The company's excellence in design ideas and technology
has enabled it to become a quality leader, while the continuous
building of the brand equity has made it a price and sales
The company's success in building a strong brand equity
yields a number of marketing advantages and in the main,
it affects a more ready and favorable response by consumers
to the company's various marketing activities. A brand is
thought to have positive equity to the extent that consumers
respond more favorably to marketing activities when the
brand is identified, compared to when it is not.
Brand leaders like the company enjoy high brand credibility.
The company can therefore decreases the price sensitivity
of their target customers and can command greater price
differences than its competitors. In a competitive sense,
brand leaders draw a disproportionate amount of share from
smaller share competitors. This explains why the company
can stay as the price and sales leader in its industry.
In fact, the more loyal the customers become, the lower
will be the price sensitivity.