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Brand equity

Brand equity

What is brand equity?

Brand equity is a marketing term used to describe a brand’s value. Every brand has a value determined by consumer perception as well as real experiences of a brand and its products. 

If people think highly of a brand, then that brand has positive brand equity which carries value as companies can charge more for its products, their stock value benefits and their equity can be transferred to any other lines of business. 

An example of a brand with positive brand equity is Nike, who are a well-known sporting brand that sell high-quality sports clothing and accessories and who, through positive and effective marketing, have aligned their brand with activism in relevant areas.