Question

**PRINCIPLES OF MARKETING**

Brand equity means that a brand enjoys customer loyalty, perceived quality, and brand-name awareness.

Question 1: Define the terms (1) brand equity and (2) brand loyalty.

Question 2: To what brands are you personally loyal (name 3)?

Question 3: What is it about the product (for each of the 3 brands you are loyal to) that creates brand loyalty, and, thus, brand equity?

Answer 1

Ans 1:

Brand equity is the marketing term that describes a brand's value. It is the commercial value that is derived from a customer’s perception or experiences of a brand name rather than from the product or service itself. Brand equity makes a brand superior or inferior.

"Brand Loyalty is the tendency of a consumer to continuously purchase one brand's products over another’s". It is the positive association that consumers attach to a particular product or brand. It helps to build brand ambassadors and retain customers over a long period.

Ans 2:

I am personally loyal to Apple products, Louis Vuitton, Mont Blanc

Ans 3:

Apple has a success story backed by innovation and continuously focuses on adding new features to existing products as well as launch new products. Apple products are seen as market leaders and are aped by all companies in the product segment. Using Apple products is also seen as a status symbol as its highly-priced and used by customers who know quality and appreciate it. It is liked and used by market leaders. It builds brand equity hence it has huge brand loyalty. Apple customers will ensure they buy their latest product offerings be it smartphones, smartwatches, laptops, accessories, etc.

Louis Vuitton is one of the world’s most valuable luxury brand. It is a division of LVMH who owns 50 plus other brands. The brand equity of Louis Vuitton is very high. It is associated with high class, luxury bags, and very high-quality products. Having Louis Vuitton bag is a matter of pride and it is used by all bigger than life personalities actresses, socialites, business professionals. It is highly-priced so anybody having a Louis Vuitton bag will be deemed to be classy, elegant and rich. The brand's perception creates brand equity which also benefits the parent company LVMH. It has a loyal customer base which are customers who appreciate and can afford high-quality bags. They use vintage leather to make their bags. It is on the list of the top 100 most valuable brands.

Mont Blanc Pens are associated with the writing culture over the century. It is a global luxury brand. They have high-class gold and fountain pens. They have fine quality pen and accessories which have unique design and exceptional quality. They are focused on selling elegance, sophistication, and nostalgia. The top management professionals buy them. It is seen as a matter of pride and success to own and display a Mont Blanc pen or product. The product is sold and displayed at the top of the league stores. It is uniquely displayed and stands out elegant and solid. The brand is advertised with nostalgia, elegance, and class. It encourages all wannabes to aspire to purchase it at some stage in their professional lives.

To conclude customers like to be associated with products with high brand equity as it shows they have arrived in life. Consumers get used to a particular brand name and its association with quality, class, and style. The aspiration and inspirational value associated with the three brands mentioned above encourages repeat purchases, desire to buy more of their products and the desire to acquire the latest product even at a higher price.