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Antecedents of Customer Based Brand Equity-Research in Azerbaijan

Shahin AKBAROV
Journal of Business and Management Sciences. 2018, 6(2), 54-58. DOI: 10.12691/jbms-6-2-5
Published online: June 09, 2018

Abstract

The purpose of this research is to determine the relationship between the elements of customer-based brand equity. 248 questionnaire was gained through convenience sample. Data was analyzed with SPSS AMOS-23. Confirmatory factor analysis first done and then path analysis with AMOS 23.It was determined that brand awareness has a direct and significant effect on perceived quality, brand loyalty and overall brand equity, an indirect and significant effect on brand loyalty and overall brand equity. It was also determined that the perceived quality has no direct effect on overall brand equity, but has direct effect on brand loyalty and indirect effect on overall brand equity. The most influential factor on overall brand equity is brand loyalty. The study is important because it is carried out in Azerbaijan, a country where brand perception is a new phenomenon. The results of the research are thought to be beneficial to both the theorist and the practitioner.

1. Introduction

Brand equity structures can be divided into three main groups: customer mindset structure, brand performance structure and shareholder value structure 1. The customer mindset measures the general attitude of the customer directly toward a brand. The brand performance structure measures the brand market performance, which is the result of the customer mindset, and includes dollar sales, volume sales, revenue premium, price premium, volume premium, and share premium. The shareholder value structure measures the value created by the brand for the overall company.

The consumer-related method of measuring brand equity can be divided into two groups: those involving consumer perceptions (perceptual dimension) such as brand awareness, brand associations, perceived quality; and those involving consumer behaviour (behavioural dimension) such as brand loyalty 2, 3.

Generally, customer-based brand equity studies represent two theoretical frameworks: Aaker's customer-based brand equity model and Keller's customer-based brand equity theory 4. Aaker’s 5, 6 customer-based brand equity dimensions included brand awareness, brand associations, perceived quality, brand loyalty, and other proprietary brand assets. Because proprietary brand assets are firm related, only consumer-related components have been adopted by subsequent researchers, resulting in a four-dimensional CBBE (customer-based brand equity) including awareness, associations, quality, and loyalty 7. Utilizing Aaker's and Keller's brand equity concepts, Yoo and Donthu 8 developed a multidimensional scale to measure customer-based brand equity. Yoo and Donthu 8 suggest that the brand loyalty is one of the components of customer-based brand equity, and that three brand equity dimensions affect overall brand equity. Also brand awareness and brand associations are considered as the same dimension. Nam et al. 9 claims that the brand loyalty is one of the components of customer-based brand equity, but an outcome rather than antecedent of brand equity. Buil et al. 10 argued that brand associations, brand awareness and perceived quality influence brand loyalty 11. Liu et al., 4 used perceived quality, brand loyalty, brand awareness, and brand image as common dimensions of CBBE. The common denominator in all models is adoption of one or more dimensions from the Aaker model 4.

The purpose of this research is to determine the relationship between the elements of customer-based brand equity. In this context, firstly literature review was made on the subject, a model based on the theory was put forward and the model was tested and the results were obtained.

2. Literature Review

2.1. Brand Equity

Brand equity refers to the customer's subjective and intangible assessment of the brand, above and beyond its objectively-perceived value 12. Furthermore, brand equity can reflect the consumers' thinking, feelings and actions toward the brand, and can even help to increase the value, market share and benefits of a firm 13. Aaker 5 defines CBBE as a multidimensional concept, which is“a set of brand assets and liabilities linked to a brand, its name and symbol that adds to or subtracts from the value provided by a product or service to a firm and/or to that firm's consumers.” Keller 14 defined customer-based brand equity as the differential effect that brand knowledge has on consumer response to the marketing of that brand. Customer-based brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory 14. CBBE is“a set of perceptions, attitudes, knowledge, and behaviors on the part of consumers that results in increased utility and allows a brand to earn greater volume or greater margins than it could without the brand name” 15.

