What is Brand Equity? Definition or Meaning

When you see a recognisable brand name on a product, you will generally have an opinion about it won’t you? This perception of the brand name, positive or negative will influence the value of the branded product. If you and many other consumers perceive the product in a positive light, it could translate to greater profits, meaning higher brand equity. If viewed negatively, this could mean lower brand equity.

For example…

Take the brand “Johnson & Johnson”. This company has been making baby products like shampoos and bath soap and branding them “Johnson baby”. If they decided to make a toothpaste specifically for young children and brand it “Johnson baby toothpaste”, the perception associated with the brand i.e. a line of products created specifically for children may impact the toothpaste’s brand equity and contribute positively to its success.