Impact of advertising and brand equity on customer behavior

Abstract

Objective: Nowadays, due to the created competitive environment in industries, one of the necessities of survival in any industry is understanding customer behavior and also factors affecting it. One of the effective ways, is advertising that cause the identification of the product on behalf of the client. On the other hand, brand equity is as one of the assets that keeps the value of the company and impact on the customer behavior. Methodology: So in this study is provided explaining model of customer behavior influence from advertising and brand equity based on conceptual model with case study of Kale and Pegah brands that each are representative of the most prestigious public and private brands. To accomplish this, have been reviewed texts and research literature in the field of consumer behavior, advertising and brand equity and its models. Statistical population in this study is included all food industry consumers that based on Cochran formula, the sample obtained 384 people and then questionnaire was made, this research were distributed among this statistical sample. Results: The validity questionnaire was confirmed through 5 academic expert in the marketing field, and its reliability obtained based on Cronbach's alpha coefficient about 0.89. For statistical analysis of data collected has been used from descriptive- correlation statistics method. In the end, by Smart PLs software and modeling of structural equation has been investigated fitting of calculation model and causal relationships between advertising and brand equity on customer behavior. Conclusion: According to the results of path analysis, customer behavior influence from advertising and brand equity, is significant and positive.