Effect of Brand Equity on Consumer Buying Behavior

Abstract

The purpose of this paper is to propose and test a model for getting a more comprehensive understanding of brand equity. It aims to analyze the effects of this construct on consumer’s responses using two European countries' data. SEM structural equation modelling was used through which the hypotheses were tested. Measurement invariance and stability of the model across the two national samples were fairly assessed by using multi-group confirmatory factor analysis. The results indicate that dimensions are inter-relatable to brand equity. There is a positive link between brand awareness which impacts brand associations and perceived quality. Brand loyalty is highly relatable by brand associations. At last, all of these are interlinked with brand equity linked to perceived quality, brand associations & brand loyalty. These possible findings link the positive impact of brand equity on the responses of consumers. The proposed general framework is generalized across all nations. Only a few differences were observed. A few in stock of a set of product categories, brands and countries were used. The practical implications of the study provide essential implications for brand equity management. These financial metrics can fit with consumer-based equity measures to better check brand performance over time against competitors to increase quality standards against others. Favourable feedback results in better branding. Moreover, the proposed model using data from a sample is used to study the limited international brand equity literature in two countries. It also enlightens the brand equity literature by empirically in-depth analyzing the relationships between consumer-based brand equity dimensions and their effects on consumers’ responses.