Measuring Consumer-Based Brand Equity

(The Case of Awash Bank)

SCHOOL OF GRADUATE STUDIES

Department of Marketing Management
Prepared by: Teshome Muluneh

Advisor
Zemenu Ayenadis (Ass. Professor)

June 2018
ADDIS ABABA,

ETHIOPIA

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 St .Mary University
School of Graduate Studies
Department of Marketing Management

MEASURING CONSUMER BASED BRAND EQUITY IN

(The CASE OF AWASH BANK)

BY TESHOME MULUNEH

APROVED BY BOARD OF EXAMINERS

________________________ __________________

Dean, Office Signature

________________________ __________________

Advisor Signature

________________________ __________________

External Examiner Signature

________________________ __________________

Internal Examiner

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 DECLARATION

I the undersigned, declare that this thesis is my original work, prepared under the guidance of
Zemenu Aynadis(Assistant Professor). All sources of material used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part of in full to
any other higher learning institution for the purpose of earning my degree.

________________________ __________________

Name Signature

St. Mary‟s University, Addis Ababa

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 ENDORSEMENT

This thesis has been submitted to St. Mary‟s University School of Graduate Studies for
examination with my approval as a university advisor.

Zemenu Aynadis (Asst. Prof.)

_______________________ __________________

Name Signature

St.Mary‟s University, Addis Ababa June 2018

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 ACKNOWLEDGEMENT

First of all, my heartfelt gratitude and appreciation go to my advisor Zemenu Aynadis

(Assistant Professor) for his unreserved and genuine comments throughout the progress of this
paper. My appreciation and thanks also go to my family for their moral support and
encouragement throughout my postgraduate study. I want to thank also Awash Bank‟s Training
Director, Marketing Manager and Branch Managers for their cooperation. I wish to extend my
gratitude to my friends especially Belay Mohammed and Melkamu Shawel for their kind
cooperation and moral support.

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Contents
ACKNOWLEDGEMENT ............................................................................................................................. I
Acronyms ...................................................................................................................................................... V
Abstract ........................................................................................................................................................ VI
Chapter One: Introduction ............................................................................................................................ 1
1.1 Background of the study ..................................................................................................................... 1
1.2 Statement of the problem .................................................................................................................... 3
1.3 Research Questions ............................................................................................................................. 5
1.4 Objective of the study ....................................................................................................................... 5
1.4.1 General Objective of the Study .................................................................................................... 5
1.4.2. Specific Objectives of the Study ............................................................................................. 5
CHAPTER TWO .......................................................................................................................................... 8
2. Review of Related Literature .................................................................................................................. 8
2.1. Theoretical Literature Review ........................................................................................................... 9
2.1.1 BRAND EQUITY ........................................................................................................................ 9
2.1.2 BRAND EQUITY PERSPECTIVES........................................................................................... 9
Figure 1: Brand equity perspectives.............................................................................................................. 9
2.1.3 CUSTOMER BASED BRAND EQUITY ................................................................................. 10
2.1.4 CUSTOMER BASED BRAND EQUITY IN BANKING INDUSTRY ................................. 11
2.1.5 MEASURING CUSTOMER-BASED BRAND EQUITY ........................................................ 12
2.2. Customer-Based Brand Equity - The Aaker‟s Model ...................................................................... 13
2.1.2. Brand Equity ............................................................................................................................. 13
2.1.3 Brand Awareness ....................................................................................................................... 14
2.1.4 Brand Associations .................................................................................................................... 15
2.1.5. Perceived Quality ...................................................................................................................... 16
2.1.6. Brand Loyalty ........................................................................................................................... 17
2.1.7. The Keller‟s Model ................................................................................................................... 17
2.1.8. YOO AND DONTHU (2002) BRAND EQUITY MODEL ..................................................... 18
Figure 2: Yoo and Donthu brand equity model .......................................................................................... 19
2.1.9 CAA INTEGRATED BRAND EQUITY MODEL ................................................................... 19
Figure 3: CAA integrated brand equity model ............................................................................................ 20
2.1.10. Consumer Behavior................................................................................................................. 21

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 2.1.11. Consumer Buying Decision Process ....................................................................................... 21
2.3. Empirical Reviews ........................................................................................................................... 24
2.4. Conceptual Framework ................................................................................................................. 26
Figure: four Conceptual Framework of the study adopted from –Aaker (1991) ........................................ 27
CHAPTER THREE .................................................................................................................................... 28
3 .RESEARCH METHODOLOGY ............................................................................................................ 28
Introduction ................................................................................................................................................. 28
3.1 Research Design................................................................................................................................ 28
3.2 Population and Sampling .................................................................................................................. 28
3.3 Sampling Technique and Sample Size Determination .................................................................... 29
3.4 Data Source and Instrument of Data collection ................................................................................ 29
3.5 Procedures of data collection ............................................................................................................ 30
3.6 Method of data analysis .................................................................................................................... 30
3.7 Reliability and Validity Analysis ...................................................................................................... 31
3.7.1 Scale Reliability ......................................................................................................................... 31
3.7.2 Validity Analysis........................................................................................................................ 31
3.8 Ethical Considerations ...................................................................................................................... 31
CHAPTER ONE ......................................................................................................................................... 32
4. DATE PRESENTATION AND INTERPRETATION ........................................................................... 32
4. 1 RESPONSE RATE .......................................................................................................................... 32
Table 4.1.1 .................................................................................................................................................. 32
Table 4.2 .1 Demographic characteristics of respondents........................................................................... 33
Table 4.3 Customers experiences with Awash Bank and their respective job .......................................... 35
Table 4.4 the purpose to visit Awash Bank ................................................................................................ 36
Table 4.6 Dimensions of Brand equity ..................................................................................................... 37
Table 4.7 ANOVA ...................................................................................................................................... 39
Table 4. 8 The correlation analysis of brand equity .................................................................................... 40
Table 4.9, Coefficient of variables .............................................................................................................. 43
Assumption 2-.the error terms are normally distributed. Normal p-p plot is used to check this assumption
.................................................................................................................................................................... 44
Table 4.10 Model Summary ....................................................................................................................... 45
Table 4.11. Summary of hypotheses ........................................................................................................... 46

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CHAPTER FIVE ........................................................................................................................................ 48
5.1 SUMMARY OF THE MAJOR FINDING AND RECOMMENDATIONS .................................... 48
5.1.2 CONCLUSIONS ........................................................................................................................ 48
5.2 RECOMMENDATIONS ............................................................................................................ 49
5.3 LIMITATIONS AND DIRECTION FOR FUTURE RESEARCH ............................................. 50
REFERENCE ..................................................................................................................................................... I
Appendix ...................................................................................................................................................... IV

IV
Acronyms
Customer-based brand equity

Customer-based brand equity

Structural Equation Modeling

Statistical Package for Social Science

Variance Inflation Factor

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 Abstract
The purpose of this study was to empirically test the customer based brand equity dimensions
and how they interact within the context of Awash Bank customers’ based on most commonly
cited model of Aaker’s (1996).Both descriptive and linear multiple regression analysis used to
evaluate the relationship between (dependent variable) brand equity against with the
independent variables (perceived quality, brand awareness, brand association, and brand
loyalty).The research design was explanatory and SPSS version 20 used for data analysis. Multi-
stage sampling technique employed in selecting the respondents for the study .The researcher
has selected samples of 384 from the total population of Awash Bank customers of thirteen
branches located in Addis Ababa city and collected the primary data from these respondents
using questionnaire. The findings of this study shows that all four dimensions of customer based
brand equity (perceived quality, Brand awareness, Brand association, and Brand loyalty) has a
significant and positive effect on customer-based brand equity of Awash Bank. The study further
reveals that the R-square value is 0.69, which means 69% of the variation in customer based
brand equity of Awash Bank is explained by the explanatory variables namely perceived quality,
brand awareness, brand association, and brand loyalty. The overall customer based brand
equity affected by four dimensions of the variables. Therefore, the bank has to adopt appropriate
branding strategy. This helps the bank to retain customers and attract prospective customers,
this leads to the bank more profitable and to gain competitive advantage in the banking industry.

Key Words: perceived quality, Brand Awareness, Brand Association, Brand Loyalty Customer
Based Brand Equity

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 Chapter One: Introduction

1.1 Background of the study

A brand is a distinguishing name and/or symbol (such as logo, trademark, or package design)
intended to identify the goods or services of either one seller or a group of sellers, and to
differentiate those goods or services from those of competitors. A brand thus signals to the
customer the source of the product, and protects both the customer and the producer from
competitors who would attempt to provide products that appear to be identical Aaker(1991).
Brands provide the basis upon which consumers can identify and bond with a product or service
or a group of products or services (Barwise, 1995). From the customer‟s point of view, a brand
can be defined as the total accumulation of all his/her experiences, and is built at all points of
contact with the customer (Kapferer, 2004). A successful brand is an identifiable product,
service, person or place, augmented in such a way that the buyer or user perceives relevant,
unique benefits, which match their needs most closely (Chernatony and McDonald, 1998).
According to Keller (2003), consumer brand-knowledge can be defined in terms of the personal
meaning about a brand stored in consumer memory, that is, all descriptive and evaluative brand-
related information. Different sources and levels of knowledge such as awareness, attributes,
benefits, images, thoughts, feelings, attitudes, and experiences are linked to a brand and its
understanding by the consumer. The brand, in a sense, acts as a credible guarantee for that
product or service, allowing the consumer clearly to identify and specify products, which
genuinely offer, benefit (Murphy, 1998). Powerful brands provide long-term security and
growth, higher sustainable profits, and increased asset value because they achieve competitive
differentiation, premium prices, higher sales volumes, economies of scale and reduced costs, and
greater security of demand (Temporal, 2000).

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The concept of Brand equity has been defined by several authors. As per Alagon& Samuel
(2011), brand equity is the ability of brand associations to predispose people to choose it over
others or pay more for it, both now and in the future. Farquhar, Han and Ijiri (1991) described
brand equity as the benefit endowed by the brand name. According to Aaker (1991) it is a set of
assets and liabilities linked to a brand‟s name and symbol that add to (or subtract from) the value
provided by a product or service to a firm and/or that firm‟s customers. Consumer based brand
equity model takes into account the perceptions of consumer. The consumer can be an individual
or an organization. Acquiring the information regarding the perception of consumers towards a
certain brand can be a sign of the performance of the brand. Aaker divided the dimensions of
consumer based brand equity into five: perceived quality, brand loyalty, brand awareness, brand
association, and other proprietary brand assets such as patents, trademarks, and channel
relationships. Barwise (1993) and Yoo&Donthu (2001) asserted that among these five brand
equity dimensions, the first four represent customers‟ evaluations and reactions to the brand that
can be readily understood by consumers and hence they have been widely adopted to measure
customer-based brand equity in prior researches. Brand equity is like a property for the company,
which can enhance cash flow of business (Simon and Sullivan, 1993).

