Definition of brand equity

Our definition of brand equity: A brand‘s strength or esteem; its value—positive or negative—in non-financial terms.

Often contrasted with

• Brand value: A brand‘s financial worth.

Other definitions of brand equity from around the web

“A value premium that a company generates from a product with a recognizable name when compared to a generic equivalent.” – Investopedia

“The value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more revenue simply from brand recognition (that is from products with that brand name than from products with a less well known name), as consumers believe that a product with a well-known name is better than products with less well-known names.” – Wikipedia

“A brand’s power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.” – BusinessDictionary (no longer online)

“The value of a brand’s financial and non-financial assets measured by its quality of public awareness and influence. Brand equity represents the sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that result in personal commitment to and demand for the brand; these differentiating thoughts and feelings make the brand valued and valuable.” – OVO

“The accumulated financial and strategic value of all associations and expectations (positive and negative) that people have of [a] brand. Brand equity can be quantified four ways: 1) economic value of the brand and its assets, 2) the price premium that the brand commands, 3) the long term consumer loyalty the brand enjoys, or 4) the market share the brand gains through its reputation alone. Note: brand equity can be negative.” – The Financial Brand

“The accumulated value of a company’s brand assets, both financially and strategically; the overall strength of a brand.” – The Dictionary of Brand, Marty Neumeier (Liquid Agency)

“Brand’s value over other brands.” – Stealing Share

“The value of having a recognized brand, based on the idea that firmly established and reputable brands are more successful. More specifically, it’s a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service.” – David Aaker (Prophet), in “What is Brand Equity?“

“A marketing term that denotes the perceived, inherent value of a brand.” – Outbrain

“This term simply means value. What value does your brand hold? The more positive associations your brand has, the higher its equity.” – Vistaprint

Visit the branding glossary for definitions of other branding terms. This Definition page will be updated periodically with new content. Please share any suggested additions in the comments section.