Brand Equity

The concept of brand equity began to be used widely in the 1980s by advertising practitioners.
Important
academic contributors throughout the 1990s were Aaker, Srivastava and Shocker, Kapferer,
and Keller.
However, a universally accepted brand equity content and meaning as well as measure has not
been
forthcoming. Almost all conceptualizations of brand equity agree today that the phenomena
involve the value
added to a product by consumers associations and perceptions of a particular brand.
The concept of brand equity is based on the idea that a brand has a value greater than the sum
of its tangible
assets. Brand equity is by definition an intangible asset.
Brand equity refers to a set of assets and liabilities linked to a brand, its name and symbol that
add to or
subtract from the value provided by a product or service to a firm and or to that firms
competitors. In other
words, brand equity (or subtracts) value to a firm in the form of price premium, trade leverage,
or competitive
advantage.
Brand equity is the subject of seminars, of advertising agency presentations and of negotiation
by acquirers of
companies. There is even a coalition devoted to the fostering and preservation of brand equity.
It does not exist
in nature in the manner that the specific gravity of elements exists as a physical entity. It cannot
be assayed like
the gold content in a piece of ore. Those who argue that brand equity cannot be measured, miss
the essential
point. Its measurement depends on how it is defined. That definition must have pragmatic value
to a marketer of
consumer products or services. It should help to improve marketing effectiveness and efficiency
by providing a
yardstick with which to evaluate these things. Also, the definition should reflect the role of the
brand in the
dynamics of consumer choice in a competitive environment.
1.3.12.1. Meaning and Definition of Brand Equity
The concept of brand equity began to be used widely in the 1980s by advertising practitioners.
Important
academic contributors throughout the 1990s were Aaker, Srivastava and Shocker, Kapferer,
and Keller
The concept of brand equity is based on the idea that a brand has a value greater than the sum
of its tangible
assets. Brand equity is by definition an intangible asset.
Brand equity can be defined as the stored value built up in a brand for achieving competitive
advantage.
Brands are valued for their equity. Brands add value. Everyone in the marketing profession
agrees that brands
can add substantial value. It is also true, sometimes, that brands become a burden. The brand
can be both a
value enhancer and a value driller. A variety of opinions exist about brand equity. Some of these
are as follows:
Brand Equity refers to a set of assets and liabilities linked to brand, its name and symbol that
add to or
subtract from the value provided by the product or service to a firm and or that firms
competitions.
According to Aaker, Brand equity is a set of brand assets and liabilities linked to a brand, its
name and
symbol add to or subtract from the value provided by a product or service to a firm and/or to that
firms
customers.
According to Biel, Brand equity can be thought of as the additional cash flow achieved by
associating a brand
with the underlying product or service.
According to Chernatony and McDonald, Brand equity consists of differential attributes
underpinning a
brand which gives increased value to the firms balance sheet.
According to Keller, Brand equity is defined in terms of marketing effects uniquely attributable
to the brands.
For example, certain outcomes result from the marketing of a product or service because of its
brand name,
which would not have been occurred if the same product or service did not have the brand
name.
The marketing literature is laden with works which explore, interpret, and demystify (clarify) the
concept of
brand equity. The advantages of brand equity direct academic and manageri