Brand equity is the value of a brand, determined by the

consumer's perception of its quality and desirability. It is based on

factors such as the brand's recognition, customer loyalty, and
customer satisfaction. Brand equity is a key factor in a company's
success, as it can influence consumer decisions, marketing
strategies, and potential partnerships.
Four Main Important Elements of Brand Equity

• Brand Awareness: Recognition of the brand by customers and

potential customers.

• Brand Loyalty: Customers’ willingness to purchase from the same

brand over time.

• Perceived Quality: The level of perceived quality associated with the

brand.

• Brand Associations: The values and attributes associated with the

brand.
Examples of positive Brand equity
Apple, considered one of the world's most valuable brands, is a
classic example of a brand with positive equity. The company built
its positive reputation with Mac computers before extending the
brand to iPhones, which deliver on the brand promise expected by
Apple’s computer customers.

Examples of Negative Brand Equity

Automaker Tesla faced criticism in the early 2020s for its poor
working conditions and treatment of factory workers. Oil and gas
company ExxonMobil has repeatedly faced criticism for its role in
climate change and environmental destruction.
Aaker Model of Brand Equity has the following.

1 - Brand loyalty is when customers continue to purchase from

the same brand over and over again, despite competitors offering
similar products or services. Not only do customers continue
engaging and purchasing from the same brand, but they also
associate positive feelings toward that brand. Brand loyalty has a
lot to do with how customers perceive your brand, its actions,
and its values. And it’s an important way to help retain customer
loyalty and increase repurchase rates.
For example, some customers will always buy Pepsi while others
will buy Coke every time.
Brand Awareness refers to the extent to which
customers are able to recall or recognize a brand. Brand
awareness is a key consideration in consumer behavior,
Advertising Management, Brand Management and
strategy development. Coca-Cola has strategically
partnered with FIFA World Cup and the Olympics,
which further solidifies the company as a global brand
Perceived Quality is the impression of
excellence that a customer experiences about a
product, brand or business, derived through
sight, sound, touch, and scent.
Next, if we consider a service, like banking, then the following five
dimensions would drive the customers’ perception about the bank:
1. Tangibles: Do the physical facilities, equipment, and appearance of
personnel reflect quality standards?
2. Reliability: Will the accounting work performed would be trustworthy
and accurate?
3. Competence: Does the bank have the right skilled personnel
employed? Does the convey trust and confidence through the services
offered?
4. Responsiveness: Is the sales staff willing to help customers and
provide prompt and reliable services?
5. Empathy: Does the bank provide caring and individually focused
attention to its customers’?
These parameters help in analyzing perceived quality for service brands
What is Brand association? Brand association
is a mental connection a customer makes
between your brand and a concept, image,
emotion, experience, person, interest, or
activity. This association can be immediately
positive or negative and it heavily influences
purchase decisions.
•Example of Brand Association.
•Coca-Cola is classic;
•Downy is soft;
•Apple is simple;
•Tesla is electric;
•Nike is performance.
Other Proprietary Brand Assets are the safeguards put in
place by your brand to ensure no other business can replicate
what you do in a way that may confuse consumers into
thinking they're doing business with you. Examples of
proprietary assets include copyrights, trademarks, patents,
domains, software and other related assets.
Examples of Brand Assets
• Brand name.
• Logo.
• Color palette.
• Packaging.
• Slogans or taglines.
• Songs or sounds.
• Brand guidelines.
• Mascots.
Keller Customer Based Brand Equity Model
The Keller model is a pyramid shape and shows
businesses how to build from a strong foundation of
brand identity upwards towards the holy grail of brand
equity 'resonance'. This is where customers are in a
sufficiently positive relationship with a brand to be
advocates for it. Happy Customers mean Profit
 Brand Assets Valuator Model ( BAV )

It shows the result metrics of how appropriately

the business has marketed till now. In short, by
collecting consumer preferences, BAV displays
the position of any business, where it stands in the
market, and the value it holds, whether it is a
product or service.
It is based on four dimensions: differentiation, relevance, esteem, and
knowledge. By using the BAV model, you can assess how your brand
performs on each dimension, compare it to your competitors, and identify
areas for improvement.
BRANDZ Model is a tool that is used to diagnose
and predict brand equity. In this model, data is
collected with the help of interviews and publicly
available data. Consumers of different brands are
asked questions about the brand that they know.
In this Model data is collected with the help of
interviews and publicly available data.
Consumers of different brands are asked
questions about the Brand that they know. This
model is developed based on five steps that are
in sequential order. Each of the steps in this
model is a continuity of the previous steps and
should be conducted in the same order.
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