Summary Buildings Brands for Impact EBM073B05 2024-2025
Week 1 – What is a brand and why does it matter?........................................................................... 2
Lecture notes ...................................................................................................................................... 2
Book chapters ..................................................................................................................................... 5
Articles ................................................................................................................................................ 9
Week 7 – When Things Go Wrong: Understanding & Managing Negative Brand Publicities ..... 64
Lecture notes .................................................................................................................................... 64
Articles .............................................................................................................................................. 69
,Week 1 – What is a brand and why does it matter?
Lecture notes
What is a brand?
Companies’ perspective, the brand is the most valuable resource.
A brand is a source of reputation/credibility and power, vis-a-vis competitors, which
attracts consumers in a unique way and provides sustainable profit.
Brand(s) are incredibly valuable resource(s). They need to be nourished (constant
attention and investment to stay relevant) and leveraged continuously. You can’t just build a
brand and then leave it, it needs ongoing effort. They are intangible assets – they exist in
consumers’ minds through perceptions and loyalty, making them key to long-term success.
The power of the brand (brand equity) derives CLV and predicts customer acquisition,
retention & loyalty.
The dynamic relationship between marketing actions, brand equity and customer
lifetime value (CLV)
Consumers’ perspective, they perceive and relate to brands often emotionally,
symbolically and irrationally
Understanding Consumers Brand Behavior – a fundamental step in building strong
brands
Consumers are the ultimate users of the brand. Understanding how they perceive, feel and
think about brands must therefore be at the core of any brand management program.
Consequently, the important questions are:
• How do consumers relate to brands? How do they think and feel about them?
• What drives consumers’ preference and positive attitude towards brands?
• How can we/companies influence consumers’ brand related intentions and behavior?
Brands as symbols and relational tools
Consumers buy things not only for what products can do (i.e., utilitarian motives – do I
need this?), but also for what they mean (symbolic motives – do I want this? Do I like
this? What does this brand tell others who I am?).
But what factors drive these symbolic, feeling-based decisions?
• Consumers’ self-concept, goals, feelings, thoughts in specific situations
, • Self-signaling motives -> signaling ideal self-images (competent, intelligent, moral,
generous, pro-environmental, sustainable, physically active, wealthy, etc.
• Using symbols to distinguish ourselves (e.g., belonging to certain social class,
group, community, etc.)
Notice the shift from rational and purely economic aspects to emotional and
psychological aspects.
Brands are often treated by consumers as entities with personalities, characters, feelings
etc. to which consumers connect and relate. Consumers establish relationships of varying
quality with their brands. Overall, consumers perceive brands as living entities, like other
humans, that bring meaning to their life.
ARTICLE - Got to get you into my life: Do brand personalities rub off on consumers?
When consumers use brands with appealing personalities, does the brand’s personality “rub
off” on them? Do consumers perceive themselves as having the brand’s personality
characteristics after using the brand?
Key propositions in the article
• H1 (What): Brands with appealing personalities rub off on consumers. Such that after
using those brands, consumers perceive themselves as having the same qualities
and personalities as brands do.
• H2 (When): This is particularly true for consumers who are entity theorists (vs.
incremental theorists).
Implicit self-theory: Entity theorists believe their characteristics are fixed and they
cannot change it anymore, this is who I am. (vs. incremental theorists believe they
can change themselves on any aspect by effort, does not depend on anything.)
• H3 (Why): This effect emerges because the entity theorist derives signaling utility
from these brands.
Entity theorists think they need more help from the brand, from external sources, to
change themselves. Therefore, the rub off effect is stronger for entity theorists
because they need the help from the brand.
Reconciling Companies and Consumers perspectives
Given the relational and emotional perspective of consumers towards brands, how should
companies plan to increase power of their brands – brand equity?
What: Companies should create and nourish brand knowledge among consumers. That is,
to establish strong bonds with consumers by creating strong, positive and unique
thoughts, feelings, experiences, memories, & beliefs about their brands in consumers’ hearts
and minds.
How: Those associations and knowledge are formed and reinforced by marketing activities
of the firm, as well as consumer experiences with the brand through time, and are called
Consumers Brand Knowledge.
Why: Over time, this results to automatic activation of brand knowledge, when consumers
encounter the brand. Every time the brand becomes salient, those positive associations
are activated automatically, spurring consumers to buy/consume the products. This has
important implications for consumer purchase behavior but also behavioral change.
Summary – as a brand, you want to sit in people’s memory with positive, unique and strong
associations because these help you to be top of mind, and in consideration set of the
consumer.
Consumers will therefore automatically respond to the cues that suggest your presence in
the environment. In other words, you will shift their reactions from system 2 (cognitive and
slow) to system 1 (fast and emotional).
, Exposure to brand elements à Activation of Unique, Positive and Strong feelings and
thoughts à From system 2 (cognitive, slow) to system 1 (affective/automatic) = habitual &
automatic purchase behavior
Levaraging brand knowledge through Priming
ARTICLE - Automatic effects of brand exposure on motivated behavior: how apple
makes you “think different.
Question: Does exposure to brand related elements such as logo’s influence consumers’
behavior and decision making?
Logic: If consumers have positive (negative) mental associations about brands (brand
knowledge), then activation of those mental associations through exposure to brand
elements should influence their choice and behavior accordingly.
Empirical evidence: activated (i.e., primed) brand-related concepts affect and regulate our
behavior accordingly. Concepts can be activated subconsciously (i.e., subliminal priming),
or consciously (i.e., supraliminal priming)
Could exposure to brand logos influence consumers behavior consistent with brand
associations consumers have in mind? If so, are such priming effects motivational/ goal-
based (vs. trait-based) and persistent until satisfied? (very important form the Marketing
perspective)
If a brand becomes salient in my mind, does that have the power to influence my behavior.
So going beyond what you THINK or yourself and see if it actually changes you.
Priming
Trait-based or behavioral priming
• The activation leads to a behavior in line with the primed concept
• The activated concept will diminish through time or when another concept becomes
salient in mind.
• Does not lead to persistent behavior related to the primed concept
Motivational or Goal-based priming
• The activated concept becomes motivational and particularly influences those for
whom the concept is relevant and important.
• The activated concept persists over time and guides the behavior (and choice) until
the goal is met
• If not satisfied immediately, it does NOT disappear, it escalates and becomes
stronger over time until satisfied (e.g., acting like hunger).
Brand – formal definition = For the American Marketing Association (AMA), a brand is a “
name, term, sign, symbol, or design, or a combination of them, intended to identify the goods
and services of one seller or group of sellers and to differentiate them from those of
competition.”
Customer-Based Brand Equity = Customer-based brand equity is defined as the
differential effect of brand knowledge on consumer response to the marketing of the
brand. A brand is said to have positive (negative) customer-based brand equity when
consumers react more (less) favorably to an element of the marketing mix for the brand than
they do to the same marketing mix element when it is attributed to a fictitiously named or
unnamed version of the product or service.
à Customer-based brand equity is the difference in what the consumer is willing to pay for
a branded product, compared to an unbranded identical equivalent of the same product.
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