Today, brand is considered as a strategic requirement for organizations, which helps them to
create more value for customers and to provide sustainable competitive advantages.
Development of strong brand in the market is main objective of many organizations because of
its abundant advantages (Ballester and Aleman, 2005). A strong brand is considered as the most
valuable property of a commercial institution, since it can make organization to gain profit that is
more marginal and better cooperation channels (Olson, 2008). In addition, it can enhance
customer trust while purchasing products and services and helps them to perceive intangible
factors properly (Chen and Cheng, 2008).

Brands are vital for service sector, since intangible nature of services make its quality evaluation
difficult for customers (Krishnan and Hartline, 2001). Choosing and implementing an adequate
and developed strategy of brand is considered as final factor of success in a servicing
organization like banks. If a customer believes that, there are significant differences among
brands and this issue results in an important information part in purchase decision-making,

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reliance of the said customer on decision-making based on brand would be enhanced (Anand et
al, 1988). Knowledge of customer relationship dimension helps service giving organizations to
Optimize

Marketing plans, especially in field of brand management and effectiveness of advertisements. It

can also support cost of resources in order to enhance market share and brand development.
Through having an overview on marketing status and relevant issues in Ethiopian banking
system, it could be found that the subject is to some extent lost and forgotten service, which
needs urgent and serious consideration in micro and macro level. Due to new requirements in
modern and competitive banking system that is existed among banks in order to attract and
satisfy customers based on new approaches of customer-orientation, academic and applied
studies should be conducted in Ethiopia in order to better improve identification of customers
and designation of modern banking services based on their needs. A subject like brand equity has
a concept based on customer view; although in addition to company and customers, competitors
and other beneficiaries are also considered significant by shareholders. Hence, according to the
current competitive advantage, relevant studies in banking domain are required (Baversad et al,
2010).
Despite the existence of a number of models on brand equity in the literature, this research
applies the most commonly cited model of Aaker.

1.2 Statement of the problem

The environment of banking industry has been experiencing rapid changes reflected by the
intense growth of competition between banks and increased expectation of current and potential
customers. As a result maintaining customer based brand equity has been a major challenge for
various banks especially in developing countries (Suleiman, 2013).With the current increase
vicious competition in the marketplace, many companies and institutions are struggling to
survive. It is now very clear that the companies that have been survived the intense competition
would those companies‟ whose products brands and services have a competitive advantage
against their competitors. This competitive edge is the secret to survival and can be partly
achieved by building strong brand equity among the companies‟ products and services.

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Branding is very essential in any business environment since it communicates so much
information to customers on product quality. It also plays a significant role in differentiating
products as unique from those of the competitors (Kumar & Prasad, 2012). Branding is more
critical in industries such as banking where products seem to be more homogenous thus making
it difficult for customers to distinguish any clear difference between them. (American Journal of
Economics, 2012)

According to Larry (2001), strong brand equity can be achieved by developing brands that
address the basic needs of customers. In the face of homogeneity of products in the banking
industry, banks need to adopt appropriate branding strategies that can lead to customer loyalty
and hence strong brand equity.

According to Wongelawit (2014), good customer relationship management creates customer

delight. In turn, delighted customers remain loyal and talk favorably to others about the company
and its products. The ultimate aim of customer relationship management is to produce high
customer equity. Customer equity is the total combined customer lifetime values of all of the
company‟s current and potential customers. As such, it is a measure of the future value of the
company‟s customer base. Clearly, the more loyal the firm is profitable customers, the higher its
customer equity. Customer equity may be a better measure of a firm‟s performance than current
sales or market share. Whereas sales and market share reflect the past, customer equity suggests
the future (Kotler& Armstrong 2012).

Locally, findings of researches carried out in the beer and beverage, shoes, leather, airline and
soft drink industries and mostly done using Keller‟s model in the context of our country. The
result of these studies reveals, “There is no positive and direct relationship between the four
dimensions and brand equity”. However, the inter correlations between perceived quality and
brand association and the inter correlation between brand awareness and brand loyalty were not
significant. Thus, perceived quality and brand awareness might affect brand equity by affecting
brand loyalty first (Million 2013) and (Wongelawit, 2014).

The study of brand equity in the branding literature has been limited. Much of the interest in
these literatures has been conceptual or theoretical in nature, and there has been little empirical
research into it. This lack of research is pointed out by Million (2013) who affirm that the role of
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brand equity in brand equity strategies has not been explicitly considered. The inconsistence
between previous studies and lack of specific study on Awash Bank necessitates this study, and
considered as a research gap. Although the bank sector has provided homogeneous service, they
use different branding strategy. Therefore, the researcher conducted the research to evaluate the
relationship between, perceive quality, brand awareness, brand loyalty and brand association on
brand equity in Awash Bank in Addis Ababa city. With this in mind, this study will attempt to
fill the research gap that existed by answering the question: what are the factors influencing
perceptions of brand equity of Awash Bank among customers in Addis Ababa?

1.3 Research Questions

• What is the impact of perceived quality on brand equity?
• What is the influence of brand awareness on brand equity?
• Does the brand association have an effect on brand equity?
• Is the brand loyalty having significant effect on brand equity?

1.4 Objective of the study

This research has the following general and specific objectives.

1.4.1 General Objective of the Study

The general objective of the study is measuring consumer based brand equity.

1.4.2. Specific Objectives of the Study

• To investigate the relationship between perceived quality over brand equity.
• To assess the relationship between brand association over brand equity.
• To evaluate the extent to which brand awareness influences brand equity .
• To examine the extent to which brand loyalty influences brand equity.

1.6 Definitions of Key Terms

Brand equity explains why different outcomes result from the marketing of a branded product
or service than if it were not branded (Keller 2013,)

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Customer-Based Brand Equity (CBBE) is defined as the differential effect of brand
knowledge on consumer response to the marketing of the brand in which brand knowledge is
conceptualized, based on an associative network memory model in terms of two components,
brand awareness and brand image (Keller 2003,)

Brand Associations are linked sufficiently strongly to the brand will depend on how the
marketing program and other factors affect customers‟ brand experiences (Keller 2003.).

Brand Loyalty provides predictability and security of demand for the firm and creates barriers
of entry that make it difficult for other firms to enter the market. Although manufacturing
processes and product designs may be easily duplicated, lasting impressions in the minds of
individuals and organizations from years of marketing activity and product experience may not
be so easily reproduced (Keller 2004, )

Perceived Quality is usually at the heart of what customers are buying and is often used to
differentiate or position brands against others. It is also an important brand asset as, among all
brand associations, only perceived quality has been shown to drive financial performance
through the price premium that consumers are prepared to pay( Klopper2011,)

Brand Awareness, according to (Keller 2003,) brand awareness consists of two sub–
dimensions: brand recall and recognition .Brand recognition is related to picking out a brand
whenever some sort of cue is provided whereas recall is done when there is no cue present.

Positive Customer –Based Brand Equity can lead to greater revenue, lower cost, and higher
profit; it has direct implications for the firm‟s ability to command higher price, a customer‟s
willingness to seek out new distribution channels, the effectiveness of marketing
communications and the success of brand extensions and licensing opportunities (Keller2004).

1.7 Significance of the Study

This research can be used as a reference to other researchers who want to conduct further study
on the concept of consumer based brand equity in the context of our county. Furthermore, it will
give some highlights about the most prominent contributors of consumer based brand equity
and the challenges it faces. Hence, all concerned parties of Awash Bank may make use of the
findings to know what consumers in Addis Ababa think of the brand. Findings of this study will

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 be useful and very important for students and academicians as an input for barking upon similar
researches in the future and the research findings will be a helpful literature reference for
developing a marketing strategy in banks.
1.8. Scope and Delimitation of the study
This study has mainly focused on assessing the determinants of customer-based brand equity in
Awash Bank. In order to do the assessment, Aaker‟s customer-based brand equity model has
employed. The study used only the first four variables of Aaker‟s customer-based brand equity
model, which are, Perceived quality, Brand awareness, Brand association and Brad loyalty. The
fifth variable, other proprietary assets is a vast area to be covered, thus it will not be realistic to
accomplish considering the resource, time and financial constraints. Although the research would
have to be conducted on an industry that cover the whole country, due to resources, time and
financial constraints the research area is limited on Addis Ababa.
1.9 Organization of the study
This study organized into five chapters. The chapters have comprised of introduction, review of
related literature, results and discussion, summary, conclusions and recommendations.
The first chapter consisted introduction of the study including background of the study,
statement of the problem, research questions, objectives of the study, definition of key terms,
significance of the study, scope and limitation of the study and organization of the study .Chapter
two has consisted the literature relevant to the study.It includes concepts and theoretical
framework, empirical literature as well as discussions on the retailers‟ –based brand equity
model and conceptual framework. Chapter 3 has consisted research design and methodology, and
the type and design of the study. Chapter 4 has summarized the findings of the study and
discusses them in detail. Finally, chapter five has comprised of four sections, which include
summary findings, conclusions, limitations of the study and recommendation

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 CHAPTER TWO
2. Review of Related Literature
This chapter contains theoretical, empirical literature review and conceptual framework. It
contains the available literature in the area of measuring customer based brand equity.
Different scholars provide their own definition towards the meaning of a brand. According to
Czinkota&Ronkainen (1999), the word Brand is a trademark or distinctive name identifying a
product or a manufacturer. It refers a name, term, symbol, sign or design used by a firm to
differentiate its offerings from those of its competitors. As per Kapferer (2008) brand is defined
as a name that influences buyers. He further noted that brand commands people‟s attention
because they have element of saliency, differentiability, intensity and trust. Successful brand
conveys a consistent message and create an emotional bond with consumers.
According to Kotler (2009), Brands are important valuable intangible assets for companies, a
distinctive tool that builds a long-term relationship with the consumers, and protects its‟ rights.
For consumers, brands reflect their experience and knowledge; simplifying the processing of
information accumulated over time about the company and its products or brands.
In addition, according to Hammond (2008) brand is defined as the total emotional experience a
customer has with a company and its product or service. In furthering this, the author describes
brand as the emotional connection planted in the minds of customers who interacted with a
company, its staff, product or service. Branding gives greater meaning to a company‟s name and
its products. Companies build brands using memorable names, symbols such as logos and other
images and phrases catchy slogans, for instance, sometimes become strongly connected to a
brand so that people can easily recall the brand from hearing the slogan. Consumers distinguish
one product or service from another by its brand.
Brands are important valuable intangible assets for companies (Kotler, 2006) which can convey
positive or negative message about a product, along with indicating the company or its service to
the consumer. A successful brand can create and sustain a strong positive and lasting impression
in the mind of a consumer. Building a strong brand will enable companies to be able to command
higher prices, market share penetration by advertising, speeding up new product acceptance and
resisting price erosion. In addition to these, companies with strong brands have the advantage of
easily attracting dedicated employees who are loyal to the company and the brand.

