Question

Explain the customer-based equity pyramid

Answer 1

Customer Based Brand Equity is based on the concept that if you want to build a good brand, it is very necessary to think that what customer thinks and feels about your product.

It is based on five things- value, performance, trust, social image, and commitment. It is necessary to understand that these elements are always in the minds of customers, and you need to permanantly build these things in the minds of customers.

The most popular CCBE model is the Keller Model, which was designed by Kevin Lane Keller, Professor of Marketing.

The Keller model uses a pyramid to show the different levels of building brand equity and this is how companies understand the customers and make their strategies accordingly.

Image is below-

Level 1: Brand Identity (who are you?)

So this is the time when customer looks at your brand and understands it, they start to distinguish them from other brands. It’s the most important level and it should have to be strong to support the rest of the pyramid.

And slowly you need to create brand awareness.

Level 2: Brand Meaning (what are you?)

After sometime the customers will start to recognise your product and this is the time when they will start asking about performance, durability, etc. Now, for the purpose of brand reputation this level is divided into two parts-

Performance- this concerns with reliability, functionality, durability, etc. of the product.

Imagery- It concerns with reputation or image of the brand. In other words,What does the brand appear to be to customers?

Level 3: Brand Response (What are the feelings for the brand?)

It concerns with the feedback of the customer. Does your brand is able to fulfill the needs of the customer? Are they delighted?

And the company needs to respond to their questions, praises or queries.

Level 4: Brand Resonance (a strong relationship)

What does the resonance mean? Im simple words, reverberance or repetition. It deals with customers loyality. If they are loyal to your brand, then your brand will dominate. They will also spread merits of your brand.

You can measure it by a simple question," Would you recommend this brand to other?".

So keller's model is really simple and beautiful.