Brand Equity? What Does It Mean? Part 2

Brand Equity? What Does It Mean? Part 2

Brand Equity comprises three components. First, the perceptions of the consumers, next is the positive and negative effects, and lastly, the resulting value of the brand and the business as a whole. To start with, the brand equity is built on the comprehension that the consumers have about the brand such as its strength, unique selling tactics, values, and competitive advantage along with the essence and features of the services and products offered to the customers that result in the perception about the brand in their minds.

The perception then results in the consumers holding a positive or negative effect on the product or service, if the result is positive, they will surely enjoy the purchase of the same that will be quite advantageous for the business in terms of increased profits, higher sales, and customer loyalty. And if the effect is negative, consumers would go for the generic product or a competitor’s service or products in the market, resulting in the company needing to work on its levels of quality and service along with the features and quality of the offerings to make sure that the consumer would not hold a negative effect to your business.

It is one of the most important assets of the brand and is apparent in the financial books of the company such as share market prices, demand, and profitability.

Brand Equity is derived from six constituents, namely brand association, brand loyalty, brand experience, brand awareness, brand preference, and the perceived quality of the products and services offered to the consumers. Branding in Singapore is important as new competitors come up every now and then, ensuring this brand equity is one of the ways for you to stay afloat in the market.