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Brand is defined as “a name, term, sign, symbol, or design, or a combination of them intended to
identify the goods and services of one seller or group of sellers and to differentiate them from
those of competition” (Keller, 1993).

2.1. Theoretical Literature Review

2.1.1 BRAND EQUITY

Brand equity has many definitions in the existing literature, but one of the most renowned
definitions is David A. Aaker‟s: “a set of assets and liabilities linked to a brand, its name and
symbol that add to or subtract from the value provided by a product or service to a firm and/or
that firm‟s customers.” Aaker, (1991) A more financially based definition of brand equity is set
forth by Simon & Sullivan (1993); this definition states that brand equity is found when a firm‟s
book value is subtracted from the brand value, meaning it is the extra value added to the
company due to its brand.

2.1.2 BRAND EQUITY PERSPECTIVES

We can evaluate the brand equity from different perspectives, As Baalbaki (2012) mentioned
brand equity can be seen from three different perspectives, in next part of article we are going to
discuss each of them,

Figure 1: Brand equity perspectives

FINANCIAL PERSPECTIVE (FINANCIAL- BASED BRAND EQUITY)

Brand equity in the 1980s, as seen from the financial perspective, was viewed as a method that
gave managers guidance in understanding brand enhancement. In this perspective, the measures
focused on stock prices or brand replacement Myers, (2003). Simon and Sullivan (1993) defined
brand equity as “the incremental cash flows which accrue to branded products over and above

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the cash flows which would result from the sale of unbranded products”. Supporters of the
financial perspective (FBBE) define brand equity as the “total value of a brand which is a
separable asset - when it is sold or included in a balance sheet” Atilgan et al., (2005).

CUSTOMER PERSPECTIVE (CUSTOMER-BASED BRAND EQUITY

The customer-based brand equity (CBBE) approach is the dominant perspective and the one
preferred by a majority of academics and practitioners in marketing research because if a brand
has no meaning or value to the consumer it is ultimately meaningless to investors, manufacturers,
or retailers Cobb-Walgren et al., (1995). Keller,(1993) used the term consumer-based brand
equity to refer to brand equity and noted that customer-based brand equity occurs when the
consumer is familiar with the brand and holds some favorable, strong and unique brand
associations in their memory. Positive customer-based brand equity has many advantages like
long-term revenues, customers‟ willingness to seek out for themselves new channels of
distribution, the ability of firms to command higher prices and the effectiveness of marketing
communications Keller, (2003).

EMPLOYEE PERSPECTIVE (EMPLOYEE-BASED BRAND EQUITY

Youngbum Kwon (2013) discussed that the definitions of Employee-based brand equity and
Customer-based brand equity are similar in respect that they are both values that come from the
innate nature of the brand. Employee-based brand equity is defined from the employee
perspective and is based on the differential effect that brand knowledge has on an employee‟s
response to his or her work environments and cultures (King and Grace, 2009).Youngbum Kwon
(2013) presented a three dimension model based on King and Grace (2009, 2010) and Aaker,
(1991) research.

2.1.3 CUSTOMER BASED BRAND EQUITY

The concept of customer-based brand equity has been emerged in marketing and management
since 1990. The exploration of brand equity is not in detail yet. Reviewing the current literature

10
on brand equity, there is many customer-based brand equity definitions. The following scholar‟s
definition illustrates the diversity of existing definitions and concepts

1) The differential effect of brand knowledge on consumer response to the marketing of the
brand. Brand knowledge is the full set of brand associations linked to the brand in long-
term consumer memory. Keller, (1993)
2) The consumers‟ perception of the overall superiority of a product carrying that brand
name when compared to other brands. Five perceptual dimension of brand equity includes
performance, social image, value, trustworthiness and attachment. Lassar et al.,(1995)
3) customer-based brand equity is: (1) Loyalty (brand‟s real or potential price premium), (2)
loyalty (customer satisfaction based), (3) perceived comparative quality, (4) perceived
brand leadership, (5) perceived brand value (brand‟s functional benefits), (6) brand
personality, (7) consumers perception of organization (trusted, admired or credible), (8)
perceived differentiation to competing brands, (9) brand awareness (recognition & recall),
(10) market position (market share), prices and distribution coverage.Aaker, (1996)

2.1.4 CUSTOMER BASED BRAND EQUITY IN BANKING INDUSTRY

In today‟s market place, the service sector has become a central force in the economy in both
developed and developing countries Ghoneim, (2007). One of the most important service
industries is the banking sector. This sector has gone through strong competitive pressures
because of the integration and globalization of financial markets, and the advancement of
technological developments Nellis et al., (2000). As a result, this similar, competitive and global
banking era leads banks to differentiate their services in order to stand out. This can be achieved
through the development of brands and active promotion to customers Parasuraman, (1997). By
developing bank brands, financial institutions can achieve a noticed sustainable competitive
advantage, leading to a critical success factor.
Branding plays many roles for companies. According to Kotler (2009), Brands are important
valuable intangible assets for companies, a distinctive tool that builds a long-term relationship
with the consumers, and protects its‟ rights. For consumers, brands reflect their experience and
knowledge; simplifying the processing of information accumulated over time about the company
and its products or brands. In addition, brands reflect consumer‟s experiences and knowledge;
thus, simplify the processing of information accumulated over time about the company and its

11
products or brands. Consequently, brands act as signals for products of high quality and low
perceived risk, thus, enable the consumers to capture both cognitive and non-cognitive values
expressed in the positive feelings or self-expression experienced (Aaker, 1996)

2.1.5 MEASURING CUSTOMER-BASED BRAND EQUITY

De Chernatony and Cottam (2006) suggest that rather than one comprehensive methodology to
evaluate brand success, there are ranges of financial and non-financial measures that collectively
provide the necessary insight. Agarwal et al (1996) explained that there are two different
approaches to measure brand equity; direct approach and indirect approach. The direct approach
tries to assess the benefit of the brand and appears to be the accepted definition of brand equity
(Farquhar, 1989; Keller, 1993). The indirect approach tries to identify the potential sources of
brand equality. An understanding of these sources for a firm‟s own and competitive brands is
critical for the brand manager Keller, (1993). Agarwal et al, (1996) argued that both these
authors (Aaker and Keller) suggest a variety of indirect measures and methods to estimate brand
equity based on their frameworks. For example, Aaker, (1991) suggests using repurchase rates,
switching costs, level of satisfaction, preference for brand and perceived quality on various
product and service dimensions as potential measures among others. Likewise, Keller, (1993)
suggests correct top-of-mind recall, free associations, ratings of evaluations, and beliefs of
associations as some of the measures of brand knowledge. Ravi, (2005) argued that developing
further insights into the measurement of consumer based brand equity is important in the face of
the prominence of branding. Understanding the dimensions of brand equity, then investing to
grow this intangible asset raises competitive barriers and drives brand wealth (Yoo, Donthu and
Lee 2000). How to measure brand equity is very important in assessing the value of brands.
Further, we are going to discuss different models of CBBE.
Brand preference can be further seen as a consumer‟s predisposition towards a brand that varies
according to the cognitive, effective and co native effects that the brand has had on the
consumer. In simple words, it implies consumer‟s biasness towards a certain brand because of
the consumer‟s rational, emotional or behavioral responses towards the brand proposition and
marketing strategy. Brand preference is important to companies because it provides an indicator

12
of their customers‟ loyalty, the success of their marketing tactics, and the strength of their
respective brands.

2.2. Customer-Based Brand Equity - The Aaker’s Model

The concept of Customer-Based Brand Equity has been given a detailed analysis by Keller,
(2003). He came up with a justifiable recommendation on how it is structured and how we can
make use of many variables in order to build strong brand equity.
The determinants of customer-based brand equity were conceptualized by Aaker (1996) as five
elements namely Brand Awareness, Perceived Quality, Brand Association, Brand Loyalty and
other proprietary brand assets. The elements are discussed in detail as follows.

2.1.2. Brand Equity

The concept of brand equity began to be used widely in the 1980s by advertising practitioners. In
the old days, real estate, then tangible assets, plants and equipment were the ones which were
taken into consideration when measuring the value of a firm. Since then, brand equity has come
into sight in the marketing literature to make an enhanced comprehension regarding the tangible
and intangible values of brands. Its emergence, however, has meant both good news and bad
news to marketers. The good news is that brand equity has elevated the importance of the brand
in marketing strategy and provided focus for managerial interest and research activity. The bad
news is that, confusingly, the concept has been defined a number of different ways for a number
of different purposes. Many definitions exist in the literature. As noted by Keller, Parameswaran
and Jacob (2011) despite the many different views, most observers agree that brand equity
consists of the marketing effects uniquely attributable to a brand. Some include the financial
aspect while others include the customer aspect. According to Leone et al., (2006) those from a
consumer perspective, are based on the premise that the power of brands lies in the minds of
consumers. In the views of Simon and Sullivan (1993) as cited by Buil, Martı´nez and De
Chernatony (2013), some firms from a financial perspective consider brand equity as the
monetary value of a brand to the firm and Christodoulides& De Chernatony (2010) noted that the
financial value of a brand is, however, the outcome of consumer responses

13
A product of the total net brand support of customers and other stakeholders that is determined
by all communication interactions of the company Schoell&Guitinan (1990)

"In spite of numerous different ways of defining brand equity, most authors agree that brand
equity represents some form of added value which brands add to products" Rajh,
Vranesevic&Tolic,( 2003). According to Kapferer (1998), brand equity is a result of brand
assets, which include brand awareness, brand image, the perceived quality of the brand,
evocations and the familiarity or appeal of the brand. These elements of brand assets bring
benefit to the product.

