Question

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

Answer 1

I believe the answer is: it is an asset that adds value to a service

Brand equity refers to the positive perception that the consumers have towards our brand. This considered as an asset because brand equity is strongly correlated with consumers loyalty. It creates the perception that our brand would always had a certain level of Superiority compared to other brands regardless whether their assumptions is correct or not.