The Role of Uncertainty Avoidance Functioned in the Evolution of Brand Equity of FMCG (Study of Unusual Consumer Behavior at the Time of Emergency Declared Due to Out Break of Covod-19 in Pakistan

Abstract

This study is written in the context of consumer behavior of how consumers respond to branded products at the time of uncertainty. Uncertainty avoidance is one of the dimensions presented by Hofstede and discusses the acceptance and rejection of change and adaptability by society. This research paper holds mixed methods where quantitative and qualitative both analysis is used to signify the prevailing phenomena. The embedded method is used in which quantitative and qualitative questions are embedded in the same questionnaire. For quantitative analysis, structural equation modeling is used to analyze results. Whereas for qualitative analysis consumer’s responses were interpreted through transcribe method. Due to the outbreak of COVID 19 various businesses in developed and developing countries have suffered low sales and less profit margin. Keeping this view, a large gap is found about how marketing activities and product /brand extensions would help other companies to sustain themselves in the market. The results of the quantitative analysis show uncertainty avoidance directly affect brand equity. In addition, with the mediation of brand awareness and brand loyalty, we found a significant impact. whereas, hypotheses on the mediation of brand image and perceived quality turned insignificant.