In this article we describe David Aaker's Brand Equity model, an important concept within the marketing field.


Brand equity is an important concept within the marketing field which since the 90’s increasingly received more attention. Nowadays customers play a centrale role in Marketing and it is therefore important to respond thereto with a certain product offering. Brand equity can play an important role between this adjustment of demand and supply.

Aaker’s Brand Equity

In order to clarify the concept of brand equity, we use in this section of the website the marketing model of David Aaker’s Brand Equity. This gives a good insight into the individual forces that determine brand equity.

What is Brand equity?

Aaker asserts that brand equity is determined by interdependent five factors. Later more explanation over brand equity will follow, but first just take a look into the factors that influence brand equity. This is important for understanding the overall picture. It concerns:

  • Brand Loyalty
  • Brand Awareness
  • Perceived Quality
  • Brand Associations
  • Other Proprietory

How does Aaker’s Brand Equity model work?

  • The five factors form the resources of brand equity.
  • The combined sum of resources is brand equity.
  • The result from brand equity is perceptible in the form of the exampled here: satisfaction market share etc.
  • Brand equity is always perceived by a client, i.e. he or she experiences it as such.

A company tries to create a brand equity by "sending" a certain message. A message can be, for example, an advertisement-campaign: "Jumbo, the cheapest supermarket of the Netherlands". Now the client can indeed experience it as such but it is also possible that they interpret or experience this differently. If the message goes through, the chance is high that a distinguishing capability relative to the competitor is generated. By contrast at a miscommunication, balance between demand and supply will likely not come to stand.

Example Retail Corporation:

Resource Brand Association Retail Corporation
Action trying to develop a certain association in the mind of the client Advertisement - "The cheapest supermarket"
Goal to win market share gain 3% market share from the competitors
Result market share x% +2% market share

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