Brand Value

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Brand Value?

The net present value or the future value of the cash flows that are attributable to the brand name or brand personality is known as brand value. A brand is an intangible asset of a business, and helps in differentiating between a company’s book value and market value. The difference is mostly attributable to the ‘brand’. Brand value is also known as brand equity.

There are a number of measures to measure brand value or brand equity. Some of them are as follows:

-  In a consumer goods industry, number of repeat purchases, customer loyalty towards paying a premium for their products serve as good measures.

- In other general industries, another measure of brand loyalty from an employment perspective is the number of people willing to associate with the brand/ company at the same or lower salary.

Brand value depends a lot on the inherent characteristics of the product that make up the brand.


In USA, there was a huge uproar when Coca-cola introduced the New Coke in 1985. People staged a huge protest, because the company had meddled with the taste of the beverage. This was a sign of the brand value of the product, and its inherent characteristics. The reaction forced Coca-cola to reintroduce original Coke named Coca-Cola Classic.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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