Brand Equity

Posted in Marketing and Strategy Terms, Total Reads: 15121

Definition: Brand Equity

Brand Equity is a qualitative measure of the brand’s positive recognition or goodwill in the minds of the consumers. Brand Equity is the tangible and intangible worth of a brand. The degree of premium that a brand can charge on its offering is a direct measure of the equity it possesses with its customers. Brand Equity is kind of power that the brand has over its competitors or the generic brands and is developed over time.


Consumers pay more for a Garnier beauty product than an Ayur product.

A brand can also have negative equity in cases where it does not fit well with its consumers. As an example, Tata Nano users reported some fire incidents with the product which led to its negative equity for a while.

Brand equity can be said to be coming from the aggregate worth of the following constituents in the minds of its consumers-


Hence, this concludes the definition of Brand Equity along with its overview.


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