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Brand Equity Market Research

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Brand Equity Market Research

Brand equity is the way in which consumers view a brand. Understanding brand equity will allow a  company to change and adapt their branding suitably to fit the image they want to portray. If consumers feel attached to a brand, they may be less likely to choose a competitor’s product. Building up positive brand equity is important when it comes to retaining customers, as well as for attracting new ones. 
 
For example, in a supermarket, there are two bottles of orange juice made by different brands. They have exactly the same ingredients, are the same size and cost the same amount. The consumer’s purchase decision will likely be based on brand equity and how the consumer views the products. In this case, one brand has a negative brand equity with the consumer because of poor customer service when they bought a previous product.  This influences them to buy the other bottle of orange juice and demonstrates the importance of having a positive brand equity.
 
Brand equity is constantly changing because it can be swayed in a variety of different ways. For example, the Corona lager brand had a huge drop off in purchases due to the outbreak of coronavirus. This is a negative change in brand equity, although beyond the control of the lager company.

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