Brand Equity

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What is Brand Equity?

Brand equity is defined as the perceived value of a company based on its reputation.

When a consumer buys a more expensive branded product over an identical generic product, that brand has positive equity. The name value allows the company to sell the same product at a higher price while maintaining the same production costs as competitors. Knowing your company’s brand equity can help you make business decisions that boost your reputation and contribute to your bottom line.

Measuring Brand Equity

While brand equity is universally sought, it is uniquely difficult to measure. Marketers can evaluate quantitative metrics such as market share, profitability, revenue, or growth rate. However, businesses also want to understand the less tangible, qualitative aspects of equity. Correlating these two ends of the spectrum is challenging.

While surveys can evaluate qualitative factors, Harris Brand Platform’s brand monitoring software provides a new way of benchmarking your position. By polling consumers through a variety of touchpoints, we track brand perception. You can then easily compare this data to your quantitative or financial metrics. This presents a full picture of your influence on the industry.

Harris Brand Platform displays these competitive insights in several easy-to-understand categories.

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Momentum

A brand’s ability to maintain market position and to beat out competitors.

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Consideration

How relevant a product or service offering is to its audience.

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Quality

The perceived and actual quality of your service offering.

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Familiarity

How recognizable a brand is to the general population.

Brand Equity Model

Brand Perception

How people perceive your organization is vital to overall brand health. Brand perception stems from the knowledge and experience that your audience has with your service offering. It measures what your audience believes that your brand represents, and whether it aligns with your overarching marketing efforts. This perception can either help or hurt your business.

Negative & Positive Effects

Brand perception can manifest either positively or negatively. If you have high brand equity, your company, products, and financials will benefit as your audience continues to interact with and recommend your services. Unfortunately, low brand equity has the opposite effect. You’ll have to work hard to boost your reputation.

Value

Brand equity, along with being a valuable tool for businesses, holds even more value for customers. Customers inherently trust brands with a positive reputation, which improves their confidence throughout the purchase decision. Using consumer insights, Harris Brand Platform presents the value of a company through the eyes of its audience, providing a leg up against the competition.

Benefits of Brand Equity

Consumer trust is one of the most significant benefits of positive brand equity.

Trust allows your company to maintain a segment of the market that competitors will have a hard time influencing. Other benefits include:

  • Consumers are willing to pay a premium for your products or services.
  • Brand equity can extend to and benefit your other product lines.
  • Strong brand equity can improve investor confidence, increasing stock price.

Building Brand Equity

Brand Awareness

To build positive brand equity, you must first increase brand awareness – the extent to which your audience is familiar with your services and reputation. Your brand health depends on having high audience awareness to maintain salience. Beyond this, your company must stand out. Consider telling an impactful brand story to carve out a unique niche.

Brand Loyalty

Consumers with strong brand loyalty are devoted to a product or service, leading to repeat business. This significantly contributes to positive brand equity. Maintaining consistent consumer experiences is key to maintaining loyalty. Loyalty decreases your need for marketing, increases your leverage in the industry, and situates your brand more competitively.

Brand Reinforcement

Reinforcing your brand’s values with consumers attracts those with similar values. Like-minded individuals are also more likely to exhibit loyalty. For example, if your brand is committed to producing environmentally friendly products, environmentally conscious consumers will be more likely to buy your product even if it is more expensive.

Brand Equity Examples

 2022/01/Draft-Kings-Logo.png  2022/01/Jersey_Mikes_logo.svg.png  2022/01/Blue-Apron-Logo.png  2022/01/Clorox-Logo.jpeg  2022/01/Post_Holdings_logo.png  2022/01/lululemon-logo.png  2022/01/1200px-Mastercard_2019_logo.svg.png  2022/01/USA-Today-logo-e1642026116422.png  2022/01/1200px-Hertz-Logo.svg.png  2022/01/opentable-logo.png  2022/01/Sony-Logo-1957-1961.png  2022/01/mars-logo-2.jpeg  2022/01/Lowes-Logo.png  2022/01/StubHub-Logo.png  2022/01/Jiffy-lube-logo.png  2022/01/Holiday_Inn_Logo.png  /2022/02/Chime_company_logo-01.svg  /2022/02/Skillshare-Logo-Updated-01.svg Susan G Komen logo 2022/04/monster-com-logo-final-01.png  2022/04/harrys-revised-01.png  2022/04/unicef-logo-revised-01.png  2022/04/citizen-watch-revised-01.png
 2022/01/Draft-Kings-Logo.png
 2022/01/Jersey_Mikes_logo.svg.png
 2022/01/Blue-Apron-Logo.png
 2022/01/Clorox-Logo.jpeg
 2022/01/Post_Holdings_logo.png
 2022/01/lululemon-logo.png
 2022/01/1200px-Mastercard_2019_logo.svg.png
 2022/01/USA-Today-logo-e1642026116422.png
 2022/01/1200px-Hertz-Logo.svg.png
 2022/01/opentable-logo.png
 2022/01/Sony-Logo-1957-1961.png
 2022/01/mars-logo-2.jpeg
 2022/01/Lowes-Logo.png
 2022/01/StubHub-Logo.png
 2022/01/Jiffy-lube-logo.png
 2022/01/Holiday_Inn_Logo.png
 /2022/02/Chime_company_logo-01.svg
 /2022/02/Skillshare-Logo-Updated-01.svg
Susan G Komen logo
 2022/04/monster-com-logo-final-01.png
 2022/04/harrys-revised-01.png
 2022/04/unicef-logo-revised-01.png
 2022/04/citizen-watch-revised-01.png

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