Investigating the dual-route effects of corporate branding on brand equity

Abstract

This research investigated the multilevel relationships among corporate branding, brand citizenship behavior, and brand equity using a hierarchical linear modeling method. The corporate branding construct represents practices that could improve the brand cognition and brand attitude of multiple stakeholders. Brand citizenship behavior indicates that employees are altruistic toward and identify themselves with brands. Brand equity was assessed using customer data to measure their awareness, association, quality perception, attitude, and loyalty toward a corporate brand. This study obtained data from 283 employees, 250 supervisors, and 577 customers of 31 franchise organizations to demonstrate the results at different levels. The results of our analysis indicate that corporate branding exerts a positive effect on brand citizenship behavior and customer-based brand equity. Furthermore, when aggregated, the brand citizenship behavior of firms positively affects their corporate brand equity. In addition, brand citizenship behavior mediates the relationship between corporate branding and brand equity. Brand managers should consider adopting corporate branding practices to encourage employees to engage in brand citizenship behavior, which contributes to brand equity.