Studying the relationship between brand equity and consumer behavior

Razavi Satvati,Mahnaz Rabie,Karim Rasoli

doi:10.5937/intrev1602153s

Abstract

The present study was conducted to investigate the relationship between brand equity and consumer behavior. In today's competitive world, where the consumer is faced with a broad range of products made in different countries, companies should further seek to identify the factors of customers' trends towards products to encourage customers to select and purchase the product. In the model proposed in this study, the relationship between brand equity and the dimensions of consumer behavior including the willingness to pay for extra cost, brand preference and purchase intention is investigated. The research method is a descriptive correlational. Structural equations and descriptive and inferential statistics and factor analysis were used to analyze the data. The statistical population of the study includes the owners of Grand Vitara, Sportage and Santafe from the companies of Iran Khodro, Kia and Hyundai. The population was unlimited including 384 people using Cochran formula; and cluster sampling and endemic questionnaire tool were used. In the marketing literature, the lack of empirical research that seeks to explore the relationship between brand equity and consumer behavior is tangible. This research focuses on those reactions that provide more sales and the ability to grow. According to the results, it seems that there is a relationship between brand equity and consumer behavior including paying extra cost, brand preference and purchase intention.

Highlights

In the business world today, one of the main concerns of marketing managers is searching for ways to increase sales and profitability products
One of the most common strategies to achieve this goal is to understand the relationship between consumer behavior and brand and brand equity, because the brand equity is often an indication of its quality which affects the choice of consumers [2]
The results showed that brand loyalty and association factor have direct impact on brand equity, and the factor of perceived quality has indirect impact on brand equity through loyalty

Summary

Introduction

In the business world today, one of the main concerns of marketing managers is searching for ways to increase sales and profitability products. Considering that the aim of the study was to analyze the relationship between brand equity and consumer behavior, research is a practical by goal It is descriptive and correlational in terms of data collection and, in particular, it is based on structural equations. According to path coefficient (0.58) and t-statistic (8.91), it can be said that: at the significance level of 99%, there is a positive and significant relationship between brand equity and paying extra costs; so, the first hypothesis is significant and it is confirmed. According to path coefficient (0.51) and t-statistic (7.09), it can be said that: at the significance level of 99%, there is a positive and significant relationship between brand equity and consumer’s purchase intention; so, the third hypothesis is significant and it is confirmed.

Discussion and Conclusion

Findings

Research Limitations