The impact of consumer-based brand equity on purchased intention

Abstract

The beverage industry and specifically the brewery sector has undergone under major developments over the past decade, thus leading to significant increases in production and consumption. However, there are only few studies on beer brand value from the consumers‟ standpoint (Atilgan et al., 2005). One of the most essential topics in marketing management is the subject of brand equity. Nevertheless, in the purchasing process, consumers are not only concerned about the price or quality of a product or brand, but also other variables such as the Brand Equity. Customers‟ positive feelings on a product brand create purchase intention of the customers (e.g., Aaker, 1991; Assael, 1998; and Wang and Kan, 2002). Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. Positive brand equity, in turn, can lead to higher margins, greater customer loyalty brand extension opportunities, more powerful communication, and more favorable customer response to price change effectiveness higher consumer preferences. Moreover customers‟ positive feelings on a product brand create purchase intention of the customers (e.g., Aaker, 1991; Assael, 1998; and Wang and Kan, 2002). This research study aims to analyze the sources and consequences of Consumer-based brand equity of beverages, and more specifically, the beer Brand equity in Vietnam market. For this purpose, based on the Consumer-based brand equity Aaker‟s Brand equity model, we developed an empirical study, using structural equation modeling (SEM) in order to assess how beer Brand Equity stems from in the brewery industry and to analyze its consequences in consumer behavior. Our findings suggest that the beer Perceived quality is the most important dimension for beer Brand Equity. Moreover, a significant positive influence was found for two dimensions, namely Perceived quality and Brand loyalty. However, Brand awareness and Brand association show insignificant impact on beer Brand Equity. Finally, we found empirical support for the influence of beer Brand Equity on purchase intention.