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Investigating the Impact of Brand Image and Brand Loyalty on Brand Equity: the Mediating Role of Brand Awareness

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Abstract

This research aims to examine the impact of brand loyalty and brand image upon brand equity given the involvement of brand recognition as a mediator. The technique used for the collection of data was simple random sampling. The information was collected from the general public, colleges, and university students via the survey method strategy. The research design is quantitative, and the data was collected by implementing the non-probability and convenience sampling technique with a sample size of 390. The results show that brand image has a positive and significant relationship with brand awareness. Moreover, brand image and brand loyalty have a considerable brand equity relationship, and brand recognition mediates the brand image and brand equity relationship. This study will serve to help marketers to attain customer satisfaction and concentrate on the wants of customers to obtain a superior competitive advantage. Pages 1091
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Volume 15, Issue 2, 2021
1091
Investigating the Impact of Brand
Image and Brand Loyalty on Brand
Equity: the Mediating Role of Brand
Awareness
Anas Zia1, Sohail Younus2, Farhan Mirza3, 1Corresponding Author and Lecturer
GIFT Business School, GIFT University Gujranwala, 2Lecturer University of the
Punjab, Jhelum Campus, 3Lecturer The Melliuem University and College, Queenberry
Campus Gujranwala, Email: 1Anas.zia@gift.edu.pk
This research aims to examine the impact of brand loyalty and brand image
upon brand equity given the involvement of brand recognition as a mediator.
The technique used for the collection of data was simple random sampling.
The information was collected from the general public, colleges, and
university students via the survey method strategy. The research design is
quantitative, and the data was collected by implementing the non-probability
and convenience sampling technique with a sample size of 390. The results
show that brand image has a positive and significant relationship with brand
awareness. Moreover, brand image and brand loyalty have a considerable
brand equity relationship, and brand recognition mediates the brand image
and brand equity relationship. This study will serve to help marketers to attain
customer satisfaction and concentrate on the wants of customers to obtain a
superior competitive advantage. Pages 1091
Keywords: Brand image (BI), Brand loyalty (BL), Brand awareness (BA), Brand equity (BE)
Introduction
The brand image allows the customer to recognise their relevant needs and understand the
effective mechanism for achieving fulfilment through the brand (Hossain, 2020). The brand
image (BI) is the united attempt of a brand name in the customers’ remembrance, which is
associated with the characteristics of other brands (Keller, 1993). A deep-rooted and
relinquished BI can be believed as one of the most special benefits for any association, as it
smooths the progress of gaining a larger customer loyalty base, superior profit edge, secure
greater collaboration and hold up, and boosts marketing announcement efficiency (Olson,
2009). Brand equity is a very well-liked and important consumer perception that is debated by
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researchers in the past studies.The brand has been the second most essential asset for industry
(Doyle, 2001). Brand awareness (BA) plays a fundamental role in the decision-making of the
customer.
In contrast, the superioroity of the BA of a specific brand is correlated with the collection of
brands in the deliberation of the consumer (Moisescu, 2009). Consumers are more definitely
going to favour their liked brands over rivals. (Dimitriades, 2006). It is crucial to the market's
success; a significant amount of brand recognition surveys analyse the results on customers
later on than reviews, brand and durability (Cooil et al., 2007). Even though earlier
investigators checked the association of BA and BE, there have been just as many infrequent
studies completed on the influence of BA upon the association amid the brand loyalty and
brand equity. By discovering the mediating impact of BA between the association of BA, BL,
and BE, This reseach will add data to the body of literature on the subject.
The major goal of this research is to look at the relationship of BI and BL on BE through the
mediating role of BA. The article begins with an appraisal of the appropriate kinds of literature
to build up a theoretical framework. Subsequently, the hypotheses are developed for
examination and exemplify the experiential approach and data compilation. The considerate
brand equity through a consumer’s viewpoint assists marketers to discover the purchase
intention and to plan an effectual marketing series (Tocquer, 2010). As service associations
present almost indistinguishable inventions and services, developing a physically powerful
brand image is likely to be an extremely complicated job. Yet, due to its significance and
favourable position in company continued existence, service associations with
indistinguishable products are a focal point in reinforcing their BI. In other words, businesses
with a high brand equity grow more competitive benefits and take pleasure in the opportunities
for successful additions, Flexibility in market rivalry alongside a lack of endorsement by rivals,
and formation of the obstructions to competitive entry will impact chances of the venture.
