Brand equity of commoditized products of famous brands

Abstract

Purpose The purpose of this paper is threefold: first, to identify the influence of brand equity (BE) of commoditized products of famous brand on purchase intention and willingness to pay a premium price in an emerging market; second, to identify the relationship between the BE of these products and their antecedents; and third, to identify the influence of subjective norms on purchase intention and BE. Commoditized products are bought due to necessity and not desire, are homogeneous, produced on a large scale, and have low added value. Design/methodology/approach A theoretical model is proposed contemplating the constructs: BE, purchase intention, premium price, perceived quality, brand recall, perceived value and subjective norms. We performed a quantitative study with 432 respondents. We used questionnaires, and we analyzed the data using the structural equation modeling with partial least squares. Findings The results indicate a positive relationship between BE and purchase intention, BE and premium price, perceived value and BE, subjective norms and purchase intention and subjective norms and BE. It should be noted that an emerging market has characteristics distinct to that of a mature market, justifying specific research in this context. Originality/value The study brought a theoretical model relating antecedents and consequents of BE in the segment of commoditized products. Furthermore, it indicated the strength of the brand of the commoditized products in an emerging market scenario.