The concept of brand equity has grown in importance in the business and marketing fields. It stands for the intangible but precious facets of a brand that extend beyond its goods or services. Brand equity is defined as the value that a brand has in the eyes of customers. It includes a variety of attitudes, feelings, and connections customers have with a particular brand. These perceptions encompass the brand’s image, reputation, and overall experience as well as the functional qualities of a product or service.
Brand Associations are the associations customers have in their minds that link a particular quality, attribute, or feeling to a particular brand. In addition, the Perceived Quality is influenced by how customers perceive the quality of a brand and distinction of a brand’s products/services compared to competitors. Higher brand equity is typically associated with a brand that has a solid reputation for quality. For instance, the luxury watch brand Rolex. Its perceived quality is associated with precision, high quality, and exclusivity that quickly come to mind. This strong brand association and positive perceived quality allows Rolex to establish premium pricing for its products, and customers will still be willing to buy.
Brand Awareness is the degree to which consumers are aware of and recall a brand when related goods or services are mentioned. Furthermore, Brand Identity represents the visual and verbal components of a brand, such as logos, colors, slogans, and messaging, all contribute significantly to brand equity and influence how the brand is perceived. Additionally, Brand Personality is viewed by customers as having human-like personalities, which may influence their perceptions and feelings towards a brand. Brands can be perceived as approachable, creative, and reliable for instance. Because consumers are more likely to recall a brand based on awareness or brand’s personality, which frequently lead consumers to prefer brands they are familiar with, brand equity contributes to the brand’s ability to gain a competitive advantage. Additionally, it makes the brand more resilient to difficulties and crises. Customers who have a good relationship with a brand are more understanding and forgiving. Apple for example, many people link the word “phone” to Apple’s iPhone, the apple on their logo is globally recognizable, and the brand has both approachable and friendly personalities. Even when Apple’s scandal took a place of child labor, their brand equity remained largely unaffected, underscoring the resilience of their strong brand equity.
There are many qualitative & quantitative research methods that a brand can measure its brand equity such as surveys, brand tracking, customer interviews, focus groups, financial metrics, and social media monitoring. However, to provide an inclusive view of how customers view a brand, a combination of quantitative and qualitative research methods is required. In any case, the brand equity is a priceless asset in the competitive market that can promote client loyalty, steady growth, and long-term success.