Brand equity simply refers to the value of a brand in the minds of customers. That is, how the customer experiences and perceives the brand determines its value. It measures how well customers know, like, and trust the brand. Positive brand equity implies that customers recognize the brand, feel well towards the brand, and likely choose it over competitors. Consistency, reliability, and keeping promises assure building this value.

For instance, Starbucks has created brand equity by ensuring consistency across locations. The patron knows exactly what to expect-the taste of the coffee, the quality of service, and the pleasant ambience. Trust is built from such consistencies, and customers will keep coming back, even if someone else offers a cheaper option right across the road.

This would, of course, require time and effort because it would mean that there must be alignment with each customer experience with the promise of the brand at hand. The quality of the product or friendly customer service, the accuracy in orders, consistent delivery builds positive associations, allowing a brand to command a premium price eventually. When customers are assured that a brand can satisfy their needs, they will naturally be more loyal to the brand even when it offers cheaper alternatives.