A term used in the marketing and branding world to describe the relative stature of different brands and to facilitate dialogue around how a brand asset may be measured.
There are a number of alternative senses in which the word is commonly used. Feldwick (1996) presents three separate common practice usages of the term Brand Equity:
- The total value of a brand as a separable asset when it is sold or included on a balance sheet (Brand value)
- A measure of the strength of consumers' attachment to a brand (Brand Strength)
- A description of the association and beliefs the consumer has about the brand (Brand Description)
Brand Finance uses the second definition in its literature. In particular, Brand Equity is used as an element of our Brand Strength Index and covers all stakeholders, not only consumers. It is used as a step in our brand valuation process.