Distribution Intensity and Purchase Behavior-mediating Role of Brand Equity in Oil Marketing Companies (OMCs): An Emerging Markets Perspective

Abstract

The purpose of this research study is to investigate the relationship between distribution intensity and purchase behavior of customers in the downstream petroleum industry in Ghana mediated by brand equity. Brand equity components are brand perceived quality, brand awareness, brand association, and brand loyalty. The study revealed that there is a positive relationship between distribution intensity and purchase behavior through brand equity. Structural equation modelling was used to investigate the relationship among channel location, store availability (distribution intensity), and brand equity (brand loyalty, perceived quality, brand association and brand awareness) and purchase behavior. The study revealed that brand equity mediates the relationship between distribution intensity and purchase behavior in the oil marketing companies (OMCs) in Ghana. This study extends the applicability of brand equity as a mediating variable to enhance the impact of location and service mart availability on purchasing behavior of customers. Additionally, this study provides an in-depth understanding of how the various components of brand equity of OMCs brands contribute to drive consumption experience and continual usage of OMC channels in Ghana. This study is based on a cross-sectional design, and since user behavior may change over time, a longitudinal study will be useful in the future.