Conceptualizing--measuring--and-managing-customer-

Conceptualizing,Measuring,andManagingCustomer-BasedBrandEquityAuthor(s):KevinLaneKellerSource:JournalofMarketing,Vol.57,No.1(Jan.,1993),pp.1-22Publishedby:AmericanMarketingAssociationStableURL::30/09/201312:03YouruseoftheJSTORarchiveindicatesyouracceptanceoftheTerms&ConditionsofUse,[e-mail]..AmericanMarketingAssociationiscollaboratingwithJSTORtodigitize,preserveandextendaccesstoJournalofMarketing.:03:07PMAllusesubjecttoJSTORTermsandConditionsKevinLaneKellerConceptualizing,Measuring,andManagingCustomer-BasedBrandEquityTheauthorpresentsaconceptualmodelofbrandequityfromtheperspectiveoftheindividualconsumer.Customer-basedbrandequityisdefinedasthedifferentialeffectofbrandknowledgeonconsumerre-sponsetothemarketingofthebrand.Abrandissaidtohavepositive(negative)customer-basedbrandequitywhenconsumersreactmore(less)favorablytoanelementofthemarketingmixforthebrandthantheydotothesamemarketingmixelementwhenitisattributedtoafictitiouslynamedorunnamedversionoftheproductorservice.Brandknowledgeisconceptualizedaccordingtoanassociativenetworkmemorymodelintermsoftwocomponents,brandawarenessandbrandimage(i.e.,asetofbrandassociations).Customer-basedbrandequityoccurswhentheconsumerisfamiliarwiththebrandandholdssomefavorable,strong,anduniquebrandassociationsinmemory.Issuesinbuilding,measuring,andmanagingcustomer-basedbrandequityarediscussed,aswellasareasforfutureresearch.MUCHattentionhasbeendevotedrecentlytotheconceptofbrandequity(AakerandBiel1992;Leuthesser1988;Maltz1991).Brandequityhasbeenviewedfromavarietyofperspectives(Aaker1991;Farquhar1989;SrivastavaandShocker1991;Tauber1988).Inageneralsense,brandequityisdefinedintermsofthemarketingeffectsuniquelyattributabletothebrand-forexample,whencertainoutcomesre-sultfromthemarketingofaproductorservicebe-causeofitsbrandnamethatwouldnotoccurifthesameproductorservicedidnothavethatname.Therehavebeentwogeneralmotivationsforstudyingbrandequity.Oneisafinanciallybasedmo-tivationtoestimatethevalueofabrandmorepre-ciselyforaccountingpurposes(intermsofassetval-uationforthebalancesheet)orformerger,acquisition,KevinLaneKellerisAssociateProfessorofMarketingandFletcherJonesFacultyScholarfor1992-1993,GraduateSchoolofBusiness,StanfordUniverity.ThisarticlewaswrittenwhiletheauthorwasVisitingProfes-sorattheAustralianGraduateSchoolofManagement,UniversityofNewSouthWales,Sydney,Australia.HethanksDavidAaker,SheriBridges,DeborahMacinnis,JohnRoberts,JohnRossiter,RichardStae-lin,JenniferAaker,andtheanonymousJMreviewersfordetailed,con-structivecomments.JournalofMarketingVol.57(January1993),1-22ordivestiturepurposes.Severaldifferentmethodsofbrandvaluationhavebeensuggested(Barwiseetal.1989;Wentz1989).Forexample,InterbrandGrouphasusedasubjectivemultiplierofbrandprofitsbasedonthebrand'sperformancealongsevendimensions(leadership,stability,marketstability,interational-ity,trend,support,andprotection);GrandMetropol-itanhasvaluednewlyacquiredbrandsbydeterminingthedifferencebetweentheacquisitionpriceandfixedassets.SimonandSullivan(1990)definebrandequityintermsoftheincrementaldiscountedfuturecashflowsthatwouldresultfromaproducthavingitsbrandnameincomparisonwiththeproceedsthatwouldaccrueifthesameproductdidnothavethatbrandname.Basedonthefinancialmarketvalueofthecompany,theirestimationtechniqueextractsthevalueofbrandeq-uityfromthevalueofafirm'sotherassets.Asecondreasonforstudyingbrandequityarisesfromastrategy-basedmotivationtoimprovemarket-ingproductivity.Givenhighercosts,greatercompe-tition,andflatteningdemandinmanymarkets,firmsseektoincreasetheefficiencyoftheirmarketingex-penses.Asaconsequence,marketersneedamorethoroughunderstandingofconsumerbehaviorasaba-Customer-BasedBrandEquity/1Thiscontentdownloadedfrom152.3.102.242onMon,30Sep201312:03:07PMAllusesubjecttoJSTORTermsandConditionssisformakingbetterstrategicdecisionsabouttargetmarketdefinitionandproductpositioning,aswellasbettertacticaldecisionsaboutspecificmarketingmixactions.Perhapsafirm'smostvaluableassetforim-provingmarketingproductivityistheknowledgethathasbeencreatedaboutthebrandinconsumers'mindsfromthefirm'sinvestmentinpreviousmarketingpro-grams.Financialvaluationissueshavelittlerelevanceifnounderlyingvalueforthebrandhasbeencreatedorifmanagersdonotknowhowtoexploitthatvaluebydevelopingprofitablebrandstrategies.Thegoalofthisarticleistoassistmanagersandresearcherswhoareinterestedinthestrategicaspectsofbrandequity.Specifically,brandequityisconcep-tualizedfromtheperspectiveoftheindividualcon-sumerandaconceptualframeworkisprovidedofwhatconsumersknowaboutbrandsandwhatsuchknowl-edgeimpliesformarketingstrategies.Cust