Definition

David A. Aaker defines brand equity as “the set of brand assets and liabilities linked to a brand that add to or subtract from the value provided by a product or service.”
Kevin Lane Keller expands it as “the differential effect that brand knowledge has on consumer response to the marketing of that brand.”

Introduction

Brand equity is the hidden wealth of a company. It’s why consumers pay extra for a logo or line extension they trust.

Explanation

1️⃣ Aaker’s Model – brand awareness, perceived quality, brand associations, and loyalty.
2️⃣ Keller’s Model (Customer-Based Brand Equity) – from awareness → meaning → response → resonance (the pyramid).
3️⃣ Measurement Tools – brand valuation, surveys, NPS, and market performance.

Key Takeaways

Strong equity drives premium pricing and loyalty.

Emotional connection sustains equity over time.

Tracking perception ensures long-term brand health.

Real-World Case

Nike’s “Just Do It” embodies high brand resonance—deep emotional attachment translating into billions in brand value.
Reference: https://www.nike.com