The Effect of Brand Equity Components on Purchase Intention: An Application of Aaker’s Model in the Automobile Industry

Abstract

Abstract: The paper aims to investigate the effect of brand equity dimensions on purchase intention, based on Aaker’s well-known conceptual framework in the automobile industry. Building on extensive literature, a model of consumers’ purchase intention that includes the major determinants of brand equity model is proposed. Based on a sample of 242 consumers, structural equation modeling is used to test hypotheses. The research reveals that brand awareness, brand association, brand loyalty, and perceived quality have a significant impact on consumers’ intention to purchase products. The paper suggests that marketers should carefully consider the brand equity components when designing their branding strategies. Marketers are also called on to adapt their branding approaches to fit each marketing environment and enhance brand loyalty to reduce the switching behavior of consumers. The paper clarifies the interrelation between the four brand equity model components and purchase intention. Key words: Brand equity; Purchase intention; Structural equation modelling; Consumer behavior