What is brand equity?

2.  It is the added value endowed on products and
services.
 It is reflected in the way customers think, feel and
act with respect to brand.
 Various perspectives are used to study brand equity.
 Customer based brand equity is the differential effect
brand knowledge has on customer response.

3. Three key ingredients :-
Customer based
Brand - Equity
It arises from difference
in customer response
Reflected in perception
and preferences related
to aspects of marketing
of brand
All the thoughts and
beliefs associated with
consumer’s brand
knowledge

4. Positive brand equity
when customers
respond favorably
to brand

5. STARBUCKS has capitalized on its positive equity by selling varieties of
coffee and snacks at premium prices. In customer’s mind it has an
impression of coffee house which serves customized drinks, ambient
environment, Wi-Fi and good quality .

6. Negative brand equity
When customers respond less
Favorably to the brand
under same condition

7. According to brand asset valuator:

8. Leadership brands shows high on all levels
Whereas
Strong new brands shows higher differentiation
than relevance

9. CREDITS :
• http://image.slidesharecdn.com/mental1brandequitymichael
dorn-1231612181976646-1/95/brand-equity-
1728.jpg?cb=1231590623
• http://www.heather-smith.com/wp-
content/uploads/2011/01
• http://klbibkeccnjlkjkiokjodocebajanakg/suspended.html#uri=
http://i.imgur.com/AKThy.png
• https://www.bulletproofexec.com/wp-
content/uploads/2014/02/bad-coffee.jpg

10. DISCLAIMER
Created by ADITYA KUMAR, MNNIT ALLAHABAD,
during an internship by Prof. Sameer Mathur ,
IIM Lucknow.
www.IIMInternship.com