Brand Equity & Customer Equity
Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers.
Brand Equity and Customer Equity have two things in common-
|Both stress on significance of customer loyalty to the brand|
|Both stress upon the face that value is created by having as many customers as possible paying as high price as possible.|
But conceptually both brand equity and customer equity differ.
|While customer equity puts too much emphasis on lower line financial value got from the customers, brand equity attempts to put more emphasis on strategic issues in managing brands.|
|Customer Equity is less narrow alternative. It can overlook a brands optional value and their capacity effect revenues and cost beyond the present marketing environment.|
|Just as customer equity can persist without brand equity, brand equity may also exist without customer equity. For instance I may have positive attitude towards brands - McDonald and Burger King, but I may only purchase from McDonalds brand consistently.|
To conclude, we can say brands do not exist without consumer and consumer do not exist without brands. Brands serve as a temptation that utilizes other intermediaries to lure the customers from whom value is extracted. Customers serve as a profit-medium for brands to encash their brand value. Both the concepts are highly co-related.
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- Brand Management - Introduction
- What is a Brand ?
- Brand Name
- Brand Attributes
- Brand Positioning
- Brand Identity
- Sources of Brand Identity
- Brand Image
- Brand Identity vs Brand Image
- Brand Personality
- Brand Awareness
- Brand Loyalty
- Brand Association
- Brand Promise
- Building a Brand
- Brand Equity
- Brand Equity & Customer Equity
- Brand Extension
- Why Do Brands Have Extensions ?
- Brand Extension - A Success or Failure ?
- Brand Value
- Brand Value Measurement
- Brand Categories
- Marketing Career Option
- Do Brands Happen or are they Made ?
- What Do Brands Do ?
- Brand Management Challenges
- Corporate Branding - A Discussion
- Changing Profile of Brand Managers
- Branding in the Age of Information and Internet
- Tips for Successful Brand Management
- What is Perception Management and why it is Important for Organizational Success