Analyzing the Impact of Brand Equity and Advertisement on Customers’ Loyalty in Isfahan City

Abstract

The objective of this study was to analyze the impact of advertisement and brand equity on customers’ loyalty in Isfahan city. literature review on advertising, brand equity, customer loyalty research model was presented .A standard questionnaire was used as data collection instrument. To measure SNOWA Corporation brand equity, Keller's brand equity model was used with six dimensions of brand's salience, performance, image, judgments, feelings and resonance. Face validity was used to verify the questionnaire validity. Also, Cronbach's alpha coefficient was used to determine the reliability of the test which its value for the entire questionnaire obtained to be 0.87. Structural equation modeling was used to test the hypotheses. The results of the data analysis showed that combining research model’s factors provide complete model for evaluating the impact of advertisement and brand equity on customers’ loyalty. The results showed that the brand equity of SNOWA Company has an impact on its customer loyalty. Also, all dimensions of Keller's brand equity model which were salience, performance, image, judgments, feelings and resonance have had a significant and positive impact on its customer