Which of the following describes a benefit of brand equity in companies?

Higher entry barriers is a benefit of brand equity because established brands often enjoy a significant competitive advantage in their markets. When a brand has strong equity, it implies that consumers recognize and trust that brand, making it difficult for new entrants to compete on the same level. Established brands can leverage their reputation, customer loyalty, and perceived quality to deter potential competitors from entering the market.

New companies trying to enter a market dominated by strong brands may face challenges such as the necessity to invest heavily in marketing to build awareness and trust, which can be costly and time-consuming. In contrast, companies with strong brand equity can sustain higher pricing strategies, benefit from increased customer loyalty, and have the ability to launch new products more effectively.

The other options do not accurately reflect the benefits associated with brand equity. Increased marketing costs typically do not represent a benefit but rather a potential drawback. Uncertainty in consumer demand is not related to brand equity and usually signifies market challenges rather than advantages. Weakened brand value directly contradicts the positive implications of having strong brand equity.