What Neuroscience Can Inform Us about Brand Equity

Hsu, Ming. Customer-based brand equity: Insights from consumer neuroscience. in Moran Cerf and Manuel Garcia (eds.) Consumer Neuroscience. MIT Press, Forthcoming.

This review describes how insights from cognitive and behavioral neurosciences are helping to organize and interpret the relationship between consumers and brands. Two components of brand equity—consumer brand knowledge and consumer responses—are discussed. First, it is argued that consumer brand knowledge consists of multiple forms of memories that are encoded in the brain, including well-established forms of semantic (attributes and associations) and episodic (experiences and feelings) memory. Next, it is argued that there exist distinct forms of consumer responses that correspond to distinct behavioral systems—a goal-directed system that captures valence of attitudes and preference for a brand, and a habit system that captures previously learned values but no longer reflect ongoing preferences. Finally, a neuroscientifically-grounded conceptualization is proposed with the aim of ultimately improving measurement of brand equity and its effects on financial returns.