Impact of promotional mix on customer based braned equity: Mediating effect of brand image a case study of beverage industry in Pakistan

Abstract

In present scenario, customers were well aware about the price and feature of all the substitute of a product. They had more awareness, more accessibility to the brand in the market. Generic competition among the products develop the competition tougher. The aim of this study was to estimate the effect of promotional activities on brand equity and its dimensions in beverage. A study has been conducted in metropolitan city Faisalabad. Respondents were selected on the basis of non-probability convenience based sampling technique. Data were taken from 273 respondents. Students enrolled in university were considered as the target population. Reliability test, descriptive analysis, factor analysis and regression analysis were used for data analysis, however Cronbach's alpha had the value of 0.767. Factor analysis showed that all the factors had its loading values near to 1. The result showed that brand image has a partial mediating effect on brand awareness, brand association and brand loyalty through advertisement, celebrity endorsement and sales promotions. Brand image showed mediating effect on the perceived quality through celebrity endorsement, advertisement and sales promotion. The results of this study helped out the brand managers and marketing managers in the beverage industry for designing and launching the promotional mix. They can develop brand loyalty through choosing effective celebrity for endorsing the brand by dent of truthfulness and trustworthiness of the celebrity. They can enhance brand awareness and experience with the brand through effective sales promotion technique.