Brand Preference

Definition

One of the indicators of the strength of a brand in the hearts and minds of customers, brand preference or brand choice (BP/C) represents which brands are preferred under assumptions of equality in price and availability.

Purpose

Measures of brand preference attempt to quantify the impact of marketing activities in the hearts and minds of customers and potential customers. Higher brand preference usually indicates more revenues (sales) and profit, also making it an indicator of company financial performance.

Construction

There are at least three classes of methodologies to measure brand preference directly:

  • Survey questions (self-report, unaided preference)
  • Brand choice measures (choice of preferred brand from a competitive set of brands)
  • Constant sum measures (planned purchases amongst a competitive set of brands)

Methodologies

The following brand preference related metrics have been profiled, audited, and certified by MASB through its Marketing Metric Audit Protocol (MMAP). Details can be found in the MMAP Catalog. [1]

MSW Research Brand Preference/Choice in Tracking

Brand Preference/Choice is a behavioral measure of consumers’ choice of a particular brand from an array of competing brands within the same product category. It is used to:

  • Assess the brand strength at a particular point in time.
  • Monitor changes in brand strength over time, independent of market factors such as price, distribution and seasonality.
  • Monitor the strength of competing brands

Brand Preference/Choice is the metric used in the MASB Brand Investment and Valuation (BIV) Project.

MSW Research CCPersuasion™ Metric

The CCPersuasion metric is a behavioral measure of advertising’s impact on consumer brand preference (choice). It is used to:

  • Quantify likelihood and magnitude of TV advertising’s impact on future sales volume/market share for the advertised brand and brand portfolio (halos), for next four weeks and next business quarter.
  • Quantify/allocate appropriate level of GRP spending for discrete executions, within and across brands, based on absolute and relative strengths to optimize return for brand, division, company.
  • Evaluate the observed preference shift relative to the expected shift for a brand of its size in its competitive environment (the FAIR SHARE® benchmark). The benchmark is derived from three factors:
    1. the brand’s size or % preference before exposure to the advertising
    2. the number of brands competing with it; and
    3. the extent to which consumers in the product category normally switch brands from one choice occasion to the next.
  • Determine whether an ad should be aired. Airing criteria can be based on expected level of in-market sales response or CCPersuasion level relative to the Fair Share benchmark.

Behavioral Science Lab BrandEmbrace® Expected Utility

BrandEmbrace® reflects the degree to which a product or service satisfies a buyer’s purchase decision requirements (expectations) as defined by that individual’s unique decision process for the category. The more these criteria are satisfied, the higher the probability the brand’s offering(s) will be chosen over competitive options as measured by brand preference and thus, ultimately, share and volume. It is used to:

  • Develop new products and services
  • Optimize selling propositions, brand positioning and service environments
  • Forecast purchase likelihood and loyalty/brand switching

Millward Brown Link™ Immediate Persuasion

Link Immediate Persuasion is a measure derived from a question on how a respondent’s consideration for the brand was affected by an advertisement. In combination with the Link Awareness Index, it quantifies the likelihood of short terms sales effect. It is used to:

  • Determine whether to air an ad.
  • Optimize a finished ad (41% of Link TV tests are conducted on unfinished film, offering opportunity for the ad to be improved).

References

  1. Marketing Accountability Standards Board, Marketing Metric Catalog, 2019.
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