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Brand Equity

Brand equity describes a brand’s value — which is determined by how consumers think and feel about a brand. Brand equity is one of the main reasons why marketing efforts of branded and nonbranded products perform so differently.

The concept of brand equity arose in the 1980s, and, until now, has been defined as consumer-based, sales-based, financial-based, firm-based, or employee-based. However, consumer-based brand equity (CBBE) is the most widely used brand equity model.