THE EFFECT OF CUSTOMER BASED BRAND EQUITY ON CUSTOMER RETENTION IN THE CASE OF BGI ETHIOPIA

Abstract

The general objective of this study was to investigate the effect of customer based brand equity on customer retention in the case of BGI Ethiopia. The study considered brand asset valuator model measures or pillars (differentiation, relevance, esteem and knowledge) to investigate the effect of customer based brand equity on customer retention. The study sample constituted 384 respondent consumers of BGI Ethiopia chosen from the five territories in Addis Ababa by using non probability sampling approach specifically convenient sampling technique. The data were collected, edited, coded and entries were made into statistical software (Statistical Package for Social Sciences, SPSS version 20). According to the findings, all the selected dimensions of customer based brand equity have a significant and positive impact on customer retention. When compared to the impact of independent variables; differentiation is ranked first in its magnitude effect by brand relevance, brand esteem and brand knowledge. Finally, in order for BGI Ethiopia, to be benefited the most out of customer based brand equity, constructive suggestion was forwarded by the researcher such as: the BGI Ethiopia needs to keep up with its differentiation strategies and maintain its uniqueness; BGI Ethiopia brand managers also have to use different sales promotion tools to serve different objectives and trigger different consumer response. If a brand has established its relevant differentiation and consumers come to hold it in high esteem, brand knowledge is the outcome and represents the successful culmination of building a brand.