2.2. Brand Awaraness

Different brands have different relative strengths in consumers’ minds. This strength has been referred to as brand awareness and is an integral part of brand equity 16. Brand awareness is one of the dimensions of brand equity 5, 17, 18. It is the first step to creating brand equity 10 and it is the ability of a customer to recognize or recall that a brand is a member of a certain product category 19. According to Aaker, brand awareness is the foundation of overall brand equity and the other three dimensions (brand associations, perceived quality, brand loyalty) 20. Aaker 5 considers that brand awareness may result in brand equity in four different ways: creating a brand node in consumer’s memory, providing a sense of familiarity of the brand in the consumer’s mind, acting as a signal of trust in the brand and being enough reason for the consumer to consider the brand in his consideration set 21. When consumers are aware of a brand, it is more likely to be chosen over other brands with lesser awareness 22. Keller, conceptualized that brand awareness consists of brand recognition as well as brand recall 16.

While several researchers proposed brand awareness as a direct antecedent of brand equity-that is, brand awareness not conceptualized as a component of brand equity, other empirical results showed that brand awareness, along with other brand related attitudes, could positively influence future brand choice and market share 23.

Brand awareness with strong associations develops a specific perception of brand image (e.g., quality, feelings) and is positively related to brand equity because it can signal quality and loyalty, which leads to a favorable purchase behavior 24. Some studies consider brand awareness and brand associations as a joint dimension, causing difficulty in untangling the effect of brand awareness from brand association 25.

Several studies found positive impact of brand awareness on percieved quality 10, 20, 26, 27, on brand loyalty 20, 21, on CBBE 19 and on customer satisfaction 28. On the other hand some studies did not found significant impact of brand awareness on brand loyalty 26, 28 and on CBBE 9, 16, 29, 30, 31, 32.

2.3. Brand Association

Brand associations are the informational nodes linked to the brand node in memory and contain the meaning of the brand for consumers (Keller, 2013). Brand association refers to all the thoughts in consumers' minds related to a brand 22. Brand associations may be either brand attributes or benefits. Brand attributesare those descriptive features that characterize a product or service. Brand benefits are the personal value and meaning that consumers attach to the product or service attributes 14.

There is a strong connection between awareness and association; some argue that the former precedes the latter 33. Some empirical evidence suggests that association and awareness should be combined into one 34. As we used Yoo and Donthu`s 8, 35 scale because of its cross cultural validation, we took association and awareness as the same construct.

2.4. Perceived Quality

Perceived quality is another core dimension of customer-based brand equity 19. It is not the real quality of the product but the customer’s perception of the overall quality or superiority of the product (or service) with respect to its intended purpose, relative to alternatives 31. Perceived quality is related to consumers' judgments, which are formed after consumers compare expectations with perception of actual service 4. Yoo et al. 36, Pappu and Quester 37, 38, Tong and Hawley 31 empirically validated perceived quality as one of the dimensions of customer-based brand equity 19.

Several studies found positive impact of percieved quality on brand loyalty 20, 26, 27, 28, on brand equity 10, 16, 19, 27, 32 and on customer satisfaction 28. On the other hand some studies did not found significant impact of percieved quality on brand loyalty 10, 21 and on CBBE 21, 29, 31.

2.5. Brand Loyalty

Brand loyalty is the core dimension of customer-based brand equity 19. It is the commitment to buy again or patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior 39. Loyal customers are less likely to switch to a competitor solely because of price; they also make more frequent purchases than comparable non-loyal customers 31. Brand-loyal consumers are willing to pay more for that brand and respond more favorably to a brand than nonloyal or switching consumers 4.

One of the observable differences among different CBBE studies is the role of the loyalty component. Loyalty is included as a component of CBBE in some studies, but treated as an outcome of CBBE in other studies 7. In Yoo ve Donthu`s 8 study, brand loyalty refers to the tendency to be loyal to a focal brand, which is demonstrated by the intention to buy the brand as a primary choice.

Several studies found positive impact of brand loyalty on brand equity 10, 19, 21, 29, 30, 31, 32, 40. On the other hand some studies did not found significant impact of brand loyalty on brand equity 16.

