√ Definition of Brand Equity, Functions, Benefits & Dimensions

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Definition of Brand Equity, Functions, Benefits & Dimensions – In this discussion, we will explain about brand equity or goods equity. Which includes the meaning of brand equity, functions and benefits of brand equity, dimensions of brand equity and building brand equity with complete and easy-to-understand discussion. For more details, please see the review below carefully.

Definition of Brand Equity, Functions, Benefits & Dimensions

Let's discuss the meaning first carefully.

Definition of Brand Equity (Brang Equity)

Brand equity or brand equity is the strength of a brand. With a strong brand a company can manage their assets well, increase cash flow, expand share market, setting a premium price, limiting promotion costs, increasing sales, maintaining stability and increasing excellence competitive. According to the consumer's perspective, brand equity is a response or responses from consumers to a product.

Definition of Brand Equity According to Experts

1. Kotler and Keller (2009:263)

The definition of brand equity according to Kotler and Keller is the added value given to products and services. Brand equity can be reflected in the way consumers think, feel and act in relation to the brand, as well as the price, market share and profitability that the brand provides for the company.

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2. Supranto and Limakrisna (2011:132)

The definition of brand equity according to Supranto and Limakrisna is the value determined by consumers on a brand above and beyond the functional characteristics/attributes of the product.

3. Tjiptono (2004:36)

The definition of brand equity according to Tjiptono is a series of brand assets and liabilities associated with a brand, name, and its symbols, which increase or decrease the value provided by a product or service to the company and or the company's customers the.

4. Susanto And Wijarnako (2004:127)

The definition of brand equity according to Susanto and Wijarnako is a set of brand assets and liabilities associated with a brand, its name and symbol, which adds or subtracts from the value provided by a good or service to a company or customer.

Functions and Benefits of Brand Equity (Brand Equity)

Brand equity can affect consumer confidence in making good buying decisions due to past experience in using the brand or closeness to the brand and characteristics.

According to Simamora (2003:49) brand equity has several functions and benefits, including:

  • Loyalty allows repeated purchases/transactions or if the consumer is a committed buyer, not only stop at repurchasing, but consumers can also recommend or give recommendations to people other.
  • Allows the company to determine a higher price (premium) which means higher profits for the company.
  • Gives credibility to other products that use the brand.
  • Allows for higher returns
  • As a relative differentiator with competitors that is clearly valuable and sustainable
  • Very clear internal focus
  • Creating consumer tolerance for product or company errors, through high loyalty to the brand
  • Become a factor that attracts qualified employees, and also retains loyal employees
  • Attract consumers to only use brand factors in making buying decisions

Brand Equity Dimensions

Brand equity is formed from four dimensions, namely brand awareness, perceived quality, brand association, brand loyalty.

Brand Awareness
Is the ability of consumers to recognize or recall a brand and associate it with a particular product category.

Perceived Quality
Perceived quality of the brand shows the response of all consumers to the quality and advantages offered by the brand.

Brand Association (Brand Association)
Brand associations are related to everything that is connected in the customer's memory to a brand.

Brand Loyalty (Brand Loyalty)
Brand loyalty is a strong commitment to subscribe or repurchase a brand consistently in the future.

Understanding Brand Equity (Brand Equity), Functions, Benefits, Dimensions, Building

Building Brand Equity
Brand equity can be built by creating the right brand knowledge structures for the right customers. This process depends on all contacts connected with the brand (whether operated by the marketer or not).

According to Philip Kotler (2002: 268), according to the marketing management perspective there are three components that drive brand equity, namely:

  • Initial choice of brand elements or identity that make up a brand (brand name, URL, logo, emblem, character, spokesperson, song, packaging, billboard, slogan)
  • Products and services as well as all marketing activities and marketing programs that support participation.
  • Other associations given indirectly to the brand by associating the brand with some other entity (person, place, thing)

Thus has been explained about Definition of Brand Equity, Functions, Benefits & Dimensions, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.

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