Moving from Traditional Consumer Perspectives to Consumer Brand Relationships

1. A Brand for All Media
Consumer Brand Relationships and their
Influence on Franchise Development in the
Changing Media Landscape
Max Blackston, Melissa Kalish, Ed Lebar
February 2014

2. The Changing Landscape
•
•
•
•
Digital/mobile/social has fundamentally changed the way people and
brands interact and challenged established norms in understanding,
developing and measuring brands.
New distribution and communication channels, dramatic innovations
impacting the shopping experience and the fact that brand owners
now share control of their reputation with consumers have, at the
same time, created opportunities for marketers to build stronger and
more meaningful connections with their audiences.
To take advantage of these new opportunities, it is no longer
sufficient to think of and measure brands in traditional ways, i.e.
brand attributes, awareness, consideration and usage.
To build stronger consumer engagement and advocacy, and fully
take advantage of new communications opportunities, it is
necessary to deeply understand the nature of the relationship
between consumer and brand so that appropriate messages and
communications channels can be optimized.

3. Moving from Traditional Consumer Perspectives
to Consumer Brand Relationships
• Understanding brand relationships is just like understanding
any other relationship.
• In the consumer/brand relationship – as in all relationships –
there are two participants, two sets of attitudes being
expressed, and two sets of behaviors that need to be
understood before the nature of the relationship can be
understood.
• This means that we need to listen to both sides of “the
conversation”

4. Listening to both sides of the
conversation
There is a dialogue between brand and consumer going on
inside the consumer’s mind
•
In most research we elicit and measure only one side of that dialogue – the
one that reflects consumers’attitudes toward the brand – brand image
•
But there is a second side to this dialogue, which reflects the brand’s attitudes
toward the consumer, which are a measure of how someone feels as a result
of interaction with the brand
Essentially, we need to ask the consumer not only what s/he
thinks of the brand, but also what the brand thinks of him or her
•
Not just Brand Perceptions – what you tell consumers about your brand – but
also Brand Attitudes – what you make your brand tell consumers about
themselves
•
Not just Brand Use - what the consumer does with your brandbut also Brand Experiences - what your brand does with the
consumer

5. Our Perspective on Brand Relationships
Not just what you tell
consumers about
your brand or what
the consumer does
with your brand.
Based on relational
psychology. Brands is seen
Brand Relationship are
as “Transitional Objects”
defined by the
tells consumers about themselves - and what it
Brand relationships are
combination of a specific
defined image with a
brand by the combination of
Brand Perceptions
Brand Perceptions /Attitudes
specific attitude of the
and Brand Experiences.
brand;
Brand Relationships are a two
way street.
But also what your
brand tells
consumers about
themselves - and
what the brand does
with the consumer

6. Five Universal Relationships
•
•
•
•
•
Reinforcement
Identification
Role Model
Self-Differentiation
Playful

7. BRAND ATTITUDES/EXPERIENCES
Self-Esteem
BRAND
PERCEPTIONS
Functionality
• Performs well
• Satisfaction
Emotional
Attachment
• Love it
• Fits my life
• Makes me look
good to others
• Makes me feel
good about myself
Self-Expression
• Simplifies my life
• Helps me express
myself
• Frees me to be
myself
Mentoring
• Challenges me to
think differently
• Teaches me
• Inspires me
• Shares my values
There For Me
• Appreciates my biz
• Recommended by
people I care about
• Responds to my
needs
• Has my interests at
heart
Pleasure
• Brings back good
memories
• Provides a little
treat for me
• Excites me
Reinforcement
Your brand of choice
makes you
look and feel good
Identification
Let the brand you love
tell the world who you
are
Charisma
Role Model
• Dynamic
• Excitingly
innovative
• Leader
• Progressive
Be empowered by
brands
that lead the way
Positive
Differentiation
• Distinctive
• Unique
Relaxed &
Stylish
• Fun
• Cool
• Easy
• Friendly
• Stylish
• Different
SelfDifferentiating
Let a brand with a
difference
make a difference to
you
Playful
Fun brands that are
just to enjoy

