Consumer-based approach

Question 1

What is the consumer-based approach?

Answer 1

Customer-based brand equity is based on the premise that the brand resides in the minds of consumers as a cognitive construal.

Question 2

Assumptions

Answer 2

• The brand is assumed to be cognitive construal residing in the mind of the consumer.
• Brand value creation takes place by molding the brand associations held in the consumers’ minds.
• “Consumer computer”: If marketer feeds the CC with the most appropriate information, then the consumer will do as intended.

Question 3

Brand-consumer exchange & cognitive perspective

Answer 3

• Brand strength = strong, unique, favourable associations in the minds of consumers
• Linear communication, recipient of message understands the message as intended by the sender

Question 4

Brand-consumer exchange framework

Answer 4

Company <– Consumer

Question 5

Theoretical building blocks

Answer 5

1) Core theory: Consumer-based brand equity
2) Supporting theory: Cognitive consumer perspective
3) Supporting theory: Information processing theory of consumer choice

Question 6

Supporting theory: Cognitive consumer prespective

Answer 6

The main metaphor for man (the consumer) is that of a computer; cognitive psychology focuses on the process where a consumer is exposed to stimuli from his or her environment (input, information), how these stimuli enter the mind via the senses and how they lead to action (choice).

Question 7

Cognitive psychology tries to answer…

Answer 7

1) How do we learn?
2) How do we remember?
3) What makes us pay attention?

Question 8

Knowledge

Answer 8

Retried from memory. The nodes and links of the mind, structured into associative networks

Question 9

Types of memory representations

Answer 9

1) Direct/analogous representation: Direct (non-verbal) sensory sensations
2) Propositional representations: Interpretations of the brand (symbolic meanings)
3) Linguistic representations: Words/sentences used to express brand meaning and experiences with the brand

Question 10

Supporting theory: Information processing theory of consumer choice

Answer 10

Assumes that choice is a process, and the marketer should seek an understanding of these choice processes. Consumers also are exposed to a constant information overload.

Question 11

Core theory: Consumer-based brand equity

Answer 11

The differential effect of brand knowledge on consumer response to the marketing of the brand.
- Marketing refers to marketing mix, but consumer reactions to marketing actions are in focus

Question 12

Brand knowledge is divided into

Answer 12

1) Brand awareness
1a) Brand recall
1b) Brand recognition
2) Brand image
2a) Attributes
2aa) Product-related attributes
2ab) Non-product related attributes: Price information, packaging, user imagery, use imagery
2b) Benefits
2ba) Functional benefits
2bb) Experimental benefits
2bc) Symbolic benefits
2c) Attitudes
2ca) Favourability
2cb) Strength
2cc) Uniqueness

Question 13

Methods & data

Answer 13

1) Input and output methods: Experiments where inputs are manipulated and change the output, process is measured.
2) Process-tracing approach: Aim at understanding and explaining the choice process

Question 14

Process-tracing approach examples

Answer 14

1) Verbal protocols
2) Promoted protocols
3) Matrix array
4) Chronometric analysis