Brand image and brand equity

Company Name : Exalogics
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By Jamal Panhwar

Brand equity actually refers to the assets and liabilities that are attached with the brand. Brand equity is positive when brand image in the mind of the consumers is very positive. Actually itís then the brand image for which consumers are willing to pay more for the same level of quality. Customers pay more because they find the name attached to the product very attractive and that is called brand equity †(Bello and Holbrook, 1995). Brand equity can also decrease and effect brand image if it is not properly managed. If quality of the brand is decreased or customer services can affect brand image which will cause lower sales and decreased brand equity. Good brand equity enhances brand image which help customers during the purchase process. Past experience of the brand and brand familiarity also contributes to the perception generation from the customers (Aaker, 1991). Brand equity of the brand which is caused due to positive brand image is the great source for the firm for positive cash flows. Brand equity is subdivided into further 4 categories brand awareness, brand loyalty, perceived quality and brand associations.†(Aaker, 1991; Keller, 1998).