What is Brand Equity?

A definition of Brand Equity

“Brand equity refers to the value a brand adds to a product or service, based on consumer perception, recognition, and loyalty.”

Brand Equity in Business Glossary - What is Brand Equity?

Business Glossary > What is Brand Equity?


Examples of Brand Equity in a Sentence:

The brand equity of Apple allows it to charge higher prices.

Strong brand equity can result in loyal customers and repeat business.

Coca-Cola’s brand equity is one of its most valuable assets.

Why is Brand Equity Important in Business?

Brand equity matters because it can lead to increased market share, the ability to charge premium prices, and customer loyalty. Brands with high equity enjoy competitive advantages and can drive company growth.

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Associated Terms

Here are some associated business terms and synonyms for “Brand Equity”:

  • Brand Value
  • Brand Strength
  • Brand Recognition

Coca-Cola Brand Equity

Coca-Cola’s brand equity is a significant reason behind its global success. The company’s strong brand image allows it to maintain customer loyalty and premium pricing, positioning it as a leader in the beverage industry.

Final Notes on Brand Equity

Businesses should invest in building brand equity to gain competitive advantages. They can do this by delivering consistent quality, engaging in strategic marketing, and fostering positive customer relationships.


This has been a definition of Brand Equity meaning.

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