbrandsholdforyou:(a)
HarleyDavidsonmotorcycles,(b)Hummervehicles,(c)RedBullenergydrink,(d)TheWallStreetJournal
newspaper,(e)entertainerParisHilton,and(f)thePriushybridautomobile.
3.Provideexamplesofbrandsthatinyouropinionarepositionedinsuchawayastoreflectthefivepersonality
dimensions:sincerity,excitement,competence,sophistication,andruggedness.
4.Compareandcontrastthespeakforitselfandmessagedrivenapproachestoenhancingbrandequity.
5.Selectabrandofvehicle(automobile,truck,motorcycle,SUV,etc.)andwiththisbranddescribethetype,
favorability,strength,anduniquenessofbrandassociationsthatyouholdinmemoryforthisbrand.
6.Describetheleveragingstrategyforenhancingbrandequity.Takeabrandofyourchoiceand,referringtoFigure
2.3,explainhowthatbrandcouldbuildpositiveassociations,therebyenhancingitsequity,bylinkingitselfto(a)
places,(b)things,(c)people,and(d)otherbrands.Bespecific.

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7.Whatdoesitmeantosaythatmarketingcommunicationsshouldbedirected,ultimately,ataffectingbehavior
ratherthanmerelyenhancingequity?Provideanexampletosupportyouranswer.

MarketingCommunicationsChallenges:EnhancingBrandEquity,InfluencingBehavior,and
BeingAccountable:MultipleChoiceQuestions
1.A_____isaname,term,sign,symbol,ordesign,oracombinationofthemintendedtoidentifythegoodsandservices
ofonesellerorgroupofsellerstodifferentiatethemfromthoseofcompetition.
(a)trademark
(b)market
(c)tradename
(d)brand
(e)guarantee
2.A_____iseverythingthatonecompany'sparticularofferingstandsforincomparisontocompetitors'offerings.
(a)trademark
(b)logo
(c)symbol
(d)brand
(e)sign
3.Theconceptofbrandequityisconsideredfromwhichperspective?
(a)fromtheperspectiveoftheorganizationthatownsthebrand
(b)fromthevantagepointofthecustomer
(c)fromtheperspectiveoftheotherbrandsintheproductcategory
(d)aandb
(e)a,b,andc
4.Fromtheperspectiveofthefirmthatownsthebrand,whichofthefollowingisapositiveoutcomeofincreasedbrand
equity?
(a)highermarketshare
(b)increasedbrandloyalty
(c)abilitytochargepremiumprices
(d)earningarevenuepremium
(e)alloftheabove
5.Asabrand'sequityincreases,itselasticityofdemand_____.
(a)becomeslesselastic
(b)becomesmoreelastic
(c)becomeslessinelastic
(d)remainsconstant
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(e)increases
6.Therevenuedifferentialbetweenabrandeditemandacorrespondingprivatelabeleditemisknownas_____.
(a)marketpremium
(b)pricepremium
(c)revenuepremium
(d)profitpremium
(e)equitypremium

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7.Tidelaundrydetergentisawellknownbrandthatsellsforapproximately$8.00fora64ouncebottle,andProcter&
Gambleusuallysells2millionofthesesizeseachyear.Anaverageprivatelabelstorebrandcosts$6.00forthesamesize,
andtypically1millionaresoldeachyear.WhatisTide'srevenuepremium?
(a)$2.00
(b)$1million
(c)$6million
(d)$10million
(e)$16million
8.AresearchstudyinvolvingMcDonald'sproductsdiscoveredanewformoffirmbasedbrandequitythathasbeen
labeledbrand_____equity.
(a)namerecognition
(b)tastepremium
(c)marketshare
(d)revenuepremium
(e)pricepremium
9.Fromtheperspectiveofthecustomerorconsumer,_____istheextenttowhichtheyarefamiliarwiththebrandand
havestoredintheirmemoryfavorable,strong,anduniquebrandassociations.
(a)brandawareness
(b)brandimage
(c)brandpreference
(d)brandequity
(e)brandeffectiveness
10.Brandequityfromthecustomer'sperspectiveconsistsof_____.
(a)brandawarenessandbrandimage
(b)brandawarenessandbrandpreference
(c)brandimageandbrandinsistence
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(d)brandimageandbrandtolerance
(e)brandawarenessandbrandtolerance

