An evaluation of the effects of brand equity on consumer responses: Empirical evidence on Malaysian perspective

The purpose of this study is to evaluate the outcomes of brand equity on consumer responses by investigating the effects of the overall brand equity on consumer willingness to pay price premium, attitude towards brand extension, brand
preference, purchase intention and how brand equity can lead to reduction in the cost of searching information by consumers. Using the automobile product category in Malaysia as stimuli, cross-sectional survey data were collected and analyzed using partial least square structural equation modeling technique. Result showed that brand
equity plays a significant role in firms by creating and developing additional value to
organisations and their products. A causal relationship among the antecedents of brand equity was also established. Among the antecedents of brand equity, brand loyalty was found to be the dominant driver of overall brand equity while perceived quality’s influence on overall brand equity was not supported by the result of the
hypotheses. Moreover, the effect of brand equity on consumer responses was substantiated and found to be positive. The study used a single high involving
product category. Future studies should use product categories with short consumption length and high purchase frequency. Findings of this study provide
more insight to managers on how to manage brand equity. Outcomes of brand equity can be used to measure the performance of brand in the market. The study also provides additional clarification to the existing literature on the need for managers to
develop a post-brand equity marketing strategy in order to achieve sustainable competitive advantage.