Effect of Brand Equity on Consumer Purchasing Decision of Domestic Shoes products: In the case of Nifas Silk Lafto Sub-City, Addis Ababa

Abstract

This study has empirically examined the effect of brand equity on consumer purchasing decision of domestic shoes products in the case of Nifas Silk Lafto Sub-City, Addis Ababa. To achieve the objectives of this study explanatory research design was used. Data was collected through close ended questionnaire from a sample of 384 consumers that are selected using non probability convenient sampling method. The data collected from the questionnaire was analyzed using SPSS version 21. Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis were used to reach to the final findings and conclusion. The findings of the study showed that all the four dimensions of brand equity have strong impact on consumer purchasing decision of consumers, the most significant being Brand Awareness and Perceived Quality just by a slight difference. We can thus conclude that when consumers are attached and familiar towards a brand, i.e. when they are well aware of the brand, they are likely to decide to purchase and this only happens when they have good perception about the quality of the brand. So, it is very essential for marketers that not only should they introduce their brand properly but also should work on customer based quality standards to meet customers’ expectation. Brand Loyalty and Brand Association also have their own significant effect in the purchasing decision, according to this study. We can thus conclude that when consumers are attached and loyal towards a brand they are likely to do repeat purchases and this happens when the relationship between the brand and the user is in depth and has an emotional connection, i.e when there is brand association. In general, a step by step process should be taken from defining who the brand is (brand awareness), to creating brand quality perception so that the consumers can evaluate it positively and form a strong association that will result in strong bond (brand loyalty) to impact consumers purchasing decision positively.