Abstract

Brand equity is so essential issue to be considered by manufacturers and retailers as well, that is to manage thebrand rationally. The aim of the current research is to support managers in terms of determining the expectedinfluence of marketing activities on the brand equity, which implies for the relative fund each activity deserves.The study investigated the potential effects of brand equity drivers (i.e., distribution intensity, advertising,monetary promotion) on the dimensions of customer-based brand equity. In addition, the research investigatesthe inter-relationships among the dimensions of brand equity. The study was built on data derived from 497respondents. The results indicate that the proposed model reflects perfect fit to the data. The most of thehypothesized influences were significant and took the expected directions. The results would lead to suggest thatbrand awareness is the starting point to constitute the customer-based brand equity. Discussion and implicationsare provided.

Highlights

  • Brand is “a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service” (Kotler & Armstrong, 2008, p. 225)

  • The research investigates the inter-relationships among the dimensions of brand equity

  • The current research aims at investigating the potential effects of distribution intensity, advertising, and monetary promotion on brand equity dimensions, that is, brand awareness, brand associations, brand loyalty, and perceived quality

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Summary

Introduction

Brand is “a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service” (Kotler & Armstrong, 2008, p. 225). The consumers are uncertain about the attributes of the product, a firm would rely on the brand as a tool in terms of emphasizing the product credibility, decreasing the information costs, and consumers risk perception (Erdem & Swait, 1998), and enhances the value shopper gets from the product (Kim & Hyun, 2011). In another word, brand would facilitate the customer choice (Keller & Lehmann, 2006).

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