Brand Equity
The commercial value derived from consumer perception of a brand name rather than the product itself.
Also known as: Brand value, Brand strength, Brand asset
Category: Concepts
Tags: branding, marketing, businesses, value, assets
Explanation
Brand equity is the premium value a brand adds beyond the functional product. It's why people pay more for Advil than generic ibuprofen, or an Apple laptop versus similar specs elsewhere. Brand equity comprises: awareness (being known), associations (what people think of), perceived quality (expectations), and loyalty (repeat behavior). Strong brand equity enables premium pricing, easier line extensions, resilience during crises, and lower marketing costs. Brand equity can be positive or negative—damaged brands actually subtract value. For creators and knowledge workers, your personal brand equity determines whether people seek you out, trust your recommendations, and pay premium prices. It's built through consistent quality and clear positioning over time.
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