written by | March 7, 2023

Your Complete Guide to Customer-Based Brand Equity and its Benefits

×

Table of Content


The CBBE Model (Customer-Based Brand Equity) is a framework used to measure a brand's power and value. It is based on the concept that a brand's success is determined by how well it is recognized and received by its customers. The CBBE Model helps to assess how strong a brand is in the minds of its customers, and how clearly it is differentiated from its competitors. The model is composed of four levels: Awareness, Quality, Associations, and Loyalty. Awareness refers to how well a brand is recognized in the marketplace. Quality assesses how well the brand's offerings meet the needs and expectations of its customers. Associations focus on the emotional connections customers have with the brand. Finally, loyalty measures the degree of commitment and attachment customers have to the brand. 

Did you know that the CBBE model helps marketers to create customer-centric campaigns that will increase brand awareness and recognition?

Overview of the CBBE Model

The CBBE Model (Customer-Based Brand Equity) is a marketing tool used to measure the impact of a brand on consumer behaviour. It was developed by Keller (1993) and is based on the premise that a brand is a set of associations that a consumer holds in their mind. The model focuses on how the consumer perceives the brand and how that perception affects their purchase decisions.

Components of the CBBE Model

The CBBE Model consists of four components: brand salience, brand performance, brand imagery, and brand judgments.

  • Brand Salience - Brand salience is the awareness of the brand. 

  • Brand Performance -Brand performance is the consumer’s assessment of the brand’s offering. 

  • Brand Imagery - Brand imagery is the consumer’s impression of the brand. 

  • Brand Judgement - Brand judgments are the consumer’s evaluation of the brand’s worth.

Also Read: Tips & Tricks on How to Become a Successful Businessman? | Khatabook

Benefits of the CBBE Model

The CBBE Model is a useful tool for marketers to measure the impact of a brand on consumer behaviour. It helps marketers identify the strengths and weaknesses of the brand and develop strategies to improve its appeal. Additionally, it allows marketers to measure the success of their marketing efforts and make adjustments to their strategy. Some of the major benefits of the CBBE Model are outlined below:

Helps in Measuring the Value of the Brand

The CBBE model stands for customer-based brand equity and is a systematic approach to measuring the value of a brand. 

Allows You to Understand Better

It allows marketers to understand how customers perceive their brand, and how the brand resonates with the customer. 

Guides Marketers in Making Decisions

By quantifying the customer’s opinion of the brand, marketers are able to make decisions based on real data. 

Helps to Understand Customers' Journey

The CBBE model helps marketers understand the customer’s journey, allowing them to develop effective marketing strategies that will increase customer loyalty and engagement. 

Identify the Needs of Customers

The model also helps marketers identify customer needs and develop products and services to meet those needs. 

Components of the CBBE Model

Keller’s CBBE model consists of seven components – customer identification, brand positioning, brand promise, brand delivery, brand equity, customer experience, and brand resonance. 

Let’s discuss each component briefly which is again necessary for creating and maintaining a successful brand.

Customer Identification

This component of the CBBE Model focuses on the identification of target customers. It includes an understanding of customer wants, needs, and desires, and how they can be served by a company’s products and services.

Brand Positioning

This component of the CBBE Model focuses on the positioning of the brand in the minds of the target customers. It involves creating an image or identity of the brand that is distinct from its competitors.

Brand Promise

This component of the CBBE Model involves the communication of the brand’s promise to its customers. It includes a clear and concise statement of the benefits and features that the brand offers.

Brand Delivery

This component of the CBBE Model focuses on the delivery of the brand promise. It involves the development of a strategy for delivering the benefits and features of the brand to its target customers.

Brand Equity

This component of the CBBE Model focuses on the development of brand equity. It involves the measurement of the brand’s success and the cultivation of a positive reputation.

Customer Experience

This component of the CBBE Model focuses on the customer experience. It involves providing a positive customer experience through all interactions with the brand.

Brand Resonance

This component of the CBBE Model focuses on the development of brand resonance. It involves creating an emotional connection between the brand and its target customers.

Levels of the CBBE Model

The CBBE model is composed of four levels that measure brand awareness, brand associations, brand loyalty, and brand performance. 

  • First Level - The first level, brand awareness, measures consumers’ recognition of the brand. This includes recognition of the brand name, logo, tagline, and other branding elements. 

  • Second Level - The second level, brand associations, looks at the emotions and feelings consumers associate with the brand. This includes their perceptions of the brand’s values, quality, and customer service.

  • Third Level - The third level, brand loyalty, measures how likely consumers are to remain loyal to the brand. This includes whether they are likely to purchase the brand’s products or services again or recommend them to others. 

  • Fourth Level - The fourth level, brand performance, looks at how well the brand is performing in terms of market share, sales, and customer satisfaction.

Also Read: Business Books - Read Top 10 Business Books to Start Your Successful Business in 2022

Keller's Brand Equity Model Examples

Keller's brand equity model is a framework used to measure the strength of a brand. It provides a comprehensive measure of brand equity by focusing on four key components: brand salience, brand performance, brand imagery, and brand judgments. 

Brand Salience

Brand salience is the first component of Keller's brand equity model and is a measure of how easily a brand can be recalled or recognized by customers. For example, Woodland is a brand that is easily recognized due to its iconic logo and strong presence in the marketplace. 

Brand Performance

Brand performance is the second component of Keller's brand equity model, and it measures customers' positive experiences with the brand. For example, Lakhani has strong brand performance due to its consistency in the quality of the product and the customer service provided in its stores.

Brand Imagery

Brand imagery is the third component of Keller's brand equity model, and it measures how customers perceive the brand and its associated attributes. For example, Pantaloons is a brand that is associated with athleticism and performance, and this has been reinforced through its marketing campaigns.

Brand Judgements

Finally, brand judgments are the fourth component of Keller's brand equity model. This is a measure of how customers evaluate the brand on a range of criteria such as quality, value, and trustworthiness. For example, Dabur is a brand that is associated with high quality and reliability, and this has been reinforced through its commitment to excellence. 

Overall, Keller's brand equity model is a useful framework for measuring the strength of a brand and can be used to inform marketing and branding decisions. By assessing each of the four components, businesses can gain a thorough understanding of their brand's equity and develop strategies to strengthen it.

Conclusion

The CBBE model is an effective marketing model that helps to develop a successful brand strategy. The imagery focuses on the intangible elements of a product or service such as associations, benefits, and values. Judgment is based on how customers view the brand in terms of trustworthiness and reliability. Finally, feelings focus on creating an emotional connection with customers by creating positive associations and experiences. By leveraging the four levels of the CBBE model, companies can create an effective brand strategy that drives customer loyalty and long-term success.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What makes CBBE one of the most powerful marketing tools?

Ans:

The CBBE Model is a powerful tool for marketers used to measure the performance of their brand and understand how it is perceived by consumers.

Q: How CBBE helps in creating brand awareness?

Ans:

It helps marketers determine which areas of the brand need improvement, and what strategies can be used to build a strong and successful brand.

Q: How is the CBBE model used?

Ans:

The CBBE model is used to measure the strength of a brand in terms of customer loyalty, recognition, and preference over competitors. It helps marketers understand the value their brand brings to customers.

Q: What is the full form of the CBBE model?

Ans:

The full form of CBBE is Customer-Based Brand Equity. It is a marketing tool used to measure the strength of a brand in relation to competitors by focusing on how customers feel about it.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.