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