Delivering high-quality goods or services is no longer enough to create and maintain a successful brand in the landscape of the modern business world. It is becoming more about establishing deep connections with customers that go beyond simple business activities, where consumer-based brand equity has proven to be an important factor for business success.
Consumer-based brand equity is the value that consumers assign to a particular brand. Consumers’ perceptions, feelings, attitudes, and connection with a brand come together to form this concept. It essentially stands for the intangible assets a brand has, such as the recognition, loyalty, and positive feelings. Consumer behavior, purchasing choices, and willingness to pay more for a brand are all directly influenced by the intangible value they assign to the brand.
For instance, if a person wants to buy a car that is affordable, requires little maintenance, and ensures lasting functionality. Toyota is the first brand that comes to mind in this situation. The ability of a brand to come to the forefront of a consumer’s mind whenever a specific need arises is what consumer-based brand equity is all about.
The idea that brands must focus their efforts on meeting consumer needs to the extent that they naturally become the first thought arise when people think about a particular product or requirement is at the core of this concept. The objective is to create strong connection between a brand and the consumer’s thoughts, making sure that the brand is not just a provider of goods or services but also an answer that naturally springs to mind.