Brand Equity (David A. Aaker)

Brand equity, as defined by David A. Aaker, refers to the value a brand adds to a product or service based on consumers' perceptions, experiences, and associations. It reflects how well a brand is recognized, trusted, and preferred over competitors. Strong brand equity means customers are more likely to choose that brand, pay premium prices, and remain loyal. It’s built through consistent quality, positive brand experiences, and emotional connections. Essentially, brand equity influences a company's ability to generate sales, extend its product line, and sustain competitive advantage, making it a vital asset in business success.