Brand Equity: David Aakar described brand equity as the exclusive set of brand assets and liabilities that is connected to a brand. According to Aakar, brand equity is the net effect of all the investment of attempt that a marketer puts into made a band. It is made up of :-
- Consumers loyalty
- User ship of the brand
- perceived quality
Positive symbols and favorable relations around the brand. Brand equity also adds to the bottom line on a long term. When a brand has high brand equity, it means that consumers are eager to pay a premium for the brand and its extensions. The values of brands owned by firms, such as ITC, HLL, & the IT majors like Infosys and wipro are many times their total assets.
Brand equity may be measured and quantified. Through it is an asset, traditionally; brand equity has been gone from the balance sheets because of its intangibility. Criteria like, market ranking, market share, brand stability and track record, stability of particular product category, international market trends, advertisement and promotional support and legal protection are used for measuring brand equity.