What is an example of brand equity and licensing?


Quick Answer

An example of brand equity and licensing would be a clothing company licensing its name to be used on products that it doesn't make itself, such as how the Calvin Klein company puts its name on perfume and underwear, notes Entrepreneur. By licensing its name to be used on other products, a company benefits from the added value customers will see in the products due to the association with the brand, which is an example of brand equity.

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Full Answer

In addition to looking at brand equity through brand extensions such as the previous example, there are also financial and consumer-based perspectives that determine the value, or equity, of a brand, notes NetMBA. For example, a specific brand of computer that costs much more than its unbranded counterparts and is a popular buy with customers demonstrates the financial perspective of brand equity. In addition, if customers have had positive experiences using products of a certain brand, this also adds value and makes them loyal to the brand, strengthening its value in their eyes.

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