Customer-based brand equity refers to the differential effect that brand knowledge has on consumer response to a brand’s marketing activities (Keller, 1993). This differential effect arises when consumers are familiar with a brand and hold strong, favorable, and unique associations in memory. Keller’s (1993) framework conceptualizes brand equity from the perspective of consumer cognition, grounding it in theories of associative memory and providing a systematic basis for understanding how brands create value.

Brand knowledge is composed of two core dimensions: brand awareness and brand image. Brand awareness reflects the strength of the brand node in memory and determines the likelihood that the brand will be recalled or recognized under various conditions. It encompasses both brand recognition, defined as the ability to confirm prior exposure to a brand when presented as a cue, and brand recall, defined as the ability to retrieve the brand from memory when given a product category or usage situation (Keller, 1993; Rossiter & Percy, 1987). High levels of brand awareness increase the probability that a brand enters the consumer’s consideration set and facilitate the formation of brand associations.

Brand image refers to the set of perceptions about a brand as reflected by the associations stored in consumer memory. These associations vary in terms of strength, favorability, and uniqueness, and they can be categorized according to their level of abstraction into attributes, benefits, and overall brand attitudes (Keller, 1993). Strong and coherent brand images enhance the accessibility and diagnosticity of brand-related information, particularly in high-involvement decision contexts.

From this perspective, building customer-based brand equity requires managing how brand knowledge structures are created and reinforced over time. Keller (1993) identifies three primary levers. First, brand identity elements such as names, symbols, and logos play a foundational role by facilitating recognition and recall. Second, marketing programs contribute to equity by consistently linking the brand to relevant attributes and benefits through advertising, pricing, distribution, and product experience. Third, brand equity can be strengthened through secondary associations derived from related entities such as the company, country of origin, distribution channels, endorsers, or events, provided that these associations are perceived as credible and meaningful.

In marketing and advertising practice, the customer-based brand equity framework informs both strategic decisions and measurement approaches. Indirect measures assess brand equity by examining brand awareness and association patterns, while direct measures evaluate how brand knowledge influences consumer responses to marketing actions, such as price sensitivity or advertising effectiveness (Keller, 1993). The framework also underscores the importance of long-term consistency in communication, as repeated and coherent brand experiences are necessary to maintain strong memory structures.

References

Aaker, D. A. (1991). Managing brand equity. The Free Press.

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22.

Rossiter, J. R., & Percy, L. (1987). Advertising and promotion management. McGraw-Hill.