What is a clear indicator of a strong brand equity?

A clear indicator of strong brand equity is positive customer perception and loyalty. This stems from the idea that brand equity is built on how customers view a brand in relation to its competitors. When customers have a positive perception of a brand, they are more likely to prefer it over others, often leading to repeat purchases and greater customer loyalty. This loyalty translates into a stable revenue stream and can lead to an increase in market share, contributing to the overall strength and value of the brand.

High advertising costs do not inherently indicate strong brand equity; they could imply that a brand is trying to improve its visibility or market position rather than reflecting existing strength. Inconsistent product quality damages brand reputation and can lead to negative customer perceptions, which erodes brand equity over time. A limited customer base suggests that the brand may not be adequately reaching or resonating with a larger audience, which is a sign of weak brand equity rather than strength. Thus, positive customer perception and loyalty is the most definitive sign of robust brand equity.