International Academic Journal of Business Management

  • ISSN 2454-2768

Evaluation of Mediation Effect of Loyalty to the Brand on Formation of Brand Equity in the Dairy Industry

Hussein Gharehbiglo, Behjat Abchar and Ali Yavari

Abstract: One of the most important intangible assets is “brand” which creates value to the company and doubles its competitive power. Brand equity is a criterion to determine its power so that it not only preserves company’s value but also results in customer’s loyalty. The aim of current study was to evaluate mediation role of loyalty to the brand in the relationship between brand association and brand mental image. The statistical population of present study involves all dairy products consumers of Bonab city. The sample size (n=198) was investigated with cluster sampling method among those who refer to active retailers of dairy products in Bonab city. The data collection instrument of present study was standard questioner. Present research is applied in objectives and descriptive-survey in research data collection method. Structural Equation Modeling (SEM) was used for collected data analysis in SPSS 21 and Lisrel 8.54. Results of the study indicated that loyalty to the brand is the most important and influential factor in creating brand equity in dairy industry. Moreover, relying on the obtained results, the mediation effect of brand is confirmed in formation of brand equity.

Keywords: brand equity, brand association, brand mental image, loyalty to the brand.

Page: 94-106

Volume 3, Issue 1, 2016