Definition of brand equity

Brand equity is the perceived value and strength of a brand in the eyes of consumers. It reflects the impact a brand has on customer choice and loyalty, as well as its overall influence in the market.

Explanation of brand equity

Positive brand equity signifies that consumers are willing to pay a premium for the brand, and it contributes to customer preference and trust.

Example of brand equity

A well-established technology company may have high brand equity, leading consumers to trust and choose its products over competitors.

Strategies of brand equity

• Consistent branding: Maintain consistency in brand messaging, visual elements, and overall brand identity.
• Customer experience: Provide positive customer experiences to enhance brand perception.
• Innovative positioning: Continuously innovate and adapt to market trends to stay relevant and maintain brand appeal.

Related terms

• Brand recognition
• Brand loyalty
• Brand image
• Brand valuation