THE ROLE OF PRODUCT LABEL AND ADVERTISING ON BRAND EQUITY: THE CASE OF HABESHA BEER

Abstract

The study focuses on the Ethiopian beer Industry especially Habesha beer in Addis Ababa which aimed to examine the role of product and advertising on brand equity so, to find out the impact of these two selected marketing mix elements the most common and widely used modern of Aaker was used. The model consists of four dimensions of brand equity namely brand awareness, brand association, perceived quality and brand loyalty which affects the general brand equity of the beer brand. For this study, 384 structured questionnaires distributed to respondents of Habesha beer consumer which conveniently selected and out of that 351 or 91.40% response rate were collected. Data analysis mainly took place in STATA 13.0 through Structural Equation Modeling (SEM) to test hypothesized causal relationships. The study found out that actual product had a significant positive impact on perceived quality; the study also revealed that advertising had a positive role in the dimensions of brand equity and from this brand awareness and association had the highest positive impact from the dimensions. Although all the dimensions of Customer-Based Brand Equity had a positive impact on the general brand equity of consumers except brand association and as many researches in the case, brand loyalty had the strongest impact in the Ethiopian beer industry too. Thus marketing practitioners should exert their efforts to increase and maintain brand loyalty along with other dimensions for that reason the general brand equity would be increase.