What is Brand Equity?
Brand Equity is defined in many ways. Our text book defines brand equity as **********************************************
Even though there may be are many different definitions of brand equity, they all have several factors in common:
Monetary Value. The amount of additional income expected from a branded product over and above what might be expected from an identical, but unbranded product. For example, grocery stores frequently sell unbranded versions of name brand products. The branded and unbranded products are produced by the same companies, but they carry a generic brand or store brand label like Kroger's or Albertson's. Store brands sell for significantly less than their name brand counterparts, even when the contents are identical. This price differential is the monetary value of the brand name.
Intangible. The intangible value associated with a product that can not be accounted for by price or features. For an example, Nike has created many intangible benefits for their athletic products by associating them with star athletes. Children and adults alike want to wear Nike's products to feel some association with these star athletes ("be like Mike" - for Michael Jordan). It is not the physical features that drive demand for their products, but the marketing image that has been created. Buyers are willing to pay exceedingly high price premiums over lesser known brands which may offer the same, or better, product quality and features.
Perceived Quality. The overall perceptions of quality and image attributed to a product, independent of its physical features. Jaguar, Mercedes and BMW all have established their brand names as synonymous with high-quality, luxurious automobiles. Years of market ...