Which of the following is true of brand equity?
A)It is a tangible asset that adds value to a service.
B)It allows the seller to use undifferentiated marketing.
C)It enables the seller to hide product successes from its competition.
D)It is goodwill that results from a favorable impression.
E)It allows the seller to stop all promotional activities and redirect its funds to other areas of operation.

Question

Quizplus · Accepted Answer

Brand equity refers to the value that a brand adds to a product or service. It is goodwill that results from a favorable impression, which can lead to customer loyalty, increased sales, and higher profit margins. It cannot be touched, felt or seen but is built up over time through consistent efforts. Therefore, option D is the correct choice. The other options do not accurately define or describe brand equity.

Which of the Following Is True of Brand Equity