2.1.3 Brand Awareness

The first dimension distinguishing brand knowledge is brand awareness. It is related to the
strength of the brand node or trace in memory, as reflected by consumers' ability to identify the
brand under different conditions (Rossiter and Percy, 1987). In other words, how well do the
brand identities serve their function? In particular, brand name awareness relates to the
likelihood that a brand name will come to mind and the ease with which it does so.
Brand awareness consists of brand recognition and brand recall performance. Brand recognition
relates to consumers' ability to confirm prior exposure to the brand when given the brand as a
cue. In other words, brand recognition requires that consumers correctly discriminate the brand
as having been seen or heard previously. Brand recall relates to consumers' ability to retrieve the
brand when given the product category, the need is fulfilled by the category, or some other type
of probe as a cue. In other words, brand recall requires that consumers correctly generate the
brand from memory. Rossiter and Percy (1987) also argued that the relative importance of brand
recall and recognition depends on the extent to which consumers make decisions in the store
(where they potentially may be exposed to the brand) versus outside the store.
Brand awareness plays an important role in consumer decision making for three major reasons.
First, it is important that consumers think of the brand when they think about the product
category. Raising brand awareness increases the likelihood that the brand will be amember of the
consideration set (Keller 1993), the handful of brands that receive serious consideration for
purchase. Second, brand awareness can affect decisions about brands in the consideration set,
even if there are essentially no other brand associations. For example, consumers have been
shown to adopt a decision rule to buy only familiar, well-established brands.

14
In low involvement decision settings, a minimum level of brand awareness may be sufficient for
product choice, even in the absence of a well-formed attitude (Park and Lessig 1981).

2.1.4 Brand Associations

A brand association is the most accepted aspect of brand equity. Associations represent the basis
for purchase decision and for brand loyalty (Aaker 1991). Brand associations consist of all
brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes (Kotler and
Keller 2006,) and is anything linked in memory to a brand. Other researchers (Farquhar 1990)
identify different types of association that contribute to the brand equity. Chen (2001)
categorized two types of brand associations - product associations and organizational
associations.
A) Product Associations: Product associations include functional attribute associations and non-
functional associations (Chen 2001). Functional attributes are the tangible features of a product
(Keller 1993). If a brand does not perform the functions for which it is designed, the brand will
has low level of brand equity. Performance is defined as a consumer‟s judgment about a brand‟s
fault-free and long-lasting physical operation and flawlessness in the product‟s physical
construction (Lassar et al. 1995).
Non-functional attributes include symbolic attributes, which are the intangible features that meet
consumers‟ needs for social approval, personal expression or self-esteem. These include
trustworthiness, perceived value, differentiation and country of origin of the brand. (Keller
1993).
B) Organizational Associations: Organizational associations include corporate-ability
associations, which are those associations related to the company‟s expertise in producing and
delivering its outputs and corporate social responsibilityassociations, which include
organization‟s activities with respect to its perceived societal obligations (Chen 2001).
According to Aaker (1996), consumers consider the organization that is the people, values, and
programs that lies behind the brand. Brand-as-organization can be particularly helpful when
brands are similar with respect to attributes, when the organization is visible (as in a durable
goods or service business), or when a corporate brand is involved. Corporate social responsibility

15
(CSR) must be mentioned as another concept that is influencing the development of brands
nowadays, especially corporate brands as the public wants to know what, where, and how much
brands are giving back to society. Both branding and CSR have become crucially important now
that the organizations have recognized how these strategies can add or detract from their value.
CSR can be defined in terms of legitimate ethics or from an instrumentalist perspective where
corporate image is the prime concern.

2.1.5. Perceived Quality

Perceived quality is viewed as a dimension of brand equity rather than as a part of the overall
brand association Keller (1992). Perceived quality is the customer‟s judgment about a product‟s
overall excellence or superiority that is different from objective quality Zeithaml (Zeithaml
1988). Objective quality refers to the technical, measurable and verifiable nature of
products/services, processes and quality controls. High objective quality does not necessarily
contribute to brand equity (Anselmsson et al. 2008). Since it is impossible for consumers to
make complete and correct judgments of the objective quality, they use quality attributes that
they associate with quality.
Perceived quality is hence formed to judge the overall quality of a product/service. Boulding
(1993) argued that quality is directly influenced by perceptions. Consumers use the quality
attributes to „infer‟ quality of an unfamiliar product. It is therefore important to understand the
relevant quality attributes are with regard to brand equity. Zeithaml (1988) and Steenkamp
(1997) classify the concept of perceived quality in two groups of factors that are intrinsic
attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspects of a
product (e.g. color, flavor, form and appearance); on the other hand, extrinsic attributes are
related to the product, but not in the physical part of this one e.g. brand name, stamp of quality,
price, store, packaging and production information (Bernue´s et al.2003).

16
2.1.6. Brand Loyalty

Loyalty is a core dimension of brand equity. Aaker (1991) defines brand loyalty as ignition of
terms. Grembler and Brown (1996) describe different levels of loyalty. Behavioral loyalty is
linked to consumer behavior in the marketplace that can be indicated by number of repeated
purchases (Keller 1998) or commitment to re-buy the brand as a primary choice. Cognitive
loyalty which means that a brand comes up first in a consumers‟ mind, when the need to make a
purchase decision arises, that is the consumers‟ first choice. The cognitive loyalty is closely
linked to the highest level of awareness (top-of-mind), where the matter of interest also is the
brand, in a given category, which the consumers recall first. Thus, a brand should be able to
become the respondents‟ first choices (cognitive loyalty) and is therefore purchased repeatedly
(behavioral loyalty) (Keller 1998).
Chaudhuri& Holbrook (2001) mentioned that brand loyalty is directly related to brand price.
Aaker (1996) identifies price premium as the basic indicator of loyalty. Price premium is defined
as the amount a customer will pay for the brand in comparison with another brand offering
similar benefits and it may be high or low and positive or negative depending on the two brands
involved in the comparison.

2.1.7. The Keller’s Model

A major contribution to branding theory was that made by Kevin Keller (1993; 2001; 2003)with
his introduction of the concept of customer-based brand equity and the brand hierarchy(Keller,
2003). Brand equity, according to Keller, is the effect that brand knowledge has on consumer
response to the marketing of a brand, with the effect occurring when the brand is known and
when the consumer possesses favorable, strong and unique brand associations (Keller, 1993).
The Customer-Based Brand Equity (CBBE) model identifies four steps which denote questions
asked by customers, and represent a „branding ladder‟, with each step dependent on achieving
the previous one (Keller, 2001).
These steps consist of six brand building blocks, with a number of sub-dimensions (Keller,
1993). To build a strong brand, the aim is to reach the pinnacle of the pyramid where a
harmonious relationship exists with customers. Briefly overviewed, the first step of the CBBE

17
model is to ensure the correct „brand identity‟. Answering the first question customers ask about
brands - Who are you? The purpose is to create an identification of the brand, and an association
with a specific product class or need (Keller, 2003). The initial step consists of the brand
building block, „salience‟.
The second step answers the customer question - What are you? By establishing „brand meaning‟
in their minds, and linking brand associations with certain properties (Keller, 2001), two brand
building blocks make up this step - „performance‟ and „imagery‟.
1. Identity (Who are you?)
2. Meaning (What are you?)
3. Response (What about you?)
4. Relationships (What about you and me?)
The next step is „brand response‟ whereby the proper customer responses to the brand
identification and meaning are elicited (Keller, 2003). This step is achieved with the „judgments‟
and „feelings‟ building blocks, and answers the question - What about you? „Brand relationships‟
constitutes the final step in the CBBEpyramid where brand response is converted to an intense,
active loyalty relationship between customers and the brand (Keller, 2001). Addressing the
customer question of what about you and me? The final brand building block and the pinnacle of
the pyramid is „resonance‟.

2.1.8. YOO AND DONTHU (2002) BRAND EQUITY MODEL

Yoo et al (2000) structural model of brand equity formation consists of three components:
Marketing mix elements selected from the traditional “4p” marketing activity (i.e. price store,
image, distribution intensity, advertising spending, and price deals), brand equity dimensions
(i.e. perceived product quality, brand loyalty, and brand awareness/associations) and overall
brand equity. According to the model, marketing managerial efforts can be classified into two
types: brand -building activity and brand-harming activity. These authors extend Aaker‟s (1991)
model by placing brand equity as a separate construct between the dimensions of brand equity
and the value for the customer and the firm. In addition, Yoo and Donthu (2001) developed and
validated cross-culturally invariant multidimensional consumer-based brand equity. They tried to
extend the brand equity concept; for instance, brand loyalty in their research refers to the
tendency to be loyal to a focal brand, which is demonstrated by the intention to buy the brand as

18
a primary choice, in contrast other researches that relied on behavioral aspects of brand loyalty.
They combined brand awareness and brand associations into one group and focused on three of
assets; brand awareness/associations, perceived quality and brand loyalty. By mapping the assets
of brand equity it is possible to determine if some aspects of brand equity seen to be more
important than others for the consumer, or if a brand is lagging behind in one or many
dimensions. In order for a brand to maintain high brand equity and be the preferred choice of
consumers, it is important that it stay in tune with how the brand is perceived by firm‟s customer
base.

Figure 2: Yoo and Donthu brand equity model

2.1.9 CAA INTEGRATED BRAND EQUITY MODEL

Wang.H et al (2008) indicated that there is a growing interest in brand formation and brand
valuation among global firms, but global marketers typically ignore one of the key factors of
brand building – corporation ability association (CAA). They represent the model which tries to
explore the structural relationship between CAA and consumer-based brand equity variables and
its product-market outcomes. They utilized Aaker and Keller‟s theoretical framework of brand
equity and developed a brand equity model combining customer-based brand equity with
product-market outcome approaches. Set of scales are developed and tested on a national sample

19
of Chinese consumers. The results in their research indicate that CAA is an important factor in
building and preserving brand equity. CAA and brand awareness have impact on quality
perception, which has positive impact on brand resonance, brand extensibility, and price
flexibility. Brand resonance has positive influence on brand extensibility and the intention to
repurchase. In addition, they argued that for global marketers operating in China, brand equity is
a culturally market-based asset and global companies must focus on building corporation ability
association in China in order to enjoy the substantial competitive and economic advantages
provided by brand equity.