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MarketingCommunicationsChallenges:EnhancingBrandEquity,InfluencingBehavior,and
BeingAccountable:Chapter2:InReview
KeyTerms
Associations:Theparticularthoughtsandfeelingsthatconsumershavelinkedinmemorywithaparticularbrand.
Brand:Isacompany'sparticularofferingofaproduct,service,orotherconsumptionobject.Brandsrepresentthe
focusofmarcomefforts.
Revenuepremium:Therevenuedifferentialbetweenabrandeditemandacorrespondingprivatelabeleditem.
ROMI:Theideaofreturnoninvestment(ROI),whichiswellknowninaccounting,finance,ormanagerial
economicscircles,isreferredtoinmarketingcirclesasROMI,orreturnonmarketinginvestment.

ChapterObjectives
1.Explaintheconceptofbrandequityfromboththecompany'sandthecustomer'sperspectives.
2.Describethepositiveoutcomesthatresultfromenhancingbrandequity.
3.Appreciateamodelofbrandequityfromthecustomer'sperspective.
4.Understandhowmarcomeffortsmustinfluencebehaviorandachievefinancialaccountability.

Summary
Thischapterdiscussedthenatureandimportanceofbrandequity.Theconceptofbrandequityisdescribedasthevaluein
abrandresultingfromhighbrandnameawarenessandstrong,favorable,andperhapsuniqueassociationsthatconsumers
haveinmemoryaboutaparticularbrand.Marcomeffortsplayanimportantroleinenhancingbrandequity.Enhanced
equity,inturn,bolstersconsumerbrandloyalty,increasesmarketshare,differentiatesabrandfromcompetitiveofferings,
andpermitschargingrelativelyhigherprices.Thechapteralsodiscussedtheimportanceofnotrestrictingtheassessmentof
marcomperformancetobrandequitymeasuresonly,butofalsoconsideringwhethermarcomeffortshaveinfluenced
behavior.Byexaminingtheeffectthatmarcomhasonbehavior,itispossibletogaugefinancialaccountabilityandthus
betterequipmarketingcommunicatorswhentheyrequestincreasedbudgetsfromCFOs.Thetechniqueofmarketingmix
modelingprovidesananalyticmethodforassessingtheeffectivenessofindividualmarcomelementsandfordetermining
howbudgetsshouldbeshiftedamongprogramelements.

