
Brand equity: It’s worth more than companies realize
Plenty of consumers sip Maxwell House coffee because it’s "good to the last drop," and would proudly answer "yes" if asked, "Doesn’t your dog deserve Alpo?" The brand-building punch of such slogans helps companies turn shoppers into customers. But if brand equity boosts sales to consumers, doesn’t it make sense that it also affects relationships with resource suppliers, corporate partners, government bodies and other constituencies? Cheryl Burke Jarvis, professor of marketing at the W. P. Carey School of Business, thinks that companies are undervaluing brand equity in their financial calculations.