• Unit 2: Consumer Choice: Loyalty, Preference, and Brand Equity

    In this unit, we will address the constructs that affect consumer choice. A big part of brand management is focused on identifying and understanding the primary forces underpinning consumer preference, loyalty, and the consumer purchasing journey. Repeat customers tend to spend more money on your brand than new customers because they trust and rely on your brand to deliver on the value proposition. Retaining customers is about five times less costly than recruiting new customers. Keeping customers' needs at the forefront of your business will drive more sales and cultivate customer loyalty.

    Completing this unit should take you approximately 3 hours.

    • Upon successful completion of this unit, you will be able to:

      • analyze how to best position for brand equity;
      • evaluate the touchpoints along the consumer purchasing journey that lead to loyal consumer preference;
      • analyze a gap analysis of the competitive landscape to understand brand growth opportunities;
      • evaluate critical elements of consumer engagement and brand equity insights with the use of data analytics; and
      • analyze the marketing ROI (return on investment) and productivity of brands.

      • 2.1: Customer-Based Brand Equity

        Brand equity is the culmination of a process starting with brand strategy, which drives brand awareness, brand differentiation, and eventually, brand loyalty, which drives brand equity. In this section, you will learn how to measure brand equity. When you consider the valuation of a company, the most important assets are the brands, which represent the financial component of consumer loyalty. The brand value is referred to as brand equity or brand value. The brand's worth is what value it brings to a customer, and this financial assessment is often considered if the brand is sold. When brand equity grows, the brand value goes up as well.

        • Brand Equity Models Book

          Identify the differences in theories of how brand equity is experienced: Customer-Based Brand Equity, Brand Equity Perspectives, Customer Perspective (Customer-Based Brand Equity), and Employee Perspective (Employee-Based Brand Equity). Then outline and contrast the different models on how to actually measure this important asset of brand equity, summarizing the models of measurement: Aaker's Brand Equity Model, Keller's Brand Equity Pyramid, Yoo and Donthu's Brand Equity Model, Luming Wang and Adam Finn's Customer-Based Brand Equity Model, Destination Brand Equity Model, CAA Integrated Brand Equity Model, and Cross-National Brand Equity.

        • Loyalty Management Page

          As defined in this section's introduction, brand ambassadors are the most important guardian of the brand. Brand loyal consumers are committed to purchasing one brand out of habit. Behavioral loyalty is habitual purchases of low-involvement goods or positive attitude. Attitudinal loyalty is willingness and intentionality toward a specific brand. After reading this article about the importance of loyalty programs in building a community of brand loyalists, match up the five factors of a successful loyalty program with either the behavioral loyalist or the attitudinal loyalist. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.

      • 2.2: Consumer Buying Loyalty Factors

        In this section, you will learn how brand managers create consumer-driven brand experiences that are designed to grow a "community" of brand loyalists. Brand loyalists pass on their affinity and love of the brand and believe in the brand value proposition. They are willing to seek and purchase their favorite brand continuously, which builds strong market share. Brand loyalists are the key to consumer loyalty as they attract more consumers who build brand loyalty.

        • Customer Journey Mapping Page

          Consumer Journey Mapping is a multi-step process. When reviewing this chapter, take notes about the sequence of mapping and the feedback that is most relevant to brand managers. This mapping, called the input loop, is used to make revisions to consumer engagement and, most importantly, "breaks" or "celebrations" along the consumer journey that can inform your brand growth strategies.

      • 2.3: The Consumer Journey

        This section details how brand managers construct a comprehensive customer journey map to understand how consumers engage with the brand from start to finish. This customer journey tool consists of visual touchpoints that can reveal opportunities to maximize the brand experience. Creating a visual customer journey map is critical to engaging with consumers and discovering every point they engage in with your brand and their impressions of each interaction.

        • Five KPIs Every Business Must Consider Page

          The metrics that measure achievement from a brand perspective are called Key Performance Indicators (KPIs). Watch this demonstration of how profitability and ROI (return on investment) measure the productivity of brands.

      • Unit 2 Study Resources

        This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

      • Unit 2 Assessment

        • Unit 2 Assessment Quiz
          Receive a grade

          Take this assessment to see how well you understood this unit.

          • This assessment does not count towards your grade. It is just for practice!
          • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
          • You can take this assessment as many times as you want, whenever you want.