How Do You Measure Brand Equity?

Most evaluations of Brand Equity involve utility estimation. Specifically, we attempt to measure the value (utility) of a product’s features and price level and also measure the overall utility of a product when including brand name. The difference between total utility and the utility of the product features is the value of the brand. In other situations, the utility of the brand is measured directly and added to the feature utilities to produce an overall utility for the product. Besides utilities, contributing factors such as current awareness levels of each Brand, overall perceptions of each Brand, and Brands currently used should be measured. It is also useful to obtain estimates of marketing, advertising and promotional expenses for the major Brands in the market. Together with utility estimates, this information provides a more complete picture of the relative value of each Brand and allows you to understand the major forces driving Brand Equity – product features, price, market awareness, market perceptions and expenditures to build and support those Brands.