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Seminar paper from the year 2020 in the subject Business economics - Miscellaneous, grade: 1,0, University of Applied Sciences Trier, language: English, abstract: In a global world where countless functionally similar products are offered, there must be a suitable reference point by which the success of a company can be defined - the brand equity. The following work therefore aims to provide a comprehensive overview of brand equity and its creation, measurement and maintenance. 1989 California - This year saw the start of an eight-year experiment in the USA, in which an identical compact car was sold under two different brands: the Toyota Corolla and the Chevrolet Prizm. The Toyota Corolla was launched several years earlier and had already gained the trust of many consumers in terms of quality, thus benefiting from a positive brand equity. The Chevrolet Prizm, on the other hand, was a completely new name for consumers in the compact car class. Despite the same technical characteristics of both vehicles, the Prizm was consistently rated worse and the price of the car was also lower than the one of the Toyota Corolla. What does the experiment demonstrate?
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