Conceptualizing, Measuring and Managing Customer- Based Brand Equity

Conceptualizing, Measuring and Managing Customer- Based Brand Equity

There are many perspectives of brand equity. Brand equity can be defined as the extra value that a customer is willing to pay. For example, from point A to point B, a local cab is charging 150RS and fro the same Ola cabs is charging 220RS, so when the customer is willing to pay extra 70RS to travel on Ola cab, that is brand equity.

Brand is a name, term, sign or design to identify the goods or service from other goods and services. The valuation of brand equity is normally done for the accounting purpose. There are many methods to value the brand equity, like multiplier of brand profit, determining the differences between acquisition prices and fixed assets. Apart from accounting, valuation of brand equity is also done to improve the marketing productivity. And to do this, marketers has to understand the consumer behaviour. Brand awareness and brand image define the brand knowledge. So brand knowledge is defined by two things those are (1) Brand awareness and (2) Brand Recognition. And Brand recall and Brand recognition comes under brand awareness. Customer brand equity is built by the initial choice of the brand entitles and integration of brand entities. Brand image is also about the perception of the consumer about a particular. Brand which arise because of the brand association in consumer memory. It is a very important when it comes to high involvement decision making. Attributes distinguish the brand association. There are two types of attributes (1) Product related attributes (2) Non product related attributes.