Brand equity is the value that a company gets from having a recognizable brand name. It includes the customer’s perceived quality of products or services associated with the brand and their loyalty to it. Companies typically build brand awareness to increase brand equity since customers who know and recognize the brand will be more likely to purchase its products or services. Brand equity also helps differentiate a company from its competitors and generate more business. Therefore, companies should invest in building a solid brand to create a competitive advantage and increase their profits.
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