Approaches to Measuring Brand Equity

Marketing Management
Name
Institution
Brand equity is the benefit endowed on commodities. Brand equity may be reflected in the way customers think and feel about the brand, and also in the costs, the share of the market, and the capacity to make a profit the brand requires. Marketers build brand equity by developing the correct structures of brand knowledge with the correct customers. An example of brand equity is the CBBE, and it refers to the differential outcome brand awareness, and the brand image has on customer reaction to the promotion of that particular brand. A brand is termed to have a favorable CBBE when customers respond positively to a commodity and the way it has been promoted when the commodity has been identified, than when the commodity is not identified. A brand is termed to have negative CBBE if customers favorably react less to the marketing exercise for that brand when the commodity is identified than when the commodity has not been identified. Indirect and direct approaches are the approaches that have been developed to measure CBBE.
The indirect approach tries to examine potential CBBE sources by measuring brand awareness and brand image (brand knowledge). The indirect approach is serviceable in establishing what factors of brand knowledge result in the differential reaction that develops CBBE. The indirect approach requires the determining of brand consciousness and the attributes of brand associations. Brand consciousness can be determined efficiently using many supported and unsupported memory measures that are applicable in test brand recall and acknowledgment( Kotler & Keller, 2012). Attributes of brand association, on the o...