Brand Equity

Brand Equity is the set of assets and liabilities linked with a brand.It is the added value endowed to the products and services reflected in how consumers think, feel and act with respect to the brand

Customer based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand

Brand knowledge consists of thought, feelings, images, experiences, beliefs that are associated with the brand

Brand promise it is the marketer's vision of what the brand must be and do for consumers

Brand Equity Models

Young and Rubicam’s Brand Asset valuator  according to which there are four key components

1)   Differentiation – degree to which the brand is seen as different from others

2)   Relevance – measures the breadth of a brand’s appeal

3)   Esteem – measures how well the brand is regarded and respected

4)   Knowledge – measures how familiar and intimate consumers are with the brand

  

Brand

Aaker’s  model of  Brand equity is a set of five categories of brand assets and liabilities linked to a brand that add and subtract from the value provided by a product or service to a firm. The categories are.

1)   Brand awareness

2)   Brand loyalty

3)   Perceived Quality

4)   Brand associations

5)   Proprietary assets like patents, copyrights

 

Measuring Brand Equity

Direct approach - assess the actual impact of brand knowledge on consumer response to different aspects of marketing

Indirect impact - assess potential sources of brand equity by identifying and tracking consumer brand knowledge structures.