Assessing Brand Equity using the EQ Model

WAC Survey shares the features of the EQ model. Measure your brand's equity and understand strategic possibilities for the brand's growth.

Introduction
Within the context of brand and corporate identity, assessing the strengths and weaknesses associated with brand equity and image has become increasingly critical to achieve success in the marketplace.

The WAC Survey perspective asserts that equity is the net value of the bundle of components comprising a brand’s total perception and image. Understanding the leverageability and influence of a brand’s or corporate entity’s particular perceptual and image attributes and how they contribute to equity makes this a critical marketing issue whose research metrics must be approached most seriously. Until now, most research techniques designed to measure brand and corporate equity have been limited to a current environment with little or no ability to predict the impact of change….that is, until the advent of WAC Survey’s ‘EQ’ ® Model.

The ‘EQ’ ® Process
‘ EQ’ ® combines a uniquely effective method of consumer and B2B data collection with the precision of a micro behavioral model to:

• Measure a brand’s current equity
• Predict the impact of specific enhancement strategies for that brand

WAC Survey’s ‘EQ’ ® Model possesses an analytic framework that extends beyond the potency of conjoint and regression analysis to dynamically predict brand consideration and preference for both your brand and competitive brands. 'EQ’ ® utilizes a unique system to collect brand ratings on a comparative basis, supported by additional metrics of (a) brand preference and (b) attribute importance, as well as (c) improvements desired in brands. This technique is respondent friendly and easy to implement. Data collection can be online or in-person (CAPI, self-administered on laptops). (Phone is not a recommended data collection methodology for conducting ‘EQ’ ® ).

Equity Measurement
Using WAC Survey’s ‘EQ’ ® system, equity is derived on a points allocation basis which can be equated to overall consumer choice. The chart below reveals current equity, as recently measured by ‘EQ’ ® , enjoyed by brands of supermarket ice cream:

‘ EQ’ ® also provides a hierarchical analysis of the component attributes for each brand to reveal.

• The true driving forces operating in the marketplace
• The most effective image enhancement strategies for each brand

Hierarchical Analysis of Ben and Jerry’s ‘EQ’ ® components:

• Value for the money 44.8
• Concern for environment 37.7
• Package keeps product fresh 36.7
• Consistently high quality 36.7
• Concern for the community 35.8
• Visually appealing package 33.3
• For the entire family 33.0

Simulations
'EQ’ ® is unique in its ability to simulate changes in consumer perceptions and brand attributes. It not only can model the impact of a variety of improvements for a single brand, but can also simulate effects of broader strategies including competitive response.

Scenario 1 shown below is a simulation of the impact on equity of an improvement in the Ben and Jerry’s packaging to enhance product freshness. In Scenario 2 ‘EQ’ ® simulates Sealtest and Borden both adopting a pro-environmental stance to packaging which offsets the initial gain enjoyed by Ben and Jerry with this response:

The ‘EQ’ ® Model can be used to:

• Establish benchmark equity levels for a brand versus its competitors
• Isolate perceived strengths and weaknesses of a brand
• Identify effective strategies for improving a brand’s image, equity and competitive position
• Determine most appropriate positioning strategies for new or existing products, line extensions
• Test new product concepts
• Guide the development of advertising and promotion strategies
• Assess opportunities for extra-category line extensions

This content was provided by WAC Survey and Strategic Consulting. View their company website at www.wacsurvey.com.