8. Consumer Brand Communication
(Word of Mouth)
Paid and
Earned Media
and Brand Relationships
and Franchise Development

9. Classification of media and other sources of
consumer information about brands
(With Caveats)
Traditional Media
Digital Media
Personal Contact
Website
Social Media
In-Store
Owned
Advertising
Sponsorships
Digital Advertising
Social Media
In-Store
Events
Paid
News/Editorial
Social Media
(WOM digital)
WOM (human)
Earned
Caveats:
•
‘Content marketing’ as we’ve been discussing crosses many categories… it can be owned or paid and found across
channels
•
Social Media is tricky since it can be generated by the company, sponsored by the company or consumer generated
(e.g. commentary or earned viral sharing)
•
Sponsorships can be ad-oriented or event oriented; hence the ‘Events’ in paid
•
In-Store can be owned (Walmart, Nike, etc.) or paid, depending on the brand
The data collected in this study was not sufficiently fine-grained to be able to make these distinctions. Based on
the analysis, it is our belief that social media referred principally to the unpaid sort, while internet and websites
referred to brands’ websites. Although we are using the terms paid and unpaid, the real significance of these
terms is brand-controlled vs. non-controlled. (Thus, for example an ad posted by someone on YouTube might
fall into the latter category).

10. The Influence of Media and Brand
Relationship Equity on
Brand Franchise Development
•
•
•
The model proposed here specifies that
brand franchise development – use, use
frequency and brand preference – is a
function of Brand Relationship Equity
and Media Exposure.
There are significant levels of correlation
between media exposure and BRE, but
the model does not assign a causative
relationship to these associations (they
probably work in both directions). Using
SEM rather than ordinary regression
allows estimation with explicit correlation
between the “independent” variables
without biasing the estimates.
With the exception of In Store and
Traditional Media, correlations between
exposure of brands in different media
are not high; with this one exception, the
media variables have therefore been
treated as independent of each other, in
order to avoid over-specifying the model.

11. Consumer Brand Relationships and Word of
Mouth best at Creating Use and Preference
• The model proposed here specifies
that brand franchise development –
use, use frequency and brand
preference – is a function of Brand
Relationship Equity and Media
Exposure.
• There are significant levels of
correlation between media exposure
and BRE, but the model does not
assign a causative relationship to these
associations (they probably work in
both directions). Using SEM rather than
ordinary regression allows estimation
with explicit correlation between the
“independent” variables without biasing
the estimates.
• With the exception of In Store and
Traditional Media, correlations between
exposure of brands in different media
are not high; with this one exception,
the media variables have been
therefore been treated as independent
of each other, in order to avoid overspecifying the model.
• Traditional Media acts as an initiator

12. The Power of CBR, Digital and Traditional
Media Depends on the Product Category
For non-digital brands as a group,
the two strongest media influences
on brand franchise development
are Word of Mouth and In-Store;
websites and traditional media are
significant too (no bars are shown
for non-significant coefficients).
There is however considerable
variation between categories:
• Social Media are significant
influences both for hair care and
mass market retail
• Websites are massively influential
on bank brands and – to a lesser
extent – credit cards too.
• Traditional media have their
strongest influence for corporate
and gasoline brands and for
casual dining brands.
• Word of Mouth and In-Store play a
significant and strong role in most
categories.

13. Relationships Summary
• Identification prompts the most positive
communication about the brand – whether or
not people use it.
– People can use brand communication as a form of
self expression; that doesn’t mean they necessarily
love the brand – or love it enough to use it.

