Customer Based Brand Equity Model of

Facebook

Prepared For
Dr. MD. Abdul Momen
Assistant Professor

Prepared By
Name ID
Jannatul Israt Nila 2015-1-10-074
Md. Monzurul Morshed 2014-3-10-149
Mir Unes Efti Zisan 2014-3-10-207
Arif Kawsar 2013-3-10-164
Tawheed Ul Islam 2014-3-10-153
Maya Chowdhury 2015-1-10-069
Kaniz Fatima Sonali 2014-1-10-171
Md. Risul Islam 2014-2-10-058

Course: Brand Management (MKT 416)

Section: 02

Date of Submission
April 9, 2019
 LETTER OF TRANSMITTAL

April 9, 2019

Dr. MD. Abdul Momen

Assistant Professor,
Dept. of Bachelor of Business Administration
East West University, Dhaka

Subject: Permission for submitting the Group Project Report

Dear Sir,

As a part of MKT 416 course we have been instructed to submit a report Customer Based
Brand Equity Model of Facebook.

Considering guided factor we have created Customer Based Brand Equity Model of
Facebook. We have gathered best possible information as much as possible. Most of our
collected data are form our research and internet Websites.

Much of our data came from, website, and partly from the news portal. Other data came from
primary sources. The entire duration of preparing this report has been immensely helpful to
us, a golden opportunity increase our ideas and concept. A lot of lessons were learnt. Truly
this will help us in our future life.

We enjoyed working on this report and hope you will find it innovative.

Sincerely yours,
 Acknowledgement
The report has been done with the useful efforts and contribution of the group members. This
report is very beneficial for us as it is related to our course “Brand Management”. This report
has given us a big boost to the development of our bookish knowledge with the blessings of
practical knowledge and group discussions.

We would like to thank our honorable course instructor Dr. MD. Abdul Momen sir, for
giving us the opportunity of making this report.

We acknowledge that the company information, promotional images, and logos used in the
report have been collected from various web resources.
Table of Contents
Executive Summary................................................................................................................................. 6
Introduction ............................................................................................................................................ 7
Methodology....................................................................................................................................... 7
Limitations .......................................................................................................................................... 7
Company profile.................................................................................................................................. 7
Customer-Based Brand Equity (CBBE) Model ......................................................................................... 8
Facebook in terms of Brand Salience...................................................................................................... 9
Facebook in terms of Brand Performance .............................................................................................. 9
Primary Characteristics ....................................................................................................................... 9
Secondary Features............................................................................................................................. 9
Facebook in terms of Brand Imagery .................................................................................................... 10
Direct association .............................................................................................................................. 10
Indirect Association........................................................................................................................... 10
Facebook in terms of Brand Judgments ............................................................................................... 10
Brand Quality .................................................................................................................................... 11
Brand Credibility ............................................................................................................................... 11
Brand Consideration ......................................................................................................................... 11
Brand Superiority .............................................................................................................................. 11
Facebook in terms of Brand Feelings .................................................................................................... 11
Warmth ............................................................................................................................................. 12
Fun .................................................................................................................................................... 12
Excitement ........................................................................................................................................ 12
Social Approval.................................................................................................................................. 12
Self-respect ....................................................................................................................................... 12
Security ............................................................................................................................................. 13
Facebook in terms of Brand Resonance ............................................................................................... 13
Behavioral loyalty.............................................................................................................................. 14
Personal attachment......................................................................................................................... 14
Sense of community ......................................................................................................................... 14
Active engagement ........................................................................................................................... 14
Recommendation and conclusion ........................................................................................................ 15
Reference .............................................................................................................................................. 16
Executive Summary
This term paper deals with Customer based brand equity model of Facebook. Here Brand
identity, Brand meaning, Brand responses, Brand relationships has been discussed.

The term paper focuses on customer based brand equity model. How the brand creates the
identity and connects with their customers.

Facebook, Inc. is an American online social media and social networking service company.
Facebook is based in Menlo Park, California, was founded by Mark Zuckerberg, along with
Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. It is considered
as one of the Big Four technology companies along with Amazon, Apple, and Google.

As a social networking site the main purpose of Facebook is to connect people. Users are
most important as the business depends on them. For this kind of organizations, customer
equity is one of the main concerns. Facebook is working constantly to improve the user
experience to attract and retain their users by new features and updates.

