The Role of Advertising and Pricing in Building Brand Equity for New Brands: The Case of Walia Beer in Addis Ababa

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Addis Ababa University


This study was carried out with the intention of examining the role advertising and pricing play in building brand equity. The study focuses on a new beer brand; Walia and attempts to find out the impact of these two selected marketing mix elements on brand awareness, perceived quality, brand association, and brand loyalty dimensions of the beer brand which intern affects its overall brand equity. For this study, accessible population of 325 beer consumers who have tried Walia beer at least ones was conveniently selected. A structured questionnaire was used to collect data form respondents by using a self-administered data collection system. Data analysis mainly took place in AMOS 20.0 and SPSS 21.0 through Structural Equation Modeling (SEM) to test hypothesized causal relationships. The study found out that consumers’ perception of advertising spend by brands affects brand equity through the four brand equity dimensions. On the other hand, consumers Price perception was found to have no significant effect on both perceived quality and brand equity



Advertising, Price, Brand Awareness