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Course Hero 23

Course Hero 23 - setting to quantitative The indirect...

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2. What are the two basic approaches to measuring brand equity? Brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm. Given that power of a brand resides in the minds of consumers and the way it changes their response to marketing, there are two basic approaches to measuring brand equity. An indirect approach assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures. Traditional marketing research techniques tend to favor the indirect approach. In this approach, we measure aided and unaided recall of brands, brand image (strength, possessiveness and uniqueness). The techniques of measurement here can range from purely qualitative (e.g. brand associations in a focus group
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Unformatted text preview: setting) to quantitative. The indirect approach assumes that there is a correlation between brand recall, brand image and brand equity. It is not an unreasonable assumption. In fact, it is consistent with the generally accepted theoretical model that connects recall and image with equity. All the same, indirect measures deal with sources of brand equity and not with its outcomes. A direct approach assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing. In reality, there is no way of 'directly' measuring brand equity. However, it is possible to be more direct (compared to the 'indirect' approach) measuring the effect of brand equity. In this approach, we design controlled marketing experiments to study what conditions actually influence consumer attitudes....
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