Final answer:
Brand equity is crucial for a product's success and includes brand awareness, which is how familiar consumers are with a brand, and brand loyalty, which is consistent consumer preference over time. Apple Inc. is an example of a company with high brand equity, evidenced by its global recognition and strong customer loyalty.
Step-by-step explanation:
When discussing brand equity, two important areas to consider are brand awareness and brand loyalty. Brand awareness refers to the extent to which consumers are familiar with the distinct qualities or image of a particular brand of goods or services. A product with high brand awareness is easily recognized by consumers, which can positively impact the product’s success in the market. On the other hand, brand loyalty is when consumers consistently prefer a certain brand over others, potentially resulting in repeat purchases and higher customer retention rates. This loyalty is built over time through positive experiences with the brand, consistent quality, trust, and effective marketing.
For example, Apple Inc. has mastered both of these areas. Apple’s logo and product design are globally recognized, indicating significant brand awareness. Moreover, the company enjoys strong brand loyalty, with many customers committed to purchasing Apple products due to their perceived quality and consistency. Apple's brand equity in these areas not only allows them to set higher prices but also creates a strong competitive advantage in the technology industry.