Question

Which of the following best describes brand​ equity?

A. The return on investment a firm receives from a brand
B. The extent to which two different brands in the same product category are similar
C. The total financial value of a brand
D. That the brand is legally protected from imitation
E. A measure of the​ brand's ability to capture consumer preference and loyalty

Answer 1

Brand equity best describes a brand's ability to capture consumer preference and loyalty, contributing to customer retention, attraction, and a competitive market advantage.

Step-by-step explanation:

Brand equity refers to a measure of the brand's ability to capture consumer preference and loyalty. It is not merely the financial value of a brand or the return on investment it brings, but rather the intangible benefits that a brand has due to consumers' perceptions and experiences with the brand. Brand equity can lead to premium pricing, a strong customer base, and a competitive advantage in the market. Good brand equity translates into customer retention and the attraction of new customers through positive word-of-mouth and brand recognition. Legal protection and similarity to other brands do not define brand equity; instead, they are related business concepts.