Brand Equity

Competitive advantages of high brand equity:

1. Brand awareness and loyalty 2. Brand name carries high credibility 3. Forms basis for building strong and profitable customer relationship

Fundamental asset underlying brand equity:

Customer equity: The valuable of the customer relationship that the brand creates.

Brands represent:

Customers perceptions and feelings about a product.

Brand equity:

The differential effect that knowing the brand name has on customer response to the product or service.

Measure of brand equity:

The extent to which customers are willing to pay more for the brand. Brands with strong brand equity is a valuable asset.

Brand valuation:

The process of estimating the total financial value of a brand.