Brand Equity

The impact of marketing

communication and price promotion

on brand equity

Received (in revised form): 5th April, 2005

ANGEL F. VILLAREJO-RAMOS

has been Professor of Marketing at Seville University (Spain) since 1994. His research has focused on marketing

strategy, consumer behaviour, brand equity management and customer relationship management. His current

interests include the evolution of brand equity management to customer equity management, specifically, the

transition from brand loyalty to customer equity. He has published widely in marketing and management journals,

and presented papers at international meetings.

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MANUEL J. SANCHEZ-FRANCO

has been Professor of Marketing and Communication at Seville University (Spain) since 1996. His research has

focused on internet marketing strategy, psychological processes and advertising effects. Currently, he is studying

the design and interpretation of models to explain behaviours in online environments. Specifically, this involves

evaluating the mediating role of the main intrinsic and extrinsic motives explaining users’ web acceptance and

use. He has published widely in marketing and management journals.

Abstract

This paper establishes a theoretical and empirical basis that shows the impact of marketing

communications and price promotion on brand equity. The theoretical review supports applying

analysis techniques based on structural equations models to confirm empirically the relationship

between marketing communication efforts and the dimensions of brand equity: perceived quality,

brand loyalty, brand awareness and brand image. This measurement model is verified on a sample

group of families which purchased durable goods — in this case a washing machine. The results

indicate the positive effect of marketing communication on brand equity, and offer strong support

for the measures of perceived quality, brand loyalty, brand awareness and brand image as

antecedents of brand equity....