“...a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a company.”
This is Lund University in Sweden providing the most frequently used definition of brand equity. Before the internet, brand assets and liabilities were physical. But thanks to the rise of the global knowledge economy, virtual digital assets are even more important than anything physical.
In everyday life, brand equity is what adds the “added value” to a product. Brand equity is why a Hermes scarf is worth way more than a scarf from Target.