Power, Premium and Potential
Brand Equity is a commercial asset, the value of which is determined by the ability of brand associations to predispose
consumers to choose the brand over others or pay more for it, both now and in the future
BrandZ now includes three Brand Equity summary metrics, which summarize a brand’s ability to generate these three types of consumer predisposition – Power, Premium and Potential
- Current demand - Power measures consumers’ predisposition to choose a brand over others.
- Price Premium - Premium measures consumers’ predisposition to be willing to pay more for a brand.
- Future demand - Potential measures consumers’ predisposition to stick with
a brand in the future, or try it for the first time.