Define 'brand equity.'

Brand equity refers to the value a brand adds to a product or service based on its recognition, reputation, and the customers' perceptions associated with it. A well-known brand name can significantly influence consumer purchasing decisions and command higher prices compared to generic or lesser-known brands. This perceived value arises from various factors, including brand loyalty, perceived quality, and brand associations that consumers have developed over time.

While other options touch on aspects related to branding, they do not fully encapsulate the concept of brand equity. For example, the perceived value based solely on price does not consider the broader context of brand loyalty and reputation. Similarly, while market share is an important metric, it does not reflect the qualitative value of a brand as influenced by consumer perception. Finally, customer service contributes to a brand's reputation but is just one aspect of the overall brand equity, which encompasses a wider range of factors including emotional connections and brand heritage. Thus, the correct understanding of brand equity is best captured by recognizing the value added through a well-known brand name.