(Ling, 2013).
Literature Review
Brand Image
Keller (1998) has stated that the BI is distinguished as an imperative perception in marketing.
Brand image plays a vital role in building up a brand. (Mao, 2010). It is a set of brand
connections, where everything is bonded in recollection to a brand, and more often than not is
achieved in a meaningful way (Aaker, 1991). Brand image can be explained as the mixture of
the consumer’s insights and convictions about a brand (Campbell, 1993). There are three major
theoretical watercourses which connect to brand relations: the communal anticipations people
have concerning the corporation, the business character traits that the public have towards a
corporation, and the amount of faith towards the business (Berens & Van Riel, 2004). The
brand nature scale reflects the manufactured goods’ brand character attributes (Davis, 2004).
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A corporation or products that have a high-quality representation in the marketplace can
acquire a greater position in the market, a momentous ready for action perimeter, and a superior
marketplace (Jaworski & D.J. McInnis, 1988). According to academic studies on character,
brand value have a causative effect on brand loyalty. (D.M, 2003), In the rumorous studies,
researchers thoroughly discussed the importance of brand equity (Aaker, D.A., (1991), Kellar,
K.L (1993), and previous buying performance (Hsieh et al., 2004). Brand Image has been
regarded as one of numerous ways by which a company's appearance is calculated. It is planned
on the foundation of characteristics (Koo, D.M, 2003) and brand payback or assessment
(Sentino, 2004). The successful brand image enables consumers to recognize needs, which the
brand accomplishes to distinguish itself amid its competitors and thus, improve the possibility
that consumers possess the strength of mind to purchase the brand (Setiono & Hsieh, 2004).
Consumers' views of brand value and green marketing campaigns are essential to their
purchases of green goods (Norazah, 2013). Brand image is also recognised as a crucial
foundation of BE. The formation of BI has a positive impact on BE (Datta, 2011).
Brand Loyalty
Brand loyalty is the most vital part of brand equity. When consumers have a positive image of
a particular brand in their mind, their commitment to the brand increases, and they will not
switch to an alternate brand. Brand loyalty is linked to the consumers’ recurring purchase
behaviours after a period of timem, with an optimistically prejudiced controversial, estimative,
and behavioural propensity in the direction of a recognised, tagged or marked substitute or
invention option (S, & Jagdish, 1974). Incorporated marketing interactions perform a crucial
task in persuasive customersbrand loyalty (Gil-Saura, 2012). Customers repurchasing a
favoured product time-after-time have commenced a recurring acquiring of the similar brand
or identical brand-set (Lin, 2003). Similarly, brand loyalty affects their buying verdicts to a
similar product (Ahmed, 2011; Huang 2009; Lam et al., 2007). In other words, the customer
becomes loyal with their favoured produce brands and attaches to renowned brand names (Sun
et al., 2004), they have surpassed the mandatory minimum time for communal
acknowledgment.
Positivity eventually contributes to customer brand satisfaction and profit enhancement
guidance for products (Ratnasari, 2020). Customers have urbanised BL by generating
optimistic productivity of BE, which optimistically produces the first choice selection of the
brand over different brands (Ling, 2013; Vogel et al., 2008; Leeflang P.S.H et al., 2014). What
time brand loyalty boosts, the brands equity spirit also augments. Brand loyalty is similar to
the customers’ brand devotion and is also the result of faith (Founier, 1998). The associations
put on using better rates to draw loyal buyers. Loyalty assistance is able to ensure products
thrive and grow while adding to long-term outlook (Yaghoob, 2009). A brand with an elevated
consciousness and high-quality image encourages BL to customers, and superior BA is the old
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brand belief and purchase intent for customers (Aker & Keller, 1990). For a customer to
purchase a brand, an optimistic outlook must be initially measured, but the brand approach
cannot be shaped and the intent to purchase cannot happen if the BA occurs (Rossister & Perey,
1991). The customer, therefore, may utilise heuristics to buy only recognisable, deep-rooted
brands (Keller, 1993). Brand loyalty has more than a few significant tactical advantages to the
firms, such as expanding a high market share, as well as providing fresh consumers, holding
brand expansions, diminishing promotion rates, and reinforcing the brand to the spirited risks.
