What is Brand Equity? How to build and measure brand equity and FAQs.

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brand equity

Table of contents:-


What is Brand Equity? 

Brand equity denotes the value the brand name has in the market. Brand equity is the added value of a product apart from the value of its performance and service. 

It is based on the customer’s perception of the brand so it can be positive or negative. 

Brand equity shall be measured and added to the service value of the product to realize the true value of the product and gain appropriate profits. 

Brand equity is directly related to the reputation of the brand. If it has garnered a good reputation in the market through its services or marketing strategies then the brand equity is positive. 

If the brand has made a bad name for itself among the customers then it has negative brand equity. 

How to build Brand Equity 

Positive brand equity reflects trust among the customers. So for building brand equity you need to build customer’s trust for the brand. Brand equity can be outlined in three parts: market perception, negative or positive impact of brand equity, and final value. 

Brand equity is built on two important factors, awareness, and user experience.

You need to address questions like: how do the customers identify the brand? How do they perceive it? Your marketing techniques should aim to connect with the customers and convey the brand’s qualities. 

Then comes the user experience. If a product disappoints the user then the whole brand value goes down and that might affect other products by the same brand. 

A satisfactory customer experience adds up positively to the brand image and equity. Address the customer’s wants. 

Understand your own motives associated with the brand. What purpose is it serving and why is it being made and delivered? 

Avoid making rapid changes in the brand ideology, advertisement, designs and logos, and taglines. 

A successful model for creating a long-lasting brand is Keller’s Brand Equity Model. This model is a step-by-step process building brand identity, brand meaning, brand response, and brand resonance

Measurement of Brand Equity 

Brand equity can be assessed by brand tracking. It tracks the impact and ROI of marketing strategies. 

From a financial perspective, equity can be evaluated in the form of market share and revenue potential. 

Brand equity can also be figured out by the deduction of performance value from total brand value. 

Brand auditing is done to analyze the brand value and equity. 

Also, with the help of Keller’s Brand Equity Model the brand’s standing on its four major aspects helps to understand brand equity. 


Q: What are the examples of brand equity? 

A: Brands with prominent names like Sony, Apple, Adobe, Starbucks, BMW, etc. The data through customer surveys show that brands like these are trusted over others.
This trust over the brand name adds to the value a customer is ready to pay, thus adding to the brand value. 

Q: What is the role of brand equity? 

A: Brand equity is the reflection of the value a brand’s name holds over the market. It shows the consumer’s perception of the brand. 
Hence it can increase or decrease the company’s profit margins based on the value of the brand image. 

Q: How can brand equity be improved?

A: It can be improved by effective marketing, advertisement, and most importantly, customer experience and success. Better service to the user will give a better name to the brand thus the user shall be prioritized. 

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