The mediatory impact of brand loyalty and brand image on brand equity

Abstract

This study examines the underlying dimensions of brand equity in the chocolate industry. For this purpose, researchers developed a model to identify which factors are influential in building brand equity. The second purpose was to assess brand loyalty and brand imagesE¼ mediating effect between brand attitude, brand personality, brand association with brand equity. The study employed structural equation modeling to investigate the causal relationships between the dimensions of brand equity and brand equity itself. It specifically measures the way in which consumers’ perceptions of the dimensions of brand equity affect the overall brand equity evaluations. Data were collected from a sample of consumers of chocolate industry in Iran. The results of this empirical study indicate that brand loyalty and brand image are important components of brand equity in this industry. Moreover, the role of brand loyalty and brand image as mediating factors in the intention of brand equity are supported. The principal contribution of the present research is that it provides empirical evidence of the multidimensionality of consumer based brand equity, supporting Aaker´s and Keller´s conceptualization of brand equity. The present research also enriched brand equity building by incorporating the brand personality and brand image, as recommended by previous researchers. Moreover, creating the brand equity index in chocolate industry of Iran particularly is novel. Key words: Brand equity, brand personality, brand loyalty, brand image, structural equation modeling, Iran.