A year-old boy and year-old girl are dead and three other students are injured after a classmate opened fire at Saugus High School Thursday morning. Kevin Hart's friend shares pics of the comedian's totaled car after the accident. The former 'X Factor' judge thinks he looks 'great' despite his 'droopy' eye. Twitter critics are pointing out a major flaw in the piece that the president's personal attorney penned for The Wall Street Journal. The project marks Perry's first renovation since founding her namesake design business.
What Is Brand Equity? Why Is It Important?
Brand equity financial definition of brand equity
Brand equity is the additional value a product receives from having a well known brand, or high level of brand awareness. Brand equity is a competitive advantage that results in higher sales, higher revenues, and lower costs. Having brand equity means that a company has successfully differentiated itself from its competitors in some way. Establishing brand equity can have numerous advantages for a company. Brands with this competitive advantage might enjoy higher revenues as customers pay more for their product than others, as well as having a larger customer base.
Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity. When a company has positive brand equity, customers willingly pay a high price for its products, even though they could get the same thing from a competitor for less. Customers, in effect, pay a price premium to do business with a firm they know and admire.
You are currently visiting shopify. Business encyclopedia. That value is determined by consumer perception of and experiences with the brand. If people think highly of a brand, it has positive brand equity. When a brand consistently under-delivers and disappoints to the point where people recommend that others avoid it, it has negative brand equity.