What is Brand equity?
Brand equity: Extra value a known brand adds to a product.
Where Brand equity fits
Brand equity is part of Brand & Customers in Marketing. A brand is a promise customers trust. Brand equity, loyalty and word of mouth lower the cost of winning customers, while churn counts those who leave.
Practical tip
Keeping a customer usually costs less than finding a new one.
Related terms
- Market share
- Your sales as a percentage of total sales in the market.
- Churn
- Share of customers who stop buying in a period.
- Brand loyalty
- Customers' habit of choosing the same brand again and again.
- Brand awareness
- How well people recognize a brand.
- Target audience
- The group a message is aimed at.
- Customer base
- All the people who buy from a business.
Formulas you will use with it
Test yourself
Which term means: “Extra value a known brand adds to a product.”?
Brand awareness · Brand equity · Market share
Answer: Brand equity
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