Abstract
An enterprise organization need good brand equity to survive in a fiercely competitive market. Marketing communication plays an important role in establishing brand equity. The study aims to analyze the effect of Marketing Communication that consists of advertising, sales promotion, and eWOM on brand equity with brand image, brand trust, and brand loyalty as the intervening variables. This study employs a quantitative method with a sample of 314 respondents, who are consumers of smartphones. The data is analyzed with SEM technique with Amos 21 application. Results of the study indicate a significantly positive effect of advertising and eWOM on brand image. eWOM exerts a larger effect on brand image than advertising. However, sales promotion does not affect brand image. Sales Promotion and eWOM have a significantly positive effect on brand trust, while advertising has a significantly negative effect on brand trust. Brand trust has a significantly positive effect on brand loyalty. Nevertheless, the brand image does not affect brand loyalty. Meanwhile, brand loyalty has a significantly positive effect on the brand equity of smartphone products purchased by consumers. Of the three variables of marketing communication studied, eWOM has the largest indirect effect on brand equit.
Highlights
Rapid globalization has resulted in the phenomenon in which people rely very much on technology
The study aims to analyze the effect of Marketing Communication that consists of advertising, sales promotion, and electronic word of mouth (eWOM) on brand equity with brand image, brand trust, and brand loyalty as the intervening variables
Questionnaire of advertising was adopted from the study of Sundeed, Sajjad, Ahsan, Qaira, Muzzammil, and Mazher (2017), the questionnaire of sales promotions was developed from the theory introduced by Kotler & Armstrong (20...), the questionnaire of eWOM was adopted from the study of Bambauer-Sachse and Mangold, (2011); Goyette et al (2010)
Summary
Rapid globalization has resulted in the phenomenon in which people rely very much on technology. Marketing communication is a tool used by enterprises to inform, persuade, and remind consumers directly or indirectly about their products and brands (Kotler and Keller, 2012). Marketing communication is a tool for enterprises to inform, persuade, and remind consumers either directly or indirectly about the products and brands that they sell. Keller (2003) suggested that a positive brand image can be developed by connecting brand association which is unique and strong to consumers’ memory about a brand and be supported by an effective marketing campaign. According to Deheshti, et al (2016) developing and maintaining customers’ brand trust is one of the most important marketing programs for enterprises, especially in the competitive and unpredictable market where product differentiation is low. We could propose that: H9: Brand loyalty has an effect on brand equity
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