Advantages And Disadvantages Of Brand Equity

Define what is meant by "brand equity" and discuss what a company can do to maintain brand equity.

Brand equity is a consumer-based concept (Elliot 2017) and strategic asset of a company that encompasses the idea of the added value a brand contributes to a product. Influenced by consumer choices, it is the characteristic of a brand that indicates high levels of performance and determines the success of companies.

Every organization main goal is create brand equity which is value that is added value endowed by the brand to the product. The end goal is to create brand loyalty with customers. Brand loyalty provides a host of benefits including:

One thing that can make or break a company is its brand equity. Brand equity is the value that comes with the familiarity with a company’s branding and the feelings consumers have towards that brand (Brand Equity, n.d.). A company with strong brand equity usually gives consumers a sense of reliability and value; causing a higher inclination to purchase its products. It usually takes

Brand equity increases as brand loyalty, brand awareness, perceived quality brand associations, and number of brand-related proprietary assets increase and become stronger and more positive.

The brand loyalty of the customer base is often the core of a brand's equity. If customers are indifferent to the brand and, in fact, buy with respect to features, price, and convenience with little concern to the brand name, there is likely little equity. If, on the other hand, they continue to purchase the brand even in the face of competitors

In addition to that Lin (2010) also specifies loyalconsumerspurchase more products and loyal consumers are less-price sensitive and pay less attention to competitors’ advertising. Therefore, when taking in to consideration of above mentioned benefits, it clearly represents the positive impacts of brand loyalty towards a firm. Furthermore Khraim (2011) also confirms that the brand loyalty is vital for afirm to make sure that its brand is kept in the minds of consumers and avoidconsumers from switching to other brands. There are many forces drawing consumers away such as competition, customers’ thirst for variety, etc. hence obtaining and maintaining loyalty for a particular brand is not an easy task thus marketers should clearly understand how loyalty factors can affect consumer buying behavior in the marketplace and find out ways and means to gain brand loyalty towards their productsKhraim (2011).

In modern society, brands play an increasing vital role in marketing. With the fury market competition and the increasing homogeneity of products , brands act as a powerful strategic weapon to win in the market competition. At the same time, brand equity, as one of the

“Brand equity is the value of the brand name, its worth as an asset to the company.” (Marketing

Brand equity is a set of assets related to a brand’s name and symbol that adds to the value provided by a product or service to a corporation and that corporation’s clients. The major asset categories are: brand name awareness, brand loyalty, perceived quality and brand associations (Aaker, 2010:8). According

Brand equity is the positive effect of knowing a brand name on people’s mind. We can also explain it as the willingness of customers to pay more for a chosen brand. Basic element of brand equity is trust. The more customers trust your brand, the more money they would like to pay. Burger King is one of the companies that have high brand equity as they have always been careful about quality of their products and health care. Moreover, Burger King is growing its brand equity by strong customer relationships and customer satisfactions.

Brand equity is the added value a chosen brand name gives to the product/company beyond the functional benefit provided.

Branding is the name, term, symbol, design, or a combination of all this items that would identify a company’s products or services and it differentiates the company from other competitors. A company or individual will have to register their brand with the U.S. patent office to be able to make it their own and become a trademark, if not anyone else can get that brand. A brand is very important in today’s industry it defines the whole company, it creates the possibility of signifying a promise or value among their customers. According to the book, brand equity has been the intangible value of a brand. A brand signifies a lot to

Brand equity is important to create and maintain as it is an intangible asset of added value as well as goodwill that will then result from the favourable image, impressions of differentiation and the strength of consumer attachment to brand name, company name or trademark. The stronger the equity the better it positions the company as well as its brand which is only often reinforced through advertising or even sponsoring. For example, Breville appliances command good quality kitchen appliances and represents higher price than the other brands as it is being used by the contestants of My Kitchen Rules. In other words, it is the

Company image and Brand equity: The image of the company matters while raising finance, forming joint ventures or the other alliances, soliciting marketing intermediaries, entering purchase or sale contracts, launching new products etc. Brand equity is also relevant in several of these cases.