Financial perspective

Based on the financial perspective, brand equity in the 1980s was seen as a tool that gave managers guidance on how to know brand improvement. In this point of view, stock prices or brand replacement were the focus of the measures (Myers, 2003).

According to Simon and Sullivan (1993), brand equity is described as “the incremental cash flows resulting from the sale of unbranded products to branded products beyond the cash flows.” Financial perspective supporters define brand equity as “the total value of a brand that is a separate asset-when sold or included in a balance sheet” (Atilgan et al., 2005).

As per Wood (2000), the possibility of giving the brand a cash value from a financial point of view that can be useful to executives in the case of a combination of companies into one, acquisition or action of selling off subsidiary business interests or investments.

It is certainly useful to forecast a monetary value for the brand, but it does not support marketers to understand the process of developing brand equity. Wood (2000) suggests that the marketing viewpoint f brand equity will support marketers to recognize the brand in consumers ‘ minds and plan effective marketing campaigns to create the brand.