1 MC Individual Questions Chapter Three 1 What is brand equi

1 MC Individual Questions: Chapter Three 1. What is brand equity? Discuss a brand that you think has garnered brand equity and describe how this brand equity has been achieved. What is brand positioning? Describe a brand that you think illustrates a clear positioning strategy·Describe four different positioning strategies, using examples to illustrate. 2.\" 3.\" Describe the elements that influence brand choices by consumers.\" 4 List the three stages of brand loyalty, giving examples of each stage to show the difference among the stages. 5.. Identify the four steps in the brand building process and explain each step. Describe what makes a good package for a brand. Use an example to show a \"good\" package. 6.

Solution

Brand Equity: It is defined as the commercial value that is derived from the consumer’s perception of the brand name of a particular product or service, rather than the product or service itself.

In other words, it is the added commercial value of a product or service which may be reflected by how the customers think, feel, perceive and act with respect to a brand.

For e.g. a premium clothing brand generates a brand equity for itself that customers will pay extra for its cost which they would not do so for any other brand.

Brand equity arises from many factors. Some of them are quality, service, exclusivity extra. There are many brands across the globe which price their products way higher than their peer brands and customers will pay a premium amount to own them. Rather, customers expect these brands to be high priced at times.

American Express Credit Cards

American Express is world’s leading credit card services provider. It’s credit and charge cards are priced higher than other credit cards of different companies. The Amex cards are purchased and used by customers because with the brand name of AMEX, comes a trust of a superior quality of customer service, ease of access and security of transactions. The lower end cards which have less yearly fee have fewer sales because customers perceive that cheaply priced Amex cards will have a low level of services quality.

How has Amex created its brand equity?

America Express has been in money lending business for more than past 100 years. Their core competency in money lending, value products for niche clients, level of superior customer service and customer security features like zero lost card liability have generated trust among the customers that they perceive Amex as a reputed brand and want to pay a premium price to own its products and services.