Notice that most of the questions in the Brand Equity Research section above focus on how, when, and where while the questions in the Brand Perception Research section address what, who, and why. Stay tuned to learn all about the research you need to do for growing and changing brands. In the meantime, follow the links below to read Parts of the Brand Research Fundamentals series. Create a new market research study right now on our Target Market page to test your concept s.
If you have any questions about how to construct your study, email support aytm. Measuring Perceptions and Attitudes of your Brand. Learn more First, you need to understand a core truth of branding and business. Brand Equity Research There are many examples like Toyota in history where companies made a mistake and brought much unwanted, negative publicity to their brands. Following are some brand research questions that can help you track your brand equity over time among existing customers: How important is this brand to you?
Start your brand research with some of the following questions and learn how consumers perceive your brand: What word comes to mind when you hear the brand name? Why do you choose the brand over others? If this brand were a person, who would it be? What is this brand missing? Brand attributes and associations provide the fabric of brand loyalty and equity research. Loyalty and equity are largely the result of the associations and attributes of a brand.
Associations are found in how customers think and feel about a product and their personal viewpoints about the product class. Some examples of associations are security and safety; trust and confidence; dependability and freedom; and power and control. What is the relationship between brand equity research and brand positioning?
A brand is said to be positioned effectively when its appealing characteristics have been implanted in the minds of consumers, so much so that the brand is differentiated from other offerings in the market. Gauging your brand equity through research can and should be used to inform effective positioning. Brand Equity Research Brand is an intangible, conditional asset associated with a product or service.
Brand awareness and perception assessments are designed to answer the following questions: It has been empirically demonstrated that brand equity plays an important role in the determination of price structure and, in particular, firms are able to charge price premiums that derive from brand equity after controlling for observed product differentiation.
Some marketing researchers have concluded that brands are one of the most valuable assets a company has,  as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include but not limited to: Consumers' knowledge about a brand also governs how manufacturers and advertisers market the brand.
Generally, these strategic investments appreciate over time to deliver a return on investment. This is directly related to marketing ROI.
Brand equity can also appreciate without strategic direction. A Stockholm University study in documents the case of Jerusalem 's city brand. A booming tourism industry in Jerusalem has been the most evident indicator of a strong ROI. While most brand equity research has taken place in consumer markets, the concept of brand equity is also important for understanding competitive dynamics and price structures of business-to-business markets.
In industrial markets competition is often based on differences in product performance. It has been suggested however that firms may charge premiums that cannot be solely explained in terms of technological superiority and performance-related advantages.
Such price premiums reflect the brand equity of reputable manufacturers. Brand equity is strategically crucial, but famously difficult to quantify. Many experts have developed tools to analyze this asset, but there is no agreed way to measure it.
As one of the serial challenges that marketing professionals and academics find with the concept of brand equity, the disconnect between quantitative and qualitative equity values is difficult to reconcile. Quantitative brand equity includes numerical values such as profit margins and market share , but fails to capture qualitative elements such as prestige and associations of interest. Overall, most marketing practitioners take a more qualitative approach to brand equity because of this challenge.
In a survey of nearly senior marketing managers, only 26 percent responded that they found the "brand equity" metric very useful. The purpose of brand equity metrics is to measure the value of a brand. A brand encompasses the name, logo , image, and perceptions that identify a product, service, or provider in the minds of customers.
It takes shape in advertising , packaging , and other marketing communications, and becomes a focus of the relationship with consumers. In time, a brand comes to embody a promise about the goods it identifies—a promise about quality, performance, or other dimensions of value, which can influence consumers' choices among competing products.
When consumers trust a brand and find it relevant, they may select the offerings associated with that brand over those of competitors , even at a premium price. When a brand's promise extends beyond a particular product, its owner may leverage it to enter new markets.
For all these reasons, a brand can hold tremendous value, which is known as brand equity. Brand Equity is best managed with the development of Brand Equity Goals, which are then used to track progress and performance. There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level and still others are at the consumer level. Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset.
For example, if you were to take the value of the firm, as derived by its market capitalization—and then subtract tangible assets and "measurable" intangible assets—the residual would be the brand equity.
To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand. Brand valuation models typically combine a brand equity measure e.
The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More sophisticated marketing mix models have a floating base that can capture changes in underlying brand equity for a product over time.
This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness recall and recognition and brand image the overall associations that the brand has.
Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand.
All of these calculations are, at best, approximations.
Brand awareness is the first step in creating brand equity. Awareness equates to online traffic and having prospective buyers show up at your stores. Building a brand is a process: What begins with brand awareness becomes brand associations and, if those associations are consistently positive, brand .
Notably, measuring brand equity may be only a single piece of a more comprehensive brand research program. Likewise, an organization’s brand research program may be only a single facet of the larger research and insights program.
White paper examining Brand Equity Research, and in particular using Net Value Score as a metric for measuring a company's success. Market research companies that identify a brand's assets and liabilities (= brand equity) within its competitive framework. Find vendors that help you determine brand equity through tangible data (i.e. how well it performs) as well as abstract dimensions (i.e. consumer perception and brand association).
Brand Equity Research Methods. Brand equity market research methodology is straight-forward and our portfolio of marketing research tools and methods provide the needed range of measurements. As for any study, a brand equity study research methodology is driven by management and research objectives. While. Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark.