Describe the three ingredients of customer-based brand equity.
Answer: The three key ingredients of customer-based brand equity are as follows:
1) Brand equity arises from differences in consumer response. If no differences occur, the brand-
name product is essentially a commodity, and competition will probably be based on price.
2) Differences in response are a result of consumers' brand knowledge, all the thoughts, feelings, images, experiences, and beliefs associated with the brand. Brands must create strong, favourable, and unique brand associations with customers, as have Toyota (reliability), Hallmark (caring), and Amazon.com (convenience).
3) Brand equity is reflected in perceptions, preferences, and behaviour related to all aspects of the
marketing of a brand. Stronger brands lead to greater revenue.