Through their apps and services, they are building a different kind of company that
connecting billions of people around the world, giving them ways to share their life
experience, and bringing people closer. Global teams of Facebook are constantly analyzing,
solving problems, and working together to empower people around the world to build
community and connect them in meaningful ways.

By the years, they built a strong identification and brand meaning of their brand in consumer
mind. Using the customer equity efficiently they have created their love marks successfully;
as a result they have gained 2.32 billion monthly active users all over the world.

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Introduction
We prepared a report on “Customer based brand equity model of Facebook”. We think that
the customer brand equity of Facebook is very strong.

Objective of the study

The main purpose of writing this report is to develop how to write an effective and
professional report that will sever the purpose of all, to apply our knowledge that we have
learned from “Brand Management” course.

 To know the actual meaning of the Customer based brand equity.

 To know how to build a strong brand by creating strong customer equity.

Methodology
We have faced problem to search the best information about the company’s internal issue but
we tried our best to collect information in depth.

The sources of our information are:

 Official website
 Other websites
 Online news portal

Limitations
The specific limitation of the study is that the data was found to a limited numbers. Every
matter has got some limitation. So this is also not an exception. Though we tried our best to
overcome those impediments, there may be some errors in this report. The limitations of this
report are been stated below:

 Unavailability of relevant data and information.

 Some essential data could not be gathered due to confidentiality concerns.
 The raw data available in the organizations database management system was also not
properly organized.

Company profile
Facebook Inc. is an American social media networking service organization. Facebook is
headquartered in Hacker way, Menlo Park, California, along with 43 international offices all
over the world. Facebook was founded in 2004 by Mark Zuckerberg, Eduardo Saverin,
Andrew McCollum, Dustin Moskovitz and Chris Hughes.
Initially the membership was limited to the students of Harvard, Yale, Columbia and
Stanford. Since 2006 people above 13 years are allowed to register in Facebook for free.
Facebook has 2.32 billion monthly active users all over the world as of December 31, 2018.

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Founder(S)

 Mark Zuckerberg
 Eduardo Saverin
 Andrew McCollum
 Dustin Moskovitz
 Chris Hughes

Company mission - To give people the power to build community and bring the world together.

Number of employee – 35,587

Website – www.facebook.com

Customer-Based Brand Equity (CBBE) Model

Many factors influence the strength of a particular product or brand. To turn a struggling
brand into a successful one, a company needs to focus on the customer’s needs and
preferences.

Keller's Brand Equity Model is also known as the Customer-Based Brand Equity (CBBE)
Model. Kevin Lane Keller, a marketing professor at the Tuck School of Business at
Dartmouth College, developed the model and published it in his widely used textbook,
"Strategic Brand Management."

The concept behind the Brand Equity Model is simple: in order to build a strong brand, one
must shape how customers think and feel about your product. One has to build the right type
of experiences around one’s brand, so that customers have specific, positive thoughts,
feelings, beliefs, opinions, and perceptions about it

When one has strong brand equity, the customers will buy more from you, they'll recommend
the brand to other people, they're more loyal, and the brand is less likely to lose them to
competitors.

As other social media, Facebook also uses customer based brand equity model. There has
been a significant shift in power and control because today it is possible for individuals to be
just as efficient in broadcasting information about a brands and organization as it for the
commercial media. Facebook enables consumers to communicate just as easily to thousands
of strangers as to a single close friend. Consequently, it is possible for an individual to build
or break a marketing brand by posting negative or positive comments about the brand to their
peers. It is a fact that consumers are actively creating and sharing content online as consumer
communities and blogs have been created virtually on every topic. Therefore it is important
for brand builders to learn new ways of communicating and managing the relationships with
their audience. We will discuss about customer based brand equity of Facebook on our whole
term paper in detail.

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Facebook in terms of Brand Salience
To build a strong brand according to customer based brand equity model a company needs to
start with the first step of ensuring its identification with its target customers or users and this
is the first stage of customer based brand equity pyramid which is called Brand Salience.

Facebook creates Brand Salience by achieving the right brand identity which is related to
aspect of the awareness of the brand. Users are able to recall and recognize Facebook as
reflected by their ability to identify the brand under different conditions easily.

There are several social media websites but today all the people around the world familiar
with Facebook and its functions by which Facebook satisfy user’s communication need.