A loyal purchaser base signifies a blockade to the entrance, a foundation for a cost payment,
and point in time to act in response to contestant modernisms and a fortification alongside
harmful cost opposition (Atilgan et al., 2005). Brand loyalty is next to the spirit of BE (Tong
& Hawley, 2009). Brand loyalty is a centre measurement of BE (Aaker (1996). Brand loyalty
was established to have a leading consequence upon BE, and it guides far above the ground
level of BE (Yasin et al., 2007). Therefore, BL is improved for augmenting BE (Mishra &
Datta, 2011). The buyer’s willingness to repeatedly repurchase a product is brand loyalty, while
opposing products may also be available (Rajagopal, 2010). However, this feature of customer
performance varies greatly in different civilisations; in several, the social order is a different
brand which is more mindful than others (Hofstede, 2011). The mind of BE is product loyalty
(Tong & Hawley 2009), whereas brand loyalty is similar to an extremely held devotion to
obtain or make use of an errand creation or service repeatedly in an imminent period (Kim et
al., 2008). The customer buying decisions for the comparable product are usually influenced
by the loyalty of a particular brand (wahid et al., 2011).
Loyalty requires the loyal strength of the customer, such as remembering any brand costs and
retaining tower control costs for an additional brand (Ling et al., 2014). Therefore, to improve
the brand equity, requires boosting the loyalty (Mishra & Datta, 2011).
Brand Equity
Brand equity is very important in the increasingly fierce competition ofthe market particularly
for similar products, which require companies to survive (Saidarka, 2019). Moreover, BE is
the additional sense that is intelligent to be registered from side-to-side by the consumer in its
forename, and it often reproduces that the consumer is enthusiastic to establish a fixation on an
exact brand or manufactured products (Riquelme, 2008). The importance of brand value has
increased as a result of the growing focus on brand marketing. (kim et al., 2005). The marketing
activities are an important way for ensuring the brand's popularity (Dolak, 2003). In terms of
consumer led business choices, a brand's precious equity is measured dependent on consumers'
loyalty. “the varying impact of brand awareness on customer marketing answer if the brand”
(Keller, 1993).
The customer evaluates the brand’s strength or brand associations or the perceived value or
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utility of the brand in relation to its costs. The perception of the brand value by customers
impacts its performance and improves the company’s financial gains (Ebrahim, 2020).
The majority of a small number of companiesessential reserves are imaginary. Furthermore,
their practical customer, brand slogan and logo, brand slogans and illustration, individuality,
font, sequence state of intelligence, accessory and name. They proceed closely across
relationships; brand names and brand partnerships are the most significant influences in power
and profitability (Neal & Srauss, 2008).
Brand equity on the supplementary pass is the increase in the apparent effectiveness and
reputation of a brand name present in a development” (Lassar et al., 1995). Brand equity is the
effect of details of the brand on the response of the consumers (Keller, 1998). Brand equity as
a position of discernment, approach, information, and behaviors on the fraction of customer
that consequences in augmented helpfulness and permit a brand to be paid superior volume or
better boundaries than it could lacking the brand(Chernatony, 2010). It is evident that BE
dependent on buyers has several dimensions (Keller, 1993). The BE model focusses on brand
recognition and its mechanism, BI, and BA. Brand equity has five components: brand
affiliation, brand recognition, BL, perceived quality, and additional brand ownership (Aaker,
1991). The focal points on the five dimensions of BL, BI, BA, brand price, and perceived
quality were also defined by Rūta and Juozas (2010). Brand equity is the quantity of the value
of the brand to the proprietor. It is a place of possessions and legal liability linked to a brand,
its forename, and sign that inserts or removes the value made available by its manufactured
products or ratings to claim or to the clientele of that business (Aker, 1991). The brand
generates considerably superior favourites in the grouping by means of the superior picture
(Enayet, 2007). This learning will fill the void to locate the BI’s belongings elsewhere on BL,
which disturbs the BE.
