Column 12 · Brand and Market-Based Assets · Era 4, Orientation and Relationships (1990s)
Brand Equity
Inputs: resources and assets · Landmark · Cluster IV, Customer and Brand Assets
Description
Aaker conceptualized brand equity as a set of assets (awareness, associations, perceived quality, and loyalty) linked to a brand's name and symbol, and Keller defined customer-based brand equity as the differential effect of brand knowledge on consumer response to the marketing of the brand.
Managerial Implications
Brand equity is the value added by the brand name itself, through awareness, associations, perceived quality, and loyalty. Manage brand knowledge deliberately: decide which associations the brand should own, measure them, and judge every extension and campaign by whether it strengthens or dilutes them. Equity shows up as price premiums and lower acquisition costs, so it belongs on the management agenda as an asset, not a logo.