Brand equity refers to the value that a brand adds to a product or service beyond its functional benefits. This value is derived from consumers’ perceptions, attitudes, and experiences with the brand. Positive brand equity means that customers have strong and favorable associations with the brand, leading to loyalty, the ability to charge premium prices, and an overall competitive advantage.
For marketers, brand equity is important because it directly impacts a company’s bottom line. High brand equity translates into customer trust and preference, which can lead to increased sales and market share.
Moreover, brand equity provides a foundation for new product launches. Brands with high equity can leverage their reputation and customer trust to introduce new products more easily. Consumers are more likely to try new offerings from a brand they already trust, reducing the risks associated with launching new products.
In short, brand equity is a true asset for marketers. It enhances customer loyalty, allows for premium pricing, facilitates new product launches, and contributes to a brand's long-term profitability.
See below for some of the best books on brand equity:
David A. Aaker
Explores the concept of brand equity and provides strategies for building and maintaining strong brands.
Kevin Lane Keller
Often used as a textbook in marketing courses, this book offers a comprehensive look at brand equity, including measurement techniques and strategic management.
Alice M. Tybout and Tim Calkins
A collection of essays and case studies from leading branding experts at Kellogg School of Management, covering various aspects of brand equity and management.
David A. Aaker and Alexander L. Biel
Examines the role of advertising in building and maintaining brand equity, with contributions from several experts in the field.
Jean-Noël Kapferer
Offers advanced insights into brand management, including strategies for building and leveraging brand equity.