Emotional Capital

Posted in Marketing and Strategy Terms, Total Reads: 1959

Definition: Emotional Capital

It is the brand goodwill or value of a product of a firm that encourages people to keep on buying the products and services of a company. It is also defined as the feelings, perceptions, values and beliefs that the employees have for their organization.

It is the emotional and psychological asset in the balance sheet of an organization that helps determines whether or not people will buy the product from you, will work for you and enter into business with you. Higher the emotional capital, higher will be the motivation in the employees to work efficiently for the company and higher will be the customer base.

Emotional Capital has three core elements:

• External Emotional Capital: The feelings of the customers and the external stakeholders towards your business. This is generated by appealing to the customer’s feelings and aspirations which results in repeat purchases, customer loyalty, lifetime relationships and referrals.

• Internal Emotional Capital: The emotional connect and commitment held in the hearts of the people working for your business. When people of an organization are treated as an asset and valued, they work with energy and enthusiasm.

• Intra-personal Emotional Capital: the balance between personal and professional life by investing focused and positive energy in both of them.


Hence, this concludes the definition of Emotional Capital along with its overview.

Browse the definition and meaning of more terms similar to Emotional Capital. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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