Academic journal article International Journal of Marketing Studies

An Empirical Study on the Effect of Brand Equity of Mobile Phones on Customer Satisfaction

Academic journal article International Journal of Marketing Studies

An Empirical Study on the Effect of Brand Equity of Mobile Phones on Customer Satisfaction

Article excerpt


In a competitive and brand conscious market like India, building brand equity of mobile phones is a challenging task. The companies need to assess the prior experiences and future aspirations of consumers to possess these brands. In this context, present study examines the relationship between brand equity dimensions, overall brand equity and customer satisfaction. Data was collected from 245 university students in New Delhi and adjoining cities of India through self-administered questionnaires using convenience sampling technique. Out of these, 205 were used for the purpose of study, which provided a response rate of 83.5 percent. Multiple regressions confirmed a significant relationship between the dimensions of brand equity and overall brand equity; and also between overall brand equity and customer satisfaction. Marketing managers often have limited resources in terms of money, time, and manpower to implement branding strategies, so these findings can help them to prioritize and allocate resources across important dimensions.

Keywords: perceived quality, brand loyalty, brand association, brand awareness, brand equity, customer satisfaction, mobile phones

1. Introduction

The concept of brand equity was first introduced in marketing literature in the 1980's. Later it became an important concept from both academicians and practitioners (Aaker, 1991; Kapferer, 1998; Keller, 1998; Huang & Sarigollu, 2014).The formation of brand equity is dependent on the perception of consumers towards a brand, which might depend on various factors. One such factor that can be considered is brand. For a brand to have value it must be valued by consumers. Then, the power of a brand lies in what customers have learned, felt, seen, and heard about the brand as a result of their experiences over time (Keller, 2003). One way of measuring to what extent consumers identify with the brand is through brand equity. One of the most well-known scholars on brand equity is David A. Aaker. Building strong brands has become a marketing priority for many organizations today because it yields a number of advantages. Almost all conceptualizations of brand equity agree today that the phenomena involve the value added to a product by consumers' associations and perceptions of a particular brand name (Winters, 1991; Chaudhuri, 1995). Brand equity cannot be fully understood without carefully examining its sources, that is, the contributing factors to the formation of brand equity in the consumers' mind. The most commonly listed constructs leading to brand equity are brand awareness, perceived quality, brand association, and brand loyalty.

In recent years, Indian mobile handset markets have been facing a challenging marketing environment in the form of more demanding consumers, intensified competition and fast-growth markets. With the increasingly fierce competition and growing brands in the Indian mobile handset market, all the operators lay a lot of emphases on the brand establishment, devoting substantive resources to build and customer satisfaction. As a result, a number of brands have been formed and many customers begin to show notable preference to these brands. This study address the issue with the focus on National Capital Region in mobile industry, and to measure the brand equity of mobile industry.

India, which has the world's second-highest number of mobile phone accounts after China, is the third-biggest market by number of smartphones sold. According to the latest report from Market Monitor (2014) for Q3 2014 (July-September), Indian smartphone market saw a significant annual growth of 64 percent in Q3 2014 in comparison to the year-over-year growth of 84 percent in Q2 2014. Smartphone market grew 25.3 percent in Q2 2014, establishing a new single quarter record of 301.3 million shipments. Vendors shipped a total of 327.6 million units during Q3 2014, resulting in 25.2 percent growth when compared to the 261. …

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