Brand Equity in Brand Extension Research

Brand equity refers to the value a brand adds to a product, stemming from consumer perceptions, experiences, and loyalty. In brand extension research, it examines how a well-known brand can leverage its existing reputation to introduce new products. Strong brand equity can enhance consumer trust and interest in these extensions, making them more successful. For instance, when a popular cereal brand launches a new snack, its established positive image can attract customers who may not have otherwise considered the new product, ultimately benefiting sales and market presence.