Brand Awareness
The awareness of the brand (BA) concerns how consumers connect with the specific product
they want to receive. Brand awareness is essential or critical to the process of interaction
(communicating with others), i.e. a high level of understanding (Sharp, 2003; Netemeyer et al.,
2004). Brand awareness affects BE directly (Pouromid, 2012). The consumers gain brand
awareness via effective marketing or communication media or methods, such as television,
headsets, online or open advertising. Consumers have faith in the product's confidence and
excellence or merit, and this reduces the likelihood of a poor decision. (Keller, 2003; Rubio et
al., 2014). Brand awareness has a significant impact on consumer decision making, when
generally used as a policy disclosure that benefits BE management (CBBE) (Chung et al., 2013;
Norazah, 2013). Brand awareness actually has a direct impact on BE (Iranzadeh, 2012). If the
consumer ever sees or notes the brand, he can correctly inform a brand (Brewer & Zhao 2010).
In addition, its logo is the main aspect of brand awareness (Davis et al., 2008). Brand awareness
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plays a major role in customer decision making, ever since advanced BA was developed into
an element of consumer brand consideration.
Brand Awareness and Equity
There are several theoretical and experience confirmations from earlier research studies that
reinforce positive relationships among market awareness and BA. Brand awareness and BE are
physically linked because BA is a factor that helps a brand remain at the forefront of
consumers’ minds and memories (Aaker, 1991). Afterwards, research has proven that BE and
brand recognition need to be measured in kind (Aaker, 1996). Brand recognition is the
consumer brands first and most important attribute (Tong & Hawley, 2009). Brand awareness
guides BE development in the customers state of mind (Sarigollu, 2011). It has certain
elements of consumer understanding and approaches.
Brand Awareness, Loyalty, and Image
Brand image explains how customers distinguish a specific brand, whilst brand distinctiveness
is the technique throughout which a corporation begins their brand in the marketplace and gains
the insight of customers. Lastly, customers may form a different brand image in their mind to
what the corporation demonstrated or intended (Bian X, 2011). In current years, due to
technical expansions, purchasers are significantly more aware and only buy the products which
are famous and are in accordance with their supplies. The preferences of the company may be
approached by allowing the thinking of the consumers to buy the products of their particular
brands as large as possible. When consumers have an intention to buy a product, the initial
thought that comes to mind is the brand name, which demonstrates the BA. The verdict of
customers to purchase a product can be the effect of whether a brand has superior BA
(Krishnan, 1998). This defines the idea that the consequences of having an elevated height of
BA will have a high rate of the marketplace share and an improved value assessment.
Additionally, whilst deciding specific products, the customers believe in the supposed value
and brand consciousness. The ‘supposed worthcan assist customers in having a personalised
finding of the cost of the invention, which includes the most important separation and becomes
an additional desire of the brand in customers’ minds (Aaker, 1991).
Hypothesis
H1: Brand image is substantially associated with brand equity.
H2: Brand loyalty is substantially associated with brand equity.
H3: Brand image is substantially associated with brand awareness.
H4: Brand loyalty is substantially associated with brand awareness.
H5: Brand awareness is substantially associated with brand equity.
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Theoretical Framework
This study includes BI and BL as the independent variables, and BE as a responding or
dependent variable. On the basis of this research hypothesis, the researchers developed a
theoretical framework, which defines the association among BI, BL, BE, and BA.
Figure 1. Theoretical Framework
Methodology
This study has gathered data from the general public via the survey method to check the
respondents’ point of views regarding brand variables. The data gathering was performed
through a questionnaire with a five-point Likert scale for all the variables that affect brand
equity. The measurement questionnaire contained five-sections. The first section concerned
demographic information, while the other four sections explored the rankings of the four
variables. The data sample was divided into both males and females. This study has followed
the deductive research approach, and the design is descriptive, while the unit of analysis is
individual. The course is quantitative. The data has been collected through simple random
sampling. In accordance with the thumb rule developed by Hair et al. (2010), the sample size
was chosen by multiplying the total number of items in the scale with ten, so our sample size
is 380.
