The Role of Brand Equity in Influencing Rural Bank Depositors

Abstract

The interest rate of savings and deposits in rural bank is higher than commercial bank, however, the level of thirdparty funds of rural bank is far below the commercial bank. This study tried to evaluate the elements of brand equity used by rural banks. A research was carried out in Bekasi, Indonesia, to identify the brand equity of some of rural banks. The respondents were 61 rural bank depositors in Bekasi chosen using snowball sampling techniques which were analyzed using structural equation modelling. We found evidence that the significant factor that affected rural bank depositors on brand loyalty was perceived quality. Meanwhile, this research cannot prove the influence of trust, brand awareness and brand association on brand loyalty. The results of the study proved that the role of perceived quality in influencing brand loyalty is high, and rural banks have not maximized the use of other elements in brand equity in their business activities.