The influence of brand equity on consumer responses

Abstract

Purpose-The purpose of this paper 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 two European countries. Design/methodology/approach-Hypotheses were tested using structural equation modeling (SEM). Measurement invariance and stability of the model across the two national samples was assessed using multigroup confirmatory factor analysis. Findings-Results indicate that brand equity dimensions interrelate. 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. In addition, the general framework proposed is found to be empirically robust across the studied countries. Only a few differences are observed. Research limitations/implications-A limited set of product categories, brands and countries were used. Practical implications-Findings provide useful guidelines for brand equity management. 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 favourable consumer response results from positive brand equity. Originality/value-This study contributes to the scarce international brand equity literature by testing the proposed model using data from a sample of consumers in two European countries. It also enriches the brand equity literature by empirically examining the relationships among consumer-based brand equity dimensions and its effects on consumers' responses.

The Causal Relationships between Components of Customer-Based Brand Equity for a Destination: Evidence from South Korean Tourists in Danang City, Vietnam

“…Brand awareness is the first step to building brand equity, and consumers' awareness of a brand leads to other attitudes such as brand associations and perceived quality (Buil et al, 2013). According to Aaker (1991) consumers must first be aware of the brand in order to have a set of brand associations (brand image).…”

“…to perceived quality (Buil et al, 2013) and can lead customers' perception to the quality of the brand (Keller, 1993). …”

Determining the impact of brand equity on consumer purchase intention

“…Researches indicate that perceived quality affects brand equity (Yoo et al, 2000;Baldaufet al, 2003;Ahmad & Sherwani, 2015;Taşkın, 2016;Ural & Perk, 2012), and a high quality perception increases brand loyalty (Aaker, 1991;Keller & Lehmann, 2003;Baldauf et al, 2003Taşkın, 2016Buil et al, 2013). In this context, hypothesis 4 and 5 have been developed as H 4 : Perceived quality has an effect on brand loyalty.…”

“…Although there is a huge effort on and interest in forming the conceptual framework of brand equity subject, the debate continues. Some researchers think that there is a lack of general theoretical framework on the topic (Taşkın & Akat, 2010;Buil et al, 2013;Avcılar, 2008). The majority of the researches on brand equity deals with the topic in consumers' point of view while some do it in financial terms.…”

“…Customers are supposed to purchase the products by the brands that is more valued, known and heard beforehand, trusted and positively associated, and believed to have a high quality (Ural & Perk, 2012;Buil et al, 2013;Lakshmi & Kavida, 2016). Therefore, the relation between brand equity and purchase intention is included in the model.…”