The Role of Customer Based Brand Equity on Customer Satisfaction of Private Commercial Banks in Ethiopia.
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Date
2023-06
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Addis Ababa University
Abstract
The purpose of the study is to determine the relationship between the dimensions of customer based brand equity and customer satisfaction. Customer based brand equity have five dimensions: brand awareness, brand association, brand loyalty, perceived quality, and other proprietary assets. The first four are directly related to customer. Thus, the fifth dimension of other proprietary asset is not included as explanatory factor. Accordingly, the explanatory variables are brand awareness, brand association, perceived quality, brand loyalty, and overall brand equity and their impact on customer satisfaction as dependent variable. The study examined which dimensions has strong influence on customer satisfaction in private commercial banks in Ethiopia. Data is gathered using structured questionnaire, from four selected private commercial banks operating in Ethiopia. The data is analyzed using SPSS. The correlational results showed the presence of positive and significant correlation between the independent variables and the dependent variable. Brand loyalty, perceived quality, and overall brand equity are found having significant and positive impact on the satisfaction of customers of private commercial banks in Ethiopia than brand awareness and brand association. The study recommends that as the current banking sector has high level of competitions, brand equity has high impact on customers’ satisfaction. This implies Powerful brands provide long-term security and growth, higher sustainable profits, and increased asset value of private banks. Thus, private commercial banks should focus more on brand loyalty, perceived quality and overall brand equity to enhance customer satisfaction and thereby endure future flow of income and increase profitability and shareholders’ value. The study is expected to contribute in the formation and implementation of customer based brand equity policy and procedure that can increase customer satisfaction to the private banking industry. Further research works can also be done with reference to this research work
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Customer based brand equity