Brand Equity

What is Brand Equity?

Brand equity is used to describe a brand’s value, as determined by customers. It greatly depends on their perception and their experience with a brand. If customers have a positive attitude towards a brand and enjoy interacting with it, it possesses positive brand equity. However, if a brand constantly fails to live up to expectations or underperforms it has negative brand equity.

Both positive and negative equity have long-lasting consequences. Positive equity helps boost sales, spread brand awareness and increases products overall value. Negative equity may inspire customers to avoid a brand altogether, or even spread a negative word to others. Try and inspire positive equity and make sure you always stay on top of your game.

Learn more about the Importance of Brand Equity in B2B.

What is Brand Equity?

Key Elements of Brand Equity

Each brands goal is to achieve positive equity and increase its sales profits at the same time. Let’s explore the key elements of brand equity:


Tells you how many people know your brand even exists.


The ideas and impressions customers associate with your products.


How good your products really are in the eyes of consumers.


The good experience your brand provides and makes customers repeat their purchase.


Everything that makes a product or brand unique and not easily replaceable.

Positive Brand Equity Examples

A great example of positive brand equity is Apple, ranked by one organization as “the world’s most popular brand”. This 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 buyers.

On smaller scale great example for that is Wolt, a delivery platform which has great customer support, innovative approach to delivery and great service.

Negative Brand Equity Examples

There are a lot of examples of negative brand equity but we are distinguish Financial brand Goldman Sachs lost brand power when the public learned of its role in the 2008 financial crisis, automaker Toyota suffered in 2009 when it had to recollect more than 8 million vehicles because of unintended acceleration, and oil and gas company BP lost significant brand equity after the U.S. Gulf of Mexico oil spill in 2010.

What’s the Difference Between Brand Equity & Brand Value?

Brand equity and brand value are very alike, but not the same. Sometimes, there is confusion around how each differs. Brand equity is a collection of assets or liabilities in the form of brand visibility, brand relationships and customer loyalty that add or deduct from the value of a current or potential product or service made by the brand. It is a key construct in the management of marketing strategy, but also in the business strategy.

Brand value, on the other hand, is the financial value of the brand. To determine brand value, companies need to estimate how much the brand is worth in the market – in other words, how much would someone purchasing the brand pay?


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Brand Equity was last modified: July 1st, 2019 by Mirjana
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