The Effects of Sales Promotion on Brand Equity: Assessment of Walia Beer Brand Management Practice

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Addis Ababa University


Powerful sales promotion activities are among the key equipment of tools in building brand equity in organization. However, the main challenge is knowing different effect of sales promotion activities on one’s brand equity. The purpose of this research was to study the relationship between sales promotion with brand equity using Walia beer. The structure model of the effect of sales promotion on brand equity is defined in line with the existing theoretical findings. The research has employed explanatory research design to identify any causal links between sales promotions with brand equity dimension and overall brand equity. Primary data was collected from selected consumers of Walia beer through self-administered questionnaire with 28 items concerned with sales promotion and brand equity, on a five-point Liker-type scale ranging from “strongly disagree” (1) to “strongly agree” (5). By employing Corbetta(2003) sampling techniques a sample of 427, out of this 389 questionnaires were filled and returned. Respondents were selected from different bars and restaurants in Addis Ababa using convenience sampling. Data collected using structured questioners and then data analysis performed using structural equation model in Amos 20.0 and SPSS 20. The finding showed that sales promotion is currently contributing positively to most of brand equity dimensions. The effect of sales promotion was found to have a strong positive effect on brand loyalty than the other dimensions in case of Walia beer. Therefore Walia brand management should concentrate their efforts primarily on brand awareness, brand loyalty and brand equity, which if increased will contribute positively to Walia beer as we found out in the study



brand equity, dimensions of brand equity, Sales promotional activates