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Measuring Brand Health

1 1
P.K. Kapur Aditya Gupta 2
Nitin Sachdeva
1
Amity University, Noida, UP, India
pkkapur1@gmail.com
akgupta@amity.edu
2
Department of Operational Research, University of Delhi, Delhi, India
nitin.sach@gmail.com
ABSTRACT - Most of the companies today are unable to identify message highlighting company’s success story to be quickly
how brand health is connected with future revenue expected from grasped by the customers. It is therefore applied with
customers. Their sole focus for building brand is through continuous affirmative consistency all across the marketing channels. One
advertising, which indirectly creates a brand image. In reality, image of the major reasons for such an absorption strategy adopted by
building is not the sole purpose of brand health rather the entire
business performance is derived out of few specific interrelated
a company for its employees and agents, is to build what we
measurable elements. Often brand equity has been linked to call is brand health. With only such a meticulous application it
shareholder value [35] as an intangible, long lasting metric of a is possible that the brand’s effect grows on to become
company, which hardly affects top-line growth. By contrast, brand impressive to the consumers.
health is tangible and is linked to current and future value with
consumers. Brand health measures the state of the brand in the minds For the past several decades, researchers have been concerned
of both internal and external stakeholders (e.g. prospects, customers, with measuring effectiveness of different kinds of entities in
employees, investors, and public influencers). Therefore, effective different activities in many different contexts across the globe.
management & monitoring of brand health can significantly impact Sproles ([32]; [33]) postulated that Measures of Effectiveness
and influence organization’s profit. With special emphasis upon (MoE) are required to answer the question “Does this meet my
marketing and business performance measures, brand owners identify
need?” and hence defined MoE as: “standards against which
which of the attributes act in favor or against adding value to the
brand, and identify fundamental forces behind these perceptions. For the capability of a solution to meet the needs of a problem
example, Knowing thoroughly constitutes a brand, drive customers to may be judged. The standards are specific properties that any
choose it over rival brands also assists organization in optimal potential solution must exhibit to some extent. MOEs are
allocation of their resources so as to fulfill brand’s potential. independent of any solution and do not specify performance
Subsequently these decisions can then be related back to top-line or criteria”. He distinguishes between Measures of
financial results to measure other performance metrics. Hence, in Performance (MoP) and MoE by declaring that MoP measures
order to build and manage brand over time to deliver increased value the internal characteristics of a solution while MoE measure
to both the customer and business, it is fundamental to measure brand external parameters that are independent of the solution – a
health.
measurement of how well the problem has been solved.
In this paper, we focus on only few prominent factors as identified
from literature and attempt to analyze and determine the overall utility Since companies long back realized that brand lives in the mind
derived from these factors in measuring effectiveness of brand health. of the brand consumer, and only those at the peak of brand
The study is based on the responses sought from teachers and staff health have the strength to push through and lodge there.
members of a private university, located in North India. The Hence it’s imperative to deliver a consistent strategy across
questionnaire relating to the brand health factors instruments was both customer and firm to measure brand health effectively.
administered to the sample population and the findings indicate that Brand owners need to take the complete ownership of how their
these factors enhance organizational performance and play a vital brand is holding up.
role in the growth of an organization.
Brand health can be measured taking 360 – degree view of
Key words: Brand health, Brand Equity, Utility Measure, brand in the marketplace. It is required to be focused on
Business Performance consumer & competitor. All factors consider in measuring
brand health should be linked to the business performance.
I. INTRODUCTION
Most of brand health measurement has been done by a few
In almost all sorts of communications, be it marketing material, major global players. They have merged various social and
website promotions or for that matter the language consistently behavioral data to determine brand Health. Leading vendors of
used by an employee, resonates the vision, mission and values tomorrow will be those that reinvent themselves to meet
of an organization. These communications very finely represent marketers’ demands for more integrated data solutions.
sets of visual carriers and an appropriate though concise

978-1-4673-7231-2/15/$31.00 ©2015 IEEE


In this paper, we introduce a brand health measurement health in the face of sustaining and disruptive forces in the
approach, which is based on a more nuanced model of the market remains quite ambiguous and challenging [25].
