ANGELES UNIVERSITY FOUNDATION

Angeles City
COLLEGE OF BUSINESS AND ACCOUNTANCY
E-COM; E-Commerce

Module Activity

Submitted by:
Sale, Ian Carlo A.

Submitted to:
Donna May Estimada, MBA, SPBE

Date:
November 3, 2022
 The value premium that a business receives from a product with a well-known brand as
opposed to a generic substitute is referred to as brand equity. By making their products
memorable, instantly identifiable, and superior in terms of quality and dependability, businesses
can build brand equity for their goods. Brand equity can also be developed through mass
marketing initiatives.

Customers are willing to pay a premium price for a company's products when it has strong
brand equity, even if they could acquire the same item from a rival for less. In essence, clients
pay more to conduct business with a company they respect and are familiar with. The price
differential flows to the margin of the company with brand equity because it does not have to pay
more than its rivals to produce and sell the product. Because of its strong brand, the company can
charge more for each sale.

Brand equity can also be described by the terms "sway," "good standing," or "commercial value."
Although a consumer must first be aware of the brand name, brand equity and brand recognition
are similar in that brand equity highlights the value that the product's brand name adds. As more
and more of your customers become personally aware of your brand, brand equity is developed.
Prior to developing either a favorable or bad view of it based on their own experiences, they
must first be aware of its existence. Afterward, they must come to a subconscious value that they
identify with your brand.

Customers are more inclined to choose a company with a solid reputation for quality and are also
willing to pay more for goods and services from a well-known and trusted brand, so having a
positive brand reputation helps a business draw in new business and keep hold of its current
clientele. Additionally, brand equity can set your company's goods and services apart from those
of your rivals. A strong brand may help generate revenue because it increases consumer
satisfaction and loyalty, gives you the power to demand a higher price, and gives you a bigger
voice on all platforms and channels.

An example is Apple. With a tiny investment in advertising, Apple can generate a lot of
attention due to the value and adoration of their brand. One advantage of owning a valuable
brand is that your advertising budget will go farther since consumers will pay more attention to
advertisements from a well-known or beloved brand. That comparatively low advertising
expenditure further demonstrates that a brand is not just built through advertising. For decades,
Apple has built its brand through both consumer-focused product delivery and advertising. The
majority of their goodwill stems from the satisfied customers that use their products. Many
consumers won't even contemplate purchasing goods from Apple's rivals.
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