Facebook in terms of Brand Performance

Brand performance relates to the ways in which the services attempts to meet customer’s or
users’ more functional needs. It refers to the intrinsic properties of the brand in terms of
inherent service characteristics.

In terms of Facebook all the users can view the performance of this service in a broad manner
like -

 Primary characteristics and secondary features

 Reliability, durability, serviceability
 Service effectiveness, efficiency & empathy
 Beyond functional to aesthetic aspects like size, shape, color
 Pricing policy

Primary Characteristics
Facebook has four primary characteristics; Newsfeed, messages, notifications and
communication.

Secondary Features
Facebook provide some secondary features. Such as –
 Reliability: Facebook is not reliable for all the users as other users can make fake
profile id, fake pages and put on comments. In this social media world no one is sure
about people’s real name and age.
 Durability: its durability means its economic life. It depends on users. The economic
life of a Facebook account is time from opening a Facebook account to the time of
deactivating it or it can be related with the user’s life time.
 Serviceability: Facebook provide consistent service regarding to communication with
each other. It also provides an opportunity to promote businesses through using and
boosting business pages.
 Service Effectiveness, Efficiency and Empathy: The service of Facebook is not only
productive but also efficient because of their strong server. Facebook tends to provide
its service of communication frequently. Facebook also think about the users it has.

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 To satisfy the users need the authorities try to continuously update their service based
on the user’s demand.
 Color: Beyond functional activity Facebook has aesthetic aspect like its theme consists
of white and blue color.
 Pricing policy: For general purpose Facebook is totally free. But when a user wants to
promote his or her Facebook pages then he or she must pay to Facebook. For this
service Facebook has its own pricing policy.

Facebook in terms of Brand Imagery

Brand imagery is how the brand builds its aesthetic; it is about the image of a brand in
consumers mind. The tangible and intangible elements that convey the emotion in the
customers mind, the ways the brand meets the customers psychological and social needs by
Building trust and confidence over time and repeated exposure.

Brand imagery can be visual, auditory, olfactory, and tactile and can be unique to each
consumer. The idea of brand imagery is to send the right message to the target market to
create a strong brand feeling among them. When there is no opportunity to touch, feel, taste
or smell, visual and sounds becomes more important.

For Facebook, Visuals and sounds are the most valuable elements of building imagery

Direct association
Facebook allows the users to register for free, which is the greatest association one can get
from a brand. It allows users to experience the features on their own and they are free to
decide whether to continue using or not. Users get notification regarding their account
instantly which covers repeated exposure. They are adding new features, changes in
appearance according to user preference frequently.

Indirect Association
Word of mouth is the biggest indirect association for Facebook. Because of the large number
of users and frequent uses, Facebook gets indirect association in the form of word of mouth.

Facebook in terms of Brand Judgments

Brand judgments are customers’ personal opinions about and evaluations of the brand, which
consumers’ form by putting together all the different brand performance and imagery
associations. It emphasizes customer’s personal evaluations and opinions of a given product.
It involves grouping together brand image and brand performance. It includes –

 Brand Quality
 Brand Credibility
 Brand Consideration
 Brand Superiority

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Brand Quality
Brand attitudes can lead to brand choice since people tend to purchase a product or services
by receiving satisfaction towards a brand and evaluate the overall of a brand. Since its
foundation from 2004 Facebook have 2.3 billion active user(2018), By its innovative social
media expansion its create a way for both communication & business, Its one of the great
place for advertiser, marketer direct seller, Cause there is a rapid amount of people who are
active on daily basis on Facebook. The innovative service it provides, Easier the
communication system lead its being closer to customer.

Brand Credibility
Sometimes consumer judge the brand based on company or organization’s image and
reputation, whether the company or organization is seen as competent, innovative,
dependable, fun and a market leader. Facebook is one of the most trusted brands in the world.
Being innovative is its core competency and it has definitely caught the attention of the
customer, it develops products based on customer inputs and keeps customers interest in the
top of the list while designing its products, Like its include the messenger service make life
so easier, its include regular phone call, video call & live streaming service, Its ongoing
innovative process made its more valuable, it’s a market leader.

