A Study of Brand Equity Formation in the Fast Moving Consumer Goods Category. (June 2019)

• Record Type: Journal Article
• Authors: Shariq, Mohammad
• Is Part Of: Jindal journal of business research. Volume 8:Number 1(2019)
• Page Start: 36
• Page End: 50
• Publication Date: 2019-06
• Subjects: Brand equity -- brand awareness -- brand loyalty -- perceived quality -- brand associations -- structural equation modeling; Business -- Research -- Periodicals; 658.0072
• DOI: 10.1177/2278682118823306
• Languages: English
• ISSNs: 2278-6821

Abstract

Purpose: To identify key relationships in building brand equity in the fast-moving consumer good (FMCG) category in the United Arab Emirates. Design/methodology/approach: It is postulated that marketing elements impact brand equity dimensions which in turn impact the brand equity construct. Five marketing mix elements were selected—price, distribution intensity, advertising, price promotions and non-price promotions, and four dimensions of brand awareness, brand loyalty, perceived quality and brand associations, finally to overall brand equity. Data were collected from a broad sample. Structural equation modeling was used to test the relationships among the 10 constructs. Findings: Brand loyalty and perceived quality have a significant impact on brand equity, whereas brand awareness and brand association were weak. Brand awareness has a significant influence on brand loyalty. Distribution intensity and non-price promotions have a positive relationship with all the brand equity dimensions, whereas weak support was determined for pricing and advertising. Conclusion: In the FMCG category building strong brand awareness combined with wide distribution and supported by non-price promotions are critical to building brand loyalty which in turn impacts brand equity. Originality/value: This study contributes to the general body of knowledge on branding and provides a starting point for further research in the region.