efficiency measurement process that takes into account both Marketing Science Institute (MSI) strengthens on the research
brand owner’s as well as other stakeholder’s perspective, in priorities of building a strong, healthy relationship with
order to effectively analyze the performance of a brand based customers. This is to no surprise since customer retention has a
on utility theory. bigger impact on a firm’s profitability than does customer
acquisition ([5]; [29]). The important ways to build deeper
To date, efficiency measurement of any brand has tended to customer relationship are through brands [15] and value
focus solely on indicators or attributes governed by the firm. creation ([2];[12]). As [22] pointed out, “Branding has emerged
With this focus, they have systematically missed the as a top management priority in the last decade.” Meanwhile, in
simultaneous assessment of real and conflicting interest of the relationship marketing literature, the inter-relationships
various stakeholders in order to measure efficiency of the among perceived value, satisfaction, brand loyalty, and market
brand. This is largely due to the underlying conceptual thinking share figure predominantly [30].
behind most efficiency measurement tools, which is the uni- Undoubtedly customer satisfaction is cohesively related to
directional perspective of the developer of the tool. customer loyalty; however marketing researchers conclude that
As a consequence, efficiency measurement tools have paid little satisfaction is not enough [27]. Similarly, [9] proposed that
attention to the importance of simultaneously capturing the deep down satisfaction lies satisfaction strength that translates
perspective of brand developers on one side while the stated satisfaction into loyalty. Accordingly, researchers
remaining stakeholders’ viewpoint on the other. These essential suggest that perceived value, defined as customers’ overall
perspectives of the efficiency measurement process often go assessment of “the utility of a product based on perceptions of
un-accounted for in the traditional efficiency measurement what is received and what is given” [39], may represent
tools despite the often cited failures of big companies in benefits and implication of predicting customer loyalty than
understanding their stakeholders’ perspectives. customer satisfaction [8].
In this paper we intend to measure the effectiveness of factors Present studies have therefore started to lay special emphasis
leading to a successful brand in the market using utility theory. upon creating a balance on how brands drive short-term gain
We introduce a measurement approach which is based on a while preserving long term growth by introducing what they
more nuanced model of the efficiency measurement process call brand health. Ipsos ASI’s Equity Builder extensive
that takes into account both the management’s perspective as research have identified that there are three distinct dimensions
well as the consumer’s perspective to effectively analyze to brand health: brand equity, brand involvement and price
performance of a brand based on utility theory. Following perception.
introduction to the context of this work, the rest of the paper is The Marketing Science Institute [21] states that the underlying
as follows: Firstly, very briefly we discuss the key determinants determinants of consumer-based brand equity are that brands
(elements) of brand health. In the subsequent section we provide benefits to consumers by differentiating products, as
introduce the methodology in followed by the research section. they facilitate the processing and retrieval of information [37]
Analysis based on surveyed data is performed in the next Other marketing literatures ([3];[23]) also stress the importance
section. Towards the end of the paper, we provide additional of the distinctive character of brand positioning in contributing
insights for manager along with the concluding remarks to the to the success of a brand. Distinctiveness is defined as the
paper. degree to which the consumer perceives that a brand is distinct
from its competitors [23]. A brand can have a price premium if
II. LITERATURE REVIEW it is perceived as being different from its competitors.
Several other brand health determinants have been proposed by
Current wellbeing and resistance are two well related yet [28] wherein factors like attractiveness, availability,
distinct components based on which brand has been distinctiveness etc. of a brand are amongst the most common
conceptualized historically [6]. Brand present wellbeing is ones. In this paper we consider the work of [28] to examine the
reflected in its updated market share, sales as well as brand effectiveness of brand health by using Utility Theory.
