The effect of customer based brand equity on customer satisfaction: the case of Abyssinia bank

Abstract

With the adoption of effective brand equity strategies, many companies may compete effectively and efficiently. This study, therefore, set out to investigate the influence of brand equity on customer satisfaction in banking sector. A cross-sectional explanatory design was used. The target population in this study was 384 banking customers and marketing managers and in branches in Addis Ababa. The study was conducted in the context of the private financial institutions in Ethiopia. Purposive sampling was used to select the branches and systematic sampling was conducted to select customers. Both primary and secondary data were used. Primary data were collected using semi-structured questionnaires and an interview guide. Descriptive statistics were used to summarize the properties of the mass data. Inferential statistics were derived using Pearson’s correlation and multiple regression. The findings show that all the objectives of the study were significant at 95% confidence level; there was significant impact of brand awareness, perceived quality, brand loyalty and brand association on customer satisfactions. Furthermore it shows perceived quality as the most dominant factor established whose platform should be built by the other three dimension of brand equity to enable a firm to influence choice habits amongst consumers. Then, this study concluded that brand awareness, perceived quality, brand loyalty and brand association have significant effect on customer satisfactions. Accordingly, the study suggests that brand equity should be used to play a leading role among product related strategies in establishing a marketing strategy in banking services or sector.