Research Topics:

Brand Equity | Brand Identity | Brand Positioning Studies

Content Type:

Glossary

Brand Equity Definition

The financial value associated with the level of awareness and consumer goodwill generated by a company's brands and/or products.

Brand equity refers to a brand’s intangible assets and perception that a product or service holds with consumers. It includes concepts like product recognition, reputation, associations, goodwill and overall influence in the marketplace. Brand equity provides a glimpse of a brand’s strengths and weaknesses by measuring marketing effectiveness. That insight can help businesses to identify opportunities for growth and predict consumer behavior. Strong brand equity serves as a buffer for brands during challenging times by helping them withstand negative publicity or competitive pressures. Investors assess brand equity to estimate potential returns.

Who relies on brand equity?

Businesses, marketing teams, executives, investors and consumers rely on brand equity to gauge and predict brand performance, devise market strategies, allocate business resources or purchase the product.

Why should I care about brand equity?

Brand equity impacts a brand's success and competitiveness. Strong brand equity translates to customer loyalty, pricing power and increased market share. An understanding of brand equity can help businesses make decisions intended to enhance brand perception, drive customer loyalty and lead to business outcomes.