Developing a model to identify the relationship between brand equity and brand preference by customers

Abstract

Both the customer and organization are using advantages of brand .When these consumers use a brand and experience it, they feel more comfortable with and will be eager to use that again. Trade names are the information about product’s quality, performance and its other aspects. Brands lead customers to incur less risk. Branding gives meaning to their owners and can be considered as part of their wealth. Brand is a key concept in marketing circles, it can be used as a springboard which take your business forward successfully and give you a competitive advantage. Therefore, due to the importance of the brand and its effect on client’s marketing and branding, this paper evaluates the effect of brand equity on brand preference by customers. Conceptual framework in designing the current study is based on "Acker” study and brand equity dimensions including brand loyalty, perceived quality, brand awareness, image brand, brand popularity, brand uniqueness. This model considers the impact of the brand equity dimension on brand preference. According to this model, six hypotheses have been proposed. The study population included 83 managers and marketing experts of Iran’s "Saderat Bank". A questionnaire was used to collect data. Its reliability and validity has been confirmed. The binomial and Friedman test was used for analyzing data and rating scale. According to the results, five hypotheses were confirmed and one was rejected. It is concluded that brand popularity has the greatest impact on brand preference and brand loyalty has a minimal impact on brand preference by customers.