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Company Valuation Videos 175 videos

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Finance: What is Brand Equity? 3 Views


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Description:

What is Brand Equity? Brand Equity refers to the added or subtracted value that name recognition may accord to a company’s products and services. If a company has positive brand equity, the introduction of new products under the same name will be more likely to have a favorable market response. Apple, Nike, and Mercedes-Benz are examples of companies with positive Brand Equity. Conversely, a negative brand equity will make new products and services under the same name have a harder time due to the stigma of the brand name’s negative connotations, even if the products or services have superior features when compared with their rivals. Blackberry would be such an example.

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Transcript

00:00

Finance allah shmoop what is brand equity Okay wait That's

00:08

brand equity high fiber yet not relevant Friend equity is

00:13

the value your brand carries Like how people feel about

00:18

it Do they love it Aided fear it recognize it

00:22

Do they need to be told to go out and

00:23

buy it Or do they just order that ford truck

00:26

without being prompted ninety seven times between penalty flags and

00:30

dealings at football games Well brand equity is usually linked

00:34

to a few things like one the number of people

00:36

who have heard of your brand e known has ever

00:39

heard of your brand Well a then you might not

00:41

have one to how much people respect and like your

00:45

brand If people hate your brand well you might have

00:47

negative brand equity For example al qaeda brand aspirin probably

00:52

would not do so well at least in america Three

00:55

your brand reputation hi brand equity is a name you

01:00

recognize easily and like or trust and that might be

01:04

something like a bmw or disney or pampers if you're

01:08

still on the road two continents and for how readily

01:13

your brand is recognized Yeah shmoop anyone uh we recognized

01:18

yet are we almost a brand We're trying Ok quick

01:21

quiz to see if you were paying attention What was

01:23

number two Right to shake Get out of

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