Consumer & Brands

What is a brand?
• Each expert comes up with his or her own definition, or nuance to the
definition.
• Various perspectives of brands have emerged over the period
• Customer based perspective
• Brands as conditional asset
• The legal perspective
Consumer based definition/perspective
• A brand is a set of mental associations, held by the consumer, which
add to the perceived value of a product or service’ (Keller, 1998).
• A brand is a name that influences buyers, becoming a purchase
criterion.
• These associations should be unique (exclusivity), strong (saliency)
and positive (desirable).
• ‘Brand’ is the set of added perceptions. A brand is a name that
influences buyers.
• These assets are brand awareness, beliefs of exclusivity and
superiority of some valued benefit, and emotional bonding.
The financial perspective
• Brands have financial value because they have created assets in the
minds and hearts of customers, distributors, prescribers, opinion
leaders.
• Brands are considered as an conditional asset (Financiers and
accountants have realized the value of brands).
• The financial perspective help in defining brands and brand equity
• First, brands are intangible assets, posted eventually in the balance sheet as
one of several types of intangible asset (a category that also includes patents,
databases and the like).
• Second, brands are conditional assets. This is a key point so far overlooked. An
asset is an element that is able to produce benefits over a long period of time.
The legal perspective
• An internationally agreed legal definition for brands does exist:
• ‘a sign or set of signs certifying the origin of a product or service and
differentiating it from the competition’.
• Brands were created to defend producers from theft.
• A key point in this legal definition is that trademarks have a ‘birthday’
– their registration day.
• From that day they become a property, which needs to be defended
against infringements and counterfeiting.
Social brand perspective
• The social brand perspective put forward in the community approach draws on the scientific
tradition of ethnography (The scientific description of peoples and cultures with their customs,
habits, and mutual differences).
• Ethnography stems from the tradition of cultural anthropology
• It is all about communication. Personalized communication regarding brands
• As an intellectual framework, it focuses on the concept of culture and its influence on
(consumer) behaviour.
• The methodological orientation emphasizes a ‘real world’ approach, which means that
researchers participate in the real world of the subjects of investigation.
• The social brand research was kicked off in 2000
Cultural brand perspective
• In cultural brand perspective the brand is regarded as an important
part of and contributor to mainstream culture.
• The consumer-based perspective turned the spotlight on the
consumer.
• In the cultural approach, the brand is analysed as a ‘cultural artifact
moving through history’ (Holt, 2015).
• In the macro-level focus of culture the brand is also a significant
political and financial power and is at the centre of debate when it
comes to issues and discussion surrounding globalization issues.
• In that sense, the brand is a vessel of meaning and myth making.
Basic assessments
• What is the brand territory (perceived competence, typical products
or services, specific know-how)?
• What is its level of quality (low, middle, premium, luxury)? l What are
its qualities?
• What is its most discriminating quality or benefit (also called
perceived positioning)?
• What typical buyer does the brand evoke? What is the brand
personality and brand imagery?
Creating customer value
Introduction
• Driven by more demanding customers, global competition, and slow-
growth economies and industries, many organizations search for new
ways to achieve and retain a competitive advantage.
• Enhancing customer value is a great method to gain and retain
competitive advantage over the competitors.
What is value?
• Value is the consumer's overall assessment of the utility of a product
based on perceptions of what is received and what is given. (Zeithaml
1988, p. 14)
• Value in business markets is the perceived worth in monetary units of
the set of economic, technical, service and social benefits received by
a customer firm in exchange for the price paid for a product, taking
into consideration the available suppliers' offerings and prices.
(Anderson, Jain, and Chintagunta 1993, p. 5)
Customer Value-The concept
• Customer value is best defined as a balance between the benefits a
customer derives from a service or product and the customer's effort,
or the difficulties they face in using or obtaining the product or
service in question.
Definitions
• Buyers' perceptions of value represent a tradeoff be tween the
quality or benefits they perceive in the product relative to the
sacrifice they perceive by paying the price. (Monroe 1990, p. 46).
• Customer value is market perceived quality adjusted for the relative
price of your product. (Gale 1994, p. 14)
• By customer value, we mean the emotional bond estab lished
between a customer and a producer after the customer has used a
salient product or service produced by that supplier and found the
product to provide an added value. (Butz and Goodstein 1996, p. 63)
Source- Woodruff (1997).
Customer value hierarchy model

Source- Woodruff (1997)

Importance of customer value
• It is associated with customer satisfaction
• Overall satisfaction is the customer's feelings in response to evaluations
of one or more use experiences with a product.
• It is also a tool for decision making
Customer value determination process

For the purpose, integration of customer value data is important

Integration of customer value data
Thanks You