Analysis of the Effect of Brand Equity on Customer Loyalty: The Case of Selected Banks in Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


It is essential for service firms, such as banking industry to understand the dimensions of service brand equity that influence customer loyalty in order to be successful in this competitive marketing environment. However, in Ethiopian Banking industry, various aspects of brand building are given limited attention. The general objective of the study was to examine the possible relationship between brand equity and customer loyalty in the banking industry in Ethiopia. More specifically, the study tried to see the relationship of Brand awareness, Brand meaning, Company’s presented brand, External brand communications, and Customer experiences with customer loyalty. Primary data was obtained through structured questionnaire from customers of three banks namely CBE, BOA and ZB. A multi stage stratified probability sampling technique was used to sample banking firms. The researcher proportionally distributed 384 questionnaires to customers of the three selected banks and 327 of the questionnaires were returned, properly filled. The questionnaires were analyzed using SPSS version 20. Pearson Correlation and multiple regressions were used to establish the relationship between the independent and dependent constructs of the research. The findings revealed that the three independent variables (i.e. brand meaning, customer experience with company and company’s presented brand) are statistically important determinants of customer loyalty in the banking industry of Ethiopia whereas brand awareness and external brand communications had no impacts on customer loyalty of banks. A conclusion was drawn to the effect that since factor influencing customer loyalty have been established, banks should note these and emphasize them in their marketing strategy



Customer loyalty, Brand awareness, Brand meaning