Brand equity refers to the value that a brand adds to a product or service, which is derived from consumer perception, experiences, and associations with the brand. This value can influence customer loyalty, pricing power, and overall market performance.

Characteristics
– Consumer Loyalty: Strong brand equity often leads to a loyal customer base that prefers the brand over competitors.
– Perceived Quality: Brands with high equity are often perceived as having superior quality, which can justify higher prices.
– Brand Awareness: A well-known brand can attract new customers and retain existing ones due to its visibility and recognition.
– Brand Associations: Positive associations with a brand can enhance its value, such as being linked to luxury, reliability, or innovation.
– Market Positioning: Strong brand equity can provide a competitive advantage in the marketplace.

Examples
– Apple: The brand equity of Apple is evident in its loyal customer base and the premium prices it commands for its products, such as the iPhone and MacBook.
– Coca-Cola: Coca-Cola has built significant brand equity through its global recognition and positive associations with happiness and refreshment.
– Nike: Nike’s brand equity is strengthened by its association with high-performance athletes and innovative products, allowing it to maintain a strong market position.
– Tesla: Tesla’s brand equity is linked to its reputation for innovation and sustainability, attracting customers who are willing to pay a premium for electric vehicles.