Measuring Customer Based Brand Equity: The case of Kaldi's Coffee

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Addis Ababa University


Customer 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 contributing factors that are behind the brand equity of Kaldi's coffee. The most common and widely used conceptual framework of Aaker was used. The model consists of five dimensions of brand equity namely, brand awareness, brand loyalty perceived quality and brand association. These dimensions represent customers’ evaluations and reactions to the brand that can be readily understood by customers and hence they have been widely adapted to measure customer-based brand equity. A quantitative research method was applied to research the causal relationship of the brand equity measurement dimensions to that of overall brand equity. The target population was all the customers of kaldi's coffee. A Convenience sampling technique was conducted to contact the sample respondents who are the customers of Kaldi's coffee. Applying a structured questionnaire written both in Amharic and English the researcher distributed to 422 people personally. Out of the total questionnaires distributed, 386 were considered valid for analysis. The analysis was performed using frequency, mean, standard deviation, correlation and regression by means of SPSS software. Then the collected data were analyzed and interpreted. The findings show that all the four dimensions of CBBE have a positive significant effect and contribution on brand equity. Moreover, brand loyalty was found to be the higher contributor to the brand equity of kaldi's coffee. As a recommendation, companies in the coffee roasting sector must be aware of their status in the industry. Therefore, the major recommendations are Identification of the brand health in the market, the company must give their Primary attention to the concept of Brand Equity and finding ways to increase customer’s loyalty. And also the company must work hard by enhancing its professionalism & genuine responsibility to increase customer’s perception about its products & services quality. Finally, in terms of association, the company must build strong brand to forward in the market for long term



Brand Awareness, Brand loyalty, perceived Quality