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Dictionary entry

brand equity

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The added value a brand carries because people know and trust it, letting the company charge more or sell more easily than an unknown rival. It is the goodwill built into the name itself.

Synonyms

  • brand value
  • brand goodwill

Related terms

In plain words

  • how much a brand name is worth on its own
  • the trust and value baked into a brand

Usage example

Decades of consistency gave the brand enough equity to charge a premium.

Don't confuse with…

  • brand recognitionRecognition is just being known; equity is the actual commercial value that recognition and trust create.

Categories

  • Branding & identity

Related-term graph

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Focus term

Directly related

Two hops away

  • Relatedbrand equity related of brand extension
  • Relatedbrand equity related of brand recognition
  • Relatedbrand extension related of brand architecture
  • Relatedbrand extension related of brand equity
  • Relatedbrand recognition related of brand equity
  • Relatedbrand recognition related of brand identity
  • Relatedbrand extension related of brand identity
  • Relatedbrand recognition related of colour palette
  • Relatedbrand recognition related of logo
  • Relatedbrand extension related of sub-brand

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