3. Research Model and Hypotheses

As a result of the literature review, the following model (Figure 1) has been adopted and hypotheses have been developed for testing.

4. Methodology

Items measuring variables were taken from Yoo and Donthu`s 8, 35 (Yoo and Donthu developed a multidimensional scale for customer -based brand equity and test its psychometric properties. They observed only three dimensions for customer-based brand equity as discussed in this paper) customer-based brand equity construct due to its cross-cultural validity. The items were translated into Azerbaijani language and after the approval of the language and marketing experts, pilot study were conducted with 20 respondents. Then, 248 questionnaires were collected using convenience sampling method. The universe of research is Baku population over 16 years old.

The questionnaire consists of demographic questions and items that measure customer-based brand equity structure. The customer-based brand equity items were measured on a five-point Likert type scale where 1 representing "strongly disagree" and 5 "strongly agree". Respondents were asked to answer questions, taking into account any brands they used. The data were analyzed with the SPSS AMOS 23.

5. Analysis and Findings

Some socio-demographic characteristics of the sample are presented in Table 1.

AMOS 24 was used for data analysis. For investigating model fit confirmatory factor anlysis were performed. Indicators related model fit are all acceptable: 3>CMIN/DF = 2,103; 0.90<GFI=0,929; 0.95<CFI=0,974; 0.08>RMSEA=0,067 41.

For determining relations among variables path analysis performed using SPSS Amos. Figure 1 presents path estimates, and Table 2 shows standardized direct effects (estimates), standart errors (SE) and significance of relationships (P). As shown in table direct effect of perceived quality (PQ) on overall brand equity (OBE) is not statistically significant, thats H5 were not supported. All other direct effects are statistically significant, thus H1, H2, H3, H4, H6 were supported.

To investigate indirect effects, bootstrapping procedure were implemented (n = 500, BC - %95). Table 3 presents the indirect effects of awareness on loyalty, awareness on overall brand equity, and perceived quality on overall brand equity. Results indicate that all indirect effects are statistically significant. That is hypothesis H7, H8 and H9 were supported.

Squared multiple correlations for structural equations indicate that (Table 4) the predictors of perceived quality explain 72,8 percent of its variance, the predictors of loyalty explain 66,6 percent of its variance and the predictors of overall brand equity explain 79,5 percent of its variance.

6. Conclusions

In this paper we first introduce literature review about customer-based brand equity. Almost all researchers that we reviewed refer to Aaker`s and Keller`s customer based brand equity concept and accept their definition. In this article we accept Yoo and Donthu`s 8 customer-based brand equity scale as they test its psychometric properties in the cross-cultural setting. As in majority research, Yoo and Donthu 8 also identified brand equity construct dimensions as proposed by Aaker 5 and Keller 18.

According to research model nine hypotheses was determined. Eight hypotheses was supported, only H5, which claims the direct effect of perceived quality on overall brand equity has been rejected. However, the indirect and significant effect of perceived quality on overall brand equity has been determined. The most influential factor on overall brand equity is brand loyalty.

The results present some implications for theorists and practitioners.

Although being tested in different countries, it is thought that to test customer-based brand equity structure in Azerbaijan will contribute to filling the gap in this field, as that Azerbaijan is a Post-Soviet country, with the mix of Islamic, European, Caucasian cultures. The other characteristics of Azerbaijan are its rapid development with oil incomes and new acquaintance with world brands.

Domestic and foreign companies which operate in Azerbaijan may use the findings of this research to create customer-based brand equity. So, companies that want to create customer-based brand equity are in need of brand awareness, increasing perceived quality and creating loyalty. Besides brand loyalty is tightly linked with perceived quality.

As major constraints of the research, it is possible to show that only Baku has taken as a universe and the sample size is small. Larger sample sizes will be better for comprehensiveness.