equity [22]. Literature provides for plethora of information on
the various dimensions of brand health with repeat purchase as III. IMPORTANCE OF MEASURING BRAND
central criterion variable. On the other side brand resistance HEALTH ACROSS ALL STAKEHOLDERS
refers to the central brand’s vulnerability to abnormal
fluctuations in the market, like aggressive promotional Brand-specific metrics are vital to develop an precise
campaign by competitors, launch of disruptive innovation etc. assessment of a company’s brand health. Metrics let an
This kind of vulnerability leads to switching behavior [6] organization to emphasis its efforts efficiently .In a
bringing forward the segment of market known as “spurious multifaceted working environment, metrics can focus key areas
loyalty” ([10]; [18]). Therefore brand health is a much broader of brand strength and risk. The accurate metrics provide
and complex concept than brand loyalty alone. Identifying key executives with the suitable guidance for strategic decision-
variables that can serve as valid, persistent antecedents to brand making.
Majority of Business Organization measures brand metrics IV. THE KEY ELEMENTS OF BRAND HEALTH
through customer happiness, brand tracking or customer
relationship management systems. Such brand metrics have We have identified ten key elements of brand health that form a
focus on customers rather than monitoring brand health across statistically reliable core set of measures. All ten elements are
all key stakeholders. These brand metrics are do not provide recognized in the management literature, they have not
real time information leading poor decision making business heretofore been inter correlated, tested through empirical data
owners. In order to have proper brand monitoring all and offered as a core set of brand management metrics.
stakeholders metrics are essential. The brand metrics should Each element offers a unique measurement perspective:
capture 360 degree view of brand. 1. Attractiveness: It measures consumer’s positive
[17] found empirical evidence supporting the idea that association towards the brand.
competitive advantage may be built with tacit assets derived 2. Availability of a brand: It measures the leadership
from developing relationships with all primary stakeholders not position, respect the brand is having in mind of
only employees and suppliers. The competitive advantage leads consumer and presence in various distribution
to better management of stakeholders. Trust that is mutual channels of market.
which can make stakeholder to be a part of the value creation 3. Distinctiveness: It measures uniqueness of brand as
process [38]. Utility function’s information which key to brand perceived by consumers.
health can be gathered from these stakeholders. Stakeholder’s 4. Liabilities: measure a brand’s weaknesses, or
interest in sharing utility function information will make damaging associations, and consumer unwillingness.
company to allocate resources wisely. 5. Likelihood of referrals: The satisfied customers
All stakeholders play vital role in measuring brand health of the recommend a company product to new customers
company. In present scenario following are leading to increase in sales. It reflects positive word of
major stakeholders in a company: mouth by satisfied customers.
6. Switch to Competitors: Customer’s likelihood to
• Client chain: includes loyal customer, current and cross shop or switch providers lead to the loss of
prospect customers. These customers by positive word revenue to competitors..
of mouth help company to add new customers. 7. Total spending in a brand. This is based on the
• Capacity chain: The internal customers i.e. employees actual and anticipated increases in spending or
and also all members that interact as representative commitment over time and on intent to purchase
of the company. additional products.
• Community opinion: These include general public 8. Usage/Frequency
feelings towards product offered by the company. Captures how many customers the brand has so you
• Opinion Leader: These include an can identify heavy, medium, and light buyers. This
individual who has a vital role in influencing helps set the context for other metrics, as well as
consumer decision making for a company’s products. providing insight into market structure
• Stockholders: These are people who make equity 9. Brand recognition is the ability of consumer to
participation and capital building of an organization. recognize prior knowledge of brand.
• Dealers: These are people made goods and service 10. Brand recall is the potential of customer to recover
available to consumers or users. brand from his memory.
• Controllers: These are lawmakers at local, state,
national and global levels. These affect the macro V. ABOUT THE RESEARCH
environment of the company.
Our work is based on quantitative survey data collected in the
• Media: These include people,
year 2014 from consumers from teaching fraternity of
which create images of the brand in the minds of
Delhi/NCR region. Across various FMCG products, consumers
Consumers
are well-penetrated, competition is wide-ranging and retail
All the stake holders have important role in company’s brand
activity is substantial. (It is worth noting that the stickiness of
health which has to be considered by business organization.
the customer- provider relationship varies by sector, based on
Community opinion can impact the Controllers making policy
the presence or absence of contractual arrangements.) The
for business. The ability to attract talent is a key for technology
sample was drawn from major geographic markets citywide
firms as well as advertising agencies. Public reputation and
with a sample of 200, nearly equally distributed amongst the
customer loyalty matters greatly to consumer goods companies
two genders, with over 80% professionally qualified with an
as well as large retail outlets. Stockholders and media can
average household income level of above INR 5 lacs annually.
influence the valuations of a company’s worth.
