Brand Equity
Definition
Brand Equity refers to the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. A brand with high equity is one that consumers recognize, trust, and prefer over competitors, and are willing to pay a premium for. Brand equity is built over time through consistent, high-quality marketing, positive customer experiences, and strong brand associations. It is one of the most valuable intangible assets that a company can possess.
Contextual Usage
The brand strategist presents the annual brand health report: "Our Brand Equity scores have increased significantly this year, driven by the success of the 'Give the Gift of Time' campaign. Unaided brand awareness is up 12 points, brand preference is up 8 points, and our Net Promoter Score has reached an all-time high. This increase in Brand Equity is directly translating into pricing power — our data shows that consumers are now willing to pay a 15% premium for our products over comparable competitors."
About this section
Brand and marketing strategy is the intellectual and creative foundation upon which all marketing activity is built. A strong brand strategy defines who the brand is, what it stands for, who it speaks...
View all 18 terms