Consumer evaluation of SMEs brand equity : the role of relationship quality as a mediator

The evaluation of brand equity has often been described as the new research direction, particularly in small and medium enterprises. Accordingly, this study which was conducted in Malaysia investigated the sources of brand equity for Malaysian SMEs brand such as packaging, word of mouth and brand personality with relationship quality as the mediator. Although past researches had investigated the effect of these sources of brand equity, only a few researchers discovered the effect of relationship quality as a mediator between the sources of brand equity and brand equity in the context of SMEs. In this study, the model was developed based on the theory of brand equity and the social exchange theory. The study employed systematic sampling where 538 questionnaires were distributed to the consumers of SMEs food products in Malaysia. The data gathered was analysed using the Structural Equation Model- Partial Least Square (SEM-PLS). The results indicated that packaging, word of mouth and brand personality have significant and positive effects on brand equity. It also showed that relationship quality has a direct relationship with brand equity. Moreover, relationship quality mediates the relationship between the sources of brand equity such as packaging, word of mouth and brand personality, and brand equity. Consequently, the findings of this study have further strengthened the theory on brand equity and the social exchange theory and related literature as well. This study also put forth recommendations for SMEs food industries regarding the best approaches to build brand equity using the strategic sources of brand equity to ensure long-term relationships with customers in the light of the strong competitive advantage. For future research, it would be interesting to incorporate other strategic sources which may contribute to strengthen the theory besides providing the management the know-how for better-informed decisions.