Measuring Brand Equity of Paints in Addis Ababa (the Case of Nefas Silk and DIL Paints)
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Date
2019-06
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Addis Ababa University
Abstract
The growth in construction of commercial and residential buildings resulted for the growth of
paint companies in Ethiopia market. Paint market in the major cities of the country has
become increasingly competitive, thus indicating the need to build strong brand to increase
the loyalty of their customers and increase company’s market share. Therefore this study
aimed to verify the determinants of brand equity of paint products based on consumers’
perception of paint market. The study is based on Aaker brand equity model Aaker (1996),
which comprise the four brand equity constructs, such as: brand awareness, perceived
quality, brand loyalty and brand association. A multistage sampling technique was used to
determine the sample size of the respondents. A self administered questionnaire was
distributed to 140 respondents from which 132 were obtained to be valid with a response rate
of 94 percent. Reliability test was performed to check the reliability of data. All items were
found to have a Cronbach’s alpha value greater that 0.7 and the entire scale value of alpha
was found to be 0.854 indicating the data was reliable for further analysis. Correlation test
was conducted to find out relationships among four components of brand equity. The result of
the analysis indicated all dimensions of paint brand equity were positively related and
significant at (p=0.000). The findings of multiple regression analysis also indicated that all
the dimensions had positive significant effect on customer value of Nefas Silk and DIL paints.
The strong dominant factors was brand loyalty (0.276) followed by perceived quality (0.226)
and brand association (0.200). This study forward an implications to researchers to consider
industry specific scale items that can measure adequately brand equity and to managers to
focus on marketing strategies that leads to higher brand loyalty and perceived quality of
Nefas Silk and DIL paint brand equity
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Keywords
Brand Awareness, Brand Association, Perceived Quality