Also called the Keller Brand Equity Model, this model focuses more on how customers feel about a product and how companies can use this to affect the customer's experience. Related: What Is Brand Perception and How Is It Measured? Customer-based brand equity modelĪuthor and professor Kevin Lane Keller developed the customer-based brand equity model. Example assets may include copyrights, intellectual property rights, patents and trademarks. Proprietary assets: Proprietary assets include the intangible assets of the brand that improve the company's relationship without providing monetary value. Good perceived quality often means customers are willing to pay a higher price. Perceived quality: Perceived quality represents how customers feel about a brand, particularly with the quality of its products and customer service. This provides the company with consistency and a healthy market share. Having greater brand awareness typically means the customer thinks of a certain product first and buys it.īrand loyalty: Brand loyalty suggests that customers make repeat and frequent purchases from brands that they believe in and see as valuable. These associations may be positive or negative, and they ultimately shape the company's image.īrand awareness: Brand awareness, also called brand salience, refers to how well customers recognize or know a brand. Brand equity components with this model include:īrand associations: Brand associations include everything that customers relate to with a brand, including emotional, functional and social factors. The goal of this model is to help customers learn about the brand, affect customers' purchasing decisions and build customer satisfaction. Theorist and professor David Aaker created the Aaker Brand Equity Model, which is a simple framework outlining ways to improve a company's brand. Here are the two common brand equity models and their respective components: Aaker Brand Equity Model The exact components of brand equity vary depending on which model you follow. Related: What Branding Is and Why It's Important Components of brand equity This may create a near-evangelical customer base and enables the company to spend less on marketing efforts. Strengthening customer loyalty: Companies may develop loyal customer bases by consistently delivering products they like and they view as valued. This allows companies with positive brand equity to charge higher prices for the same product, increasing their profit margins. Increasing profit margins: Customers are often more willing to pay a higher price for products that they perceive as being of higher value. This often results in an increase in sales volume because customers en masse purchase the items with good brand equity. Improving sales: Products with good reputations and perceived higher value typically attract more customers. This creates trust and develops a customer base, helping the brand likely become successful if it introduces new products. Here are some potential benefits of brand equity to help you understand its importance:Ĭreating new opportunities: Consumers frequently purchase items from the same brands they've previously shopped with if they enjoy their products.
Marketing: What's the Difference? Benefits of brand equity Brands that become synonymous with their product or service have high value because of their organic success and high mental recall with customers.
For example, various advertising strategies, brand associations and decisions about the company's image may affect its equity. There are several ways for companies to become recognizable, so it's important to develop strategies that best align with their industries, products, services and customers. For example, there are certain brand names that people associate with standard household products, such as facial tissues, adhesive bandages and single-use cleaning wipes. If a product is more recognizable, it has higher value, and there's potential for the brand name to become synonymous with the products themselves. What is brand equity?īrand equity is the theoretical value generated by the recognition of a brand name.
#Definition en masse how to
In this article, we define what brand equity is, explore the benefits it offers, list its common components, outline how to build it and offer examples to review.
One crucial metric is brand equity, and learning more about it may help you better understand the relationships between companies and consumers. There are many marketing metrics companies can use to do this, and these metrics help them identify opportunities for improvement. It's often essential for companies to understand how consumers view them.
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