A brand's performance is based on customer behavior, specifically whether customers choose to buy a particular product or service. That behavior is largely based on customers' perception of the brand, including its relevance and differentiation compared to competitors.

 

Customers form these perceptions through their interactions with the brand. Ideally, the customer experience aligns with a core brand idea, which represents the brand's promise and values. If this initial brand idea is unclear or irrelevant to customers, the subsequent chain of events is unlikely to succeed, negatively impacting the business's financial performance.

 

Despite the critical link between brands and business outcomes, defining what a brand is and how to create, manage, and value it remains a challenge.