The goal of our research was to explore and measure the impact
of key brand-health elements on current and future revenue
commitments by customers — providing a blueprint for
companies about how and where to invest in brand building to Factors
Weights
Very
Poor
Poor Average Good
Very
Good
Level
Weight
ution to
Total
win in a given marketplace. Across all brands available in the Expecte
(Wi) 2 4 6 8 10 d Utility
sectors and geographic markets we studied, we gathered broad (Ui)
and specific data from individual consumers about who they Brand Recall 12 0.05 0.09 0.09 0.41 0.36 7.88 94.56
are, what and why they buy from certain brands and their future Brand Recognition 18 0 0.18 0.18 0.41 0.23 7.38 132.84
intentions. Availability of Product 9 0.05 0.05 0.27 0.32 0.32 7.68 69.12
Liabilities 9 0.18 0.23 0.32 0.18 0.09 5.54 49.86
VI. ANALYSIS Attractiveness 9 0 0.05 0.18 0.27 0.5 8.44 75.96
Distinctiveness 11 0.09 0.09 0.18 0.36 0.27 7.2 79.2
In this section we calculate the weighted average of the levels Likelihood to Buy 10 0 0.18 0.14 0.36 0.32 7.64 76.4
selected by the consumer for each element of brand health and Switch to a Competitors 6 0.14 0.09 0.32 0.27 0.18 6.52 39.12
subsequently calculated individual utility value for each of Usage/ Frequency 6 0.05 0.05 0.32 0.32 0.27 7.48 44.88
these attributes. Based on the contribution to the total expected Total Spending in the brand 10 0.05 0.09 0.23 0.32 0.32 7.6 76
utility value, we reach to an overall measure of the utility Total
Utility 662
(Table 1) for all the instruments taken as a whole. The overall Measure
utility measure helps an organization in several ways by Table 1: Overall Utility Value
comparing it with the worst and the best case scenarios
(discussed in the next sub-section). Figure 1: Expected Weights of Key Elements of Brand Health
The idea of calculating utilities is to incorporate both the Ideal & Worst Utility Measure
organization’s and consumer’s perspective regarding the
20
various brand health elements employed by the organization. 18 Series1
When an organization employs any set of these instruments 16
Series2
they’re aware of their importance but by incorporating the 14

consumer’s feedback they are able to effectively decide the 12


10
optimal combination of these instruments for the future. 8
Consumer’s perspective encourages the company to dig into 6
detailed analysis and suggest better instruments or work on 4
2
improving the existing ones. 0
The below mentioned probabilities describe opinion concerning
various elements used in measuring brand health by an
organization. The interpretation of this could be that about 41%
(0.41) of the respondents believe that the brand recall of the
organization is good and 18% (0.18) respondents believe that The overall utility measure encompasses overall effectiveness
brand’s attractiveness and distinctiveness has been average. of brand health elements but is unable to reflect the benchmark
In order to gauge through individual perception of each or an acceptable level of utility to be derived from these
element, the utility measure can then be obtained by elements. In order to set these standards for elements or to say
multiplying the element weight, the level of acceptance ‘acceptable’ level of utility derived from any individual
received by the consumers, and the probability attached to that element, we make use ‘best’ and ‘worst’ utility measures.
level and summing across each element. Finally to obtain an Best Utility Measure: This can be easily calculated by
overall utility measure taking all the elements together, we sum considering each respondent claiming that all the elements
all the individual utilities of these elements of brand health. utilized by the organization were highly effective and thereby
After obtaining the overall utility measure for all the elements assigns ‘10’ as the rating for each of them. The probability of
we can easily compare this measure with the organization’s each element being highly effective takes a value ‘1’
‘ideal’ and the ‘worst’ case scenarios to conclude whether the subsequently leading to the highest/ideal utility value for each
applied set of elements did perform to the expected level of element (Table 2). This eventually gives us the highest utility
satisfaction or not. The process also highlights the perception of (Table 2) that can be derived from these set of instruments.
