Brand equity refers to the additional value attributed to a product based on the reputation of the brand itself. It can be positive or negative. When you develop a product or provide a service that makes a memorable impression and generates positive buzz, you begin to build your own brand equity. Consumer perception is the driving force behind the development of brand equity. Weekend athletes are likely to see greater value in athletic shoes favored by professional athletes. Coffee drinkers are willing to pay a premium price for consistently delicious coffee from a hip java bar. Social acceptance of a brand has its own momentum that can carry a product to the top of the sales charts. Negative consumer perception can bury a product. If a retailer provides subpar customer service, it runs the risk of developing negative brand equity. Disgruntled customers don’t just move on to other companies that value their business, they also share their negative experiences with friends and co-workers. Before long, the retailer’s most recognizable characteristic is shabby service. Positive brand equity allows you to market your goods at a higher price point because customers are likely to spend more for a superior product. Customers are also more likely to get on board with a new product if it comes from a trusted brand. You’ve got to get your name out there if you want to increase your brand equity. A carefully planned marketing campaign can introduce your business and generate interest. If you consistently deliver a quality product that is relevant to consumers, your brand equity stock will grow.
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