Study of the Relationship Between Brandawareness, Brand Association, Perceived Quality, and Brand Loyalty

STUDY OF THE RELATIONSHIP BETWEEN BRANDAWARENESS, BRAND ASSOCIATION, PERCEIVED QUALITY, AND BRAND LOYALTY

Shu -Hsien Liao

Dept. of Management Sciences and Decision Making, Tamkang University,

NO. 151, Yingjuan Rd, Dansui Jen, Taipei 251, Taiwan, R.O.C

michael@mail.tku.edu.tw

Retno Widowati PA

Department of Management Science Tamkang University, Taiwan.

NO. 151, Yingjuan Rd, Dansui Jen, Taipei 251, Taiwan, R.O.C

wati704@yahoo.com

Da-Chian Hu

Department of Management Science, Tamkang University Taiwan.

NO. 151, Yingjuan Rd, Dansui Jen, Taipei 251, Taiwan, R.O.C

nowhere2@mail2000.com.tw

ABSTRACT

This research investigated direct and indirect relationship between brand equity constructs which includes brand awareness, brand association, perceived quality, and brand loyalty. We implement Structural Equation Modelling with LISREL to examine the hypothesis. The finding showed that there is a significant and positive direct effect between brand awareness toward brand associations, and brand association toward perceived quality and brand loyalty. We argue that brand association plays as a suppressor in our model that leads to inverse relation between brand awareness and perceived quality. With respects to the mediating effect of perceived quality to the relationship between brand awareness towards brand loyalty and brand association towards brand loyalty, our finding showed that perceived quality does not play as a mediator role in this study. On the other hand, we find that brand association is a very important variable which mediate the relationship between brand awareness toward brand loyalty.

Keywords: Brand Equity, Brand awareness, Brand Association, Perceived Quality, Brand Loyalty.

INTRODUCTION

The issue of brand equity emerge as one of the most crucial topics for marketing management in 1990s and its concept and measurement has interested academicians and practitioners for more than one decade. There have been three...