This is known as brand exploratory. The brand audit should be used to answer questions such as: Are the current sources of brand equity sufficient? Do certain brand associations need to be strengthened? Is the brand unique? .
Brand equity consists of two components - brand strength and brand value. Brand strength refers to the brand associations held by consumers, whilst brand values are the gains that accrue when this brand strength is leveraged to obtain superior current and future profits. As stated by Lasssar, W., Mittal, B., and Sharma, A., (1995) "Put simply, brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors". Lassar, W., et.al., (1995) also indicated the result is consumer loyalty and a willingness to pay a premium price for the brand. .
Further more, Duffy, J. (2000) indicated that brand equity is represented by customers' recognition of consistent quality, satisfactory physical attributes of the product, and other emotional satisfiers.
The study of Pitta, D., & Kastanis, L., (1995) identifies that brand equity also facilitates new product introductions through the use of brand extension. Leveraging the brand equity of a successful brand promises to make introduction of a new entry less costly by trading on an established name.
The measurement of brand equity is important for a number of reasons. Firstly, the simple act of measuring something somehow adds further proof of the existence of what is being measured. Secondly, measurement provides a greater insight into the brand's strength, character and uniqueness, information that can be used to ascertain current brand and market position and future strategic planning. Lastly, the measurement of brand equity may allow for an approximate financial valuation to be placed on the brand name. (Cooper, A., 1998). Regardless of how brand equity is conceptualised, measurement and tracking over time and across international borders are essential to manage and control brand equity effectively.
