The Impact of Customer Based Brand Equity on Customer Satisfaction

Abstract

Customer based brand equity (CBBE) and customer satisfaction are two important concepts in both of the theoretical and practical world as they act as major roles in achieving organizational success. Over the past two decades, numerous researches about the association between CBBE and customer satisfaction has been done. As a result of the rapid competition in the market, more attention is given for the value of the brand from the customer’s point of view. Present study aims to identify the impact of customer-based brand equity on the satisfaction of end customers of the Arpico Interiors brand. 200 self-administered questionnaires were distributed among the customers in Colombo district using the convenience sampling method and only 187 questionnaires could be collected. The research model was constructed with the purpose of investigating the applicability and practicality of the model with reference to Arpico Interiors brand based on the Aaker (1991)’s CBBE model. As the variables, Brand Awareness as measured by five items, Brand Associations by nine items, Perceived Quality by six items, Brand Loyalty by three items and Customer Satisfaction by three items were considered. The hypotheses were tested by using the multiple regression analysis. According to the findings, the highest impact on customer satisfaction is from perceived quality with a coefficient of 0.488. Brand association and brand awareness also impact on customer satisfaction of Arpico Interiors brand with co efficiencies of 0.441 and 0.089. Finally, brand loyalty has no impact on customer satisfaction. These findings will be a huge contribution for the organization when prioritizing and allocating resources through important decisions.