Investigating the Relationship Between Brand Equity and Customer Loyalty the Moderating Effect of Customer Satisfaction in the Telecom Industry

Abstract

The study explores the connection between brand equity and customer loyalty in the telecom industry. It specifically examines how customer satisfaction plays a moderating role in this relationship. The research employed structural equation modeling and involved 386 Ethio telecom customers. Several aspects were evaluated, including reliability, convergent validity, and sample adequacy. The study's findings highlight a strong positive correlation between brand equity and customer loyalty within the telecom industry. Factors such as positive brand image, perceived quality, brand awareness, and brand associations were found to have significant influences on customer loyalty. Furthermore, customer satisfaction was identified as a moderator, enhancing the positive impact of brand equity on loyalty. Based on the results, the study emphasizes the importance of brand equity and customer satisfaction in fostering loyalty in the telecom industry. It suggests that telecom companies should invest in building a strong brand image, improving perceived quality, increasing brand awareness, and cultivating favorable brand associations. Policymakers and regulators are also encouraged to create a competitive telecom market that promotes innovation, high-quality service delivery, and reasonable pricing. The practical implications of these findings are significant for the industry. They underscore the need for strong brand equity strategies and the delivery of exceptional customer experiences. By prioritizing these aspects, telecom companies can enhance customer loyalty and gain a competitive advantage in the market.