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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Brand Equity

Definition:

Brand equity is the value your brand has. It's usually linked to a few things, like

  • How many people have heard of your brand. (If no one has heard of your brand, you might not have a brand.)
  • How much people respect and like your brand. (If people hate your brand, you might have negative brand equity. For example, Al Qaeda Brand Aspirin probably wouldn't do so well in America.)
  • Your brand reputation. ("High brand equity" is a name you recognize easily and like or trust. That might be BMW, Disney, or the like.)
  • How readily your brand is recognized. (Shmoop, anyone?)