Brand equity

The extra value that a customer attaches to a brand that is different from all the other brands on the market is called “brand equity.” Brand Equity, then, is how well a customer knows, thinks about, and feels about a brand.

For example, the extra money a customer is willing to spend on Uncle Chips over any other brand of chips that the shopkeeper sells.

Brand equity is the trust that people have in a brand that has grown over time.

Brand equity is how the customer thinks, feels, and sees the product, as well as its price and place in the market. It’s also how the brand makes the company money and gains market share.

Customer There are three ways to look into brand equity:

How a customer reacts to a product or service in different ways helps to figure out the brand equity. The way customers feel about the brand and how they see it as different from other brands will make them like that brand more and strengthen its reputation. g. Customers like Mac laptops because they have anti-virus software.

Customers can only respond if they know enough about the brand. This means that Brand Knowledge is necessary to figure out the brand equity. The things that people think, feel, know, have experienced, etc. that make them connect with a brand are part of their brand knowledge. g. Brand association shows how much you know about the product. For example, Woodland is known for having rough and tough style.

Marketing a brand is the only thing that can change how customers feel about it and raise its value. When an organisation has a strong brand, it makes a lot of money and helps customers understand the product better.

So, marketers mostly look at the Customer-Based Approach, which means they look at how a customer feels about a brand and how that can be seen in how often they buy it. It focuses on how the brand has helped the customer satisfy their need or want, based on what they have read, felt, thought, or seen about it.