Question

Under Armour wants to assess its brand equity more effectively and asks its marketing team to convince upper management why it is important to spend the money on measuring it. Which reason is the most convincing that the team should use?

Answer 1

Answer:

The correct answer is letter "A": Brand equity is strategically important and correlates directly to Under Armour's profitability.

Explanation:

Brand equity refers to the perception consumers have about a firm that affects its value. Brand equity could be positive or negative. It is an important element for companies aiming to settle in the market through marketing strategies that generate more profits by attracting more customers. Brand equity can be measured by price, customer satisfaction, popularity, brand awareness or market share.

Thus, the marketing team of Under Armour could state that conducting a brand equity measurement is crucial because it is related to the firm's ability to generate profit.