Figure 3: CAA integrated brand equity model

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2.1.10. Consumer Behavior

Consumer behavior involves the thoughts and feelings people experience and the actions they
perform in consumption processes. It also includes all the things in the environment that
influence these thoughts, feelings, and actions. According to The American Marketing
Association (2014), consumer behavior is the dynamic interaction of affect and cognition,
behavior, and the environment by which human beings conduct the exchange aspects of their
lives. In another definition, consumer behavior is the study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences or ideas to satisfy needs and the impacts that these processes have on the consumer
and society.
Marketers expect that by understanding what causes the consumers to buy particular goods and
services, they will be able to determine-which products are needed in the marketplace, which are
obsolete, and how best to present the goods to the consumers. Knowing what makes customers to
prefer between brands will make the manufacturer to adapt strategies based on the influential
factors.
Understanding the behavior of consumers before they made purchase decision will help for
product manufacturers and service providers to develop strategies in line with customers‟
actions. Particularly knowing what makes customers to prefer between brands will make the
manufacturer to adapt strategies based on the influential factors. Unable to analyze the
antecedents hinder companies from being competitive. Hence, understanding the behavior of
consumers specially their brand preference has to be a critical issue and concern for strategic
developers.

2.1.11. Consumer Buying Decision Process

The buyer decision process is the decision-making process used by consumers regarding market
transaction before, during and after the purchase of a good or service. Marketers need to focus on
the entire buying process rather than on just the purchase decision. The purchase is only the
visible part of a more complex decision process created by the consumer for each buying

21
decision the consumer makes. There are factors influencing the choice of product purchase by
the consumer.
a) Need recognition: According to Jobber D. (2007), the need recognition is essentially
functional and recognition may take place over a period. This occurs whenever the consumer
sees a significant difference between his or her current state of affairs and some desired or ideal
state. The need can be triggered by internal stimuli or by external stimuli. Internal stimuli can
trigger a need when one of the individuals‟ normal needs like hunger, thirst shelter raises to a
level high enough to become a drive. From previous experience, the individual has learnt how to
cope with this drive and is motivated towards objects that will satisfy the need. External stimuli
can also trigger a need. In this instance, the marketer needs to determine the factors and
situations that usually trigger consumer need recognition. The marketer should research
consumers to investigate what kind of need or problem arises and what brings a consumer to
prefer one brand to the other. In this stage of the consumer buying process the consumer
perceives there is a problem to be solved, which may be large or small, simple or complex. In
this case, the factories should research what their customers want from a bottled water brand so
that they can cater to their needs.

b) Information search: the information search begins with the identification of alternative ways
of gathering information about the product consumer intend to purchase Jobber D.( 2007). The
consumer surveys his or her environment for appropriate data to make a reasonable decision by
the process. Normally, the amount of information searching activities of a consumer depends on
the type of product which either require high involvement or low involvement. For a product that
requires high involvement there might be a significant differences between brands, which require
an immense effort, or insignificant differences between brands, which leads to dissonance,
reducing buying decisions.
The consumer can acquire information regarding a particular product from various sources.
These sources include personal sources like family and friends, commercial sources like
advertising, salespeople or displays, public sources like mass media and social networking sites
and finally experiential source like handling, examining and using of product. The relative
influence of these information sources varies with the product and the buyer. For this research,
the source of information for the various bottled water brands can be collected based on their

22
previous experience on usage as well as external source like friends, colleagues, neighbors,
several published Medias and so on.

c) Evaluation of alternatives: The process of evaluating alternatives involves comparing the

information gained in the information search process for alternative products and brands to the
product–judging criteria or standards the consumer has developed. For purchase decisions, the
choice alternatives are the different product classes, product forms, brands, or models the
consumer considers buying J. Paul Peter and Jerry C. Olson, (2010).. Usually only a subset of all
possible alternatives, called the consideration set, is evaluated. Some brands in the consideration
set may be activated directly from memory; this group is called the evoked set. For highly
familiar decisions, consumers may not consider any brands beyond those in the evoked set. If
consumers are confident they already know the important choice alternatives, they are not likely
to search for additional ones, J. Paul Peter and Jerry C. Olson (2010).
Consumers‟ evaluations of the choice alternatives in the consideration set are based on their
beliefs about the consequences of buying those products or brands. The specific consequences
used to evaluate and choose among choice alternatives are called evaluation criteria. Evaluation
criteria are the dimensions used to judge the merits of competing brands.
d) Purchase decision: A purchasing decision usually follows strong purchase intentions. In this
stage the consumer actually buys the product they have chosen. Generally, the consumer‟s
purchase decision will be to buy the most preferred brand. A consumer‟s decision to change,
postpone or avoid a purchase decision is influenced heavily by perceived risk. Many purchases
involve some risk and the amount of perceived risk varies with the amount of money at stake, the
amount of purchase uncertainty and the amount of consumer self-confidence. A consumer takes
certain actions to reduce risk, such as avoiding purchase decisions, gathering more information
and looking for national brand names and product guarantees Jobber D (2007).

e) Post-purchase evaluation/behavior: in this stage the consumers take further action after the
purchase decision by evaluating their satisfaction or dissatisfaction. Consumer satisfaction or
dissatisfaction is determined by the overall feelings, or attitude, a person has about a product
after it has been purchased. Consumers engage in a constant process of evaluating the things they
buy as they integrate these products into their daily consumption activities Jobber D. (2007).

23
2.3. Empirical Reviews

Brands must be developed and maintained constantly in order to secure a set of loyal consumers.
Keller et al. (1996) stated that the loyalty of consumers lies with brands, rather than the products.
There were several researches done on the Customer Based Brand Equity of different products.
To name a few, Abad (2012) studied The Customer Based Brand Equity in the Banking sector of
Iran aiming to conceptualize the customer based brand equity in the financial service sector with
respect to its effect on perception of brand. After employing Aaker's (1996) CBBE model, they
found out that Perceived quality, brand loyalty, brand awareness and brand association are
influential criteria of brand equity that enhances perception of brand in financial service sector.
Among the four mentioned dimensions, brand association appears to have the most influence on
brand equity.
AlsoHossien (2012) studied The Customer Based Brand Equity in the Chocolate industry of Iran
with the intention of identifying which factors are influential in building brand equity and also to
measure the relationship among the dimensions of CBBE in the Iranian chocolate industry. After
employing Aaker's CBBE model, the researcher found out that the brand equity of chocolate
products is directly made up of two dimensions, namely brand loyalty and brand image. These
two dimensions have a medium direct impact on brand equity. Other dimensions have a very
small and indirect impact on brand equity that in chocolate industry of Iran.
To quote a third article, Tong and Hawley (2009), researched about measuring Customer Based
Brand Equity in the Sportswear market in China. Based on Aaker‟s conceptual framework of
brand equity, they employed structural equation modeling to investigate the causal relationships
among the four dimensions of brand equity and overall brand equity in the sportswear industry.
The study used a sample of 304 actual consumers from China‟s two largest cities, Beijing and
Shanghai. The research's findings concluded that, brand association and brand loyalty are
influential dimensions of brand equity and weak support was found for the perceived quality and
brand awareness dimensions. Thus, sportswear brand managers and marketing planners should
consider the relative importance of brand equity in their overall brand equity evaluation, and
should concentrate their efforts primarily on building brand loyalty and image.

24
Perceived Quality: is usually at the heart of what customers are buying and is often used to
differentiate or position brands against others. It is also an important brand asset as, among all
brand associations, only perceived quality has been shown to drive financial performance
through the price premium that consumers are prepared to pay( Klopper2011,)

Hypothesis 1: Perceived quality has significant and Positive effect on customers based brand
equity of Awash bank.

Brand Awareness: according to (Keller 2003,) brand awareness consists of two sub–
dimensions: brand recall and recognition .Brand recognition is related to picking out a brand
whenever some sort of cue is provided whereas recall is done when there is no cue present.

Positive Customer –Based Brand Equity can lead to greater revenue, lower cost, and higher
profit; it has direct implications for the firm‟s ability to command higher price, a customer‟s
willingness to seek out new distribution channels, the effectiveness of marketing
communications and the success of brand extensions and licensing opportunities (Keller2004).

Hypothesis 2: Brand Awareness has significant and Positive effect on customers based effect
brand equity of Awash bank.

Brand Associations: A brand association is the most accepted aspect of brand equity.
Associations represent the basis for purchase decision and for brand loyalty (Aaker 1991). Brand
associations consist of all brand-related thoughts, feelings, perceptions, images, experiences,
beliefs, attitudes (Kotler and Keller 2006,) and is anything linked in memory to a brand. Other
researchers (Farquhar 1990) identify different types of association that contribute to the brand
equity. Chen (2001) categorized two types of brand associations - product associations and
organizational associations.
Hypothesis 3: Brand Association has significant and Positive effect on customers based brand
equity of Awash bank.

Brand Loyalty provides predictability and security of demand for the firm and creates barriers
of entry that make it difficult for other firms to enter the market. Although manufacturing
processes and product designs may be easily duplicated, lasting impressions in the minds of

25
individuals and organizations from years of marketing activity and product experience may not
be so easily reproduced (Keller 2004, )

Hypothesis4; Brand loyalty has significant and Positive effect on customers based brand equity
of awash bank.

2.4. Conceptual Framework

According to Keller (1993), there is both an indirect and a direct approach to measuring
customer-based brand equity. The indirect approach tries to identify potential sources of such
equity, whereas the direct approach focuses on customer‟s responses to different elements of the
firm‟s marketing program. The implications of customer-based research suggest that measures of
customers‟ brand perceptions are accurate reflections of brand performance in the marketplace.
Strong, positive customer-based brand equity has a significant influence on the financial
performance of the firm (Kim and Kim, 2004). Among the five brand equity dimensions, the first
four represent customers‟ evaluations and reactions to the brand that can be readily understood
by consumers (Barwise, 1993; Yoo and Donthu, 2001), so they have been widely adapted to
measure customer-based brand equity in previous studies. In summary, strong brand equity
means that customers have high brand-name awareness, maintain a favorable brand image,
perceive that the brand is of high quality, and are loyal to the brand. Among several brand equity
models in the literature, this study uses the one constructed by Aaker (1996), which is the most
commonly cited. It has been empirically tested in a number of previous studies (Atilgan et al.,
2005; Kim and Kim, 2004; Yoo et al., 2000). With Aaker‟s brand equity model, this study sets
out to examine the measurements of customers-based brand equity of Awash Bank of brand in
Addis Ababa which is shown in Figure 4

26
 Perceived
Quality
Overall
Brand Brand
Awareness Equity
Brand
Association

Brand
Loyalty

Figure: four Conceptual Framework of the study adopted from –Aaker (1991)

27
 CHAPTER THREE

3 .RESEARCH METHODOLOGY

Introduction
This chapter presents details of the research design methodology.

This includes the research design, sample size and sampling technique, Data source and
collection method.