14. Identification is the relationship with the most power; likely
to prompt positive communication about the brand and
discourage negative communication
Communications About the Brand by Primary Brand Relationship - all Brands
100%
90%
24.3
31.0
31.1
27.8
30.6
net
communication
about brand
positive
80%
50.4
70%
no
communication
60%
50%
40%
65.2
64.6
61.7
6.3
7.6
7.8
Differentiating
Playful
Total
62.7
30%
62.5
6.3
Role Model
44.6
20%
10%
10.5
0%
5.0
Reinforcement Identification
Primary Relationship with Brand
net
communication
about brand
negative

15. Brand Relationships
The Brands’ Customer
Franchise
Acquisition
Growth
Brand Perceptions
Retention Maintenance

16. Brand Relationships Build Customer Franchises
Acquisition of New Users is
Influenced by Brand Relationships
4 of the Universal Brand Relationships contribute
significantly to trial consideration among non-users
Entertaining
/Playful
0.54
0.48
Identification
0.38
0.22
Reinforcement
SelfDifferentiating
Acquisitions

17. Brand Relationships Build Customer Franchises
Influence of Brand Relationships
on Franchise Maintenance
A different combination of relationships are significant
influencers of brand preference among users
0.24
0.16
Identification
Reinforcement
Maintenance
0.10
Role Model

18. Relative contribution of Universal Brand
Relationships to Pricing Power
(improving customers “willingness to pay more”)

19. Brand Relationships Directly Influence
Branded Business’ Valuations
Relationship
Equity
Relationship Equity and Stable
Franchise Size are both very
significant Influences on Sales to
Market Cap. multiple.
.48
R2=.42
Market Cap.
/Sales
.43
Stable
franchise
Stable Franchise is defined as the percentage of customers
saying they use the brand regularly less the percentage saying
they do so only if there is no alternative.

20. Summary
Consumer Brand
Relationships
Positively Impact
1. Acquisition
2. Retention
3. Pricing power/willingness to pay more
4. Valuation multiples
5. Consumer brand communication

21. 5 Universal Brand
Relationships

22. BRAND ATTITUDES/EXPERIENCES
Self-Esteem
BRAND
PERCEPTIONS
Functionality
• Performs well
• Satisfaction
• Makes me look
good to others
• Makes me feel
good about myself
Self-Expression
• Simplifies my life
• Helps me express
myself
• Frees me to be
myself
Mentoring
• Challenges me to
think differently
• Teaches me
• Inspires me
• Shares my values
There For Me
• Appreciates my biz
• Recommended by
people I care about
• Responds to my
needs
• Has my interests at
heart
Pleasure
• Brings back good
memories
• Provides a little
treat for me
• Excites me
Reinforcement
Your brand of
choice
makes you
look and feel good
Emotional
Attachment
Identification
• Love it
• Fits my life
Let the brand you
love
tell the world who
you are
Charisma
• Dynamic
• Excitingly
innovative
• Leader
• Progressive
Positive
Differentiation
• Distinctive
• Unique
Relaxed &
Stylish
• Fun
• Cool
• Easy
• Friendly
• Stylish
• Different
Role Model
Be empowered by
brands
that lead the way
SelfDifferentiating
Let a brand with a
difference
make a difference to
you
Playful
Fun brands that are
just to enjoy

23. Reinforcement
Your brand of choice
makes you
look and feel good

24. Identification
Let the brand you love
tell the world who you are

25. Role Model
Be empowered by brands
that lead the way

26. Self-Differentiation
Let a brand with a difference
make a difference to you

27. Study Methodology

28. Methodology 1
• Included 48 brands in 8 different product
categories
• Internet Survey of over 1500 respondents
• 3 matched representative cells each
evaluating 16 brands

29. Methodology 2
• Questionnaire
•
•
•
•
Familiarity
Brand Image and Personality
Brand Experiences (Brands’ Attitudes)
Brand “Touch” points (Advertising, Websites,
Social Media, etc)
• Brand Usage and Consideration
• Overall brand evaluations
• Other brand-related behavior
*conducted by

30. Methodology 3
(Business Metrics)
• Included 30 “mono brands” for which
financial data available from public
sources:
•
•
•
•
•
Market Capitalization
Sales
Operating Profit
P/E Ratio
Operating Margin