Brand Equity (BE): Purpose
The concept of BE has grown from the observation that the presence of a brand name and related image can have a measurable effect on consumer preference and even the additional money they are prepared to spend to purchase a product. This type of information is useful when a company is considering selling the brand, offering franchises, or perhaps even setting the value of a product when merging with another company.
This model is useful at several points along the life of a brand. When introducing a new product, it helps the marketing team choose the most appropriate branding to apply to that product. For established products, calculation of the value or equity of the brand assists strategic ...
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