1. product type (search, experience, credence)
2. consumer goals (prestige vs. utilitarian)
3. risk-aversion
4. variation in functional attributes across brands
5. consumer expertise
6. company assets
Answer: If a brand name is powerful enough it can be extended to other seemingly unrelated markets.
If a brand has achieved a high level of awareness, new items that share the brand name should have a head start.
brand assets (awareness and liking, trustworthiness, and specific associations) against the risks of brand extension (generalization of failure, dilution of brand meaning, incompatibility of extension, and differentiation)
1. communication
2. assessment of quality
3. growth potential
4. channel power
5. loyalty
1. attitude -- a brand can evoke feelings, emotions, and evaluative reactions toward the product
2. meaning -- equity encompasses the cognitive associations a consumer has about the brand which can range from the brand's positioning to memories of past usage.
1. in-store -- when picking from an array, brands that are not noticed will by by-passed
2. in-memory -- if the consideration set is constructed from memory, a brand cannot be chosen if it is not recalled.
The consumer's:
1. brand awareness
2. brand attitude
3. brand knowledge
4. brand loyalty
1. Consumer level -- the difference in willingness to pay for a product when it possesses the brand name versus when it lacks a name (difficult to obtain accurate results)
2. Firm level -- the acquisition of another company reflects its tangible and intangible assets (including brand equity). The value of a well-positioned name will be greater in environments in which it is difficult to differentiate a new entry due to the levels of noise and competition in the market.
Answer: The marketing outcomes or effects that accrue to a product with its brand name compared with those that would accrue without it.