Brand equity

Brand equity - refers to the comparison between the perception in the consumer’s mind of a product which is already a brand and a product- alleged - of the same qualitative level which was not defined yet as a brand. By the difference between the two we measure the value that consumers award to a product.

Brand equity depends on the conception and collocations the consumer makes, designating the positive effect of a known brand on customers.

Financially speaking, an appreciated brand will have the advantage of a higher price than other similar products; the difference consist in the value that consumers attributes to the brand, reflected in willingness to pay a higher price for it. But for a brand to reach this level, it takes hard work to prove his superiority over other competing brands. A brand; value isn't acquired only through advertising, consumer needs tangible evidence/proofs to support his position towards a brand.

Consumers will give their vote of confidence to those brands that offer something extra compared to competitors, which gives them a sense of satisfaction and safety when purchasing these products and which know how to convince them of their value.

There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level.

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