The influence of brand equity on consumer responses in South Africa

Abstract

Purpose: The purpose of this paper is to replicate and extend the brand equity model that was developed by Buil, Martínez, and de Chernatony (2013) in South Africa. The paper also seeks to compare the impact of brand equity on consumer goods and in media companies. Design and Methodology: Structural Equation Modelling was used to test the hypotheses. Classic continuous modelling techniques and structural equation path modelling were used. The structural equation models were conducted using the twophase approach: the measurement section is analysed in a confirmatory factor analysis and path models are then constructed as per the Buil et al. (2013) model and analysed for deviations. Findings: The results of the study were quite similar to the original study done by Buil et al. (2013). There was a positive correlation between overall brand equity and the underlying dimensions of brand equity. All hypotheses aside from those for perceived quality were supported. In the inter-category comparison, there is no difference, the consumers of media are also influenced by brand equity and its dimensions. However, overall brand equity seems to be very important for influencing purchase intention for television broadcasters. Limitations: This research was limited to South Africa; thus, it cannot be generalised to other countries. The research was also limited to people with access to smart phones and computers, as it was only available online. There is an opportunity for the study to be replicated in other countries and also in a way that is accessible to people who do not have access to computers. In the findings, there was consistently high and significant positive correlations between all variables that act to support the model; this could be a limitation as some of this strength may arise from common method bias. The survey participants had to answer all questions using the slider; this might have caused the bias. The research produced a high number of incomplete surveys. Future research: The analysis of Lagrange multipliers suggests two paths that could be considered, namely, for direct associations between purchase intention and both brand awareness and brand associations. Key words: brand equity, consumer responses, media brand equity, brand equity dimensions, consumer responses.