Question: Which of the following best describes \'brand equity\'?

Options:

1. The cost of producing a brand
2. The value added to a product by having a well-known brand name
3. The total sales of a brand
4. The market share of a brand

Correct Answer: The value added to a product by having a well-known brand name

Solution:

Brand equity refers to the value added to a product by having a well-known brand name, which can influence customer choice.