A Causal Model of Consumer-Based Brand Equity

Szőcs Attila () and Berács József
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Szőcs Attila: Sapientia Hungarian University of Transylvania, Faculty of Economic and Human Sciences Department of Business Sciences, Miercurea Ciuc
Berács József: Kecskemét College, Faculty of Mechanical Engineering and Automation, Kecskemét

Acta Universitatis Sapientiae, Economics and Business, 2015, vol. 3, issue 1, 5-26

Abstract: Branding literature suggests that consumer-based brand equity (CBBE) is a multidimensional construct. Starting from this approach and developing a conceptual multidimensional model, this study finds that CBBE can be best modelled with a two-dimensional structure and claims that it achieves this result by choosing the theoretically based causal specification. On the contrary, with reflective specification, one will be able to fit almost any valid construct because of the halo effect and common method bias. In the final model, Trust (in quality) and Advantage are causing the second-order Brand Equity. The two-dimensional brand equity is an intuitive model easy to interpret and easy to measure, which thus may be a much more attractive means for the management as well.

Keywords: brand equity; structural equation modelling; causal measurement models (search for similar items in EconPapers)
JEL-codes: C3 M31 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:auseab:v:3:y:2015:i:1:p:5-26:n:1001

DOI: 10.1515/auseb-2015-0001

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