It is the commercial value that is derived as a result of the positive perception of the consumer about the brand and its offerings.
Brand equity is highly related to how many customers are in the following class:
2. Customer value the brand and sees it as a friend.
3. Customer is devoted to the brand. There are brands which are virtually unknown to customers. On the other hand, the brand for which buyers have a fairly high degree of awareness. This can be measured by either brand recall or brand recognition.
A powerful brand is said to have high brand equity. some brands with high brand equity in India are Reliance, Tata, Dabur, Coke, Pepsi, Birla, Maruti, Surf, Nirma, Colgate, Raymond, Maggi, Rasna and so on. Higher brand equity, higher is the brand loyalty, brand awareness, and perceived quality. The brand is an asset and it can be sold or brought for a price. Measuring brand equity of a brand is somewhat arbitrary. The various parameters can be price premium, stock value, brand replacement value and so on.