consumers towards each element and if the organization Worst Utility Measure: This on the other hand can be easily
believes that the desired level of utility has not been derived calculated by considering each respondent claiming that all the
from any specific or important element then they can bring this elements utilized by the organization were least effective and
concern in front and try to make necessary changes. Once again thereby assigns ‘2’ as the rating for each of them. The
the impact of making any changes can be evaluated using the probability of each element being least effective takes a value
same process time and again until the desired level of utility is ‘1’ subsequently leading to the lowest/worst utility value for
not attained. each element (Table 3). This eventually gives us the lowest
utility (Table 3) that can be derived from these set of elements
of brand health.
Critical Brand Levels Expected Contrib
Average Utility Measure: This is obtained by considering each in the brand
Total
respondent claiming that all the elements utilized by the Overall Utility Measure 'Average Case Scenario' Utility 600
organization were average and thereby assigns ‘6’ as the rating Measure

for each of them. The probability of each element being on an Table 4: Overall Utility Measure ‘Average Case Scenario’
average effectiveness takes a value ‘1’ subsequently leading to
VII. MANAGERIAL IMPLICATIONS
the average utility value for each element (Table 4). This
eventually gives us the average utility (Table 4) that can be In this paper, the proposed utility model helps in monitoring the
derived from these set of elements of brand health. key attributes of brand health from both organization’s as well
Levels as customer’s perspective. Such a metric helps organization in
revealing their true market position in comparison to its
Critical Brand Factors Weights Very Very Expected
Contribution to
Total Expected
competitors. Additionally the proposed framework provides a
Poor Average Good
Poor Good Level Weight
Utility (Ui) platform for dynamic brand management and assists in
designing appropriate strategies to rationalize the allocation of
(Wi) 2 4 6 8 10 their resources in positioning themselves to win in a market and
Brand Recall 12 1 10 120 subsequently improve top-line sales.
Brand Recognition 18 1 10 180
Availability of Product 9 1 10 90
Liabilities 9 1 10 90
VIII. CONCLUSIONS
Attractiveness 9 1 10 90
Distinctiveness 11 1 10 110 There are so many elements that don’t capture the essence of
Likelihood to Buy 10 1 10 100
Switch to a
whatever they are supposed to do for a healthy brand. Some of
6 1 10 60
Competitors them don’t even recognize the importance of defining the
Usage/ Frequency 6 1 10 60
Total Spending in the
application type and development environment to measure and
10 1 10 100
brand identify the relative importance of brand health. This paper
Total Utility
Overall Utility Measure 'Best Case Scenario'
Measure
1000 demonstrates the use of utility of attributes alone and taken
Table 2: Overall Utility Measure ‘Best Case Scenario’ together and compares the results to validate the importance of
measuring brand health in order to enhance overall brand
Very
Levels
Very
Contrib
ution to
equity. The relative weights assigned to each of the brand
Critical Brand Weights
Poor
Poor Average Good
Good Expected Total attributes in the proposed work model highlights the
Factors Level Weight Expecte
(Wi) 2 4 6 8 10 d Utility consumer’s perspective towards the importance of that attribute
Brand Recall 12 1 2
(Ui)
24
and provides better insight in overall estimation of the utility
Brand
18 1 2 36
value. One of the major contributions of this paper lies in
Recognition
Availability of
identifying brand attributes that require immediate attention
Product
9 1 2 18
based on the utility derived from each of them. Additionally,
Liabilities 9 1 2 18 the technique can also be used for benchmarking system
Attractiveness 9 1 2 18
Distinctiveness 11 1 2 22 standards based on organizational goals and objectives.
Likelihood to
10 1 2 20
Buy
Switch to a
6 1 2 12
Competitors REFERENCES
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