Brand Equity
Definition
Brand Equity: Brand equity is the commercial value derived from consumer perception of a brand name rather than the product itself. It represents the premium customers pay for a branded product over a generic equivalent, plus the loyalty, awareness, and associations the brand commands. Strong brand equity allows higher pricing, easier customer acquisition, and resilience during tough times.
Example Usage
“Apple's brand equity lets them charge 40% more than competitors for similar specs because customers trust and prefer the brand.”
Common Misconceptions
Related Terms
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Brand Positioning
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Moat
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Customer Lifetime Value
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