Final answer:
The statement is true; brand equity can indeed be built by linking a brand to various sources, such as distribution channels and other reputable brands, which helps create a positive perception and strong reputation, leading to increased customer loyalty and competitive advantage.
Step-by-step explanation:
The statement that brand equity can be built by linking the brand to sources, such as channels of distribution as well as to other brands, is true. The concept of brand equity refers to the value that a brand adds to a product or service, beyond its functional benefits. Building brand equity involves creating a positive perception and a strong reputation for the brand among consumers, which can, in turn, lead to increased customer loyalty, premium pricing, and a competitive advantage.
Entities use multiple strategies to enhance their brand's equity. One such strategy is the leveraging of distribution channels, which can magnify a brand's presence and availability to consumers, thus increasing the convenience factor and trust in the brand. Moreover, forming strategic alliances with other reputable brands can transfer positive associations and credibility, reinforcing the brand's value in the eyes of consumers.
For instance, a tech company may enhance its brand equity by having its products sold through a well-known retailer, or by partnering with a popular software brand to present a bundled offering. The consistent messaging across different platforms, as detailed by Naomi Klein's concept in No Logo, exemplifies synergistic advertising practices that can also enhance brand equity by ensuring consumers receive reinforced brand messages across various mediums, thereby strengthening brand recall and favorability.