An investigation on the effects of perception and marketing expenditure, financial and non-financial promotions on brand equity

Abstract

This paper presents a study to investigate the effects of perception and marketing expenditures as well as financial and non-financial promotions on brand equity. The proposed study of this paper prepares a questionnaire in Likert scale and distributes it among regular customers of three types of Shampoo in city of Tehran, Iran. The implementation of structural equation modeling for the proposed study of this paper has been accomplished based on LISREL software. The results of the survey on testing various hypotheses indicate that perception on marketing expenditure, financial as well as non-financial promotion and word of mouth advertisement influence positively on brand awareness and negatively on non-financial promotions (α=0.01). In addition, brand awareness influences positively on perception quality (α=0.01). Brand awareness as well as brand associate also influence on brand loyalty (α=0.01).

Keywords

• Brand equity
• Perception quality
• Financial promotion
• Marketing expenses