Measuring Customer Based Brand Equity: Evidence from the Ethiopian Bottled Water Market

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Date

2015-06

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Addis Ababa University

Abstract

The study examines the applicability of a customer based brand equity model in the Ethiopian Bottled water market. Based on Aaker’s well known conceptual framework of brand equity and extended by Yoo & Donthu (2001), this study employed structural equation modeling to investigate the causal relationships among the three dimensions of brand equity and overall brand equity in the Ethiopian bottled water industry. The study used the multidimensional brand equity scale and overall brand equity scale developed and validated by Yoo and Donthu (2001). The sample size of the study was 400 actual consumers of bottled water selected using a judgmental sampling method from Addis Ababa. The sample size was decided based on sample sizes used in similar previous researches and other considerations such as resource constraints. The findings of the study concluded that brand awareness and Perceived Quality are influential dimensions of brand equity in the Ethiopian bottled water market. However, the influence of brand loyalty was found to be insignificant which is in contradiction with both previous studies and the underlying brand equity theory that asserts brand loyalty to be the core component of brand equity. The study showed that marketing managers working in the Ethiopian bottled water industry should concentrate their efforts primarily on creating adequate awareness about their product emphasizing on enhancing the consumers perception about the quality of that particular bottled water product. This study contributes to the limited literature in testing the applicability of consumer-based brand equity model and measurement scale in the Ethiopian market, particularly in the bottled water industry. Future research needed to be done if the results are to be expanded into other more branded product categories given the product used in the current study is a pure commodity and infancy of the industry may not explain the brand equity model as adequately as expected

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Keywords

brand equity, water market, Ethiopian bottled water industry

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