A glaring paucity of a measuring instrument for place branding effectiveness and place brand equity still remains. This study contributes theoretically by exploring and developing the dimensions and instrument of customer based place brand equity (CBPBE) quantitatively, in the context of international relations (public diplomacy) between two places, West Bengal (in India) and Bangladesh. To this end, the study employed: focus group discussion, depth interviews and survey, in order to develop and validate the items generated to measure CBPBE. Confirmatory factor analysis was used on a total sample of 437 respondents that resulted in a nine (9) item CBPBE scale, represented by multidimensional constructs namely: place brand salience, perceived quality and place brand engagement. The CBPBE construct is then tested with brand loyalty – investment attractiveness construct in a conceptual model in order to verify the nomological relationship of the instruments developed.