"A concentrated, dynamic measurement of brand equity, EquiTrend allows an intuitive comparison of brands across product categories. In our measurement, basic awareness - a mass of ‘familiarity’ forms the foundation for the brand, and its equity - the momentum, is measured by the promise of quality and purchase potential. We measure all these aspects in our equity score, and further our understanding with the descriptive variables of brand expectations and distinctiveness. While a top-level measurement, EquiTrend is intended to be thought provoking and to catalyze introspection for the brand." - Deanna Wert, Vice President, Brand & Reputation Practice, Harris Interactive

EquiTrend’s 6 Key Measures

In 2004, brand strategists and methodologists reassessed the EquiTrend study, and implemented some changes to provide more comprehensive diagnostic results. EquiTrend is now a simple yet multi-faceted answer to brand equity benchmarking.

With these improvements, EquiTrend effectively provides a concise understanding of a large number of brands, viewed from a wider angle. Ultimately, EquiTrend is unique because it provides a big-picture perspective: an understanding of a brand’s widest appeal among the general population, and its status within the universe of brands at large.

As most brand managers are well aware, achieving and managing brand equity is sometimes ambiguous and comprised of a number of factors.

Therefore, EquiTrend was designed to focus on six measurements that were carefully chosen to reflect the fundamental characteristics on which we all judge brands on a daily basis:

Familiarity: In order for a brand to be able to sustain a presence in the marketplace, people must be familiar with it. Our assumption is simple (in most cases): the more people know your brand, the more likely they are to buy your brand if they like it.

Quality: Previously the cornerstone of EquiTrend, this measure has always been intended to provide a benchmark of the general population’s opinion about a brand. Perceived quality is an abstract measure – and suggests that, whether we are aware of it or not, we have an organized world of brands that ranges from upscale to downscale. Perceptions of quality can be influenced by exposure to advertising, nostalgic associations with a brand, etc. – and provides us with a sense of what the world thinks of each brand.

Purchase Intent: This measure indicates the likelihood of the consumer’s relationship with the brand. The question is asked in the context of "regardless of price, how likely are you to purchase this brand, etc." This allows us to gather a sense of how much the brand is actually perceived as relevant and appropriate for the consumer. In other words, how do consumers perceive this brand to fit in with their lives?

Equity: This is a score that we calculate and use to rank the brands overall, based on a calculation of Familiarity, Quality and Purchase Intent. The Equity score was created to evaluate the combined performance of the brands in these three areas.

Brand Expectations: Although not part of the Equity calculation, this measurement was chosen to supplement the knowledge gained regarding a brand’s scores on Purchase Intent and perceived Quality. After consumers were made aware of your brand, bought it and used it – did it live up to its promise? Did it deliver on what they expected, compared to other brands in its category?

Distinctiveness: This measure is also not part of the Equity calculation, and was intended to round out our understanding of how the category players might be differentiated from one another, in the minds of consumers. This measure provides a supplemental perspective on a brand’s status among its competitors. In other words, are there brands that stand out more than others to most consumers? Can we determine if a brand is perceived as unique in comparison to its competitors?

Trust: Understanding the bond between a consumer and a brand also requires an analysis of consumer trust in the brand. Trust can be a driver of differentiation for a brand that is enduring and resistant to the competition. Trust involves more emotional connections and self-expressive benefits, than the more functional attributes and benefits of a brand.