Footnotes
1.TheHarrisPoll#71,HarrisInteractive,July17,2007,http://consumerist.com/consumer/branding/coca+colaisthebest
brandmicrosoftbeatsapple279388.php(accessedJuly25,2007).
2.MatthewCreamer,IsYourBrandtheBest?WhatPollsReallyMean,AdvertisingAge,July23,2007,1.
3.StatementmadebyTerryO'ConnorascitedinBobLamons,BrandPowerMovesBASFPastCommodity,Marketing
News,March15,2004,6.
4.JacquesChevron,UnholyGrail:QuestfortheBestStrategy,Brandweek,August11,2003,20.
5.Brandcredibilityincludesdimensionsofexpertise,orability,andtrustworthiness,orwillingnesstoconsistentlydeliver
onbrandpromises.SeeTlinErdemandJoffreSwait,BrandCredibility,BrandConsideration,andChoice,Journalof
ConsumerResearch31(June2004),191198.
6.ArjunChaudhuriandMorrisB.Holbrook,TheChainofEffectsfromBrandTrustandBrandAffecttoBrand
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Performance:TheRoleofBrandLoyalty,JournalofMarketing65(April2001),90PeterDoyle,ValueBasedMarketing:
MarketingStrategiesforCorporateGrowthandShareholderValue(Chichester,England:JohnWiley&Sons,2000),300.
7.KusumL.Ailawadi,DonaldR.Lehmann,andScottA.Neslin,RevenuePremiumasanOutcomeMeasureofBrand
Equity,JournalofMarketing67(October2003),117.
8.ThomasN.Robinson,DinaL.G.Borzekowski,DonnaM.Matheson,andHelenaC.Kraemer,EffectsofFastFood
BrandingonYoungChildren'sTastePreferences,ArchivesofPediatric&AdolescentMedicine161(2007),792797.
9.KevinLaneKeller,Conceptualizing,Measuring,andManagingCustomerBasedBrandEquity,JournalofMarketing
57(January1993),2.
10.AusefulmethodforidentifyingbrandassociationsisavailableinDeborahRoedderJohn,BarbaraLoken,Kyeongheui
Kim,andAlokparnaBasuMonga,BrandConceptMaps:AMethodologyforIdentifyingBrandAssociationNetworks,
JournalofMarketingResearch43(November2006),549563.
11.JenniferL.Aaker,DimensionsofBrandPersonality,JournalofMarketingResearch34(August1997),347356.See
also,JenniferAaker,SusanFournier,andS.AdamBrasel,WhenGoodBrandsDoBad,JournalofConsumerResearch31
(June2004),116.
12.SpecialIssue:AllChannelCarbonatedSoftDrinkPerformancein2005,BeverageDigest48,March8,2006.
13.ThisandsubsequentcommentsinthissectionareadaptedfromKevinLaneKeller,BrandSynthesis:The
MultidimensionalityofBrandKnowledge,JournalofConsumerResearch29(March2003),595600.
16.ForamoretechnicalbutreadablediscussionofthefMRIdevice,seetheAppendixinCarolynYoon,AngelaH.
Gutchess,FredFeinberg,andThadA.Polk,AFunctionalMagneticResonanceImagingStudyofNeuralDissociations
betweenBrandandPersonJudgments,JournalofConsumerResearch33(June2006),3140.
14.Ibid.
15.GrantMcCracken,CultureandConsumption:ATheoreticalAccountoftheStructureandMovementoftheCultural
MeaningofConsumerGoods,JournalofConsumerResearch13(June1986),74.
17.CitedinKevinLaneKeller,StrategicBrandManagement:Building,Measuring,andManagingBrandEquity(Upper
SaddleRiver,NJ:PrenticeHall,1998),285.Forexcellenttheoreticaltreatmentsofthisissue,seeC.WhanPark,SungYoul
Jun,andAllanD.Shocker,CompositeBrandingAlliances:AnInvestigationofExtensionandFeedbackEffects,Journal
ofMarketingResearch33(November1996),453466andBernardL.SimoninandJulieA.Ruth,IsaCompanyKnown
bytheCompanyItKeeps?AssessingtheSpilloverEffectsofBrandAlliancesonConsumerBrandAttitudes,Journalof
MarketingResearch35(February1998),3042.
18.EdLebar,PhilBuehler,KevinLaneKeller,MonikaSawicka,ZeynepAksehirli,andKeithRichey,BrandEquity
ImplicationsofJointBrandingPrograms,JournalofAdvertisingResearch45(December2005),413425.
19.SandraDolbow,DuPontLycraStretchesOutIntoJeans,Brandweek,July2,2001,8.
20.Forfurtherreading,seeTerenceA.Shimp,SaeedSamiee,andThomasJ.Madden,CountriesandTheirProducts:A
