The purpose of this paper is to empirically test the consumer‐centered approach to brand management theorized by Rust, Zeithaml and Lemon in 2004 to assist companies in reducing the depreciation of brand equity.
Brand equity was operationalized in the context of conjoint measurement. In total, 5,364 respondents participated in interviews testing drivers of brand equity for six brands each in 28 food categories.
Data from the large‐scale study revealed that across categories brand value may not hold much beyond the name in the minds of consumers. It was found that mindset segmentation may be a basis for brand management. Messages that focused on product functionality were found to be stronger drivers of preference of one brand over another. Product features instead of brand names emerged as the primary source of value across segments.
The study focused on brands in the food industry requiring the replication to additional industries.
It was found that brands did not hold much beyond their name. Companies holding strong brands will need to define product features in terms of their perceived functionality across consumer segments. Companies are to build and position brands around customer segments.
A cutting edge methodology to test mindset segmentation by combinations of product features as a new basis for brand management was used. In contrast to traditional brand management which is based on products, the paper bases brand management on consumer needs highlighting consumer equity rather than brand equity.
