Brand equity refers to the value a brand adds to a product or service beyond its functional benefits, stemming from consumer perceptions, attitudes, and experiences associated with the brand. Strong brand equity results in customers being willing to pay a premium for a product, choosing it over competitors, and maintaining loyalty even in the face of similar alternatives. It encompasses aspects like brand recognition, perceived quality, emotional connection, and customer loyalty. Companies with high brand equity benefit from increased market share, reduced marketing costs, and the ability to introduce new products successfully under the same brand name.