3.1 Research Design

The research has been a quantitative research as it was use data that are numeric in nature.
Moreover, it has been a co relational research type as it was test-hypothesized relationships
between variables. The research was used seek to examine the relationship between brand equity
and its four dimensions. Even though there are several brand equity models, this research was
apply the most commonly cited model of Aaker. As cited by Tong & Hawley (2009), other
researchers (Barwise, Yoo&Donthu) use the first four brand equity dimensions out of the five as
they represent customers' evaluations and reactions to the brand and therefore they have been
widely adopted to measure consumer-based brand equity.

3.2 Population and Sampling

All the items under consideration in any field of inquiry constitute a population. According to
Davis, (2000) population is defined as “the complete set of units of analysis that are under
investigation, while element is the unit from which the necessary data is collected.” This study
conducted in Addis Ababa city branches of the Awash Bank.

28
3.3 Sampling Technique and Sample Size Determination

The total population of the research has been customers of Awash Bank branches that are found
in Addis Ababa .The research was employ multistage sampling to select the final sample unit. In
the first stage, the researcher was categorize the branches into four region based on their
incremental deposit and, 13 branches has been select by purposive sampling method from In the
second stage, from 13 branches 384 customers/respondents has been select using Convenience
sampling. has been used which was according to Leary(2004)refers to sample of Participants
that are incidentally available while purchasing these product available .The reason behind the
researcher has used this technique is due to larger number of population .three hundred eighty
four questionnaires were being proportionally distributed among the branches. According to
Cochran (1963) as cited by Israel (2009), a large population's sample size can be calculated by
using the formula n=Z2pq/e2

n=stands for the sample size which will be drawn

e = level of precision or sometimes called sampling error (is ranges in which the true value of the
population would be estimated.
P= population proportion
Z= level of confidence
The sample have been drawn from maximum variability of the population (P=0.5) with 95%
level of confidence with 5% precision level.
Therefore;
n=1.962X0.5X0.5/0.052=384

3.4 Data Source and Instrument of Data collection

The researcher has been used both primary and secondary sources of data in the study. The
secondary data was collected from financial data of the Bank, researches and various materials
that have relevance to this study and the sources are used only for literature purpose. In this
study, primary data has been collected and presented through a semi-structure questionnaire. The
questionnaire has been prepared based on likert scale, closed ended and open ended to gather
adequate data for the study. These measurement and or questionnaire are primarily adopted from

29
Quan,( 2006).The questionnaire is translated into the local language of Amharic by one of legally
operating translation offices. The Amharic version of the questionnaire used for those
respondents who have low command of the English language.

3.5 Procedures of data collection

The questionnaire is translated into the local language of Amharic by one of legally operating
translation offices. The Amharic version of the questionnaire used for those respondents who
have low command of the English language. At the time of approaching the voluntary
respondents, they asked with which version of the questionnaire they would be at ease to fill; the
English/Amharic version and then given accordingly. The respondents are customers who are
queuing in the Awash branches for deposit, transfer and/or withdrawal of money purposes.
Furthermore, the design of close-ended question is comprise of 5 point likert scale and multiple
choice questions. Secondary data is collected through reviewing different files, company
manuals, brochures and annual reports.

3.6 Method of data analysis

The researcher used both descriptive statistics and multiple linear regression analysis method to
analyze the data obtained from primary sources. The result of Descriptive statistics (mean
standard deviation, maximum, and minimum) is useful in providing information and detecting
normality‟s of the collected data. The researcher used multiple linear regression analysis to
examine the relationship between dependent (Brand Equity) and independent variables
(Perceived quality, brand awareness, brand association, and brand loyalty). Correlation analysis
Is useful to measure linear association relationship between variables their coefficient indicates
the strength of linear association between two variables and SPSS version 20 used to analysis the
data.

30
3.7 Reliability and Validity Analysis

3.7.1 Scale Reliability

Reliability refers to the consistency or stability of a measuring instrument. In other words, the
measuring instrument must measure exactly the same way every time it is used. This consistency
means that individuals should receive a similar score each time they use the measuring
instrument Jackson, (2010).

Cronbach‟s Alpha is a reliability coefficient that indicates how well the items in a set are
positively related to one another. In addition to these structured questionnaires with likert-scale
would be used to remove unstructured answers. Also Cronbach‟s alpha is used to assess the
internal consistency of variables in the research instrument. Cronbach‟s alpha is a coefficient of
reliability used to measure the internal consistency of the scale; it represented as a number
between 0 and 1. According to Zikmundet al., (2000) scales with coefficient alpha between 0.6
and 0.7 indicate fair reliability.

3.7.2 Validity Analysis

Validity is the extent to which differences found with a measuring instrument reflect true
differences among those being tested, Kothari, (2004). In other words, Validity is the most
critical criterion and indicates the degree to which an instrument measures what it is supposed to
measure. In order to ensure the quality of the research design content and construct validity of
the research was be checked. According to Kothari (2004) Content validity is the extent to which
a measuring instrument provides adequate coverage of the topic under study. If the instrument
contains a representative sample of the universe, the content validity is good.

3.8 Ethical Considerations

In order to keep the confidentiality of the data given by respondents, the respondents were not
required to write their name and assured that their responses is treated in strict confidentiality.
The purpose of the study was disclosed in the introductory part of the questionnaire.
Furthermore, the researcher tried to avoid misleading or deceptive statements in the
questionnaire. Lastly, the questionnaires were distributed only to voluntary participants.

31
 CHAPTER ONE

4. DATE PRESENTATION AND INTERPRETATION

This chapter presents the descriptive analysis and empirical test based on the regression output.
Based on the regression out put the researcher tries to discuss, and interpret the result of the
study.

4. 1 RESPONSE RATE

The researcher targeted a sample of 384 customers of Awash Bank, of which 358 of them were
responded. This represent 93.2% response rate as table 1 below clearly revealed. It is a reliable
response rate for data analysis as Babbie (2002) stated that any response of 50% and above is
adequate for analysis.

Table 4.1.1

Item Response rate

No
Percentage

1 Samples 384 100

size

2 collected 358 93.2

uncollected 26 6.8

Sources Owen Survey (2018)

32
4.2 Demographic characteristics of respondents

The questionnaire included demographic characteristic such as gender, age group, marital status,
education level, experience of customers with Awash Bank and respondents‟ occupation. The
above demographic variables included in the study to observe variation across various groups.

Table 4.2 .1 Demographic characteristics of respondents

Items options Freq Valid Percent cumulative
Male 214 60.05 59.8
Gender of
99.7
Respondents Female 144 39.9
Total 358 100 100.0
Less than20 55 15.36 15.4
Age(in Year) 21-30 105 29.3 44.7
31-40 87 24.34 66.8
41-50 85 23.74 90.5
More than 50 26 7.26 100.0
358 100
Education
17.0
Level HighSchool&below 77 21.5
Diploma 87 24.4 41.3
BachelorDegree 125 34.9 74.0
Masters &Above 69 19.2 95.3
Total 358 100 100.0
Marital Status Single 143.0 39.9 29.1
Married 213.0 59.5 77.7
Divorced 2.0 0.6 91.6
Widowed 0.0 97.2
Total 358.0 100.0
Source: Own survey (2018)

33
As the above table indicates, the majority (60.5%) of the respondents were male and the
remaining 39.9% of the respondents were female. Therefore, with insignificant variation both
male and female customer visit Awash bank obtain banking services. Similarly, the majority
(29.3%) of the respondents were fall under the age cohort of 21 to 30. The result reveals majority
of the Bank‟s customer base are youngsters. Regarding educational level of the respondents, the
majority(34.9%) were bachelor degree holders, followed by diploma(24.4%), high school&
below (21.5%), and masters& above (21.5%).Finally, regarding marital status, 59.5% of the
respondents were married,39.9% of the respondents were single and the remaining 0.6%
were divorced. Therefore, the majority of customers are married customers due to this
Awash Bank has to aggressively advertise and cross sale its products such as minor
account, teen-youth and women account to existing customers.

34
Table 4.3 Customers experiences with Awash Bank and their respective job
cumulativ
Items options Freq Valid Percent e
How many years
did you have
99.7
contact with Awash
bank. <1years 39 10.9
1-5 years 46 12.9 100.0
6-10 years 220 61.5 15.4
11-15 years 30 29.3 44.7
More than 15 years 23 6.4

Total 358 100

The types of job

that Respondents 71 17.0
Participated. Student 19.8
164 41.3
Self-Employees 45.8
Private Organization 55
74.0
Employees 15.3
Government Organization 52
95.3
Employees 14.5
16 100.0
Others 4.5
1
Total 358 00
Did you frequently
visit Awash Bank
323 90.22 29.1
and served in
Awash yes
No 35 9.77 77.7
Total 358 100 91.6
Source; Own survey 2018
The above table indicates that most of the respondents (61.5%) have an experience of 6-10years
as customers of the Bank. About 29% of them have 11-15 yearsof experience, 13% have
experience of 1 to 5 years, 11% have less than 1 year and the remaining 6.4% have experience of
more than 15 year as the customer of Awash Bank. Therefore, the research recommended that to
concentrate which has more than 15 to create brand Equity.Regarding the job that the respondents
participated, self-employees accountedfor 45.8%of the respondents. Students accounted for
19.8% of the respondents followed by private organization employees (15.3%), government

35
employees (14.5%) and the remaining 4.5% accounted by other jobs. Therefore, the majority of
the customers of the Bank are self-employed business people.
Table 4.4 the purpose to visit Awash Bank

Items options Freq Valid Percent cumulative

17.0
For what purpose did
61
you visit Awash Bank To transfer money 17
To save money in to
181 41.3
my account 50.5
To withdraw money
76 74.0
from my account 21.2
To sell foreign
21 95.3
currency 5.8
8 100.0
To borrow money 2.2
11
If others please 3.1
10
Total 358 0
Source; Own survey 2018
The above table shows that 50.5% of the respondents were came to Bank to deposit money into
their account and 21.2% of visiting the Bank for withdrawal of cash. Furthermore,17% of
customers are visited the Bank for the purpose of money transfer, 5.8%to sell
foreigcurrency,and2.2% for borrowing.

