A Study of Brand Equity Formation in the Fast Moving Consumer Goods Category

Mohammad Shariq

Jindal Journal of Business Research, 2019, vol. 8, issue 1, 36-50

Abstract: Purpose: To identify key relationships in building brand equity in the fast-moving consumer good (FMCG) category in the United Arab Emirates. Design/methodology/approach: It is postulated that marketing elements impact brand equity dimensions which in turn impact the brand equity construct. Five marketing mix elements were selected—price, distribution intensity, advertising, price promotions and non-price promotions, and four dimensions of brand awareness, brand loyalty, perceived quality and brand associations, finally to overall brand equity. Data were collected from a broad sample. Structural equation modeling was used to test the relationships among the 10 constructs. Findings: Brand loyalty and perceived quality have a significant impact on brand equity, whereas brand awareness and brand association were weak. Brand awareness has a significant influence on brand loyalty. Distribution intensity and non-price promotions have a positive relationship with all the brand equity dimensions, whereas weak support was determined for pricing and advertising. Conclusion: In the FMCG category building strong brand awareness combined with wide distribution and supported by non-price promotions are critical to building brand loyalty which in turn impacts brand equity. Originality/value: This study contributes to the general body of knowledge on branding and provides a starting point for further research in the region.

Keywords: Brand equity; brand awareness; brand loyalty; perceived quality; brand associations; structural equation modeling (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jjlobr:v:8:y:2019:i:1:p:36-50

DOI: 10.1177/2278682118823306

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