The marketing and financial value that is built up and associated with a brand.
The concept of brand equity captures the notion that marketing actions can lead to brands possessing equity in the sense that they become valuable strategic assets of a firm. Positive brand equity enables the firm to expect future revenues that are higher than that for an identical non-branded product as a result of the brand’s positive influence on consumer purchase behavior. For example, a brand’s association with perceived high quality can lead to trust and confidence in the firm’s branded products that can increase product purchase likelihood among consumers.
Marketers should seek to understand and regularly monitor the level and nature of brand equity for each of their brands to determine and ensure their brands’ strategic significance to the firm. The dynamic nature of many markets is such that brand equity will decline if not actively managed through coordinated marketing actions involving efforts to maintain or strengthen brand recognition and specific, positive brand associations.
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