Customer Based Brand Equity or the CBBE Model explores the overall brand equity through the customer perspective in order to create a strong and a sellable brand in the market. It was first proposed and developed by marketing professor and expert Kevin Keller in 1993. The CBBE Model has 4 distinct levels across 6 branding components.
There are 3 main models of assessing and understanding the brand equity-Financial based, customer based and employee based. CBBE model focuses on the customer's perspective.
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Keller's CBBE model states that creating a positive and strong brand image or equity requires focusing on customers and how they perceive, experience and position the brand in their mind. The overall brand identity of the products or the brand should be such that the customers respond positively to it. The CBBE model helps in making a strong brand equity from customer's perspective so that the brand becomes an important brand in the category and leads to higher sales of the products. The model helps to see a brand from various factors so that the overall brand equity can be created from customer's perspective.
There are 4 levels in the Customer based Equity Model - Identity, Meaning, Response and Relationships. The stages are made up of 6 components which are discussed after the stages.
Brand identity is where the brand salience is established so that the customer is aware about the brand and makes it part of the consideration set. Brand identity is the first step where a company puts together different brand elements in order to create a positive brand image. The expected output is enhances image, awareness and recall.
This stage in the model talks about the Performance and Imagery of the brand. This is still controlled by the brand managers in order to create a positive brand experience and makes sure that the brand meets the customer requirements as expected with a positive brand experience. This stage leads to the third stage called response.
A response stage is where the customers now respond to brand's existence along with its performance and image. The response is in terms of first the judgements and then the feelings. Positive Feelings about a brand is big win for a brand and as per this model leads to loyalty and eventually improvements in sales and repeat customers
This is the final stage in the CBBE model where the customer forms a relationship with the brand. The customer is loyal and shows positivity towards the brand. Few brands manage to reach this stage in the market. More than customer loyalty, brand advocacy is a true measure of a strong brand relationship.
As per the stages above the following 6 components are part of 4 levels:
Salience is about brand awareness, identification and recall from customer's perspective. Salience should be such that customer considers the brand when planning a purchase.
Performance in the model talks about the ability of the brand to meet the needs as well as wants of the customer in terms of functions, branding, packaging, pricing etc.
Imagery deals the with the overall brand image in the mind of customers through identity created in the way customer identifies the brand as positive. The imagery should match and appeal the target audience so that the customer can identify with it through his or her own experiences
After imagery, an important and a higher level component of the CBBE is brand judgement. It talks about complex image of brand in the mind of the customer based on one's own opinions and decisioning. It is built on top of the performance and imagery of the brand
Similar to judgements, brand feelings are also complex form of creating brand equity. Feelings can be of fun, adventure, warmth, security etc. on associating with the brand. Feelings and judgement together form an important layer of the CBBE model as seen in the image.
Brand Resonance is the ultimate step or stage in the CBBE model. Built on top of salience, performance, imagery, judgement and feelings, the Resonance is where the customer is totally in sync with the brand equity. The customer is not only loyal to the product but becomes an advocate of the product and responds to the changes perfectly.
Let us take an example of Apple iPhone which is a good example to explain the model. It has strong brand awareness and salience in the market. Customers or not, people are aware about the product. In the second stage or level, performance and imagery of iPhone brand is positive in the loyal customer base which leads to good Response every time new model or version is launched in the market. At every launch, the customer base upgrade the models mostly. The iPhone customers are well known to be very loyal and brand advocates.
Another example can be BMW or Mercedes to a certain extent.
Hence, this concludes the definition of Customer Based Brand Equity (CBBE) Model along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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