Outcome: Brand Equity

What you'll learn to do: define brand equity and its role in measuring brand strength

When most people see the Nike swoosh, what makes them think, "Just Do It!"? When kids see Mickey Mouse ears, what makes them think, "Disneyland"? When fans see the international soccer logo, FIFA, what makes them think of corrupt officials and financial misdeeds?  When many Americans see the BP logo, what makes them think of environmental disaster in the Gulf of Mexico?

All of these scenarios are examples of brand equity, which are the associations people have about a particular brand. Brand equity translates into a value premium (or deficit) associated with a given brand in the minds of customers. Think of it as the "super bonus" a teen boy feels for a pair of Adidas or Nike sneakers compared with Skechers or no-name shoes. Or think of it as the negativity an airline has to overcome the day after one of its planes goes down in a crash.

Brand equity waxes and wanes with the fortunes of a company, product, and market. As you'll discover, many things contribute to brand equity, and there are many ways to measure it.

Learning Activities

The learning activities for this section include the following:

  • Reading: Brand Equity
  • Self Check: Brand Equity


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