Examples Of Negative Brand Equity

Brand equity develops and rise as a result from a customer’s experience with the brand. The process usually involves the customer’s natural relationship with the brand that will extend the following predictable model: First the Awareness of the brand which will institute the brand to its target market where they will use advertising tools to get it noticeable. Then Recognition, when the customers are familiar with that particular brand, they will tend to recognize the brand in everywhere, such in store or anywhere else. Trial, if the consumers recognized the brand, they will start to try their product or service. And Preference, if the customers have good experience with the product or service, the brand will instantly became their preferred choices. Lastly, the Loyalty, after a series of good experience that the customers have with the brand, they would start to recommend them to other. Not only that, they would also continue to use this brand in a particular category. Moreover, if customers think highly of the brand, the product that associated with the brand will also gain benefits from it.

In a smaller scale Wegmans a local America super market chain has gain huge brand equity when they open a new branch in the new territories.

Example for negative brand equity, first, Goldman Sachs when they lost their brand value in term of financial brand in 2008 in conjunction with that year financial crisis. Second, Toyota, in 2009 they suffered a brand lost when they had to recall more than 8 million vehicles because of an unintended acceleration. And lastly, BP or formerly known as British Petroleum lost a huge brand equity in 2010, results from the oil spilled in U.S Gulf of