Brand Equity
Brand equity refers to the value a brand adds to a product or service, based on consumers’ perceptions and experiences. It encompasses factors like brand awareness, loyalty, and associations. A brand with strong equity can command higher prices, attract more customers, and foster trust. For example, people may prefer a well-known brand like Coca-Cola over an unknown drink, even if they are similar in taste. This preference gives the brand power in the market, leading to increased sales and a competitive advantage. Essentially, brand equity represents the good reputation a brand has built over time.
Additional Insights
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Brand equity refers to the value a brand adds to a product or service, based on people's perceptions and experiences. It encompasses factors like brand recognition, customer loyalty, and overall reputation. For example, a well-known brand can charge higher prices than a lesser-known one because customers trust it more or believe it offers better quality. Strong brand equity can lead to increased sales, easier introduction of new products, and greater resilience during tough times. Essentially, it represents the power of a brand in the marketplace and its impact on consumer choices.