What is brand equity?

Brand equity refers to the value that a brand contributes to a product or service through consumer perceptions, associations, and experiences. This value is derived from several factors, including brand recognition, loyalty, and perceived quality. When consumers have a strong impression of a brand, they are often willing to pay more for its products, recommend it to others, and exhibit loyalty, all of which contribute to the overall equity of the brand.

For instance, if a brand is well established and has a positive reputation, its products may be seen as more desirable, leading to higher sales figures, premium pricing, and a greater market share. This underscores the idea that brand equity is not merely about the tangible aspects of a product but interwoven with the emotional and psychological connections consumers have with the brand. Thus, option B accurately captures this essential concept in branding and marketing.