Aaker's Theory of Brand Equity

Aaker's Theory of Brand Equity explains that a strong brand’s value comes from the perceptions and connections consumers have with it. This includes factors like brand loyalty (repeat customers), perceived quality, brand associations (images or feelings linked to the brand), and the brand’s overall awareness. A well-managed brand builds trust and positive recognition, which can lead to higher sales, pricing power, and competitive advantage. Essentially, brand equity is the added value a brand provides to a product beyond its functional features, influencing consumer choices and enhancing business success.