The concept of customer-based brand equity
Consumer-based
brand
Customer-based brand
equity is defined as the differential effect that brand knowledge has on
consumer response to the marketing of the brand. A brand has positive customer
based brand equity when consumers react more favorably to a product and the way
it is marketed when the brand is identified than when it is not. Therefore,
consumers might be more accepting of a new brand extension for a brand with
positive customer based equity, less sensitive to price increases and
withdrawal of advertising support, or more willing to seek the brand in a new
distribution channel. On the other hand. A brand has negative customer based
brand equity if consumers react less favorably to marketing activity for the
brand compared with an unnamed or dishonestly named version of the product.
