DETERMINANTS OF CUSTOMER-BASED BRAND EQUITY (THE CASE OF NYALA MOTORS S.C.)

Abstract

Brand equity is a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Customer based brand equity used to show how a brand’s success can be directly attributed to customers’ attitudes towards that brand. The study was aimed to determine the effect of brand equity of Nyala Motors S.C by utilizing Aaker’s (1991) Customer-based brand equity model. Four dimensions (brand awareness, brand association, perceived quality, and brand loyalty) used in order to conduct the study. Quantitative research approach implemented, where descriptive and explanatory research design was applied. A sample of 362 Nyala Motor buyer respondents from the company head office Addis Ababa were selected by a convenience sampling method and data was collected through a structured questionnaire intending to identify their perception towards the vehicles brand (Nissan vehicle, UD trucks and Eicher vehicle). Out of 362 structured questionnaires distributed to respondents 323 were collected, which maintained 89.2% response rate. The data were analyzed using descriptive and inferential statistics (correlation and regression) analysis. The results of correlation analysis demonstrate that all the predictors of overall brand equity considered in this study had a positive significant relationship with CBBE as well as within themselves at significance level of 0.05. The results of multiple regression analysis discovered that brand awareness and brand loyalty have a positive & significant influence on Nyala Motor while the influence of perceived quality and brand association was found to be significant but their intensity is medium. Among independent variables, brand awareness had the strongest positive significant influence on Nyala Motor followed by brand loyalty, perceive quality and brand association. Thus, Nyala Motor brand managers should exert their efforts to increase brand awareness, first along with brand loyalty of their customers so that the Overall brand equity would accordingly increase.