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Brand equity is an intangible asset that depends on associations made by the consumer. There are three perspectives from which to view brand equity:
1. Financial – One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over an unbranded television, the premium provides important information about the value of the brand.
2. Brand extensions – A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer...
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