Brand equity

Abstract:

Brand Equity is a critical component of corporate value. It has been estimated that at least 15% of corporate profits are direct results of branding. Understanding brand equity contributes to appreciating the TRUE asset value of a corporation, establishing the value of a brand as a component of unit sale price, deciding whether to invest or to manage for profitability, knowing tire sustainable strengths of a brand and enhancing marketing effectiveness. However, in order to manage brand equity, we first need to be able to measure it. This paper presents a brand equity measurement technology based on a three- component definition of brand equity : economic, behavioural and attitudinal equity. A definition of each component is given and the techniques used to measure each of them is discussed. An application section demonstrates the far reaching and actionable implications of this brand equity technique in terms of evaluating, protecting and expanding brand equity.

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