Brand Equity and Its ComponentsI heard some discussions about brand equity and brand value studies? Is there a difference between the two?
Unfortunately, the terms may be used interchangeable but often they refer to two different types of studies used for evaluating brand worth. One type of study, which I will call brand value, attempts to quantify the total worth of a brand in dollars. These studies are large undertakings as one is trying to determine the worth of an intangible asset. A simpler type of study is a brand equity study which quantifies the relative worth of your brand as compared to your competitors. Oftentimes your brand equity score, along with your competitors’ scores, would be expressed using a 100 point scale, e.g. your brand equity score is 75, while the highest and lowest brand equity scores of competitors are 87 and 50 respectively. These scores, and their components, not only allow relative comparisons but also can reveal the strengths and weaknesses associated with your brand. Finally, brand equity studies provide guidelines as to how to increase your scores.
Brand studies sometimes refer to the 5 A’s, what are these?
These are the components/levels of determining a brand equity score. In ascending order, they are: 1) Awareness, 2) Association, 3) Attitude, 4) Attachment and 5) Activity. Briefly, Awareness is “Are you familiar with the brand?”, Association is “Do any mental images that come to mind when thinking of the brand? e.g. Golden Arches”, Attitude is “What are your impressions concerning the brand’s quality?, value?, etc., Attachment is “Do you like the brand?” and finally Activity is “Did you purchase the product or service?”.