What is the difference between Brand Equity and Brand Value?

Difference Between Brand Equity and Brand Value

The common misconception between Brand Equity and Brand Value is that they are both the same things, but there is much difference between them. A brand is a product having a feature that distinguishes it from other products in the market.

The brand implies a promise made by the company to its customers. There are two measures that determine the worth of a brand – Brand Equity and Brand Value.

Brand value can be defined as the financial estimate of how much a brand is worth and calculated considering the market value of the brand. In simple words, how much customer is paying to purchase any particular brand is the brand value. The positive brand value of any product does not mean it will have positive brand equity.

Brand equity can be defined as the principally tangible value and importance of a brand to its customers. If the brand equity is good, it will have more potential business and results in higher brand value. Higher brand equity simply means that a particular brand has a loyal customer base. This makes brands to use to their advantage and set prices higher than their competitors, as they know customers are more likely to purchase their products.

Difference Between Brand Equity and Brand Value

• Brand value simply means the brand’s financial worth in the market, while brand equity is much more than brand value; it is the value and trusts the brand earns.
• Brand value implies the present net value of the brand, which may raise in the future, while brand equity is the customers’ perception of a particular brand.
• The brand value represents the brand’s total financial value in the market, while band equity represents how successful the particular brand is in the market.

The brand value and brand equity are connected with each other; good brand equity provides the brands the opportunity to set higher brand value. Whenever you have headed towards buying a particular brand without any hesitation, that means the product is having good brand equity. You trust the quality and service of the product.