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Associative Network Memory Model of Brand Equity. A leading psychological model describes how brands work. The associative network memory model argues that the human mind is a network of nodes and connecting links. The key characteristics of a brand, which influence its brand equity, are captured as nodes and linkages. Specifically, brand awareness or familiarity, which reflects the customers ability to identify a brand, is indicated by the size or strength of the node for that memory, as shown in Figure 5.2. It is often measured using aided and unaided recall tasks. Brand image, or customers perceptions and associations with the brand, are represented by the links of the brand name node to other informational nodes in the model. Unique linkages to a brand name capture the brands identity and differential (dis)advantage, relative to its competitors. The thickness of a line between two nodes represents the strength of the association between these two memories in a consumers mind.

A firm has many ways to strengthen or build positive linkages to a brand node, to ensure that the brand identity matches the ideal positioning in a target market. For example, Figure 5.2 represents an associative network memory model for a potential customer of BMW automobiles; the size of the BMW node represents a particular customers awareness of BMW. The more often a customer is exposed to BMW advertisements, riding in a friends BMW, or just seeing models on the road, the stronger BMWs brand node becomes (i.e., it grows in size). Firms can measure the awareness of their brands by asking targeted customers to name 3 to 5 cars (unaided recall), or they can offer a list of 20 cars and ask customers to select the 35 that they are most familiar with (aided recall). Brand awareness is the frequency BMW with which is named.

If BMWs marketing department wants to build more linkages with this node, it could pay to have James Bond drive a BMW in a movie, establishing a link between BMW and the James Bond node, as well as Bonds existing linkages (e.g., sophisticated, ladies man, athletic), as shown in Figure 5.2. A movie placement can be very effective, because this single marketing move can link a constellation of characteristics to the central brand node, which would be more difficult to achieve through traditional television or print advertisements. In addition, movie placements often make these links more subtly, so (as long as they are not too heavy-handed) they can avoid the reactance and skepticism that customers often feel toward obvious paid advertising. But as Figure 5.2 shows, other product design features and tag lines (e.g., Ultimate Driving Machine) can be linked to the brand node using more traditional marketing strategies.

In the network memory model, brand strategy involves first building awareness to provide an anchor point, then building linkages to positive, unique memory nodes to establish an identity that matches target customers needs in a cost-efficient manner. When a customer sees (hears, touches) the brand name, it activates that brand node, leading to the cascading activation of other connected nodesas long as strong linkages existwhich create the customers brand experience. Prior research has shown that these linkages can activate a wide range of cognitive and emotional responses.