Brand equity

ˈbɹænd ˈɛkwəti

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Brand equity is the value your brand adds beyond the product itself. It’s why someone pays more for a known name over a no-name alternative, even when the features are the same.

Why it matters
Strong brand equity drives preference, pricing power, and long-term customer loyalty. It can also make marketing cheaper and more effective over time.

Analogy:
Think of it like interest on a reputation bank account. The more you invest, the more value it returns.

See also
Brand positioning • Brand architecture