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The IUP Journal of Marketing Management
The Relationship of Brand Equity to Purchase Intention
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This study empirically examines the relationship between Brand Equity (BE) as the independent variable and Purchase Intention (PI) as the dependent variable in relation to branded baby soaps selectively. While both the variables individually have high level attributes of the customers, the Pearson’s correlation analysis explores a positively significant linear relationship between BE and PI. This implies that the PI of a customer for purchasing a branded baby soap can be predicted with the customer’s nature of BE. The correlation coefficient between the BE and PI indicates that the BE of a customer is useful to explain the variation in PI of a customer. Further analysis of regression model with intercept indicates that it needs additional suitable variables to predict unexplained variation of 68% of PI. However, the model without intercept indicates that BE alone can predict the PI by explaining its more than 99% variation.

 
 
 

Customers’ positive feelings on a product brand create Purchase Intention (PI) of the customers (Aaker, 1991; Assael, 1998; and Wang and Kan, 2002). According to Farquhar (1989), Brand Equity (BE) is meant for ‘an added value or asset to a brand and product’ and such a value is made of customers’ positive feelings, thinking, and acting towards purchasing a product. Since PI is a result of BE, this study attempts to explore the positive relationship between BE and PI in the Sri Lankan context.

Sri Lanka was the first market to have an open economic policy in South Asian developing countries. To be specific, Bilkey and Nes (1982) indicate that consumers in the developed countries have preference for domestic products over foreign products, while consumers in the developing countries are more likely to prefer foreign products over the domestic products. Therefore, the market in Sri Lanka has been in intense competitive situation, as the high quality and international branded products are expected to do better than domestic products. For a good product, there should be brand loyalty and BE. Any product with high BE can capture high market share in Sri Lanka. It is explicit that some of the best-known brands can be found simply in retail firms, outlets and super markets in Sri Lanka.

 
 
 

Marketing Management Journal, Guest Delight, Hotel Industry, Customer Delight, Customer Loyalty, Customer Satisfaction, Reliable Reservation System, Convenient Payment Method, Hotel Management, Disconfirmation Theory, Data Collection.