The FINANCIAL — The Harris Poll on April 20 released its 28th annual EquiTrend Study, revealing the strongest brands in nearly 100 categories across the media, travel, financial, automotive, entertainment, retail, restaurants and household industries, based on consumer response.
Measuring brands’ health over time, the EquiTrend Brand Equity Index is comprised of three factors — Familiarity, Quality and Purchase Consideration — that result in a brand equity rating for each brand. Brands ranking highest in equity receive the Harris Poll EquiTrend “Brand of the Year” award for their respective categories. This year, more than 97,000 U.S. consumers assessed more than 3,800 brands across nearly 500 categories.
“Consumers form impressions of brands long before they ever use them, based on their perceptions and what they may know from trusted sources,” said Joan Sinopoli, vice president of brand solutions at Nielsen, which owns The Harris Poll. “This high level equity is the gateway to eventual purchase; it also helps to protect brands from the consequences of an occasional misstep. The strength of a company’s brand equity can have direct business and financial outcomes.”
The Harris Poll EquiTrend Brand Equity Index has been academically vetted twice, showing that strong brand equity is associated with strong financial performance, even during a financial downturn, such as experienced in 2007-2010.
The Biggest Gainers: Technology Brands on a Fast Rise
According to the Harris Poll study, 13 Brands of the Year have increased their equity rating by more than six percent since 2014, a significant increase given the tendency for equity to resist rapid movement. Of the 13 equity risers, six are technology-related brands. Nintendo 3DS/3DS XL demonstrates the largest brand equity increase (+16%) over a three-year period. Other rapid equity movers include Samsung Galaxy Gear Watch, Netflix, YouTube, Sony Home Electronics and Zillow.com. Since last year, Nintendo 3DS/3DS XL (+8%) and Zillow (+6%) show the largest equity increases.
“It’s no secret that technology has completely permeated our lives, and this is reflected by the range of technology brands experiencing unusually rapid increases in equity,” said Sinopoli. “We watch, we wear, we listen, we play, and we connect, using multiple devices to do so. We’re even shopping for real estate online. As U.S. consumers continue to conduct daily activities via technology, we can expect technology brands delivering on their brand promises to make equity gains.”
Consumers Invest in Top Brands At Home
According to the 2016 Harris Poll EquiTrend research, non-technology brands on the rapid equity risers list show consumers’ willingness to invest in brands to improve their homes.
“It’s a cautious recovery, but consumers are paying more attention to brands that help them invest in comfortable, well-maintained homes,” said Sinopoli. “Dyson and Kilz have topped their respective categories for years, and they continue to deliver on the expectation of quality they have built over time.”
Financial Institutions March Slowly Toward Improved Brand Equity
The Harris Poll study indicates that consumers’ memories of the 2008 financial crisis may be receding; overall, financial institutions continue their slow march toward improved brand equity. However, brand equity for some financial service providers are increasing more quickly than others. The Vanguard Group, recognized by many consumers as a 401(k) provider, has increased its brand equity by 12 percent since 2014. Capital One increased its brand equity by 10 percent since 2014, likely helped by heavy promotion of its credit card business.
“Our research, across multiple brand studies, shows that when considering investment firms, those providing 401(k) services tend to have the strongest brand equity, likely because they are associated with a very well-defined consumer benefit, versus firms associated with the banking/mortgage crisis,” said Sinopoli.
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