1. After having read the formal definition of customer-based-brand-equity (p. 41) and the ensuing chapter discussion, think of a product category offering that you are familiar with. How do consumers make decisions whether or not to buy the product, and how do they arrive at their final brand decision? Do you agree with the three “ingredients” that are the basis for the definition of C.B.B.E? What are the implications for brand equity management for the brands in the category?
For me, the most familiar brand is Nike. I think the consumers will consider the price of the products and they will consider the product is fit for them or not when they buy the products. Mostly, the consumers will choose the brand which they used before because they used this brand before, they know this brand and they will have more trust for this brand. Sometime, the consumers could choose the brand which they knew or heard before when they buy some new products because the famous brand product can bring more trust for the consumers. I agree with these three ingredients. In fact, I believe most customers, include me, follow these three key ingredients when we choose the brand. I think better brand equity management can improve the brand value and image. It can also better promote the brand and let more customers know your brand. This can help your brand stay in the top area of the congeneric products.
Take the coffee product category basically dominated by the two main brands Starbucks and Dunkin’ Donuts. Evaluate the positioning of each brand in terms of the four components of brand positioning. Who are their target markets? What are their main points-of-parity and points-of-difference? Have they defined their positioning correctly and effectively? How might their positioning be improved?
I think the major target markets of Starbucks are the collage students, the white collar employees. For Dunkin’ Donuts, the target markets consumers are the customers who...
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