Customer Based Brand Equity (CBBE Model)
CBBE is defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.
Brand Knowledge has 2 components – brand awareness and brand image
CBBE occurs when the customer has a high level of awareness and familiarity with the brand and hold some strong, favorable and unique brand associations in memory
Premise of CBBE Model:
What Customer have learned, felt, seen and heard as a result of their experiences over time.
Marketing Advantages of Building a Strong Brand
- Greater Loyalty
- Less Vulnerability to competitive marketing action
- Lesser Vulnerability to marketing crises
- Larger Margins
- More Inelastic consumer, response to price increase
- More Elastic consumer, response to price decrease
- Greater trade cooperation and support
- Increased marketing communication effectiveness
- Additional brand extension opportunities
4 Steps of Strong Brand Building
- Brand Identity
Who are you?
- Brand Meaning
What are you?
- Brand Response
What did I think about you?
- Brand Relationship
What about you and me?