Website design By BotEap.comBrand equity has been defined as a set of brand assets and liabilities linked to a brand, its name and its symbol that add to or subtract from the value provided by a product or service to a company and/or that company’s customers. business. If the brand name or symbol were to change, some or all of the assets or liabilities could be affected and even lost, although some could be changed to a new name and symbol. The assets and liabilities on which brand value is based, according to Aaker (1991), differ depending on the context. However, they can be grouped into five categories:

Website design By BotEap.com1. Brand loyalty

Website design By BotEap.com2. Brand name (Knowledge)

Website design By BotEap.com3. Perceived quality

Website design By BotEap.com4. Brand associations

Website design By BotEap.com5.Other proprietary brand assets

Website design By BotEap.comBrand loyalty –

Website design By BotEap.comFor any business, it is expensive to acquire new customers and relatively inexpensive to retain existing ones, especially when existing customers are satisfied or happy with the brand. Competitors may even be discouraged from spending resources to attract already satisfied customers. Also, higher loyalty means higher trading leverage; as customers expect the brand to always be available.

Website design By BotEap.comBrand awareness –

Website design By BotEap.comPeople will often buy a familiar brand because they are comfortable with familiarity or assume that a familiar brand is likely to be reliable and of reasonable quality. When consumers are uncomfortable with a product name, they will avoid it, and that translates into lost sales. Brand names need to be easy for customers to see, and this includes pronunciation and spelling.

Website design By BotEap.comPerceived quality –

Website design By BotEap.comA brand will have an associated perception of general quality, which is not necessarily based on knowledge of detailed specifications. The perception of quality can take somewhat different forms for different types of industries. Perceived quality means something different to Compaq or IBM than it does to Coca-Cola or Pepsi. Perceived quality will directly influence purchase decisions and brand loyalty, especially when a buyer is not motivated or capable of detailed analysis. You can also support a premium price which, in turn, can generate a gross margin that can be reinvested in brand equity. Also, perceived quality can be the basis for a brand extension. If a brand is well regarded in one context, it will be assumed to be of high quality in a related context.

Website design By BotEap.comBrand Associations –

Website design By BotEap.comThe underlying value of a brand name is often based on specific associations attached to it. Partnerships with, for example, the Jaguar car brand can make the experience of owning and driving one ‘different’. If a brand is well positioned on a key attribute in the product class (such as technological superiority), it will be difficult to attack competitors. If they attempt a frontal attack claiming superiority through that dimension, there will be a credibility problem. They may be forced to find another, perhaps inferior, basis for competition. Thus, an association can be a barrier for competitors.

Website design By BotEap.comOther own-brand assets –

Website design By BotEap.comThis fifth category represents other proprietary brand assets such as patents, trademarks, and channel relationships. Brand assets will be more valuable if they inhibit or prevent competitors from eroding customer base and loyalty. These assets can take various forms. For example, a registered trademark will protect the value of the brand from competitors who might want to confuse customers by using a similar name, symbol, or package. A patent, if strong and relevant to the customer’s choice, can prevent direct competition. A distribution channel may be controlled by a brand due to a history of brand performance.