some researchers use brand equity and brand value as synonymous term. is there differences between them
Brand value is the financial value of the brand or in an easier way the monetary value of the brand if considered as an asset and shown in the balance sheet. Brand equity can me operationalised to generate brand value when considered entirely in financial terms. However, the marketing approach to brand equity is customer based brand equity (CBBE) that appraoches brand equity from customer's interaction with the brand. THis CBBE can be used to estimate financial brand equity and subsequent brand value.
Brand equity is definitely connected to the customer's perception of the brand, which may or may not be translated to the financial value (brand value).
The concept of brand equity has been discussed in a different ways, literatures divide brand equity into three categories: the customer-based perspective ,the financial perspective and the combined perspective.
Brand equity is more difficult to estimate because it is a set of customer's perceptions, attitudes, knowledge, and behaviors.
Brand value is easier to estimate by asking others what price they would pay to purchase the brand.
In general, brand equity can increase brand value .
best regards.
I'm not sure where the brand equity vs brand value debate is today but some of the early papers on this topic (e.g Aaker, 1992; Keller, 1993) may still be relevant and informative. Aaker (1992) defined brand equity as a construct comprising five indicators (brand awareness, brand loyalty, perceived quality, brand associations and other proprietary assets) which he termed brand assets. It is the sum total of these brand assets which creates brand value. Keller (1993) delved deeper into the ways of operationalizing or measuring these elements. These papers may provide a useful starting point as you wade deeper into this issue.
Aaker, D. A. (1992). The value of brand equity. Journal of Business Strategy, 13(4), 27-32.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. the Journal of Marketing, 57(1) 1-22.
Best of luck with your research
Brand equity and brand value are measures that estimate how much a brand is worth. The difference between the two is that brand value refers to the financial asset that the company records on its balance sheet, while brand equity refers to the importance of the brand to a customer of the company.
Read more : http://www.ehow.com/info_8535356_difference-brand-equity-brand-value.html
Today the focus is in Customer Equity and Brand Equity is one of the three drivers to pursue Customer equity, along with Value Equity and Retention equity.
I agree with the definition already given.
As Oliveira and Luce (2012) suggest these two views should be seen as different concepts. The concept based on the consumer’s perceptions, memories, feeling etc. should be called brand equity, whereas the financial view should be labelled brand value. The brand represents here solely an asset, which can be sold or purchased.
Brand equity is the sum of all the characteristics, attributes, associations and views concerning the brand, infl uencing the decisions of customers and distribution channels (Chmielewski, 2013).
Oliveira, M. and Luce, F. (2012). Reflections about Brand
Equity, Brand Value and their Consequences, V Encontro de
Marketing da ANPAD.
Chmielewski, K. (2013). Istota i znaczenie sponsoringu
sportowego w budowaniu marki korporacyjnej. Handel
Wewnętrzny, 3(1): 180–187.
I know it is late, but the articles below can help you.
- According to the difference between brand equity and brand value, you can read Raggio and Leone's article (2007) : The theoretical separation of brand equity and brand value: Managerial implications for strategic planning, Brand Management, Vol. 14, No. 5, p. 380–395
- There are three principal and distinct perspectives that have been taken by academics to study brand equity : (1) Customer based, (2) Company based, and (3) Financial based. Please see : Keller K.L. and Lehmann D.R. (2006): Brands and Branding: Research Findings and Future Priorities, Marketing Science, Vol. 25, No. 6, p. 740-759.
Best regards
Brand equity has significant positive relation with company performance. brand equity also increase the value of brand. Both can be treated as synonyms
Article Customer-based brand equity and firms' performance in the te...
Brand equity is a wider concept. Brand value can be seen as an indicator of brand equity.
My impression is that everyone uses the terms differently, depending on the perspective from which you look at the subject of brand valuation. After reading a lot of literature on the subject, the following distinction makes the most sense for me:
Brand Equity: refers to the perception or desire that a brand will meet a promise of benefits (Raggio & Leone, p. 385, 2007). (Therefore the degree of fulfilment of the brand functions)
Brand Value: total financial value resulting from the fulfilment of brand functions (Mellen, p. 323, 2018)
Aakers definition of Brand Equity as a combination of the Brand Equity Assets - brand awareness, brand loyalty, perceived quality and brand association - is, in my view, difficult to reconcile with newer concepts such as Value Co Creation (Aaker, p. 8, 1996). These are rather non-financial effects on the company resulting from customer-based brand equity. But I'm not sure what to call them yet. Does anyone have an idea?
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