The Mediating role of Brand Awareness on the relationship between Corporate Social Responsibility and Brand Equity: The Case of Bank of Abyssinia
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Date
2024-06
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Addis Ababa University
Abstract
This research paper investigates the role of brand awareness as a mediator in therelationship between corporate social responsibility and brand equity, focusing on the
Bank of Abyssinia as a case study within the banking industry. It emphasizes theparamount importance of brand awareness in attracting and retaining customers in
today market. The study relies on primary data collected through questionnairesadministered via purposive sampling at the Bank of Abyssinia in Addis Ababa, Ethiopia.
Out of 400 distributed questionnaires, 387 responses were collected, yielding a responserate of 96.75%. Utilizing IBM SPSS, the research identifies the impact of brand
awareness on the relationship between corporate social responsibility and brand equity.The findings reveal a positive and direct correlation between CSR and brand equity, as
well as a significant positive relationship between brand awareness and brand equity.Furthermore, multiple regression analyses and mediation analysis with a process 4
model demonstrate that brand awareness mediates the relationship between CSR andbrand equity. Given the substantial influence of the independent predictor variables on
the dependent variable, all proposed hypotheses were supported. Furthermore, the studyconfirmed the four hypotheses at the bank, demonstrating that Bank of Abyssinia
customers significantly impact the bank’s brand equity, with brand awareness acting asa mediator. In essence, for Bank of Abyssinia customers, corporate social responsibility
plays a pivotal role in fostering brand loyalty and enhancing brand awareness,consequently leading to repeated business with the bank. This underscores the mediating
role of brand awareness in shaping brand equity. Based on the aforementionedconclusion, the report offers several critical recommendations to bank management.
Firstly, the study reveals that CSR impacts both brand awareness and brand equity. Thisdiscovery holds significance as per the study’s participants, suggesting that successful
implementation of CSR can serve as a cornerstone in marketing discipline. The Bank ofAbyssinia’s management should prioritize corporate social responsibility, given that the
findings suggest brand awareness and brand equity are achieved through CSR practices.As a service provider in a competitive market, various measures can enhance CSR
efforts, including actively participating in social activities, embracing new technologiesfor competitive advantage, continually innovating to maintain attractiveness even amid
new market entrants, and offering tailored services to meet customers specific needs.v
Key words: Corporate social responsibility, Brand equity, Brand awareness