Hierarchical Chain of Consumer-Based Brand Equity

International Business & Economics Research Journal – September 2011

Volume 10, Number 9

Hierarchical Chain Of Consumer-Based Brand Equity: Review From The Fast Food Industry

Tan Teck Ming, Multimedia University, Malaysia Hishamuddin Bin Ismail, Multimedia University, Malaysia Devinaga Rasiah, Multimedia University, Malaysia

ABSTRACT The aim of the study was to fill in the gaps in the discussion of the way in which fast food brand equity is developed. A proposed conceptual framework - Hierarchical chain of consumer-based brand equity - was postulated based on the casual relationships among dimensions of brand equity. A comprehensive and extensive literature review helped to develop a brand equity framework. In the fast food industry, the dimensions of consumer-based brand equity are decomposed into brand awareness, brand familiarity, perceived quality, brand image, brand trust and attitudinal brand loyalty, demonstrated three-level hierarchical chain. Brand familiarity, perceived quality, brand image, and brand trust were proposed to serve as mediating variables of other constructs, indicating direct and indirect relationships among brand equity dimensions. Keywords: Brand Equity; Fast Food; Brand Familiarity; Brand Trust; Hierarchical Chain

INTRODUCTION

T

he global fast food market grew by 6.6% in 2008 to reach a value of $154.7 billion. In 2013, the global fast food market is forecasted to reach $200 billion, an increase of 29.3% since 2008 (Datamonitor 2009). Fast food chains were among the many types of restaurants that were interested in building strong brands; however, achieving that goal was not always easy given that many fast food chains’ products and services were not inherently differentiated and the channels of distribution were not distinctive. Judy et al. (1999) identified that the fast food industry had heavily relied on price promotions as an important marketing activity; however, such ongoing marketing mechanism was valued as a...