What is the difference between brand equity and brand parity?


Brand equity is a financial calculation. It is the difference between a commodity product or service and a branded one. For example if you sell a plain orange for $.50 but a Sunkist orange for $.75 and the Sunkist orange has brand equity you can calculate it at $.25 per orange.

Brand parity exists when two different brands have a relatively equal value. The reason we call it "parity" is that the basis of their value may be different. For example, one brand may be seen as higher in quality, while the other is perceived as fashionable.

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All opinions my own. Originally posted to Quora. Public domain photo by hbieser via Pixabay.

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Dr. Dannielle Blumenthal is an author, independent brand researcher, and adjunct marketing professor with 20 years of varied experience. An avid researcher and prolific, creative writer, Dr. Blumenthal's interests span communication, marketing, qualitative media content analysis, political rhetoric, propaganda, leadership, management, organizational development, and more. An engaged citizen, she has for several years worked to raise awareness around child sex trafficking and the dangers of corruption at @drdannielle on Twitter. You can find her articles at Medium, www.AllThingsBrand.com and www.DannielleBlumenthal.com, and she frequently answers questions on Quora. All opinions are Dr. Blumenthal's own.