What are the 2 general approaches to making an assessment of equity?

What are the 2 general approaches to making an assessment of equity?



1. Consumer level -- the difference in willingness to pay for a product when it possesses the brand name versus when it lacks a name (difficult to obtain accurate results)

2. Firm level -- the acquisition of another company reflects its tangible and intangible assets (including brand equity). The value of a well-positioned name will be greater in environments in which it is difficult to differentiate a new entry due to the levels of noise and competition in the market.


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