CBBE Model: Brand Resonance

Brand Resonance (CBBE Model)

• CBBE stands for Consumer-Based Brand Equity.
• Customer-based brand equity relies on:
  • Differential effect in consumer response
  • Brand knowledge stemming from consumer understanding
  • Positive consumer response to marketing efforts, affecting brand choice, ad recall, promotion response, and brand extension evaluations

Salience Dimensions

• Depth of brand awareness involves ease of recognition and recall and the clarity and strength of category membership.
• Breadth of brand awareness relates to purchase and consumption consideration.

Performance Dimensions

• Brand performance reflects how well the product or service meets customers' functional needs.
• Key aspects include primary characteristics, supplementary features, reliability, durability, serviceability, service effectiveness, efficiency, empathy, style, design, and price.

Imagery Dimensions

• Brand imagery involves the extrinsic properties and how the brand meets customers' psychological or social needs.
• Key intangibles linked to a brand are:
  • User profiles: includes demographic and psychographic characteristics, perceptions of the user group
  • Purchase and usage situations: considers channel types, store specifics, ease of purchase, timing, location and context
  • Personality and values: encompasses sincerity, excitement, competence, sophistication, and ruggedness
  • History, heritage, and experiences: taps into nostalgia and memories

Resonance Dimensions

• Brand resonance describes the customer-brand relationship and the feeling of being "in sync" with the brand.
• Four categories are:
  • Behavioral loyalty: frequency and amount of repeat purchases
  • Attitudinal attachment: love (favorite possessions), pride in the brand
  • Sense of community: kinship, affiliation
  • Active engagement: seeking information, joining the club, visiting websites/chat rooms

Brand Positioning

• Brand positioning involves understanding ideal points of parity and points of difference relative to competitors.
• Marketers need to know their main competitors, how their brand is similar to them (points of parity), and how their brand differs (points of difference).

Points of Parity and Points of Difference

• Points of difference (PODs) are attributes that consumers strongly associate with a brand, positively evaluate, and believe they cannot find the same extent in competing brands.
• Points of parity associations (POPs) are shared with other brands and are not necessarily unique.

Brand Elements

• Memorability: Brand elements should be attention-getting and easy to recall and recognize like the Blue Rhino brand.
• Meaningfulness: Brand elements should have descriptive or persuasive content, giving general information about the product category giving particular information about specific attributes and benefits.
• Likability: Aesthetically appealing brand elements.
• Transferability: Usefulness for line or category extensions and across geographic boundaries and market segments.

Secondary Brand Associations

• Co-branding occurs when two or more existing brands are combined into a joint product or marketed together.
  • Advantages include: borrowing expertise, leveraging equity, reducing introduction costs, expanding brand meaning, increasing access points, and additional revenue
  • Disadvantages include: loss of control, risk of equity dilution, negative feedback effects, lack of focus, and organizational distractions
• Ingredient branding involves creating brand equity for materials or components within other branded products, an example is "Intel Inside."
• Licensing involves contractual arrangements where firms use other brands' names, logos, etc., for a fee.

Product Strategy

• Perceived quality relies on customers' perception of the overall superiority of a product or service.
• Broader considerations of product quality include speed, accuracy, and care in product delivery and installation and consumers often combine quality perceptions with cost perceptions to assess value.
• Firms can create competitive advantages by partnering within the value chain.
• After-marketing involves user manuals that describe what benefits the consumer can realize and how to realize them.
• Customer service programs are important to build lasting relationships, while loyalty programs help create stronger ties with customers.

Pricing Strategy

• Price premiums are significant brand equity benefits of a strong brand.
• Consumer price perceptions must be understood.
• Consumers often rank brands according to price tiers in a category.
• Value pricing helps to uncover the right blend of product quality, product costs and product prices.
• Everyday low pricing (EDLP) avoids fluctuating prices in favor of "everyday" base prices.

Channel Strategy in Branding Strategy

• Channel strategies should develop "integrated shopping experiences" combining physical stores, the Internet, telephone, and catalogs.
• A channel strategy includes managing intermediaries like wholesalers, distributors, brokers, and retailers.
• Direct channels involve selling through personal contacts, while indirect channels involve third-party intermediaries.
• Web strategies include both direct and indirect channels