Brand Equity & Customer Equity

February 12, 2025

MSG Team's other articles

Introduction The internet is considered as a channel partner. Hence online marketing is to be considered as a channel marketing strategy. An Organization needs to define specific objective from internet marketing and building communications as well as scheme around it. Internet marketing is one form customer touch point where companies directly interact with existing as […]

Customer Retention Strategy

Following are some of the important strategies that should be implemented for increasing customer retention: Changing Retention rates: There are two basic strategies for changing retention rates: Fixed response higher spending: Retention rates can be substantially increased by spending more on creating new business strategies or remolding existing strategies to increase retention rates. Fixed spending […]

The Power and Perils of Influencers in a Social Media Driven World

What Makes Influencers So Powerful in our Social Media Driven World? We live in a world where social media has become indispensable and where content goes viral within no time if it engages the readers. Indeed, our lives are so dominated by Facebook, Instagram, and Twitter that we just cannot imagine a day where we […]

Importance of Integrated Marketing Communication

Integrated marketing communication plays an integral role in communicating brand message to a larger audience. Integrated Marketing communication helps in integrating all essential components of marketing to communicate similar message to potential and existing end-users. Integrated marketing communication goes a long way in creating brand awareness among customers at a minimal cost. Integrated marketing communication […]

Brand Categories

Every marketing management student would have heard the story about origin of branding, that it was initially used to identify and isolate a particular stock of cattle in the west. From the Wild West, branding as a concept has grown and changed beyond its original purpose. Today brands have become the common tool for us […]

Search with tags

No tags available.

Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers.

Brand Equity and Customer Equity have two things in common-

Both stress on significance of customer loyalty to the brand.
Both stress upon the face that value is created by having as many customers as possible paying as high price as possible.

But conceptually both brand equity and customer equity differ.

While customer equity puts too much emphasis on lower line financial value got from the customers, brand equity attempts to put more emphasis on strategic issues in managing brands.
Customer Equity is less narrow alternative. It can overlook a brands optional value and their capacity effect revenues and cost beyond the present marketing environment.
Just as customer equity can persist without brand equity, brand equity may also exist without customer equity. For instance I may have positive attitude towards brands - McDonald and Burger King, but I may only purchase from McDonald’s brand consistently.

To conclude, we can say brands do not exist without consumer and consumer do not exist without brands. Brands serve as a temptation that utilizes other intermediaries to lure the customers from whom value is extracted. Customers serve as a profit-medium for brands to encash their brand value. Both the concepts are highly co-related.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.