Key Concepts
Companies should focus on this type of equity instead of brand equity.
What is customer equity?
This GM brand tried to appeal to young buyers with the slogan “This is not your father’s…”
What is Oldsmobile?
Instead of managing brands, companies should prioritize managing these.
What are customer segments or key accounts?
Brand equity varies by this, meaning it cannot just be averaged across all customers.
What is individual customer perception?
Oldsmobile’s market share dropped to 1.6% by this year.
What is 2000?
This term refers to the total profit a company earns from a customer over their relationship.
What is customer lifetime value?
Honda launched this U.S. brand to appeal to upscale buyers without prior brand baggage.
What is Acura?
Successful brand extensions depend on the similarity of these, not the products themselves.
What are customers?
A company can estimate the ROI of marketing by linking customer equity drivers to this.
What is customer lifetime value?
Unilever attempted to combat market fragmentation by doing this to hundreds of brands.
What is eliminating or consolidating them?
The management practice that prioritizes the brand over the customer is called this.
What is brand-first thinking?
Volkswagen failed with this high-end luxury car because the brand didn’t match customer expectations.
What is Phaeton?
Brand managers should hand off customers if this is true.
What is the customer is a better fit with another brand?
The three drivers of customer equity are value equity, brand equity, and this type of equity.
What is relationship equity?
Narrow brands are better because they match these more closely.
What are customer needs and segments?
Brands should do this if they no longer fit the customers’ needs.
What is change, evolve, or be retired?
George Clinton split his band to satisfy different customer segments; the edgier band was called this
What is Funkadelic?
The article uses this hotel example to show moving a customer to another brand can increase profits.
What is Fairfield Inn → Marriott?
In the Aerosphere example, installing seat-back video units increased customer equity by how much (in billions)?
What is $0.14 billion ($6.94B – $6.8B)?
Virgin’s success in brand extension is due to similarity in these rather than products.
What are customers (psychographics and demographics)?
These three forms of equity drive customer lifetime value.
What are value equity, brand equity, and relationship equity?
In Japan, this brand consortium created multiple products for the same demographic under one brand.
What is WILL?
The article uses a car crash to illustrate when brands should be discarded rather than salvaged.
What is Valujet → AirTran?
The statistical model predicts customer equity by tracking these ratings at the individual level.
What are drivers of brand equity, value equity, and relationship equity?
Magazine industry evolution shows brands can become very narrow due to technology and this.
What is customer information and segmentation?