Measurements
Scales are used to describe the variables of the model. All of the constructs were measured by
using five-point scales. The measurement of BI was completed through four items, and the
plate was adopted from the study of Chen and Tseng (2010). The height of BL was adopted
from the study of Keller (2001), and it contains seven items. Brand equity was comprised of
four items adopted from the research study of Yoo et al. (2000). Brand awareness consisted of
five items measured by using the scales developed by Aaker, (1996) and Keller (2001).
Brand Image
Brand Loyalty
Brand
Awareness
Brand Equity
H5
H4
H1
H3
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Data Collection Method
The data was written by questionnaire to verify the association of BI and BL to BE through the
survey strategy. A cross-sectional research was conducted to collect the data.
Demographics
The questionnaire consists of five sections. The first section contains the demographic
information of respondents, such as education, gender, and age; and the other four sections
explore the construct, i.e. BI, BL, BE, and the mediating role of BA. The study was conducted
in a marketing context, and the target population were customers or members of the public.
Findings
Table 1: Descriptive Statistics
Construct
Mean
SD
α
1
2
3
4
1
Brand image
5.80
0.579
0.86
--
--
--
--
2
Brand loyalty
6.04
0.556
0.82
0.609**
--
--
--
3
Brand awareness
5.87
0.646
0.743
0.406**
0.556**
--
--
4
Brand equity
5.83
0.690
0.768
0399**
0.439**
0.540**
--
The above table symbolises all the study variables with descriptive statistics, reliability, and
correlation. The highest correlation, which is valued at 0.609, is between brand recognition and
brand loyalty. The result reinforces that the brand image and brand loyalty are optimistically
narrated with a small standard deviation between one another. All the other variables are also
associated with each other, such as brand recognition, and brand equity. The mean values
illustrate the pattern of answers, that most of are directed towards amicability. The findings
suggest that for all variables, the alpha values are within an acceptable range to confirm the
data reliability.
Table 2: Fit Index for CFA
Index of fit
Cmin/df
P
GFI
AGFI
CFI
RMSEA
value
2.88
0.01
0.956
0.892
0.929
0.049
The Table 2 deals with the goodness measures of the theoretical framework. It provides a
comprehensive understanding of the model; it is perfect for further analysis or it is not.
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Therefore, the substantial standard of the values has been used to assess the credibility. The
costs of Goodness of Fit Index (GFI), Adjusted Goodness of Fit Index (AGFI), and
Confirmatory Fitness Index (CFI) are above the average of the minimum acceptable value,
which is 0.90. It is predicted that the model provides a general fit. Besides this, in order to
measure the errors in the conceptual framework, the root mean square error of approximation
(RMSEA) is substantially used by research studies, and the standard maximum acceptable
value of the RMSEA is 0.08. Meanwhile, the above table portrays that the value of the RMSEA
is 0.049, which is less than the standard maximum acceptable value. From this perspective, it
can be stated that the model provides substantial fitness, which ultimately leads the researchers
to perform further analysis.
Table 3: Fit Index for SEM
Index of
fit
Cmin/df
P
GFI
GFI
CFI
RMSEA
Value
2.90
0.01
0.949
0.891
0.936
0.057
The Table 3 deals with the goodness measures for the Structure Equation Model. The values
of GFI, AGFI, and CFI are above the standard of minimum acceptable value, which is 0.90.
Thus, it is predicted that the model provides a general fit. Besides this, in order to measure the
errors in the conceptual framework, the RMSEA is substantially used by research studies, and
the standard maximum acceptable value of the RMSEA is 0.08. Meanwhile, the above table
portrays that the value of the RMSEA is 0.049, which is less than the standard maximum
acceptable value.
Table 4: Psychometric Analysis
CR
AVE
ACC
AE
EX
PI
BI
0.855
0.654
0.450
BL
0.851
0.522
0.237
0.306
BA
0.824
0.617
0.241
0.303
0.372
BE
0.845
0.644
0.418
0.223
0.322
0.426
The Table 4 indicates the models distinctive and convergent validity as Critical Ratio and
Average Variance Extracted (AVE) are above the minimum acceptable value, such as 0.5, and
0.8, respectively. The values of the AVE square root are also greater than the correlational
values. From this perspective, it can be stated that the model substantially comprises the
convergent validity along with the discriminant validity. Having both kinds of validities in the
market portrays that the model is substantially fit and provides substantial insights, according
to the theoretical assumptions of the model.
