Measuring Consumer Based Brand Equity: Empirical Evidence From Beer Market Of Ethiopia In Case Of Addis Ababa

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Date

2014-06

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Addis Ababa University

Abstract

In marketing endeavors like beer market where, branding plays a significant role in differentiating the brand from competitor brands, measuring brand equity plays a vital role to extract and utilize what resides in the mind and heart of the consumer for the success of business. The study was aimed to measure the consumer based brand equity via empirical evidence from the beer brands of Addis Ababa, Ethiopia. A five dimension of brand equity model posited by David Aaker was used in order to conduct the investigation via quantitative methods of research, where cause and effect conclusive study were applied. Using a probability sampling method (Multistage), 384 questionnaires were distributed in Nifassilk lafto and Kirkos sub cities. 305 valid questionnaires were collected, which maintained 79.43% response rate and run into analysis using descriptive and inferential statistics. The Confirmatory Factor Analysis (CFA) was carried out, so as to vigorously assess the validity and reliability of the model of measurement. The CFA results in a good fit between the model and data so that structural Equation modeling was carried out in order to come up with dimensions in the beer market of Addis Ababa through testing the hypothesis using IBM AMOS 21 version. The findings conclude that brand loyalty, perceived quality and brand association dimensions were found to have a significant and positive impact in the creation of brand equity in the beer market of Addis Ababa. Whereas brand awareness have a negative impact on brand equity, that was a minus from the brand equity. Thus, brand marketing managers should give much emphasis to invest marketing resources up on brand loyalty so as to create a superior positive brand equity value. In terms of brands St. George beer is a leader in the market while Castle Beer is the last. The demographics: Educated, male and youth and early adults dominate the consumption of beer in the country where most of them are drink beer less than per week in frequent bases. Brand equity dimensions vary significantly among mean groups of only in habit of drinking consumer demographic characteristics. marketing managers in brewery companies, thus, should use different strategies such as cause marketing, sponsorship, participating in trade fair, enriching their consumer through creating brand communities, employing secondary brand associations like using celebrities, country of origin so as to increase the brand knowledge of their customer. Creating a strong, favorable and unique, positive brand association in the mind of the consumer necessitates high level of awareness and familiarity with the brand. This is a key way to create a long term marketing relationship to maintain brand loyalty. This study had some limitations. Some were attributed to the method of collecting data entertaining flexible idea based on the respondents was the problem of self-structured questionnaire. The other, the sample was not proportional to the market share of the beer brands as a result the industry could be attributed to the brand with high market share

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Keywords

brand, Brand Equity, Brand awareness

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