Brand Consideration
Brand attitudes and perceptions are important though consideration is necessary, if there is no
consideration between customers and the brand, they will just keep the brand from afar and
never embrace it. Facebook is very close to its customers and has been able to give them
what they want with very close accuracy. The innovative features are included every day.
This has created a high level of consideration for the brand with the customers. It’s a platform
for many marketers as well; they consider Facebook more than any other social media
platform.

Brand Superiority
Superiority measures the extent of brand than the others. How much a brand can solve
consumer problem than any other brand, superiority can build intense and active relationships
with the customers. Facebook as a brand and a “total experience” is much superior to its
rivals. They are the market leader or the innovator & the user friendly feature they include on
daily basis made its more superior than its rivals.

Facebook in terms of Brand Feelings

As a social media network ‘Facebook’ has already created emotional reaction and response
towards the users. On Facebook, users are exposed to posts from both strong and weak ties.
We know there are important types of brand building feelings and based on that we will find
out how ‘Facebook’ have created feelings on their users and became one of the most essential
media of one’s daily live.

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Warmth

Facebook established a warmth feeling in user’s hearts through providing contents and
news on user’s news feed. Users can browse and relaxes on Facebook watching and
reading posts. This way user may find clam and peacefulness in their mind while they are
taking break from work. People use social media for important social interactions like
staying in touch with friends and family and reconnecting with old acquaintances.
Teenagers are especially likely to report that social media are important to their
friendships and, at times, their romantic relationships.

Fun

‘Joyful and cheerful’ are the most positive feelings users have said about Facebook. Here
users can communicate and share with friends, family, favorite celebrities, Idols etc.
funny videos, sport videos, favorite shows are also shared in the social media. Because of
these free accesses of contents users find it more fun spending time on Facebook.
YouTube, Daily motions, 9Gags posts and videos can be found on Facebook as users
enjoy the contents and posts of these popular sites.

Excitement

Users can also share the places they are visiting or going then share pictures and post
status about it. Then favorite food they are eating and reviewing about it with their
personal opinion freely on Facebook. By this it creates a virtual world to everyone like
being alive on it which creates excitement for the users. Most popular tourist places
around the world are getting more popular via Facebook users as the post and shares
about it. New places and cultural habits are being discovered through Facebook and this
way creating excitement on the users.

Social Approval

Facebook created its own public relationship by creating a whole new social media
platform for worldwide internet users. It developed and built a virtual society for users
where they can share and build new relationships with one another. By this way it got
huge approval in the modern society and it also carries an influential source in daily life
of every users of it. With the help of Facebook many companies and brands are able to
create direct contact with their customers. It is a much quicker, more direct route of
communication to a much targeted audience who has chosen to engage with their brand.

Self-respect

Pride and respect are caused by positive self - reflected assessments, often evoked by the
consistency between brand personality and consumer self – concept. Facebook has
already created and image in the mind of users which strongly represents their strong
brand equity. It generated the satisfaction of fulfilling other people’s expectations,

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 eliciting their positive appraisals towards the brand, which is why they are in 4th in The
World's Most Valuable Brands in Forbes list.

Security

Based on Mozilla survey report they asked around over 47,000 people who responded to
their survey asking how they feel about Facebook and its privacy and security. According
to their survey how people actually feel about Facebook these days here are some results
given below:

Facebook maintains strong security for the users to

How people feel about Facebook:

65%

83% Feel they are most

responsible for
Don’t want their keeping their online
76%
information out data safe
them without their Very concerned
control about the safety of
their personal data

62%

Are away or scared

of Facebook’s
impact

assure the safety and privacy of every user. Some people may have concern over it but still
they are spending more or less time on Facebook even if there are some issues.

Facebook in terms of Brand Resonance

Brand Resonance refers to the relationship that a consumer has with the product and how
well he can relate with it. The resonance is the intensity of customer’s psychological
connection with the brand and the randomness to recall the brand in different consumption
situations.

Brand resonance is characterized by strong connections between the consumer and the brand.
Brands with strong resonance benefit from increased customer loyalty and decreased

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vulnerability to competitive marketing actions. The challenge for the brand is to ensure that
the customer has the right experiences to create the right brand knowledge.

Facebook has good relationship with its users. One of the strength of Facebook which give
them competitive advantage with the competitors is the strong relationship with their
customers.

