Measuring Sources of Brand Equity
The value of a brand – and thus its equity – is ultimately derived in the marketplace from the words and actions of consumers. Consumers decide with their purchases, based on whatever factors they deem important, which brands have more equity than other brands.
Although the details of different approaches to conceptualize brand equity differ, they tend to share a common core: All definitions typically either implicitly or explicitly rely on brand knowledge structures in the minds of consumers – individuals or organizations – as the source or foundation of brand equity. A brand relates to
This brand knowledge affects how consumers respond to products, prices, communications, channels and other marketing activity – increasing or decreasing brand value in the process. Along these lines, formally, customer-based brand equity has been defined as the differential effect that consumer brand knowledge has on their response to brand marketing activity (Keller, 2003). Brand knowledge is not the facts about the brand – it is all the thoughts, feelings, perceptions, images, experiences, and so on that become linked to the brand in the minds of consumers.
All of these types of information can be thought of in terms of a set of associations to the brand in consumer memory.