Brand Equity
Brand equity represents the total value of a brand as an asset, encompassing both tangible and intangible elements such as consumer awareness, perceived quality, brand associations, and loyalty. It reflects the premium that customers are willing to pay for a branded product or service compared to an unbranded equivalent, and the resulting impact on market share and profitability.
Definition
Brand equity represents the total value of a brand as an asset, encompassing both tangible and intangible elements such as consumer awareness, perceived quality, brand associations, and loyalty. It reflects the premium that customers are willing to pay for a branded product or service compared to an unbranded equivalent, and the resulting impact on market share and profitability.
Examples
Premium pricing power due to strong brand reputation
Customer preference for branded products over generics
Brand extension opportunities in new categories
Resilience during market downturns