References

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[2]  Bamert Thomas, Hans Peter Wehrli, (2005) “Service quality as an important dimension of brand equity in Swiss services industries”, Managing Service Quality: An International Journal, Vol. 15 Issue: 2, pp. 132-141.
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In article      View Article
 
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In article      View Article
 
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In article      View Article
 
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In article      View Article
 
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In article      View Article
 
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In article      View Article
 
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[15]  Chatzipanagiotou Kalliopi, Cleopatra Veloutsou, George Christodoulides, (2016), Decoding the complexity of the consumer-based brand equity process, Journal of Business Research, 69, 5479-5486.
In article      View Article
 
[16]  Sharma Rajesh, (2017), Metamorphosis, Building Customer-based Brand Equity of Domestic Brands: Role of Brand Equity Dimensions, 16(1) 45-59.
In article      View Article
 
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In article      View Article
 
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In article      View Article
 
[21]  Gil R. Bravo, E. Fraj Andrés, E. Martínez Salinas, (2007) “Family as a source of consumer-based brand equity”, Journal of Product & Brand Management, Vol. 16 Issue: 3, pp. 188-199.
In article      View Article
 
[22]  Foroudi Pantea, Zhongqi Jin, Suraksha Gupta, Mohammad M. Foroudi, Philip J. Kitchen, (2018),Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention, Journal of Business Research.
In article      View Article
 
[23]  Hsu Cathy H. C., Haemoon Oh, and A. George Assaf, (2012), A Customer-Based Brand Equity Model for Upscale Hotels, Journal of Travel Research, 51(1) 81-93.
In article      View Article
 
[24]  Kim Eun Young, Dee K. Knight, and Lou E. Pelton, (2009), Modeling Brand Equity of a U.S. Apparel Brand as Perceived by Generation Y Consumers in the Emerging Korean Market, Clothing & Textiles Research Journal, 27(4) 247-258.
In article      View Article
 
[25]  Huang Rong, Emine Sarigöllü, (2012), How brand awareness relates to market outcome, brand equity, and the marketing mix, Journal of Business Research, 65, 92-99.
In article      View Article
 
[26]  Hyun Sunghyup Sean and Wansoo Kim, (2011), Dimensions of Brand Equity in the Chain Restaurant Industry, Cornell Hospitality Quarterly, 52(4) 429-437.
In article      View Article
 
[27]  Hanaysha Jalal, (2016), Testing the Effect of Service Quality on Brand Equity of Automotive Industry: Empirical Insights from Malaysia, Global Business Review, 17(5) 1060-1072.
In article      View Article
 
[28]  Kaur Gurjeet and Neetu Mahajan, (2011), Exploring The Impact Of Brand Equity And Customer Satisfaction On Customer Loyalty, Metamorphosis, Vol. 10, No. 2.
In article      View Article
 
[29]  Atilgan Eda, Şafak Aksoy, Serkan Akinci, (2005) “Determinants of the brand equity: A verification approach in the beverage industry in Turkey”, Marketing Intelligence & Planning, Vol. 23 Issue: 3, pp. 237-248.
In article      View Article
 
[30]  Rios Rosa E., Hernan E. Riquelme, (2008) “Brand equity for online companies”, Marketing Intelligence & Planning, Vol. 26 Issue: 7, pp. 719-742.
In article      View Article
 
[31]  Tong Xiao, Jana M. Hawley, (2009) “Creating brand equity in the Chinese clothing market: The effect of selected marketing activities on brand equity dimensions”, Journal of Fashion Marketing and Management: An International Journal, Vol. 13 Issue: 4, pp. 566-581.
In article      View Article
 
[32]  Rodrigues Paula, Francisco Vitorino Martins, (2016) “Perceptual and behavioural dimensions: measuring brand equity consumer based”, Journal of Fashion Marketing and Management: An International Journal, Vol. 20 Issue: 4, pp. 507-519.
In article      View Article
 
[33]  Chow Hsueh-wen, Guo-Jie Ling, I-yin Yen, Kuo-Ping Hwang, (2017), Building brand equity through industrial tourism, Asia Pacific Management Review, 22, 70-79.
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Published with license by Science and Education Publishing, Copyright © 2018 Shahin AKBAROV

