Revenue and sales
Brand equity is the value a brand adds to a product or service compared with the same product without that brand.
It arises from the consumer's perception and experience: awareness, perceived quality, associations, loyalty. David Aaker, who theorised it in Managing Brand Equity (1991), describes it as a set of assets and liabilities linked to the brand, which can add value to the offer or take it away; in 1993 Kevin Lane Keller read it from the customer's side, as the difference that knowing the brand makes to their response. It is measured by the price premium customers accept, by loyalty and by resilience in a crisis.
An example
Two creams with the same formula: the one from the well-known brand sells at a higher price and with fewer discounts.
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