Exploring the Nexus between Packaging, Quality, Equity and Loyalty in Drug Industry

Abstract

A well-designed product packaging, increased perceived quality and brand equity are essential elements that can strengthen brand loyalty in a keenly competitive retail environment. Although the impact of packaging, perceived quality and brand equity on loyalty has gained considerable attention in the marketing literature, there are limited studies on the impact of packaging on brand loyalty mediated by perceived quality and brand equity in the drug industry. In this respect, this paper aimed to examine the mediation influence of perceived quality and brand equity on the relationship between packaging and loyalty in the drug industry. The data for this paper were collected from a sample of 316 customers using a systematic sampling procedure. The study’s hypotheses were statistically examined via structural equation modelling with the aid of smart PLS version 3.3.3. Findings from this paper show that brand equity fully mediates the impact of packaging on loyalty but partially mediates the path between perceived quality and loyalty. The research also found that perceived quality perfectly mediates the relationship between packaging and loyalty but partially mediates the impact of packaging on brand equity. This paper, therefore, established that perceived quality and brand equity are critical in designing packaging to improve brand loyalty in the drug industry.