2.  Results ◦ In general beer drinkers were not able to differentiate between different brands of beer in a blind test ◦ In general beer drinkers were not able to identify their favorite brand in a blind test ◦ Brand identification influenced evaluation  Overall preference  Attributes

3.  Approaches to conceptualize brand equity ◦ Why look at brands? (Brand effects) ◦ Brand equity  Brand associations (differentiation)  Brand awareness (identification)

4.  ”Brand equity is the added value endowed by the brand to the product”  Brand elements (sources to brand equity)

5. ◦ Brand Associations ◦ Brand Awareness

6.  Brand associations  Brand associations are memory nodes linked directly or indirectly to a brand name in long term memory  A brand image is the set of associations linked to a brand name  Different types of associations  Primary and secondary associations  Desirable qualities of brand associations 6

7. 7 McDonald’s

8. 8 Associative Network Model McDonald’s Burger King Fastfood BigMac Ronald McDonald Capitalism Unhealthy food French fries USA Coca Cola ”Subway” Sandwich Downtown Wait in lines I’m lovin’ it Fun Regret

9. 9  Product attributes  Non-product related attributes ◦ packaging, warranties, price, users, etc.  Brand benefits ◦ Functional (problem solving)

10. 10

11. 11

12. 12  Product attributes  Non-product related attributes ◦ packaging, warranties, price, users, etc.  Brand benefits ◦ Functional (problem solving) ◦ Symbolic (status)

13. 13 Symbolic brand benefits

14. 14

15. 15  Product attributes  Non-product related attributes ◦ packaging, warranties, price, users, etc.  Brand benefits ◦ Functional (problem solving) ◦ Symbolic (status) ◦ Experiential (sensory/hedonic)

16. 16 Experiential brand benefits

17. 17

18. 18  Product attributes  Non-product related attributes ◦ packaging, warranties, price, users, etc.  Brand benefits ◦ Functional (problem solving) ◦ Symbolic (status) ◦ Experiential (sensory/hedonic)  Situations

19. 19 User situation

20. 20

21.  Brand associations  Brand associations are memory nodes linked directly or indirectly to a brand name in long term memory  A brand image is the set of associations linked to a brand name  Different types of associations  Primary and secondary associations 21

22. 22 Primary assosiations Mercedes Audi High qualityPrestige BMW Prestige High quality Prestige High quality

23. 23 Primary associations Mercedes Audi High qualityPrestige BMW Prestige High quality Prestige High quality Secondary assosiations Silent/no noice Large cars Royal / offical Formal Competent Respected Intelligent Driving experience Efficient Design Driving experience Large engine Quattro Well equiped Self- confidence Sporty Winter ”Family-sporty” Joy of driving

24.  Favorability  Strength  Uniqueness 24

25.  Why be interested in brand awareness?  Different forms of awareness  Consequences of awareness  Influencing awareness (Marketing implications)

27.  Customers do seldom intentionally seek information  Information overload ◦ People used to spend time to save money, now they spend money to save time

28.  Depth ◦ recognition ◦ Recall  Breadth ◦ different use and buying situations

29.  Ask not what the brand can evoke; Ask what can evoke the brand?  Use and purchase situations

30. Brand evaluation versus evocation Brand Prod.cat. Choice sit. Attitudes Benefits Attributes Brand Prod.cat. Choice sit. Attitudes Benefits Attributes Memory in brand evaluationMemory in brand evocation

31. Memory in Brand Evaluation Volvo Attributes? Choice situation? Prod. category? Benefits? Attitudes?

32. Memory in Brand Evocation Volvo Attributes? Choice situation? Family car Benefits? Attitudes?

33. Memory in Brand Evocation Volvo Attributes? New car when the first baby arrives? Family car Benefits? Attitudes?

34. Memory in Brand Evocation Volvo Safety New car when the first baby arrives? Family car Benefits? Attitudes?

35. Memory in Brand Evocation Volvo Safety New car when the first baby arrives? Family car Solid, reliable Attitudes?

36. Memory in Brand Evocation Volvo Safety New car when the first baby arrives? Family car Solid, reliable Traditional

38.  Awareness and communication  Awareness and associations  Awareness and choice and evaluation processes

39.  Consideration set/Choice sets  Liking (mere exposure)  Decision Heuristic  Perceived Quality

40. Total set of brands Awareness set Consideration set Choice set

41.  Discussion of the effects of the latest ad campaign  Results  So, what is the effect for us?

42. Results  Before  Retrieval: 13%  Consideration: 8%  Choice: 4%  Intention: 3.39  After  Retrieval: 58%  Consideration: 27%  Choice: 5%  Intention: 3.40

43.  Hey, Subway is running an ad campaign  What is the effect for us?  Results  Implications?

44. Results  Before  Retrieval: 28%  Consideration: 14%  Choice: 5%  Intention: 4.83  After  Retrieval: 60%  Consideration: 46%  Choice: 19%  Intention: 5.67

45.  Exposure/awareness  Recall of a brand can not be viewed in isolation independent from its reference frame  Memory: ◦ Brand retrieval ◦ Also retrieves the relevant comparison set  Study Question: ◦ What are the consequences of increasing the retrieval probability  Results

46.  ”mere exposure”  Information availability  Sosial desirability

47.  Message complexity (Anand and Sternthal, 1990) ◦ Execution strategy (Haugtvedt et al., 1994) ◦ Competitive situation  Individual factors  Repetition and learning ◦ The truth effect

48.  Information regarding previously used brands are more easily accessed in memory  Small brands are also typically less exposed in the stores Learning advantage for large and well-known brands

50.  Social desirability influences people’s attitudes and actions  We often infer appropriate behavior in different situations by observing others Deviations from socially acceptable behavior are met with sanctions ”Where all think alike, no one thinks very much” - Walter Lippmann

54.  Buys the brands one know ◦ # of brands ◦ time  Cue for quality ◦ with or without experience

55.  Exposure ◦ Facilitate initial exposure ◦ Maximize accidental exposure ◦ Maintain exposure  Relevance ◦ Emphasis on self-relevance ◦ Situational relevance

57.  Stimuli characteristics ◦ Vividness ◦ Salience (unusual, novel)  Comprehension ◦ Knowledge/involvement ◦ Remembering ◦ Miscomprehension ◦ Exposure environment

70.  Pride & Ferrell: Ch. 12  Park, Jaworski & MacInnes (1986).  Keller, Kevin L. (2008): Strategic Brand Management, 3rd edition, Upper Saddle River, NJ: Pearson Prentice Hall.  Nedungadi, Prakash (1990): Recall and Consumer Consideration Sets: Influencing Choice without Altering Brand Evaluation, Journal of Consumer Research, 17(3), 263-76.