36
Table 4.6 Dimensions of Brand equity

perceived Quality NO Min MAX Mean StdDev

I trust the quality of services from Awash
358 1.00 5.00 3.0503 1.39737
Bank
Overall quality of services is consistent 358 1.00 5.00 3.3240 1.27946
When compared with competitors,
overall quality of services is best at 358 1.00 5.00 3.2179 1.37097
Awash Bank
Overall I am very satisfied with Awash
358 1.00 5.00 3.3045 1.40209
Bank
Brand Awareness
Among competitive banks, I can
358 1.00 5.00 2.5922 1.36221
recognize Awash Bank brand easily
I know Awash Bank 358 1.00 5.00 2.3911 1.38545
When I think of banks to work with,
358 1.00 5.00 3.1927 1.46643
Awash Bank comes first to my mind
Brand Association
Awash Bank has a very unique brand
358 1.00 5.00 3.3324 1.37957
image compared to competing banks
I respect and admire people who prefer
358 1.00 5.00 3.0922 1.28333
Awash Bank
I like the brand image of Awash Bank 358 1.00 5.00 3.1816 1.37948
Brand Loyalty
Awash Bank would be my first choice to
358 1.00 5.00 2.8855 1.36821
work with compared to other banks
I would recommend Awash Bank to
358 1.00 5.00 3.4330 1.31133
others
I would remain loyal to Awash Bank 358 1.00 5.00 2.6676 1.39371

37
From the above table, Respondents perceived that awash bank is their first choice and so that
they have been usually served in awash bank (Mean =3.05 with std. deviation =1.39), they also
perceived that they are satisfied with awash bank (Mean=3.32 with std. deviation =1.27 ).In line
with the above idea, they would recommend awash bank to other potential customers (mean=3.2
and std. deviation .1.3) and finally they perceived that they would not switch to other bank the
next time(mean=3.3 and std. deviation 1.4). Therefore, most of the customers of awash bank are
loyal customer (with mean of the mean 3.4).with sd deviation 1.311Therefore, most of the
customers perceived that they feel sense of loyalty.

From the above table, most of the respondent perceived that Awash bank has modern looking
equipment (Mean=3.3 and std. deviation .1.37). Furthermore, they believe that awash bank has a
unique brand image compared to competing bank awash bank are usually appealing or attractive
to the sight of most customer (M=3.3&std.deviation1.31.764). On the other hand, most
customers perceived that Awash bank provide services as per its promise and if it promise to do
things it definitely did it on a promised time (M=2.88 &std. deviation .766). Finally, awash has
strong passion to solve customer problem (M=333 &std.dev. =.1.2).
The above result demonstrates that, most customers perceived that the overall excellence or
superiority of Awash bank service and /or products are promising and are existed in a good
position and it is the direct effect on brand equity. This result is consistence with researches done
by Sulieman (2003).

From the above table, customers are highly aware about awash bank (M=3.4&std.dev.=.1.3).
Moreover, most respondents can recognize awash bank than other banks (M=3.3
&std.dev.=.759).
Furthermore, most respondents perceived that they are very familiar with it (M=3.89 &std.dev
=.815). Therefore, most customers have good brand image and / or association with the brand of
awash because they feel that they can easily recall and associate banking services and/or
Products to awash. It is the direct effect of service quality. This is in line with research conducted
Most respondents perceived that some features of it comes to their mind (M=3.91 std.dev=.986).
In another word, most respondents quickly recognize it among other competing brands and like
brand association they are familiar with awash bank.

38
Therefore, the cumulative effect of the above result shows that brand awareness of awash bank
on the mind of customer is positive. However, it is not mean that every customer have positive
brand awareness about the brand of Awash Bank.

Table 4.7 ANOVA

a
ANOVA
Model Sum of Squares df Mean Square F Sig.
b
Regression 320.313 4 80.078 210.626 .000

Residual 144.093 358 .380

1

Total 464.406 358

a. Dependent Variable: BEQUTY

b. Predictors: (Constant), BRALOY, PERCIVEDQUALIT, BRAASSOTO, BRAAWARTO

Source: Own Survey (2018).

The ANOVA Table show that the general Relation b/n dependent variables and in dependent
variable and it a see that significant linear relation with variable.

The sig value .000b.

39
 Table 4. 8 The correlation analysis of brand equity
Correlations
BEQUT PERCIVEDQ BRAAWAR BRAASSOT BRALO
Y UA TO O Y
Pearson 1
Correlation
BEQUTY
Sig. (1-tailed)
N 358
Pearson 1
PERCIVEDQUA Correlation .701
LIT Sig. (1-tailed) .000
N 358 358
Pearson .695** .495** 1
Correlation
BRAAWARTO
Sig. (1-tailed) .000 .000
N 358 358 358
Pearson .606** .499** .447** 1
Correlation
BRAASSOTO
Sig. (1-tailed) .000 .000 .000 .
N 358 358 358 358
Pearson .680** .424** .535** .462** 1
Correlation
BRALOY
Sig. (1-tailed) .000 .000 .000 .000
N 358 358 358 358 358
**. Correlation is significant at the 0.01 level (1-tailed).
Source Own Survey (2018)

40
The above table shows that the result of correlation coefficient between dependent variable
(brand equity) and independent variable (perceived quality, brand awareness, brand association,
and brand loyalty)
.As it can be seen from the above table, the result of correlation coefficient between brand equity
and perceived quality showed a positive coefficient of 0.701.This indicates that there is strong
correlation between brand equity and perceived quality, as the perception of customers about the
bank service increases means the brand equity of the banks more attractive. in general result
show that there is strong Relation between perceived quality over Brand Equity .if Awash Bank
increases it is services Quality the customer increase their satisfaction level . Perceived quality is
hence formed to judge the overall quality of a product/service. Boulding (1993) argued that
quality is directly influenced by perceptions. Consumers use the quality attributes to „infer‟
quality of an unfamiliar product.
The correlation coefficient between brand equity and brand awareness, is positive with a value of
0.695 this implies that there is strong correlation between brand awareness and brand equity, as
the customers have more awareness about the brand of the banks means the bank more attractive
brand equity. When it is related to the strength of the brand node or trace in memory, as
reflected by consumers' ability to identify the brand under different conditions Rossiter and
Percy, (1987). Brand awareness consists of brand recognition and brand recall performance.
Brand recognition relates to consumers' ability to confirm prior exposure to the brand when
given the brand as a cue. In other words, brand recognition requires that consumers correctly
discriminate the brand as having been seen or heard previously. Brand recall relates to
consumers' ability to retrieve the brand when given the product category, the category, or some
other type of probe as a cue fulfills the need. In other words, brand recall requires that consumers
correctly generate the brand from memory
The correlation between brand association and brand equity is positive with a coefficient value of
0.606 this implies that there is strong correlation between independent and dependent..
Associations represent the basis for purchase decision and for brand loyalty (Aaker 1991). Brand
associations consist of all brand-related thoughts, feelings, perceptions, images, experiences,
beliefs, attitudes (Kotler and Keller 2006,) and is anything linked in memory to a brand
Non-functional attributes include symbolic attributes, which are the intangible features that meet
consumers‟ needs for social approval, personal expression or self-esteem. These include

41
trustworthiness, perceived value, differentiation and country of origin of the brand. (Keller
1993).
Based on the correlation result, the correlation coefficient between brand loyalty and brand
equity is .680 there relationship is positive and significant. This indicates there is strong
correlation between brand equity and brand loyalty. Loyalty is a core dimension of brand equity.
Aaker (1991) defines brand loyalty as ignition of terms. Grembler and Brown (1996) describe
different levels of loyalty. Behavioral loyalty is linked to consumer behavior in the marketplace
that can be indicated by number of repeated purchases (Keller 1998) or commitment to re-buy
the brand as a primary choice. Cognitive loyalty which means that a brand comes up first in a
consumers‟ mind, when the need to make a purchase decision arises, that is the consumers‟ first
choice.

42
 Table 4.9, Coefficient of variables

Model Unstandardize Standardi t Sig. 95.0% Correlations Collinearity

d Coefficients zed Confidence Statistics
Coefficie Interval for B
nts
B Std. Beta Lower Upper Zero Parti Part Tole VIF
Error Bound Bound - al ranc
orde e
r
9.925 .239 41.57 .000 9.456 10.394
(Constant)
6
PERCIVE .094 .019 .175 4.934 .000 .056 .131 .588 .246 .141 .649 1.541
DQuality
1BRAAWA .211 .023 .338 9.222 .000 .166 .256 .695 .428 .264 .611 1.637
RTO
BRAASS .154 .025 .217 6.154 .000 .105 .204 .606 .301 .176 .658 1.520
OTO
BRALOY .236 .026 .324 9.079 .000 .185 .287 .680 .423 .260 .641 1.559
a. Dependent Variable: BEQUTY
Source: Own Survey (2018)

The survey result identified that the customer based brand equity of Awash Bank is determined
by brand equity dimensions as proposed by Aaker,(1996)
The perceived quality, brand awareness, brand association, and brand loyalty of Awash Bank.
The survey result shows perceived quality has positive and statistically significant, Customers
with higher perception about the bank brand indicates that the bank adopt attractive equity brand.
The survey result shows the brand awareness has positive and statistically significant, Customers
with higher memory about the bank brand indicates that the bank adopt attractive equity brand,
as the extent of the customers memorization about the brand increases the bank overall brand
equity more advanced or attractive.
43
The survey result shows the brand loyalty has positive and statistically significant, which means
Customers with highly loyal about the bank brand indicates that the overall brand of the bank is
good.
The survey result shows the brand association has positive and statistically significant.
The brand association is influential dimensions of brand equity; the customer‟s image towards
the brand is high means the overall brand equity of the bank is more attractive and highly
standardized or the bank adopted high standard brand. Customers with higher image about the
bank brand indicates that the bank adopt attractive equity brand, as the extent of the customers
image about the brand increases the bank overall brand equity more advanced or attractive.

Assumption 1;- Based on the coefficients output (co linearity statistics), the obtained variance
inflation factor (VIF) for all exogenous variables was found to be between 1 and 10 and
tolerance level result shows more than 0.2, which means that there is no multicollinearity
problem.

Assumption 2-.the error terms are normally distributed. Normal p-p plot is
used to check this assumption

Source; Own survey 2018

44
 Assumption 3; - the errors terms has constant variances. This assumption is check by the graph
of standardized ei versus standardized predicted y value.

Source; Own survey 2018

Table 4.10 Model Summary

Model Summary
Model R R Adjusted Std. Error of the Change Statistics
Square R Square Estimate R Square F Change df1 df2 Sig. F
Change Change
1 .830a .690 .686 .61660 .690 210.626 4 379 .000
a. Predictors: (Constant), BRALOY, PERCIVEDQUALIT, BRAASSOTO, BRAAWARTO
b. Dependent Variable: BEQUTY
Source: Own Survey (2018)

45
This table shows that R-square value is 0.69, which is explaining the goodness of the model.
This explains that 69% of the variation in the dependent variable (customer based brand equity)
of Awash Bank is explained by the independent variables (perceived quality, Brand awareness,
Brand association, and Brand loyalty). Adjusted R-square of 0.69 reveals that model has
accounted for 69% of the variance in the criterion variable.

