Brand Equity & its Value to Customers and Marketers

Brand equity can be defined as a set of brand assets and liabilities linked to a brand .its name symbol that add to or subtract from the value provided by product or service to a firm and / or to that firm’s customers.

Brand equity gives value to both customers and marketer

Value to the Customers

  • Helps customers in information processing, Brands are taken up the customer as chunks of information which are easily decoded and stored in a proper order.
  • A brand’s assets enhance customer confidence in the purchase decision. He feels proud in purchasing the brand.
  • The final value to the customers comes in the form of usage satisfaction. For instance satisfaction from drinking, Nescafe is different from unbranded coffee.

Value to the Marketers

  • The effectiveness and efficiency of marketing programmes is increased by brand equity assets.
  • Brand equity dimensions allow a firm to have a greater customer loyalty.
  • Brand equity allows a firm to change premium.
  • Provides great opportunities for growth.
  • It’s a good source of achieving leverage in distribution channels