The Role of Advertising and Sales Promotions in Brand Equity Creation (Case Study: Iranian Customers of Household Appliances)

Abstract

The maintenance and development of the brand equity is usually a challenging and difficult activity. Accordingly, it is necessary to adopt a wide landscape of different attitudes toward the effective factors on the brand equity so that we can develop the brand equity properly. With regard to its objective, this study is a practical research. The data collection method is based on a descriptive-correlative methodology and the samples are selected in a simple random sampling method. The statistical population of the research includes 380 Iranian customers of the household appliances of a globally famous brand. This research was conducted in Iranian city of Ahwaz.  To analyze the research hypothesis, this study uses confirmatory factor analysis (CFA) and structure equation modeling (SEM) using Amos 20 and SPSS22. Considering the obtained results of data analysis, the effect of attitude toward the advertisements and monetary and non-monetary promotions on the dimensions of brand equity has to be emphasized. But non-monetary promotions have not significant and positive effect on the brand, and hence the relevant hypothesis was not confirmed. Moreover, the effects of three dimensions of brand equity (i.e. the awareness, perceived value and dependence) on the loyalty to brand were confirmed.