Brand Equity and Sources of Brand Equity

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Brand Equity refers to the commercial value that an organization generates from the consumer perception of a specific product and not the product itself

Brand Equity in simple terms refers to a brand’s value. If consumers have a good experience and think of it as exceptional the brand equity increases and are positive and if not then it decreases and is negative

Brand Equity and New Launches

Organizations often take advantage of brand equity to influence consumers so that they can accord the same trust to new launches

Example – Apple

Sources of Brand Equity

1. Brand Awareness

Brand Awareness refers to the degree of recognition that a consumer has about a specific product by its name.

Brand Recognition refers to the ability of a consumer in recognizing a brand or a product because of a distinct symbol, logo, etc.

Brand Recall refers to the likelihood of remembering a brand name instantly

Example – Coca Cola

2. Brand Loyalty

Brand Loyalty refers to the habit of a consumer of buying the same product and not switching to a similar product from the rival brand

Example - Apple

3. Perceived Quality

Perceived Quality refers to the consumer’s perception of the quality of a product with respect to its purpose. The customer also assesses the competitor’s offering for comparative judgment.

Example – Apple packaging

4. Brand Associations

Brand Associations refer to the mind and emotional connections between a brand and people. It forms because of interactions, advertising activities, celebrity endorsements, and product quality

Example – Under Armour – Project Rock

This video is on Brand Equity and has the following sub-topics.

Time Stamps
0:00 What is Brand Equity?
00:58 Brand Equity and New Launches
01:43 Sources of Brand Equity
01:53 Brand Awareness
02:42 Brand Loyalty
03:27 Perceived Quality
04:07 Brand Associations