Like every brand for Facebook brand resonance can be broken down in four categories -

 Behavioral loyalty : Repeat purchase behavior

 Personal attachment :Consumer’s emotional attachment to the brand
 Sense of community : Affiliation with other brand users
 Active engagement : Willingness to invest personal resources (time, money, energy)
to engage with the brand

Behavioral loyalty
Users, who are loyal to the Facebook, don’t use the alternatives like Twitter, Tumblr, and
Instagram as much as they use Facebook. They are loyal and use Facebook as social media
site for their daily use.

Personal attachment
Users of Facebook are attached with Facebook. They use Facebook for 2-3 hour daily basis.
They have personal attachment with Facebook for which it became a daily routine for then to
use Facebook regularly. They store and upload their daily activities on Facebook, like sharing
photos/videos and feelings or what they are thinking on Facebook to share it with their
friends.

Sense of community
Facebook is social media/website/apps by which its users are connected with each other
easily. It creates its own community by with its users are connected with each other by using
Facebook. There are also some pages or groups in Facebook by with its users can maintain a
community of its own.

Active engagement
On a website like Facebook, users may be determined who like people pages, post and give
reviews. In the case of Facebook its users are using it by direct engagement through the
website or apps of Facebook and give their time attention energy while using it and being
engaged with it.

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Recommendation and conclusion
Facebook is a social utility that connects you with the people around you. Above we have
prepared a report on "customer based brand equity model of Facebook". When one has strong
brand equity, the customers will buy more from you, they'll recommend the brand to other
people, they're more loyal, and the brand is less likely to lose them to competitors. Facebook
uses customer based brand equity model. Here Facebook creates Brand Salience by achieving
the right brand identity which is related to aspect of the awareness of the brand. There are
several social media’s but only Facebook has achieved that one tag where it satisfies
customers at its best. Users are loyal to the Facebook and don't use the alternative social
medias such as Twitter or others as much as they use Facebook. Facebook has four primary
features. They are newsfeed, messages, notifications, communication. Its secondary features
are networks, groups, pages, applications, events etc. Facebook is not reliable for all the users
as other users can make fake profile id, fake pages and put on comments. Facebook's
durability means its economic life. It depends on users. Facebook provides an opportunity to
promote businesses through using and boosting business pages. For general purpose
Facebook is totally free. But when a user wants to promote his or her Facebook pages then he
or she must pay to Facebook. Facebook uses its own pricing policy for those peoples.
Facebook has high quality graphics, applications, pictures but low quality videos. In
Facebook there is a credibility issue as people make face profiles. Based on Mozilla survey
83% of people don't want their information out them without their control, 76% of people are
very much concerned about safety of their personal data, 65% people feel they are most
responsible for keeping their online Dara safe and 62% of people are away of scared of
Facebook's impact. Recommendations: Facebook should make their security more strong. So
that people will not be scared of letting their own information into it. It also should give
impact on one's privacy more than now. And lastly Facebook should give some legal barriers
to open an account on it so that people feel safer to open account on Facebook.

15
Reference
Facebook (2019, April 6). Retrieved from: https://en.wikipedia.org/wiki/Facebook
Reid, M. (2017, March). Brand imagery: how to select images to represent your organization. Retrieved from:
https://99designs.com/blog/tips/brand-imagery/

Hall, M. (2019, February 7). Facebook. Retrieved from:

https://www.britannica.com/topic/Facebook

How Facebook can help strengthen brands and brand relationships (2010, May). Retrieved
from:http://pure.au.dk/portal/files/11667/How_Facebook_can_help_strengthen_brand
s_and_brand_relationships.pdf

Facebook Cbbe Pyramid (2014, October 19). Retrieved from: https://

www.scribd.com/document/243524294/Facebook-Cbbe-Pyramid
Shaheel, A. (2013, April 13). Facebook: Brand equity & brand knowledge. Retrieved from:
https://www.slideshare.net/arveen/facebookbrand-equity-brand-
knowledge?fbclid=IwAR3-ctK-oY-
MDczU0zYo4Ik5KjoOBaXvBevD9khyG7vbDmDIWhDkYlLagY8

We Asked People How They Feel About Facebook. Here’s What They Said (2018, May 7).
Read, Write, Participate Web site. Retrieved from: https://medium.com/read-write-
participate/we-asked-people-how-they-feel-about-facebook-heres-what-they-said-
4a548dfeabd

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