What is Customer-Based Brand Equity?

Customer-based brand equity refers to the value a brand has in the minds of customers and its ability to drive certain customer behaviors. It is built by shaping how customers perceive and respond to a brand. There are four main components:

1. Brand Awareness: How easily customers recall or recognize your brand. Higher awareness makes a brand stand out.

2. Brand Associations: The thoughts, feelings, perceptions linked to your brand in customers' minds. Positive associations can boost brand image.

3. Perceived Quality: Customers' assessment of your brand's quality compared to alternatives. High perceived quality builds value.

4. Brand Loyalty: How strongly customers connect with and are devoted to your brand. Loyal customers are less likely to switch.

By cultivating favorable brand awareness, strong associations, exceptional perceived quality and brand loyalty, companies can increase customer-based brand equity. This gives them competitive advantage through differentiated brand positioning and the ability to charge premium pricing while retaining customers. Tracking it reveals brand health.

The Coca Cola company has succeeded greatly in ensuring that it enjoys Customer-based brand equity. This is especially with regard to the component of brand awareness as virtually all people living on earth can recognize the Coca Cola brand.

capri said:

The Coca Cola company has succeeded greatly in ensuring that it enjoys Customer-based brand equity. This is especially with regard to the component of brand awareness as virtually all people living on earth can recognize the Coca Cola brand.

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They are majorly doing that by making use of celebrities to advertise their products and show how good Coca-Cola is to people which is making more people interested in buying the product

It's basically what the customer and how the customer feel about your product or brand, so you must strive to make your brand have a great experience around it to be felt by the customer.

I believe this should be the goal of every business owner out there or entrepreneur. A stage whereby your brand becomes a household name. Like KFC for example, i have never tasted one of their products before but i know them very well and talk about them.