Abstract

The primary objectives of the study were to investigate the effect of brand equity on consumers purchase decision of cell phone in Addis Ababa by utilizing Aaker’s customer-based brand equity model. Four dimensions of brand equity model posited by David Aaker were used in order to conduct the investigation via quantitative research Approach, where descriptive and explanatory research design was applied. Samples of 404 respondents from Addis Ababa were selected by a convenience sampling method and 355 valid data was collected through a structured questionnaire with 88% response rate. Statistical analysis has been conducted using statistical process for social science. Descriptive analysis such as frequency, mean and standard deviation has been used to interpret the result. Furthermore, correlation and regression analysis has been performed. While performing the research, the reliability and validity of the instrument has been verified. Apart from that, the fulfillment of basic assumption for correlation and regression analysis has been conducted. The results of multiple regression analysis also revealed that the four dimensions have a positive influence on consumers purchase decision of cell phone. Among those dimensions, brand Awareness and perceived quality had the strongest positive significant influence on consumers purchase decision of cell phone respectively. Keywords : brand, Brand Equity, Brand awareness, brand association, brand loyalty, perceived quality, Purchase decision. DOI: 10.7176/JMCR/78-01 Publication date: April 30 th 2021

Highlights

  • The Ethiopia Telecom industry is entering a new era

  • The following section, which is integral to the main purpose of the research, was designed using pre- determined variables related to brand equity dimensions and consumer buying behavior

  • According to Pearson correlation results, brand Awareness is the dominant factor affecting the decision of customer to buy cell phone

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Summary

Introduction

Ethiopia was one of the last countries in Africa to allow its national telecom a monopoly on all telecom services including fixed, mobile, internet and data communications. The process to part-privatize Ethio Telecom advanced in September 2019 when the company was audited, while two licenses are expected to be offered to two international operators by the end of the year (Ethio telecom 2019). This indicates that following the privatization different cell phone companies will enter to the market and these needs of building, measuring, and sustaining brand equity of cell phone brands to withstand the completion, to earn superior profit, perform as well at exporting. The positive or negative value of the existing cell phone brands has to be measured scientifically in the context of consumers so that appropriate marketing intervention could be developed

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