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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Normal Style
Shahin AKBAROV. Antecedents of Customer Based Brand Equity-Research in Azerbaijan. Journal of Business and Management Sciences. Vol. 6, No. 2, 2018, pp 54-58. http://pubs.sciepub.com/jbms/6/2/5
MLA Style
AKBAROV, Shahin. "Antecedents of Customer Based Brand Equity-Research in Azerbaijan." Journal of Business and Management Sciences 6.2 (2018): 54-58.
APA Style
AKBAROV, S. (2018). Antecedents of Customer Based Brand Equity-Research in Azerbaijan. Journal of Business and Management Sciences, 6(2), 54-58.
Chicago Style
AKBAROV, Shahin. "Antecedents of Customer Based Brand Equity-Research in Azerbaijan." Journal of Business and Management Sciences 6, no. 2 (2018): 54-58.
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[1]  Keller KL, Lehmann DR. (2003), How do brands create value? Marketing management, May/June; p. 26-31.
In article      PubMed
 
[2]  Bamert Thomas, Hans Peter Wehrli, (2005) “Service quality as an important dimension of brand equity in Swiss services industries”, Managing Service Quality: An International Journal, Vol. 15 Issue: 2, pp. 132-141.
In article      View Article
 
[3]  Mohan Bijuna C., A.H. Sequeira, (2016), The impact of customer-based brand equity on the operational performance of FMCG companies in India, IIMB Management Review, 28, 13-19.
In article      View Article
 
[4]  Liu Matthew Tingchi, Ip Kin Anthony Wong, Ting-Hsiang Tseng, Angela Wen-Yu Chang, Ian Phau, (2017), Applying consumer-based brand equity in luxury hotel branding, Journal of Business Research, 81, 192-202.
In article      View Article
 
[5]  Aaker, D. A. (1991), Managing brand equity: Capitalizing on the value of a brand name, New York: The Free Press.
In article      
 
[6]  Aaker, D. A., (1992), The value of brand equity, Journal of Business Strategy, 13(4), 27-32.
In article      View Article
 
[7]  Tasci Asli, (2018), Testing the cross-brand and cross-market validity of a consumer based brand equity (CBBE) model for destination brands, Tourism Management, 65, 143-159.
In article      View Article
 
[8]  Yoo Boonghee, Naveen Donthu, (2001), Developing and validating a multidimensional consumer-based brand equity scale, Journal of Business Research, 52, 1-14.
In article      View Article
 
[9]  Nam, J., Ekinci, Y., & Whyatt, G., (2011), Brand equity, brand loyalty and consumer satisfaction, Annals of Tourism Research, 38(3), 1009-1030.
In article      View Article
 
[10]  Buil Isabel, Eva Martínez, Leslie de Chernatony, (2013) “The influence of brand equity on consumer responses”, Journal of Consumer Marketing, Vol. 30 Issue: 1, pp. 62-74.
In article      View Article
 
[11]  Çifci Sertaç, Yuksel Ekinci, Georgina Whyatt, Arnold Japutra, Sebastian Molinillo, Haytham Siala, (2016), A cross validation of Consumer-Based Brand Equity models: Driving customer equity in retail brands, Journal of Business Research, 69, 3740-3747.
In article      View Article
 
[12]  Rust, R.T., Zeithaml, V.A., & Lemon, K.N., (2000), Driving customer equity: How customer lifetime value is reshaping corporate strategy, New York: The Free Press.
In article      PubMed
 
[13]  Lin Yi Hsin, (2015), Innovative brand experience's influence on brand equity and brand satisfaction, Journal of Business Research, 68, 2254-2259.
In article      View Article
 
[14]  Keller Kevin Lane, (2013), Strategic Brand Management, 4th Global Edition, Pearson Education Limited.
In article      
 
[15]  Chatzipanagiotou Kalliopi, Cleopatra Veloutsou, George Christodoulides, (2016), Decoding the complexity of the consumer-based brand equity process, Journal of Business Research, 69, 5479-5486.
In article      View Article
 
[16]  Sharma Rajesh, (2017), Metamorphosis, Building Customer-based Brand Equity of Domestic Brands: Role of Brand Equity Dimensions, 16(1) 45-59.
In article      View Article
 
