Analyzing the Effect of Social Media Use, Perceived Value, Brand Trust and Electronic Word of Mouth on Brand Equity: The Mediating Role of Brand Image: An Applied Study on Egyptian Banking Sector

Abstract

The main objective of this study is to investigate factors affecting brand equity in the Egyptian banking sector. To achieve this objective, a structured questionnaire with close-ended questions is used. A two-stage sampling technique is used. First a simple random sample is used to select the banks working in Egyptian banking sector. Second a judgmental or purposive sample of different bank customers was withdrawal. In total, 400 questionnaires were distributed, 390 were used. Various statistical tools such as descriptive statistics, Cronbach Alpha, KMO, Person correlation coefficient analysis, simple and multiple regression, factor analysis was used for data analytics. The results indicated that social media use, perceived value, and brand trust have a significant positive effect on brand image in the Egyptian banking sector. e-WOM didn’t has a significant influence on brand image and brand equity. Neither social media use nor e-WOM has a significant positive effect on brand equity. Brand trust and brand image have a significant influence on brand equity. Brand image mediate the relationship between social media use, brand trust, e-WOM and brand equity. This study proposed, that marketers should improve perceived value, e-WOM, social media use and brand trust in the Egyptian banking industry and they have to develop new strategies to update their current programs to reinforce both image and equity to their brand and products/services. The main contribution of this paper lies in achieving a more profound understanding of the variables affecting brand equity in Egyptian banking sector, these variables include social media use, perceived value, brand trust, electronic word of mouth, and brand image.