Definition of Brand Equity
The value a brand adds to a product or service, often reflected in how consumers think and feel about the brand.
Explanation of Brand Equity
Brand equity refers to the value and strength of a brand as perceived by consumers. It encompasses the positive associations, recognition, and loyalty that a brand has built over time. Strong brand equity allows a company to charge premium prices, attract loyal customers, and differentiate itself from competitors. Factors contributing to brand equity include brand awareness, perceived quality, brand associations, and customer loyalty. Companies with high brand equity often enjoy increased market share, better financial performance, and a competitive advantage. Building and maintaining brand equity requires consistent, high-quality products and services, effective marketing, and positive customer experiences.