Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay compared to the value of the benefit they receive.
Brand rejection/negative associations. If someone associates your brand with something negative, they will purposely avoid your product. This can happen easily today with just one bad review, social media post, or due to true product defects, accidents and other issues that can turn public opinion against you. It’s critical to fess up and move on immediately. Launch a campaign to communicate any issues, work with your partners to inform and communicate the right message, launch a campaign to sway the public and get your word out.
Brand non-recognition. This is when your brand is simply does not enter in your customers mind when they make a choice. They have not seen or heard of you, nor are they aware of what differentiates you from others. Make sure your name is differentiated enough not to be generic, so that it stands out. If the non-recognition is for product/service level, consider creating brand names for your products or services, just like you’ve done for your own business. Find the differences in value between your product and your competitors and highlight that difference mercilessly.
Brand recognition. This is where you have entered your customers mind. Once they recognize your name, they are much more likely to choose your brand over one they have never heard of. Once you are at this stage, your brand needs to create value, emphasize differentiation in order to move your customers to the next stage.
Brand preference. This is where customers – given a choice between two brands – will choose yours over someone else’s. It often is the result of a sense of differentiation and that your product or service uniquely serves their needs, including personal fit of values, service levels, reliability and association. Any value-added features or services you include help them choose your brand over your competitors. Even though this is a great stage to be in, it’s not the final stage.
Brand loyalty. This is where customers will choose your brand consistently, even if they experience occasional poor service or if another product comes along that seems to be better suited to their needs. To achieve brand loyalty, you need to provide a product that is highly differentiated, with plenty of value added, but also you need to offer them remarkable service at a level they will not get anywhere else, engage them deeply in customized services that meet their specific profile and continue to grow and adapt to their changing needs. Providing this level of service will ensure that they will not switch easily.