Creating Brand Equity

The overall aim of branding decisions is to create an identity for the product or service that is distinctive and in line with the targeting and positioning decisions already taken. Organisations should strive to produce a brand equity that delivers value to the consumer. This will result in the customer either showing greater brand loyalty or being willing to pay a premium price for the product. Brand equity according to Aaker, 1991, is “…a set of assets and liabilities linked to a brand’s name and symbol that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers."

Brands that have high equity have strong name awareness, strong associations attached to the brand, a perception of quality and have high levels of brand loyalty.