Brand equity is the value a brand gains from its Name recognition. Also, Brand equity holds two things –

Brand Perception

Commercial Value

Brand Perception – It’s the Perception of the brand and the value it holds in the eyes of the consumer.

Commercial Value – It shows the number in terms of value.

Elements of Brand Equity – 

  1. Brand Awareness
  2. Perceived Quality
  3. Brand Loyalty
  4. Brand Association
  5. Proprietary Brand Assets

Brand Awareness –

Brand Awareness is when a brand is recognized or recalled by its Target consumers. The higher the recall value of a brand, the higher the Brand Equity.

It happens in the early months of the Product launch to the market. Brand Awareness is the primary goal of advertising.

Perceived Quality – 

Perceived Quality is all about how a customer thinks about the Quality of the product, or have Perception about a particular brand.

Brand Loyalty –

It happens when a customer chooses your brand among your competitors. Also, consider your brand for the future purchase or repeat Purchase that is Brand Loyalty.

Brand Association – 

When a customer has a particular thought and impression about a brand, that is called Brand association.

Brand Association differentiates your brand from your competitors.

Proprietary Brand Assets – 

Proprietary Brand Assets refers to anything that your brand holds like Patent, Trademark, or could be anything that gives your brand an edge over your competitor.

For Example – Amazon One-click shopping