Brand equity: the psychology behind brand value and its influence on consumers

The values associated with a brand are key to connecting with audiences and building customer loyalty. In this context, brand equity reflects what companies need to develop and strengthen in order to earn that loyalty. All the details below. 

Brand equity refers to the values and emotions a brand generates among its audience. It is essential for building customer loyalty and expanding into new markets.

It is an intangible asset that must be carefully developed, as creating brand value that evokes positive emotions offers numerous advantages. How is it built? What factors should be considered? And which companies have successfully developed brand equity that strengthens their value proposition? These and other aspects are explored in this article: all about brand equity.

Brand equity: definition and key concepts

To begin with, it is important to define what brand equity means. What does it involve exactly? What aspects should be taken into account?

• It relates to the company’s philosophy, including its vision, mission and core values.
• It is built from the ground up and serves as a key intangible factor for positioning against competitors. 
• It is developed through the messages a company communicates, supported by essential marketing tools such as storytelling. 
• It must align with what matters most to the target audience.
• It involves ongoing feedback between the company and its customers, allowing brand values to adapt to audience priorities.

In relation to brand equity, the following ideas help better understand its importance in positioning a company: 

• Brand recognition: different attributes are associated with a company’s name and logo. Just seeing it allows the audience to form a quick impression of the company.
• Company values: for example, sustainability, fair trade, attention to handcrafted detail, and more.
• Customer loyalty and retention: this is the key to building a loyal audience for a company’s products and services.

Brand equity: examples of successful brands

Today, there are countless examples of positive brand equity that make brands instantly recognizable through their logo alone:

• Google

The multinational’s logo quickly generates positive associations among users. Today, Google is synonymous with technology and innovation, efficiency and effectiveness, and value for people. Its strong focus on employee wellbeing is well known, with offices designed to create a friendly work environment. It is consistently ranked as one of the most desirable companies to work for, according to numerous surveys and studies. 

• Ikea

The Swedish multinational is another benchmark in terms of brand equity. Several key factors have helped it build a brand value that truly resonates with customers: a focus on family and friends, the idea that life’s small pleasures do not have to be expensive, sustainability, affordability, and the ability to turn any space into a home. Creativity and innovation also play a major role, with a constantly evolving product range, along with strong customer experience in its stores. 

• El Corte Inglés

This Spanish company also stands out as an example of how to build positive brand equity. In this case, the brand is closely associated with service, always focused on meeting customer needs. It conveys a sense of closeness, reliability and inclusiveness, even creating the feeling of a “large family” among the company, its employees and its customers. It is also linked to accessible luxury and quality, supported by major sales campaigns and promotions. 

Brand equity models: how leading brands build their brand equity

To assess how strong brand equity is being developed, there are several established models and frameworks created by agencies and experts that are widely used for this purpose. Some of the most effective models, used by leading brands like those mentioned above, include: 

1. Interbrand: evaluates financial performance, the influence of the brand on purchasing decisions, and its ability to grow in value over time. 
2. David Aaker: focuses on five key dimensions, including perceived quality, brand awareness, customer loyalty, brand associations and other intangible assets.
3. Kevin Lane Keller: proposes a model structured in four levels, ranging from brand identity and associations to meaning, customer response and brand resonance.

Brand equity is a complex concept that requires the knowledge and expertise of specialized professionals to be developed effectively. At EAE Business School Barcelona, an innovative program combines marketing and psychology to help companies build a strong identity and achieve positive results: the Master in Consumer Psychology and Behavior. It has become a standout option for those looking to develop or advance their careers in corporate identity, marketing and business communication. The program integrates marketing and psychology to train experts in corporate identity and communication. For more information, contact our academic team.