Determinants of Customer based Brand Equity The Case of Wegagen Bank in Mekelle city

Abstract

The study was aimed to measure customer-based brand equity of selected Wegagen bank branches in Mekelle with respect to bank service buyers’ perception by utilizing Aaker’s customer-based brand equity model. A five dimension of brand equity model posited by David Aaker was used in order to conduct the investigation via quantitative research design, where descriptive and explanatory research approach was applied. A sample of 398 bank customers from Mekelle were selected using a Purposive sampling method and data was collected through a structured questionnaire intending to identify their perception towards the bank brand. Out of 398 structured questionnaires distributed to respondents 380 were collected, which maintained 95.47% response rate. The results of correlation analysis showed that the three (brand loyalty, brand association and perceived quality) determinants of Customer-Based Brand Equity had a positive significant relationship with the overall brand equity as well as within themselves. How ever, brand awareness and Other proprietary assets had negative relationship with overall brand equity. The results of multiple regression analysis also revealed that the three dimensions (brand loyalty, brand association and perceived quality) have a positive influence on the overall brand equity though their contribution magnitude is not the same however brand awareness contribute or predict the overall brand equity positively but not significant. Other proprietary assets also predict the overall brand equity negatively but with significant effect. Among those dimensions, perceived quality had the strongest positive significant influence on the studied bank customer-based brand equity followed by brand loyalty. Thus, Bank managers should exert their efforts to increase Perceived Quality first along brand loyalty with of their customers so that the Overall brand equity would accordingly increase.