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Brand Equity

Part 4. Advertising and Integrated Communication

  1. Jacqueline J. Kacen

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem04015

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Kacen, J. J. 2010. Brand Equity. Wiley International Encyclopedia of Marketing. 4.

Author Information

  1. University of Houston, Houston, TX, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Brands have long been recognized as important intangible assets that generate sales and profits for companies. The concept of brand equity represents the valuation of a brand above and beyond its current financial “book” value. Brand equity takes into account the strength of consumers' attachment to the brand (brand loyalty), associations and beliefs people have about the brand (brand image), and the brand's ability to generate greater cash flows, now and in the future, compared to other brands in its market. Brand equity captures the added value that accrues to a product from its distinct name, symbol, design or mark and that enhances the appeal of the product beyond its measured attributes and functional purpose. The concept of brand equity is at the core of understanding how companies achieve competitive advantages and superior profitability.

Keywords:

  • brands;
  • brand equity;
  • brand value;
  • goodwill;
  • intangible asset