Assessing a brand equity model for fast moving consumer goods in cosmetic and hygiene industry

Abstract

This paper presents an empirical investigation to study the effects of ten factors on brand equity. The study provides an assessment using a brand equity model for fast moving consumer goods in cosmetic and hygiene industry. The study has accomplished among people who purchase goods in six major cities of Iran based on an adapted questionnaire originally developed by Aaker (1992a) [Aaker, D. A. (1992a). The value of brand equity. Journal of Business Strategy, 13(4), 27-32.]. Cronbach alpha has been calculated as 0.88, which is well above the minimum acceptable level of 0.7. In addition, Kaiser-Meyer-Olkin Measure of Sampling adequacy and Bartlett's test of Sphericity approximation Chi-Square are 0.878, 276628 with Sig. = 0.000, respectively. The proposed study of this paper uses structural equation modeling to test different hypotheses of the survey. The Root Mean Square Error of Approximation (RMSEA), Comparative Fit Index (CFI) and Chi-Square/df are 0.067, 0.840 and 4.244 and they are within desirable levels. While the effects of seven factors on brand equity have been confirmed. However, the survey does not confirm the effects of perceived value, advertisement effectiveness and advertisement to brand on brand equity. In our survey, brand loyalty maintains the highest positive impact followed by having updated brand, trust to brand, perceived quality to brand, brand awareness, intensity of supply and perception to brand.

Keywords

• Aaker Model
• Brand Loyalty
• Brand awareness
• Perceived quality
• Brand Association