Reflections about Brand Equity, Brand Value and their Consequences

Although brand equity is a widely accepted concept, its definition is frustratingly elusive (Knowles, 2008). Our aim thereby is to point the direction for future research on the conceptualization of brand equity, as well as to encourage theoretical and empirical studies that assess its possible consequences. We argue for the need to distinguish between brand equity and brand value, which, although related, are discrete concepts. The essay also discusses how brand equity is able to generate value for customers and the company, whereas brand value is able to generate value only for the company and its shareholders.