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Table 5: SEM Regression Weights
Title: Regression Analysis
Estimate.
S.E.
C.R.
P
Brand Awareness
Brand Awareness
Brand Equity
Brand Equity
Brand Equity
Brand Loyalty
Brand Image
Brand Awareness
Brand Loyalty
Brand Image
335
207
582
256
077
0.047
0.042
0.070
0.045
0.047
8.204
4.722
8.217
5.314
1.609
***
***
***
***
0.109
SEM Regression Weights
The Table 5 represents the regression weights. The regression analysis is widely utilised by
research studies to evaluate the power of the independent construct/s on the dependent
construct. In this regard, this study aims to measure the respective association to support the
study’s hypotheses. The table portrays that all of the paths are significant, except BI to BE. It
implies that all of the hypotheses are accepted because they are substantially supported by the
P value, which is less than 0.05, except in regard to the association of BI and BE because its P
value is greater than 0.05.
Table 6: SEM Path analysis
Independent variables
Effects
Brand equity
Brand image
Direct
Indirect
Total effect
0.446
0.347
0.497
Brand loyalty
Direct
Indirect
Total effect
0.394
0.315
0.444
Mediating variable: Brand awareness
The Table 6 describes the path analysis of the specified variables and their associations by
using SEM. The worth of the direct and indirect impact are complicated by the way of
association. The value of the total effect is (0.497*), and is higher than the direct effect (0.446*)
for the association among BI, organisational BL, and BA, which demonstrates the mediation
effect. In respect to the coefficient worth for the mediation association, the total effect (0.444*)
is higher than the direct effect by (0.394*) demonstrating that BA is an important mediator
among BI and BL.
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Conclusion and Discussion
This study aims to examine BI, BL, BE, and BA. The statistical outcomes portrayed that the
BL and BI have a substantial impact on BE and that brand recognition has a major impact on
BE. Consumer loyalty plays a crucial role in every company’s long-term survival.
Conversely, the study demonstrates how suggestive connections can be established among
brands and customers through representative utilisation. This study supports the previous
knowledge by examining the impact of BA in a predictive relationship amid BL, BI, and BE.
While previous research studies recommend that BL and BI have a direct effect on BE, this
experiential study is the first research to observe the impact of BA on the connection among
BL and BE. This study discovers that BA completely mediates the influence of BL, BI, and
BE.
Managerial Implications
As mentioned above, BL has an optimistic and substantial effect on BE. For this reason,
advertisers should judge the personality distinctiveness of their brands from the customers’
perspectives, in an effort to build up BI in accordance to the customers’ ideal self-perceptions.
The findings of the present research recommend that customers should be motivated by their
brand loyalty and brand image of a single brand on the market from the beginning to the end.
Consequently, the brand know-how should be tailored to maintain user uniqueness to motivate
BE. The results of the research also illustrate that the user develops the BE, as the brand
familiarity has a prosperous influence on their social distinctiveness and their standard of
living. The result of this study has provided priceless insights, which can be utilised for
intending dissimilar approaches to catch the attention of consumers by highlighting upon the
brand equity of the inventions and services. The dealers should be aware that certain aspects
persuade consumers to be aware of brand equity. As a foundation on the findings from this
study, marketers should prioritise brand equity builds as their policy to catch the attention of
potential customers, for the reason that it does illustrate important direct and indirect
connections between the measurements of BE.
Limitations and Future Direction
This study has several restraints, along with its considerable involvements to the obtainable
literature on brand management. The combined brand equity representation of this study should
be functional to other service zones, as well as to establish its outside strength, as the sample
size is a substantial limitation of this research. There should be a further analysis to help wider
researches that must be realistic to implement. Although this study provides some banding
imminent on the associations amongst BL, BI, and BE, prospective research studies should
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further develop upon this theoretical study model and provide additional understandings into
the environment of these associations in dissimilar utilisation conditions.
Additional limitations of the research include that other perspectives of the brands should be
encouraged, such as value, association, trust, and perceived value. In addition, the subject of
this study is the general public. It is proposed that forthcoming researchers should enlarge their
study contributors to include students or other sectors.
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