Chapter 6 - consumer-based approach

Question 1

consumer-based brand equity

Answer 1

= based on premise that brand resides in the minds of consumers as a cognitive construal

Question 2

assumptions consumer-based approach

Answer 2

= brand is assumed to be cognitive construal residing in the mind of customer
- external strategy formation
- brand value creation takes place by molding brand associations held in the consumer’s minds
- understanding the consumer is central
- brand strength = strong, unique, favorable associations in minds of consumers (consumer ‘owns’ the brand)
- linear communication
- cognitive psychology = ‘if-then’ logic applies

Question 3

theoretical building blocks of consumer-based approach

Answer 3

• cognitive consumer perspective
• information-processing theory of consumer choice
• consumer-based brand equity

Question 4

cognitive consumer perspective

Answer 4

• main metaphor for man is that of a computer
• focuses on the process where a consumer is exposed to stimuli from their environment, how these stimuli enter the mind via senses and how they lead to action

Question 5

information-processing theory of consumer choice

Answer 5

• has cognitive psychology as point of departure
• focuses on explaining how consumers process information before reaching consumption choice
• theory assumes that choice is a process
• consumer is assumed to be exposed to constant information overload and mind is an inadequate container –> heuristics are central

Question 6

consumer-based brand equity

Answer 6

• differential effect of brand knowledge on consumer response to marketing of brand
• consumer reactions to marketing actions that are in focus

Question 7

brand knowledge

Answer 7

1. brand awareness:
   - brand recognition
   - brand recall
2. brand image:
   - attributes (product-, non-product related)
   - benefits (functional, experimental, symbolic)
   - attitudes (favorability, strength, uniqueness)

Question 8

methods and data of consumer-based approach

Answer 8

I. input-output methods = experiments where input factors are manipulated and the change in the output of the process is measured
II. process-tracing approach = aim at understanding and explaining choice process

Question 9

measure customer-based brand equity

Answer 9

I. indirect approach = brand knowledge by assessing sources
II. Direct approach = customer-based brand equity by measuring consumer responses to the brand’s marketing actions

Question 10

consumer-based approach managerial implications

Answer 10

• implies closeness to consumer
• marketer should create optimal brand communication in order to create strongest brand
• marketer should consider a strategic corporate priority for brand and see all marketing actions as influencing brand in future
• steps to take:
  1. make consumer aware of brand
  2. make consumer pay attention to brand
  3. pay attention to brand name
  4. position brand
  5. balance brand image with brand identity