[17]  Aaker, D. A., (1996), Measuring brand equity across products and markets, California Management Review, 38(3), 102.
In article      View Article
 
[18]  Keller, KL., (1993), Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.
In article      View Article
 
[19]  Kumar Ravi Shekhar, Satyabhusan Dash, Prem Chandra Purwar, (2013) “The nature and antecedents of brand equity and its dimensions”, Marketing Intelligence & Planning, Vol. 31 Issue: 2, pp. 141-159.
In article      View Article
 
[20]  Tong Xiao, Jana M. Hawley, (2009b) “Measuring customer-based brand equity: empirical evidence from the sportswear market in China”, Journal of Product & Brand Management, Vol. 18 Issue: 4, pp. 262-271.
In article      View Article
 
[21]  Gil R. Bravo, E. Fraj Andrés, E. Martínez Salinas, (2007) “Family as a source of consumer-based brand equity”, Journal of Product & Brand Management, Vol. 16 Issue: 3, pp. 188-199.
In article      View Article
 
[22]  Foroudi Pantea, Zhongqi Jin, Suraksha Gupta, Mohammad M. Foroudi, Philip J. Kitchen, (2018),Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention, Journal of Business Research.
In article      View Article
 
[23]  Hsu Cathy H. C., Haemoon Oh, and A. George Assaf, (2012), A Customer-Based Brand Equity Model for Upscale Hotels, Journal of Travel Research, 51(1) 81-93.
In article      View Article
 
[24]  Kim Eun Young, Dee K. Knight, and Lou E. Pelton, (2009), Modeling Brand Equity of a U.S. Apparel Brand as Perceived by Generation Y Consumers in the Emerging Korean Market, Clothing & Textiles Research Journal, 27(4) 247-258.
In article      View Article
 
[25]  Huang Rong, Emine Sarigöllü, (2012), How brand awareness relates to market outcome, brand equity, and the marketing mix, Journal of Business Research, 65, 92-99.
In article      View Article
 
[26]  Hyun Sunghyup Sean and Wansoo Kim, (2011), Dimensions of Brand Equity in the Chain Restaurant Industry, Cornell Hospitality Quarterly, 52(4) 429-437.
In article      View Article
 
[27]  Hanaysha Jalal, (2016), Testing the Effect of Service Quality on Brand Equity of Automotive Industry: Empirical Insights from Malaysia, Global Business Review, 17(5) 1060-1072.
In article      View Article
 
[28]  Kaur Gurjeet and Neetu Mahajan, (2011), Exploring The Impact Of Brand Equity And Customer Satisfaction On Customer Loyalty, Metamorphosis, Vol. 10, No. 2.
In article      View Article
 
[29]  Atilgan Eda, Şafak Aksoy, Serkan Akinci, (2005) “Determinants of the brand equity: A verification approach in the beverage industry in Turkey”, Marketing Intelligence & Planning, Vol. 23 Issue: 3, pp. 237-248.
In article      View Article
 
[30]  Rios Rosa E., Hernan E. Riquelme, (2008) “Brand equity for online companies”, Marketing Intelligence & Planning, Vol. 26 Issue: 7, pp. 719-742.
In article      View Article
 
[31]  Tong Xiao, Jana M. Hawley, (2009) “Creating brand equity in the Chinese clothing market: The effect of selected marketing activities on brand equity dimensions”, Journal of Fashion Marketing and Management: An International Journal, Vol. 13 Issue: 4, pp. 566-581.
In article      View Article
 
[32]  Rodrigues Paula, Francisco Vitorino Martins, (2016) “Perceptual and behavioural dimensions: measuring brand equity consumer based”, Journal of Fashion Marketing and Management: An International Journal, Vol. 20 Issue: 4, pp. 507-519.
In article      View Article
 
[33]  Chow Hsueh-wen, Guo-Jie Ling, I-yin Yen, Kuo-Ping Hwang, (2017), Building brand equity through industrial tourism, Asia Pacific Management Review, 22, 70-79.
In article      View Article
 
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