Comparative Analysis of Brand Equity Models: A Detailed Report

This report examines brand equity through the lens of Keller's Customer-Based Brand Equity model and Kapferer's Brand System Pyramid. It begins by explaining Keller's model, detailing its four levels: brand identity, brand meaning, brand response, and brand resonance, emphasizing how brands can build strong consumer connections. The report then introduces Kapferer's Brand Identity Prism, which includes self-image, personality, culture, reflection, physique, and relationship. The report further differentiates between brand equity and brand value, highlighting that brand value is a monetary asset on a firm’s financial statements, whereas brand equity is the importance of the brand to customers. It uses examples and references to support its analysis, providing a comprehensive understanding of brand equity and its strategic implications for businesses. The report also touches on how firms account for brand value creation costs before brands gain equity.

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Section A
Keller’s Customer Brand Equity Model and the Kapferer’s Brand System Pyramid Model
Keller’s Brand Equity model also refers to customer based brand equity. This model illustrates
how to build brand equity by understanding consumers’ needs and employing policies
accordingly. Existence of a secure connection between the brand and the consumer leads to
positive brand equity.
The use of the Customer-Based Brand Equity model enables brands to know which strategies to
employ and how to provide the real experiences to their customers to create the WOW factor
(Godey, Manthiou, Pederzoli, Rokka, Aiello, Donvito, and Singh (2016). For instance, people
love brands such as Adidas which concentrates on sports. It is through years of branding in this
group of brands that they have been able to create substantial brand equity.
The customer based brand model is applied in real situations for example, when you are put in
charge of a project that is under-performing. The project is about a high quality product that has
never achieved consumer loyalty as the expectation of the firm, so you should think of using the
brand equity model to bring the turnaround changes for the product.
Keller’s brand equity model has four levels

Brand Identity is the first level. This level entails how the consumers look up to a brand and how
they differentiate it from other brands. The second level is the meaning of brand; this is how
consumers desire to understand more about brands. The third level is the brand response. If
customer’s experiences a positive feeling towards a brand they become a brand advocate
Level four is the brand resonance. The fourth level is where there is a great social and
psychological connection between the customer and the brand.
Kapferer’s Brand System Pyramid is compost of six intertwined elements; these are self-image,
personality, culture, reflection, physique, and relationship. Powerful brands can project a logical
and positive image into consumers’ minds; therefore, these six elements need to be aligned so as
each contributes to establishing and sustaining brand essence.
Below is the Kapferer’s Brand Identity Prism

Section B
Brand equity and brand value are two sides of the same coin
Both Brand value and equity are measures of estimating how a brand is worth. Branding affects
prices that a consumer pays in similar product markets. Branding also enables a basic commodity
or a service to command higher prices by adding value to the good or the service. Brand equity
describes both the brand’s value and the component values of the brand.
Brand value, therefore, differs from brand equity in that brand value is the monetary asset that a
firm records in its statement of financial position, whereas brand equity, is the importance of the
brand to the customers of the firm. Also, Keller (2016) says that it is easy for a firm to determine
its brand value. This is because the firm can sum up its expenditures of hiring salespersons and
promotional experts to assess the expenditure for the firm to create a new brand for its products
while it is not easy for a firm to establish its brand equity since it depends on consumers’
principles.
In terms of brand value creation, a brand might possess positive value on the firm’s records and
still lack brand equity (Zhang, van Doorn & Leeflang 2014). When a firm creates a branding
plan, the firm pays its worker when they work on the brand, but consumers have no idea on the
brand yet. The firm accounts for the development of brand value costs before the brands gain
equity

Reference
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., and Singh, R., 2016.
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), pp.5833-5841.
Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and
priorities. AMS review, 6(1-2), pp.1-16.
Zhang, S.S., van Doorn, J. and Leeflang, P.S., 2014. Does the importance of value, brand, and
relationship equity for customer loyalty differ between Eastern and Western cultures?.
International business review, 23(1), pp.284-292.