Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

a. True

b. False

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category. False

Brand equity is based on the impact your brand has on your customer base. You can find this by knowing how customers perceive a product and their likelihood to purchase. To find brand equity you have to "measure" the value of your product that a customer believes it to be.