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Brand equity: to understand the dynamics of brand, Aaker provides a framework called equity. Brand equity refers to a "set of assets and liabilities of a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and of that firm's competitions". In other words, brand equity provides (or negative subtract) values of a firm in the form of price premium, trade leverage or competitive advantage. The brand assets can be categorized in five groups, below:
1. Brand loyalty
2. Brand name awareness
3. Brand perceived quality
4. Brand association in addition to the perceived quality and
5. Other property brand assets like patents, trademarks, channel relationship, and so forth.
Aaker illustrates the influence of these factors on the brand equity and its contribution to the consumer and the manufacturer or owner firm.
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