Measuring Consumer-based Brand Equity in the Carbonated Soft Drink sector: A Case of Coca-cola

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Addis Ababa University


Consumer based brand equity plays a vital role in contemporary marketing. Firms with high brand equity have the privilege of having higher consumer preferences, high stock returns, greater loyalty, less vulnerability to competitive marketing actions, less vulnerability to marketing crises and larger margins. This research study aimed to explore the most influential factors that are behind the brand equity of Coca-Cola in Ethiopia. The most common and widely used conceptual framework of Aaker was used. The model consists of five dimensions of brand equity namely perceived quality, brand awareness, brand association, brand loyalty and other proprietary brand assets such as patents, trademarks, and channel relationships. Among these dimensions, the first four represent customers’ evaluations and reactions to the brand that can be readily understood by consumers and hence they have been widely adopted to measure customer-based brand equity. Even if the constructs of the dimensions have been empirically tested by other researchers, a pilot test was conducted with 40 respondents. A total of 22 items were kept for the final analysis after the failure of one construct due to low item total reliability. Out of the total of 490 questionnaires that were distributed, 470 were considered valid and retained for the analysis. Besides the questionnaire, an interview was conducted with the brand manager of Coca-cola. The analysis was performed using frequency, cross tabulation, mean and standard deviation. The model general fit revealed that the structural model was up to the standard requirement with results of X/df = 2.31 (P<0.000), GFI (Goodness of fit index) = .945, AGFI (Adjusted goodness of fit index) = .921, CFI (comparative fit index) = .971, RMR (Root mean square residual) = 0.38 and RMSEA (Residual mean square error of approximation) = 0.053. Structural equation modeling was employed to evaluate the hypothesized relationships between brand equity and its four dimensions. Perceived quality, brand awareness, brand association and brand loyalty were considered as exogenous variables and intended to be intercorrelated. Overall brand equity was taken as endogenous variable. It was found that all the dimensions have positive intercorrelation between them. Moreover, brand association and brand loyalty are the influential factors of brand equity. Perceived quality and brand awareness are negatively related to brand equity



brand equity, contemporary marketing, Consumer