The Influence of Brand Equity on Consumer Responses: Evidence from a Clothing Brand of Pakistan

Abstract

The purpose of this Research is to propose and test a model to better understand brand equity. It seeks to investigate the effects of this construct on consumers’ responses using data from Khaadi consumers from different outlets located in Karachi. Sample size of 409 respondent collected and tested through structural equation model (SEM). CFA was applied through SEM PLS 3.0. Results indicate that brand equity dimensions inter-relate. Brand awareness positively impacts perceived quality and brand associations. Brand loyalty is mainly influenced by brand associations. Finally, perceived quality, brand associations and brand loyalty are the main drivers of overall brand equity. Findings also corroborate the positive impact of brand equity on consumers’ responses. Findings provide useful guidelines for brand equity management. Khaadi decision Makers (Managers) can complement financial metrics with consumer-based brand equity measures to track brand performance over time and to benchmark against other brands. Building brand equity generates more value for corporations since a more favorable consumer response results from positive brand equity.