brand equity

Brand Equity

The value of brand recognition. Brand equity increases the value of an otherwise indistinguishable product. For example, consider two soft drinks that taste exactly the same. If one has a great deal of brand recognition, and the other does not, consumers will be more likely to buy the one they recognize. This increases the value of the drink with brand recognition in the minds of consumers. Brand equity is difficult to measure (as are all intangible assets), but is important in determining the value of a good or the company that produces that good.

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brand equity

the goodwill associated with a BRAND NAME which adds tangible value to a company through the resulting higher profits and sales.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson