Brand Equity

Brand Equity | marketing research | nexlooks | نکس لوکس

Brand Equity


It is a marketing term that describes the value of a brand. This value is determined through consumers’ perception of the brand. and their experiences with the brand. When consumers think a lot about a brand., it means that brand equity is positive., and when consumers refuse to recommend a brand to others., it means that the brand has negative brand equity. The following are some of the benefits of positive equity.

  • Companies can receive more money for a product with positive B.E.
  • Positive B.E can be transferred to other product lines.; This means that products from other production lines  with the same name will also be successful.
  • It helps to increase the company’s stock price.

How to develop brand equity

  • Awareness: At this stage, the brand is introduced to its audience. (mostly through advertising).
  • Recognition: At this stage, customers get to know the brand and recognize it. if they see it in the store or other places.
  • Trial: When consumers know the brand, they try to test the product.
  • Preference: If the consumer has a positive experience with the brand., the preferred brand would be the considered brand.
  • Loyalty: After positive experiences with the brand., consumers recommend the brand to others and buy from it continuously.

An Example of a company with positive brand equity

The Apple brand, which gained a positive reputation by offering Mac computers., was able to maintain its reputation with the release of iPhones. In fact, the Apple brand was able to transfer its B.E. from the production line of Mac computers. to the production line of iPhone smartphones.

Example of a company with negative equity

Oil and gas company BP lost its brand equity after the oil spill in the US Gulf of Mexico in 2010. Therefore, achieving positive brand equity is half the success,. studies and experiences have shown that a negative incident can destroy positive brand equity.

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