Influence of brand equity on purchase intention by company size

Abstract

Purpose: The purpose of this research is to measure the impact that perceived quality, loyalty, and brand awareness have on brand equity, and how it affects purchase intention on small and medium-large companies.

Design/methodology: A questionnaire was given to customers of small and medium-large companies from Cuenca, Ecuador, then we run a confirmatory factor analysis and used structural equations to run the proposed causal model.

Results: The results show that the companies’ size does not have a moderating effect in the proposed relations, however, brand equity impacts purchase intention in all the companies studied, while loyalty impacts brand equity in the global sample and medium-large companies.

Practical implications: The results obtained allow companies to structure their marketing strategies according to their size.

Originality/value: Previous studies that evaluate these relationships do not distinguish between company sizes, and very few of them study these relationships in the Andean region.

Limitations/implications: The study focuses on a medium-sized city, it would be useful to compare its results with those of larger cities, as well as other countries.