Brand Equity-Consequence Relationship: Evidence from Automobile Industry

Abstract

The objective of this study is to determine the perception towards antecedents of brand equity and also its consequence for passenger cars. Convenience sampling technique was use to collect data in the cities of Riyadh and Jeddah, Kingdom of Saudi Arabia. Self-administered online questionnaires were used to collect total 310 responses, and 216 were found valid (70 percent response rate) and used for the study. The responses were analyzed for descriptive statistics as well as significant relationship among various constructs. A high perception level for brand equity was reported, and all hypotheses were accepted. Out of all the dimensions of brand equity, brand loyalty had the maximum effect on overall brand equity, which conforms to earlier researches. Automobile manufacturers and dealers need to identify the brand equity dimensions and should recognize their significance in order of their effect on overall brand equity. Appropriate strategies should be implemented to increase preference and intention of customers to purchase the respective brands.

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