Brand equity is the commercial value that derives from consumer perception of a brand name, beyond the functional benefits of the product itself. It reflects how much consumers are willing to pay, trust, and stay loyal to a brand.

Brand equity is built through consistent quality, advertising, customer experience, and associations. It can be measured through brand awareness, perceived quality, brand loyalty, and brand associations. Strong brand equity allows companies to charge premium prices, launch new products more easily, and weather crises.

Key points

• Commercial value of brand perception
• Built through quality and marketing
• Enables premium pricing and loyalty
• Measured through awareness and associations