Table 4.11. Summary of hypotheses

Hypotheses Beta P value Status
coefficient (Accepted
Perceived quality have a significant effect Brand Equity .175 0.0000 Accepted

Brand awareness significantly affect brand equity .338 0.0000 Accepted

Brand association significantly affect over brand equity .217 0.0000 Accepted

Brand loyalty significantly influences brand equity .324 0.0000 Accepted

Source: Own Survey (2018

Hypothesis 1: The Perceived quality has a significant positive effect on customer-based brand
equity of Awash Bank.

Based on the tables and justifications provided in this study, Brand Perceived quality has a
positive and significant relationship with the customer based brand equity of Awash Bank.
Where at p value< 0.05. The value of the coefficient of Brand Perceived quality was also found
beta coefficient of .175, which means that, which indicates that keeping other factors constant, a
unit change in Perceived quality causes a 17.5% increase in customer based brand equity of
awash bank. Therefore, H1 is accepted.

Hypothesis 2: The Brand awareness has a significant positive effect on customer-based brand
equity of Awash Bank.

As shown in the table above, the coefficient of Brand Awareness was computed to be.338that
means that a unit change in Brand awareness has the influence to increase customer based brand
equity of awash bank of by 33.8% assuming all other variables constant. The calculated this at p
value< 0.05which proves a positive and significant relationship with the customer based brand
equity of Awash bank of. Therefore, H2 is accepted.

46
Hypothesis 3: The Brand association has a significant positive effect on customer-based brand
equity of Awash Bank. As shown in the table above, the coefficient Brand association was
computed to be. .217, which means that a unit change in Brand association has the influence to
increase customer, based brand equity of awash bank of by 21.7% assuming all other variables
constant. This at p value< 0.05which proves a positive and significant relationship with the
customer based brand equity of Awash bank of. Therefore, H3 is accepted.

Hypothesis 4: The Brand loyalty has a significant positive effect on customer-based brand equity
of Awash Bank.

As shown in the table above, the coefficient of Brand Awareness was computed to be. .324That
means that a unit change in Brand loyalty has the influence to increase customer based brand
equity of awash bank of Ethiopia by32.4 % assuming all other variables constant. This at p
value< 0.05that proves a positive and significant relationship with the customer based brand
equity of awash bank of. Therefore, H4 is accepted.

47
 CHAPTER FIVE

5.1 SUMMARY OF THE MAJOR FINDING AND RECOMMENDATIONS

5.1.2 CONCLUSIONS

This study empirically test the customer based brand equity dimensions and how they interact
within the context of Awash Bank customers‟ based on most commonly cited model of Aaker‟s
(1996). In this wide and diverse banking sector, banks are providing identical products and
services for nearly the same price. Brand awareness and brand loyalty are plays the significant
role on measuring consumers based brand equity. According to the research findings, brand
association and perceived quality are less significant relative to the above two. Local finding
show that there is no positive and direct relationship between the four dimensions and also other
researches show that brand loyalty and brand awareness does no has relationship between two
independent variable over brand equity but my research show that there is positive and direct
relationship between independent and dependent variable .on current my study.

The findings of this study indicate that brand equity dimensions have strong and significant
correlations with the four dimension variables. The R-square value is 0.69, which means 69% of
the variation in customer based brand equity of Awash Bank are explained by the exogenous
variables namely brand awareness, brand associations, perceived quality, and brand loyalty.
Adjusted R-square of 0.686 reveals that model has accounted for 68.6% of the variance in the
criterion variable. Based on the coefficients output (co-linearity statistics), the obtained variance
inflation factor (VIF) for all exogenous variables was found to be between 1 and 10 and
tolerance level result shows more than 0.2, which means that there is no multicollinearity
problem. To test the hypothesis, a multiple regression was run on SPSS, which gave the overall
fitness of the model. Accordingly, based on the justifications provided in this study, all four
dimensions of Awash Bank (brand awareness, brand associations, perceived quality, and brand
loyalty), has a significant positive effect on customer-based brand equity of Awash Bank.

Finally maintaining customer based brand equity has been a major challenge for various banks
especially in countries because increased vicious competition in the marketplace,

48
The Research shows that Awash Bank does not have branding Strategy Related to Customers
Based Brand Equity. However, Awash Bank are currently the Leading Bank from the Private
Banking Sector in the Country. In the services, Sector Brand Equity Play a Major role Especially
in Competitive Environment likes Banking Industry.

5.2 RECOMMENDATIONS

Based on the Finding of the Research the following recommends are suggestion to the
Bank.

 Awash Bank should focus on those consumer Based Brand Equity Dimension that
have a strong significant Relationship with overall consumers based brand equity to
be able to find out and improve its performance.
 Currently the Banking sector has high level of competitions. Brand equity has high
impact on service quality of the Bank. This implies Powerful brands provide long-term
security and growth, higher sustainable profits, and increased asset value of the Bank.
 The Researcher recommends that the Awash Bank must develop consumer based
brand equity strategy to maintaining it is customer if not customers based brand equity
it will be a major challenge for the banks in the future.
 The Bank must give attention related to it is services quality and customers
Satisfaction in competitive environment.
 The private Banking industry give attention only expanding their branch in different
part of the country but it gives less attention to measuring consumers based brand
equity. Strong brands enjoying high brand equity can help managers to relish higher
margins, greater customer loyalty, less vulnerability to competitive attacks” Gill
&Dawra, (2010).
 According to Wongelawit (2014), good customer relationship management creates
customer delight. In turn, delighted customers remain loyal and talk favorably to
others about the company and its products
 banks lack significant technological edge, since hardware and software programs have
generally been acquired from external vendors or outsource.

49
5.3 LIMITATIONS AND DIRECTION FOR FUTURE RESEARCH

This study is limited only in the customers of Awash Bank in Addis Ababa region thirteen
branches. Further, study should be carried out extending to all over the country and branches.
The second limitation is that this study focus on the theory and tested the brand equity concept.
In future, specific bank brands and specific CBBE dimensions should be taken into
considerations in exploring the customer based brand equity. Last Limitation The study used
only the first four variables of Aaker‟s customer-based brand equity model, which are, Perceived
quality, Brand awareness, Brand association and Brad loyalty. The fifth variable, other
proprietary assets is a vast area not to be covered,

50
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III
Appendix
St. Mary`s University
Measuring consumer based brand equity:
The case of Awash Bank:

Dear respondent
I am currently conducting a research as part of a partial fulfillment of the requirements for the
degree of Masters of Art in Marketing Management.
The purpose of the research is to find out the factors contributing to the brand equity of Awash
Bank.
All information obtained will be used for academic purpose only. Hence, be assured that your
responses will not be revealed to anyone. Please answer allthe questions, as they are vital for the
success of this research.
Thank you in advance for your utmost cooperation.

Part I: Demographic or personal information

Please reply to the following statements by showing your level of agreement / disagreement on
each by putting a “√" mark.
1. Gender Male □ Female□

2. Age
A. Less than 20 □ B. 21-30□ C. 31-40 □
D. 41-50□ E. More than 50Age
3. Educational level
A. High school &below □ B. Diploma □
C. Bachelor degree□ D. Master or higher □
4. Marital status
Single □ Married □ Divorced □ Widowed □
5. How many years did you have contact with Awash Bank
A. Less than one year □ B. 1-5 year‟s □
C. 6-10 years □ D. 11-15 years □ E. More than 15 years
6. In what type of job are you currently engaged?
A. Student □ B. Self- employed □ C. Private Organization employee □
D. Government organization employee □ E. others □
Part II General Information questions

7. Did you frequently visit and serve in Awash Bank?

A. Yes □ B. No □

IV
8. For what purpose did you visit Awash Bank?

A. to transfer money by □
B. to save money in to my account □
C. to withdraw money from my account □
D. to sell foreign currency □
E. to borrow money □
If others please specify______________________________
9. Do you prefer awash bank than others?
A. yes □ B. No □
10. Why do you prefer awash bank? (You can choose more than one answer)
A. it provides fast and accurate service □
B it solves my problems □
C. it has a good name in my mind as a customer □
D. it uses a modern technology □
E. If others, please specify__________________________
11. If your answer for question number 8 is no, why? (You can choose more than one answer)
A. Lack of competent and quality services
B. Existence of unnecessary bureaucracy and procedures
C. Its gives more attention to the development of the nation and less attention to
Individual customers
D. Lack of strong name in the minds of customers

E. If others specify_______________________________________

V
 II. Please fill the following question bay considering the score

1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly Agree

1 2 3 4 5
1. I trust the quality of services from Awash Bank 1 2 3 4 5
2. Overall quality of services is consistent 1 2 3 4 5
Perceived 3. When compared with competitors, overall quality of
Quality services is best at Awash Bank
1 2 3 4 5
4. Overall I am very satisfied with Awash Bank
1 2 3 4 5
1. Among competitive banks, I can recognize Awash
Bank brand easily
1 2 3 4 5
2. I know Awash Bank

Brand 1 2 3 4 5
Awareness 3. When I think of banks to work with, Awash Bank
comes first to my mind
1 2 3 4 5
4. Among competitive banks, I can recognize Awash
Bank brand easily 1 2 3 4 5
1. Awash Bank has a very unique brand image compared
to competing banks
1 2 3 4 5
2. I respect and admire people who prefer Awash Bank
Brand
Association 1 2 3 4 5
3. I like the brand image of Awash Bank 1 2 3 4 5
4. Awash Bank has a very unique brand image compared
to competing banks
1 2 3 4 5
1. Awash Bank would be my first choice to work with
Brand compared to other banks 1 2 3 4 5
Loyalty 2. I would recommend Awash Bank to others 1 2 3 4 5
3. I would remain loyal to Awash Bank 1 2 3 4 5
1. It makes sense to work with Awash Bank even if it is
similar to other banks
1 2 3 4 5
2. Even if there is similar bank as good as Awash Bank I
remain loyal to Awash Bank to work with.
Overall 1 2 3 4 5
Brand Equity 3. Even if there is another bank which could offer the same
service, I feel secured to work with Awash Bank.
1 2 3 4 5
4. It makes sense to work with Awash Bank even if it is
similar to other banks
1 2 3 4 5

VI