Have you noticed that more often than not, whenever someone speaks of a burger, the first name that comes in our minds is McDonald’s? The same happens with cold drinks and Coke, luxury watches and Rolex, toothpaste, and Colgate, etc. The companies manufacturing these products have such high brand equity that it is hard for other products to stand against them.
What is Brand?
The brand is the name, logo, image, sound, slogan, or any other thing that a product or service is associated with by the customers or potential customers. Brands are the result of people’s perception of the product, service, or company.
What is Brand Equity?
Brand Equity refers to the value or worth of the brand in the market. It is the outcome of the perception of and experience with the product or service of a particular brand or company of the customers or potential customers.
Brand Equity can be of two types- positive and negative.
Positive Brand Equity- It is said to be positive brand equity when the perception and opinion of the product or service associated with a brand are positive. People think highly of the brand and are likely to recommend it to other people and leave positive feedback.
Advantages of positive brand equity-
- Higher Price. A product with high positive brand equity can charge higher than their competitors and increase their sales as well as profits.
- The equity of a brand does not remain restricted to a single product. Different products of a brand enjoy the same equity and hence, making more profits with more products.
- Stock Price. High brand equity increases the stock prices of a company in the stock market.
Negative Brand Equity- When the customer is disappointed or dissatisfied with a product or service, he or she is likely to form a negative opinion or perception of the brand. He or she will also give negative feedback thus influencing the perception of another potential customer. This leads to negative brand equity.
Negative brand equity can critically damage the sales and reputation of a brand. It not only causes tangible loss of monetary profit but also of intangible resources like positive image, reliability, and trustworthiness. Once a company gains negative brand equity, it is very difficult to gain back the old reputation.
Brand Equity Survey
Now that we know how crucial brand equity is, it is undeniable that keeping track of a company’s brand equity is imperative. Market research companies or business owners use different tools and metrics to evaluate the brand equity of a particular company. The process through which we determine the current state of the brand equity of the company is called the Brand Equity Survey.
Brand Equity Survey is important to have the data required firstly, to achieve and then maintain positive brand equity. It is not an easy or simple task but the success or failure of the company is highly dependent on it.
Companies who wish to get the job done perfectly often take the help of market research companies. The people working in market research companies are professionals who are trained in collecting and analyzing data related to the market and companies. One of the market research companies in India is Aeon Market Research which has an impressive track record of conducting brand equity surveys and delivering reliable results.
The measurement of brand equity can be classified into two broad categories-
Quantitative Measurement- This kind of measurement involves the collection and analysis of Economic data, i.e., sales, finance, HR, etc. It only gives us past data and hardly tells anything about the future possibilities.
Qualitative Measurement-This kind of measurement involves the collection and analysis of Emotional Data and can be accomplished through surveys, focus groups, etc. It can give us a bigger perspective and tells us about the thoughts of the customers indicating future possibilities.
How to Conduct a Brand Equity Survey
A brand equity survey is conducted to understand how the brand is perceived by the customers and potential customers and then evaluate how the positive brand equity can be increased. Conducting such surveys is extremely important for the survival and sustenance of any brand or company.
Brand Equity Surveys not only indicate how good or bad the company has been doing but also indicate what steps should be taken further. Though it is not easy to conduct a proper Brand Equity survey here are a few things that should be kept in mind while conducting one-
- Brand Association
What you think of your company and what you associate it with hardly has any relevance in the market. Everything depends on how your customers or potential customers view the brand and what they associate it with. You figure this out by asking the question in the survey like –
What comes to your mind when you think you [brand name]?
- Emotional Collection
Humans are emotional beings. Emotions and feelings play a very significant role in our decision-making process whether it is everyday life decisions or important decisions of life. You need to know how the customers connect with your brand. For this, you can ask questions like-
What do feel when you think or hear of [brand name]?
- Brand Description
People trust their friends and family more easily than any advertisement or salesperson. It is important to know how your customers describe your brand or products to other people. You can know this by asking questions like-
How would you describe [brand name]? or
What are the three words you would use to describe [brand name]?
- Customer Experience
It is probably the most important aspect of the brand equity survey. It not only talks about the experience of the customer but also the product. You can have an idea of the positive or negative experience of the customers by asking questions like-
How was your last experience with [brand name]? or
What was your best experience with [brand name]?
For more information or help regarding brand equity surveys, you can contact AEON Market Research. Call : +91 9810622456