THE EFFECT OF BRAND EQUITY ON CONSUMER PURCHASE DECISION: THE CASE OF CELL PHONE IN ADDIS ABABA

Abstract

The primary objectives of the study was to investigate the effect of brand equity on consumers purchase decision of cell phone in Addis Ababa by utilizing Aaker’s customer based brand equity model. Four dimensions of brand equity model posited by David Aaker were used in order to conduct the investigation via quantitative research Approach, where descriptive and explanatory research design was applied. Samples of 404 respondents from Addis Ababa were selected by a convenience sampling method and 355 valid data was collected through a structured questionnaire with 88% response rate. Statistical analysis has been conducted using statistical process for social science (SPSS version 24). Descriptive analysis such as frequency, mean and standard deviation has been used to interpret the result. Furthermore correlation and regression analysis has been performed. While performing the research, the reliability and validity of the instrument has been verified. Apart from that, the fulfillment of basic assumption for correlation and regression analysis has been conducted. The results of multiple regression analysis also revealed that the four dimensions (brand awareness, brand loyalty, brand association and perceived quality) have a positive influence on consumers purchase decision of cell phone. Among those dimensions, brand Awareness and perceived quality had the strongest positive significant influence on consumers purchase decision of cell phone respectively. This study contributes to the scant literature in the sectors in Ethiopia. The study was limited to Addis Ababa thus; future research should attempt to examine across many different areas in Ethiopia. Studies like this can help cell phone companies and brand managers analyze the value of their brands as well as their competitors’, develop their marketing strategies and marketing communications plans, and in building and managing their brands more effectively. Based on the finding, conclusions drawn, recommendations forwarded and future study implications indicated.