What is Brand Equity? Aaker vs. Keller's Brand Equity Model

Brand equity is the value and strength a brand derives from consumers' perceptions, experiences, and associations. It captures both the tangible and intangible assets that determine a brand's market position and the loyalty it commands. Strong brand equity lets a company charge premium prices, compete more effectively, hold market share, and absorb competitive pressure. The two most recognized models for understanding and building it are Keller's Brand Equity Model and the Aaker Brand Equity Model.

The two frameworks take different routes. Keller focuses on how consumers perceive and respond to a brand; Aaker takes a broader view that combines customer perception with the brand's tangible assets.

Keller's Brand Equity Model, also called the Customer-Based Brand Equity (CBBE) model, focuses on how consumers experience a brand at each stage of the relationship. Positive brand equity comes from shaping how consumers think and feel about the brand, which builds loyalty and lasting relationships.

The model has four key stages:

Source: Adapted from Medium.com

Nike is a clear example. Its brand identity is globally recognizable through the swoosh and "Just Do It." Its brand meaning centers on performance and motivation, reinforced through decades of campaigns. Consumers associate Nike with personal achievement, and that resonance is what sustains the brand over the long term rather than any single product.

The Aaker Brand Equity Model, developed by David Aaker, holds that a brand's value comes from both consumer perception and tangible brand assets.

It breaks brand equity into five components:

Source: Adapted from Canto.com

The Aaker model addresses both consumer behavior and business assets, which makes it useful for companies deciding where to invest for the greatest impact on market position. It is flexible enough to apply across industries, from technology to consumer goods.

Coca-Cola is a textbook case. Decades of consistent marketing have built deep brand loyalty and associations with happiness and refreshment, while trademarks and proprietary assets protect its position. That equity is measurable: Coca-Cola ranks 7th in Interbrand's Best Global Brands 2025, with a brand value of $60.1 billion — evidence of how durable associations and loyalty compound into balance-sheet value over time.

Keller's model is consumer-centric, built on shaping the associations in a customer's mind that guide purchase decisions. The Aaker model is more holistic, accounting for consumer perception and tangible assets, and weighing both the emotional and functional sides of equity.

Each has a distinct strength. Keller's model is strong for building emotional bonds, which makes it well suited to brands competing on customer experience and loyalty — though it can underweight assets like trademarks that matter for expansion. Aaker's model suits brands with diverse portfolios and valuable proprietary assets, but it is less precise on the emotional nuances that drive behavior.

Which one wins depends on the objective. For brands built on perception and experience — luxury and lifestyle, for example — Keller's model is the better fit for building emotional resonance. For established companies with broad portfolios and assets like trademarks and patents, such as technology or manufacturing firms, Aaker's model gives a fuller read on equity from both the consumer and business-asset sides.

Brand equity directly shapes long-term profitability. Under Keller's model, a strong emotional connection makes consumers more willing to pay a premium for brands they trust. Under Aaker's model, higher brand loyalty and perceived quality drive repeat purchase and retention, which strengthens both market position and margin. In both frameworks, equity is the asset that converts marketing effort into pricing power.

The transformation of Barbie® from a declining brand in the 2010s to a global cultural phenomenon in 2023 is a masterclass in brand-equity building. By applying both Keller's and the Aaker models, Criterion Global helped reignite the brand's relevance and value through targeted media investment and campaign work.

Keller's model emphasizes emotional connection. Mattel and Criterion Global reinforced Barbie®'s brand identity by modernizing her image while staying true to her legacy — most notably through the "I Can Be™" campaign, which showed Barbie® in over 250 careers and built deep brand meaning. By focusing on brand response — how consumers felt about Barbie® — Criterion Global used paid media to re-establish emotional connections with both children and parents, producing renewed brand relationships in which Barbie® read as a cultural symbol rather than just a toy.

The Aaker model shaped the asset side. High-visibility OOH media campaigns in major cities rebuilt brand awareness, the "I Can Be™" work deepened brand loyalty across a new generation and their nostalgic parents, and the campaign broadened perceived quality — Barbie® as a brand standing for empowerment and diversity, backed by the trademarks and proprietary assets Aaker treats as core equity.

The payoff was the 2023 Barbie® movie, a cultural and financial phenomenon. Criterion Global's long-term brand-equity strategy delivered a 488x ROI, turning a $240M investment into $1.44B in box office revenue. The film capitalized on multi-generational brand loyalty and existing associations of Barbie® as a symbol of empowerment. Blending Keller's consumer-centric approach with Aaker's focus on assets, Mattel and Criterion Global rebuilt Barbie® into one of the most profitable and culturally relevant brands in the world. You can read the full case study here.

Both frameworks point to the same conclusion: brand equity is a strategic business asset, not just a marketing metric. There is a clear link between a strong equity foundation and superior market performance, sustained through consistent marketing, customer relationship management, and investment in brand innovation.

Building that equity starts with a plan. Criterion Global specializes in strategic paid media and international advertising, maximizing a brand's visibility across global markets so its messages are not just seen but felt. That data-driven approach ensures every advertising dollar works toward measurable gains in brand equity. If you're building a brand for lasting impact, contact Criterion Global.