Completing this unit should take you approximately 3 hours.
Brand equity is the culmination of a process starting with brand strategy, which drives brand awareness, brand differentiation, and eventually, brand loyalty, which drives brand equity. In this section, you will learn how to measure brand equity. When you consider the valuation of a company, the most important assets are the brands, which represent the financial component of consumer loyalty. The brand value is referred to as brand equity or brand value. The brand's worth is what value it brings to a customer, and this financial assessment is often considered if the brand is sold. When brand equity grows, the brand value goes up as well.
Identify the differences in theories of how brand equity is experienced: Customer-Based Brand Equity, Brand Equity Perspectives, Customer Perspective (Customer-Based Brand Equity), and Employee Perspective (Employee-Based Brand Equity). Then outline and contrast the different models on how to actually measure this important asset of brand equity, summarizing the models of measurement: Aaker's Brand Equity Model, Keller's Brand Equity Pyramid, Yoo and Donthu's Brand Equity Model, Luming Wang and Adam Finn's Customer-Based Brand Equity Model, Destination Brand Equity Model, CAA Integrated Brand Equity Model, and Cross-National Brand Equity.
As defined in this section's introduction, brand ambassadors are the most important guardian of the brand. Brand loyal consumers are committed to purchasing one brand out of habit. Behavioral loyalty is habitual purchases of low-involvement goods or positive attitude. Attitudinal loyalty is willingness and intentionality toward a specific brand. After reading this article about the importance of loyalty programs in building a community of brand loyalists, match up the five factors of a successful loyalty program with either the behavioral loyalist or the attitudinal loyalist. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
In this section, you will learn how brand managers create consumer-driven brand experiences that are designed to grow a "community" of brand loyalists. Brand loyalists pass on their affinity and love of the brand and believe in the brand value proposition. They are willing to seek and purchase their favorite brand continuously, which builds strong market share. Brand loyalists are the key to consumer loyalty as they attract more consumers who build brand loyalty.
Consumer Journey Mapping is a multi-step process. When reviewing this chapter, take notes about the sequence of mapping and the feedback that is most relevant to brand managers. This mapping, called the input loop, is used to make revisions to consumer engagement and, most importantly, "breaks" or "celebrations" along the consumer journey that can inform your brand growth strategies.
This section details how brand managers construct a comprehensive customer journey map to understand how consumers engage with the brand from start to finish. This customer journey tool consists of visual touchpoints that can reveal opportunities to maximize the brand experience. Creating a visual customer journey map is critical to engaging with consumers and discovering every point they engage in with your brand and their impressions of each interaction.
The metrics that measure achievement from a brand perspective are called Key Performance Indicators (KPIs). Watch this demonstration of how profitability and ROI (return on investment) measure the productivity of brands.
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 2 Assessment.
Take this assessment to see how well you understood this unit.