The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster.
The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda is an example of brand equity.
One situation when brand equity is important is when a company wants to expand its product line. If the brand's equity is positive, the company can increase the likelihood that customers will buy its new product by associating the new product with an existing, successful brand. For example, if
’s releases a new soup, it would likely keep it under the same brand name, rather than inventing a new brand. The positive associations customers already have with Campbell ’s would make the new product more enticing than if the soup had an unfamiliar brand name. Campbell
Investment dictionary. Academic. 2012.
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Brand equity — refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name [Aaker, David A. (1991), Managing Brand Equity. New York: The Free… … Wikipedia
brand equity — ˈbrand ˌequity noun [uncountable] MARKETING the value of a brand to the company that owns it and to possible buyers of the company. Brand equity is included as an asset on the balance sheet S of some companies, but some people think this is not… … Financial and business terms
brand equity — brand equity, the reputation and value of a product based on its advertisers and consumers: »Chris Moseley…said cable channels were trying to build “brand equity.” “Everybody is trying to solidify what a channel means to the consumer,” she said… … Useful english dictionary
Brand Equity — Der Begriff Markenwert (auch Brand Equity oder Brand Value) bezeichnet den monetären Wert einer Marke. Inhaltsverzeichnis 1 Definition 2 Markenwertberechnung 2.1 Finanzorientierte Ansätze 2.1.1 Kostenorientierte Markenbewertung … Deutsch Wikipedia
brand equity — The value of a brand beyond its functional purpose, based on the extent to which it commands brand loyalty (expressed as repeat buying), name awareness, perceived quality, and strong brand associations, as well as other assets, such as patents,… … Big dictionary of business and management
brand equity — /brænd ˈɛkwəti/ (say brand ekwuhtee) noun Commerce the value of a brand to the company which owns it … Australian English dictionary
brand equity — / brænd ˌekwɪti/ noun the extra value brought to a product by being a brand, both value as seen by the customer as well as financial value to the company … Marketing dictionary in english
brand equity — Mktg the estimated value of a brand … The ultimate business dictionary
India Brand Equity Foundation — (IBEF) is an Indian organisation that collects, collates and disseminates accurate, comprehensive and current information on India. IBEF is a public private partnership between the Ministry of Commerce, Government of India and the Confederation… … Wikipedia
Brand extension — or brand stretching is a marketing strategy in which a firm marketing a product with a well developed image uses the same brand name in a different product category. Organizations use this strategy to increase and leverage brand equity… … Wikipedia