CognitiveStructurePerspective,JournaloftheAcademyofMarketingScience21(1993),323330.
21.See,forexample,SaeedSamiee,TerenceA.Shimp,andSubhashSharma.BrandOriginRecognitionAccuracy:Its
AntecedentsandConsumers'CognitiveLimitationsJournalofInternationalBusinessStudies36(2005),379397.
22.NewNationalResearchStudy:It'sfromWhere?CollegeStudentsCluelessonWhereFavoriteBrandsComeFrom,
AndersonAnalytics,May24,2007,http://www.andersonanalytics.com(accessedJuly31,2007)BethSnyderBulik,
DitchtheFlagsKidsDon'tCareWhereYouComeFrom,AdvertisingAge,June4,2007,1,59.
23.Forsophisticateddiscussionsoftherelationshipbetweenbrandequityandbrandloyalty,consultthefollowing
sources:TlinErdemandJoffreSwait,BrandEquityasaSignalingPhenomenon,JournalofConsumerPsychology7,2
(1998),131158ChaudhuriandHolbrook,TheChainofEffectsfromBrandTrustandBrandAffecttoBrand
Performance:TheRoleofBrandLoyalty.
24.LarryLightandRichardMorgan,TheFourthWave:BrandLoyaltyMarketing(NewYork:CoalitionforBrandEquity,
1994),11.
25.WilliamBoulding,EunkyuLee,andRichardStaelin,MasteringtheMix:DoAdvertising,Promotion,andSalesForce
ActivitiesLeadtoDifferentiation?JournalofMarketingResearch31(May1994),159172.
26.JanetAdamy,StarbucksChairmanSaysTroubleMayBeBrewing,TheWallStreetJournalOnline,February23,
2007(accessedFebruary24,2007).
27.ThePepsiCoEmpireStrikesBack,Brandweek,October7,1996,60.
28.PressreleasefromHarrisInteractive,June20,2006,http://www.harrisinteractive.com(accessedJuly26,2007).
29.InterbrandReport,BestGlobalBrands2007,http://www.interbrand.com/best_brands_2007.asp(accessedAugust3,
2007).
30.Forexample,seeSunilGupta,DonaldR.Lehmann,andJenniferAmesStuart,ValuingCustomers,Journalof
MarketingResearch41(February2004),718RolandT.Rust,KatherineN.Lemon,andValarieA.Zeithaml,Returnon
Marketing:UsingCustomerEquitytoFocusMarketingStrategy,JournalofMarketing68(January2004),109127
MeasuresandMetrics:TheMarketingPerformanceMeasurementAudit,TheCMOCouncil,June9,2004.
31.TheCMOCouncil,MeasuresandMetrics:TheMarketingPerformanceMeasurementAudit,June9,2004,3.
32.Theexamplegivenherefocusesonlyonmarketingcommunicationelements.Inactuality,afullblownMMMwould
includeallelementsofabrand'smarketingmix(e.g.,price,distributionchannels)andnotjustmarcomelements.
33.ForafascinatingethnographicanalysisofHarleyDavidsonownersandmoredetailontheHarleyashorsemetaphor,
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seeJohnW.SchoutenandJamesH.McAlexander,SubculturesofConsumption:AnEthnographyoftheNewBikers,
JournalofConsumerResearch22(June1995),4361.
34.SomeofthefollowingcommentsareadaptedfromJamesD.Speros,chiefmarketingofficeratErnst&Youngandchair
oftheAssociationofNationalAdvertisers,inWhytheHarleyBrand'sSoHot,AdvertisingAge,March15,2004,26.
35.Foraninterestingtreatmentofruggedindividualisminamarketing/advertisingcontext,seeElizabethC.Hirschman,
Men,Dogs,Guns,andCars,JournalofAdvertising32(spring2003),922.
36.Forfurtherreadingonbrandcommunities,seeAlbertM.MunizJr.andThomasC.O'Guinn,BrandCommunity,
JournalofConsumerResearch27(March2000),412432.
37.CliffordKrauss,HarleyWoosFemaleBikers,TheNewYorkTimesOnline,July25,2007,http://www.nytimes.com
(accessedJuly25,2007).
38.Ibid.
39.JackNeff,P&G,CloroxRediscoverModeling,AdvertisingAge,March29,2004,10.

P.41

2007CengageLearningInc.Allrightsreserved.Nopartofthisworkmaybyreproducedorusedinanyformorby
anymeansgraphic,electronic,ormechanical,orinanyothermannerwithoutthewrittenpermissionofthe
copyrightholder.

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