The Effect of Brand Equity on Customers’ Buying Decisions: In the Case of Tomoca Coffee
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Date
2022-06
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Addis Ababa University
Abstract
The study aimed to measure the effect of brand equity on customersꞌ buying decisions in the case of ToMoCa Coffee in Addis Ababa. The study applied Aaker’s customer-based brand equity model with the four dimensions. To conduct the research descriptive and explanatory research designs were implemented. To identify the sample population, first, the research selected fifteen branches of ToMoCa Coffee of seventeen located in Addis Ababa. Next to this, the research employed a purposive sampling technique to select the final respondent from each selected branch. The suitability and convenience of the data collection instrument were tested by a sample survey. A total of 390 questionnaires were distributed to the 15 branches, and each of them received 26 questionnaires. Out of those 373 respondents filled and returned the questionnaire appropriately. It was a 95.64% response rate. The collected data were analyzed and interpreted by SPSS version 24 software. The result was measured through descriptive analysis, mean, standard deviation, and inferential analysis. According to the correlation test, the three independent variables (Perceived Quality, Brand Association, and Brand Loyalty) were demonstrated that had a strong, positive, and significant relationship with the dependent variable Customers’ buying decisions. However, Brand awareness had a moderate, positive, and significant relationship with Customers’ buying decisions. The multiple regression analysis test result reviled that Brand Awareness, Perceived Quality, Brand Association, and Brand Loyalty had a significant, positive, and direct influence on customers’ buying decisions. Perceived quality was the highest effect on customers’ buying decisions followed by Brand awareness and Brand Association. Brand loyalty had the least effect on the customers’ buying decisions. It was recommended that focusing on products and service quality is a mandatory task in the beverage, and coffee industry, and companies must execute their effort on delivering quality products with state-of-the-art service.
Keywords: - Brand awareness, Perceived Quality, Brand Association, and Brand Loyalty, Customers’ buying decision, Customer-Based Brand Equity, and ToMoCa Coffee