Investigating the Effect of Selected Marketing Efforts in Brand Equity Creation and Its Cross-Cultural Invariance in Emerging Markets

Abstract

In the field of brand management, numerous studies have been conducted on brand equity conceptualization, measurement and validation. Also, previous researchers have shown that consumer-based brand equity via its dimensions can be created and maintained through a company’s marketing mix activities. Brand equity according to Keller, is the differential effect of brand knowledge on consumer response to the marketing activities performed on the brand. Due to cultural differences, consumers’ reaction will differ and thus these marketing efforts will have varying results in different markets.Drawn from both Aaker’s & Keller’s conceptualizations of brand equity, the current study develops a brand equity creation process model similar to Yoo et al.’s and examines its cross-cultural invariance through a structural invariance test using data from two important growing markets—Ghana and China. Results prove that some marketing efforts and dimensions of brand equity have invariant effects on brand equity across the Ghana and Chinese samples. Specifically, the effect of price on perceived quality was not equivalent in both markets. Relationship among brand equity dimensions were also not equivalent, however these dimensions all show an equivalent, positive effect on brand equity. Managerial implications for international brands and limitations for future research are discussed.