Brand Equity
Brand equity is the consumers’ subjective and intangible assessments of the brand. Brand equity is beyond the objectively perceived value. The difference between branding and brand equity is that branding is the structural processes that make a brand, and brand equity is the value that one feels towards the brand.
3 Main Drivers of Brand Equity:
- Brand Awareness (familarity, recognition and recall)
- Brand Attitudes (unique feelings, can be positive or negative)
- Brand Perception of Brand Ethics (is the brand ethical?)
Value Equity (objective)
Value equity is the opposite of brand equity. In other words, is it the objective assessment of the brand.
3 Main Drivers of Value Equity:
- Quality of the Brand
- Price of the Brand, product or service
- Convenience
Relationship Equity
When a customer has relationship equity to a brand, they have a tendency to stick with the brand. It is beyond objective and subjective assessments of the brand.
4 Main Drivers of Relationship Equity:
- Loyalty programs
- Special recognition & treatment programs
- Community and building programs
- Knowledge-building programs
Customer-Based Brand Equity
Customer based brand equity (CBBE) is the differential effect, the customers’ brand knowledge and their responses to the brand’s marketing. A customer can have negative and positve CBBE towards a brand.
I will be posting another article on customer based brand equity at a later date.
