By Nicole Radziwill & Sonduren Fanarredha
For an organization to deliver high-quality products and services consistently, it must be able to create and sustain long-term value. An organization’s brand therefore consists not only of its name, but also its logo, its overall image and how it is perceived. “Brand equity” is the additional value a brand acquires because of its reputation or prestige in the marketplace. Brand equity takes time to build and, since it can have an impact on buying decisions over time, it is a significant part of an organization’s brand recognition and value. Losing this equity because of brand damage can also have far-reaching negative consequences.
As powerful as it can be, brand equity is also fragile. There are many forces that can threaten it, including:
- Industry environments that are more uncertain and competitive.
- Consumers that are increasingly empowered and have a stronger idea of what they