Brand Equity Assignment Help
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Brand Equity is that strength and value of the brand which determines its value. The existence of brand equity in the market place is as a function of consumer choice. In simple words, a brand’s worth can be determined by its brand equity. Products can be made recognizable, reliable, memorable and superior in quality by creating their brand equity. Brand equity for the product is created by the company. It helps to increase the financial value of a brand. An example of brand equity is Pepsi. Consumers willingly spend more fortune on Pepsi rather than the local brand of soft drink. Brand equity can be of both types- negative and positive. Negative brand equity exists only when the consumers prefer the local stuffs over branded ones. Environmental disaster can also be a reason for negative brand equity. Positive brand equity benefits the company in many ways. An example of company with positive brand equity is Oakley. The sunglasses of brand Oakley do not need any awareness and promotion, all because of the positive brand equity. Some advantages of brand equity are
• It helps to increase the revenues and sales for the business.
• The manager can increase the price of a branded product, thereby benefiting the company financially.
• It also allows the companies to increase and expand their production line.
• A branded product is preferred over an unknown brand.
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Elements of Brand Equity
Brand equity plays a significant role in the promotion of products. There are five basic elements of brand equity namely brand awareness, brand loyalty, perceived quality, brand associations and proprietary brand assets. These elements have been discussed by our elements in the following section of Brand Equity Assignment Help.
• Brand Awareness- Consumer will buy a product only if he/she is well aware of it. For a product to survive in the market, it must be branded i.e., it should have a brand equity. There is no doubt that consumer will opt for a known and recognizable brand over an unknown brand. Brand awareness is an important element of brand equity. A recognized brand is always considered as reliable and superior in quality than an unknown brand.
• Brand Loyalty- Brand loyalty determines the commitment of consumers to a brand. Customers often switch to different brands when there is a change in price and features of a product. A consumer is regarded as brand loyal when he/she repetitively purchases one brand among other brands irrespective of price and features.
• Perceived Quality- Perceived quality is nothing but the perception of consumers towards the overall quality of a brand. The pricing decision of a company is dependent on quality perceptions. Consumers choose a brand over another only in the context of quality. A superior quality product is always charged more than other products. Hence, perceived quality is one of the significant elements of brand equity. The other elements of brand equity have also been explained by our experts. For further information, clients can refer Brand Equity Assignment Help.
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