What is the importance of brand equity in marketing?

Brand equity refers to the worth of a brand. It defines the value a business generates under its unique identity through its commercial activities. That value is based on how people think about and interact with the brand.

If people believe a brand is good, it has positive brand equity. Every business needs to build a good impression of its brand by gaining the customer's trust and ensuring an exceptional customer experience.

Brand equity enhances the assessed and perceived value of the company. It helps in enhancing brand awareness, posing a positively reputed exposure to the customers. Consequently, brand loyalty is promoted, which builds strong connections between clientele. Once that loyal companionship is created, the customers won't hesitate to pay more for your products.