The Effect Of Brand Equity On Customer Satisfaction In Major Supermarkets In Addis Ababa

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Addis Ababa University


The Supermarkets environment has become increasingly competitive and therefore building brand equity enhance the value of the brand in the marketplace. The objective of the study was to examine the effect of brand equity on customer satisfaction in the major supermarkets in Addis Ababa. A quantitative research methodology was used and data was collected from 333 customers of the selected five supermarkets in the capital city with the aid of a self-administered questionnaire survey using a convenience sampling technique. The questionnaire comprised questions on the following constructs: independent variable brand equity (its dimensions brand loyalty, perceived quality, brand awareness and brand associations) with dependent variable customer satisfaction. Hypotheses formulated were tested using multiple regression analysis and confirmed a significant relationship between the dimensions of brand equity and customer satisfaction. Cronbach Alpha for reliability, descriptive statistics and inferential statistics techniques were applied to analyze the data using SPSS application. The study found R square of the results of the regression all together explain 85.2% of variation on customer satisfaction; whereas, the remaining 14.8% explained by other extraneous variables such as price fairness, service quality etc. study concludes that to improve their supermarket brand Equity as well as to measure customer satisfaction in order to analyze their brand equity and see whether their satisfied customers are willing to recommend their branded product and service to others as well as having these satisfied customers loyal to their product/services in the future by maintaining and strengthening its brand equity as their branding strategy that will hopefully position it positively in the minds of consumers



brand equity, brand awareness, perceived quality