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Determining the affecting factors on brand equity from the perspective of

consumerin the chocolate industry of Iran (Baraka chocolate)

Article · January 2016

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Iman Seifabadi
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 Determining the Affecting Factors on Brand Equity from
the Perspective of Consumer in the Chocolate Industry of
Iran (Baraka Chocolate)

Abstract
Studies on brands and brand equity, has become important for
marketing activities and marketing theory in recent years. Brand
equity is one of the assets that retains the company’s value and is
also followed by customer loyalty. This study aims to determine the
affecting factors on brand equity from the perspective of consumer
in the chocolate industry of Iran. In this study, David Aaker brand
equity model with four dimensions of brand loyalty, brand
awareness, brand associations, and perceived quality is used. The
statistical population consists of Baraka chocolate consumers in
Shahrvand Chain Stores; as 50 individuals were selected as the
sample. Results showed a significant relationship between
perceived quality and brand equity. There is also a direct relation
between brand loyalty and brand equity. There is a significant
relationship between brand awareness with brand equity and also
a very strong and significant relationship between brand
associations and the brand equity. In addition, there is no
significant difference between men and women in any of the
components; and there are only significant differences between
different age groups in component of brand loyalty in the chocolate
industry of Iran. Thus, there is no significant difference between
different age groups in components of brand awareness, perceived
quality, brand loyalty and brand value.
Keywords: brand equity from perspective of consumer, brand loyalty, perceived quality,
brand awareness, brand association.
1. Introduction
Focusing on marketing activities as a tool to be present in the
customers’ mind and creating an intellectual property as a brand
name is considered as a new perspective in marketing science.
Different studies show that the real value is not in the product or
service, but these values exist in minds of potential and current
customers; and it is the brand that brings the real value in the
minds of consumers (Kapferer, 2008). Developing a strong brand
name is one of the important priorities of organizations worldwide.
Strong brand names help companies to have a proper identity in
the market (Aaker, 1996). In competitive conditions of markets,
obtaining a proper place in the mind of the consumer so that the
consumer is loyal to the company, is very important; and the
factors that are effective in reaching such a position in the minds
of consumers is the company's brand equity (Aaker, 1991). Brand
equity is the value added to products and services and may be
reflected in the way of thinking, feeling and the client's respect for
brand, or may be emerged in prices, market share and profits that
a brand provides for an organization. Brand equity is an intangible
asset which has psychological and financial value for the company
(Kotler, 2007). David Aaker believes brand as a symbol that is
linked with a large number of assets and mental liabilities and is
offered to identify and distinguish products. Aaker studied the
importance of understanding the concept of brand value in 1991
and 1992. Based on his model, brand equity arises from brand
loyalty, perceived quality, brand association and brand awareness.
Therefore, due to the importance of the subject, in this paper we
studied the affecting factors on brand equity from perspective of
consumer in the chocolate industry of Iran, in particular Baraka
products. In the second section, the literature review and in the
third section, research methodology are described. Analyzing the
data is discussed in the fourth section. Conclusions are presented
in the fifth section.
2. Literature Review
A brand is a name, term, design, symbol, or any other feature that
identifies one seller's good or service as distinct from those of
competitors (American Marketing Association, 2007). In summary,
the brand is to identify the seller or manufacturer. In fact, brand is
permanent commitment of a seller to provide a set of features,
benefits and special services to buyers. In any case, until a product
/ service has a distinctive features, it cannot be simply brand and
be strengthen in a sustainable way. These distinctions can even
have logical, tangible or intangible functionality. Most brands
guarantee a certain level of quality, but a brand can be a symbol
of more complex cases, such as: the nature of the product, product
personality, culture of using the product and personality of
consumer.
Kotler has defined different meanings for brand which are provided
in following (Keller, 2001). Features: A brand makes certain
attributes come to mind. Interests: features should be turned into
tangible and emotional benefits; product characteristics such as
durability can be converted into tangible benefits. Value: brand
indicates the values of manufacturer. Culture: a brand may indicate
the personality culture. Personality: a brand may indicate a special
personality. Consumer: brand indicates the type of customer whom
buys that product or uses it. The first person whom presented a
model to conceptualize brand equity based on both aspects is
Aaker (1991). He introduce 4 components to evaluate brand equity
from perspective of consumers, as follows: brand awareness,
brand loyalty, perceived quality and brand associations.
Brand Awareness
One of the aspects of brand equity is brand awareness and visibility
of the name and symbol of the brand. Results indicate that people
tend to buy familiar brands, because they are more comfortable
with their names. There is a belief among them that a famous
brand is possibly reliable and of high quality. Often a well-known
brand names are known better than unknown names. A brand
awareness is important in this regard because it should primarily
be entered into a person’s consideration (must be one of the
brands that will be evaluated for purchase), so unknown brand
usually has a little chance of being purchased (Simon and Sullivan,
1993).
Brand Loyalty
Brand loyalty can be defined as the extent in which the customer
has a positive attitude towards a brand, his commitment to brand
and intentions to continue buying in the future. Brand loyalty is
directly affected by the satisfaction or dissatisfaction from the
brand that has been obtained over time and also from the quality.
Perceived Quality
Perceived quality is the customer's perception of overall quality or
superiority of a product or service in relation to the customer’s
desire toward its substitutes. To understand the perceived quality,
identifying and measuring critical dimensions would be useful, but
perceived quality itself is a universal construction. Brand is linked
with customer’s perceived quality. Perceived quality might be
somewhat different in different industries. High quality directly
influences purchasing decisions and loyalty and supports price and
profit margin.
Brand Association
The value of a brand is often based on affiliations and associations
that it is linked to. Brand association is the heart of brand equity,
as well as a key component of competitive advantage. Chen stated
following reasons for confirmation of this statement:
1. The brand awareness is a necessary condition to build brand
equity but it is still not enough.
2. Other dimensions of brand equity can increase consumer’s
loyalty to the brand.
3. Perceived quality is a kind of brand awareness. In general, these
associations create brand image (Chen, 2001).
Karbasi and Yardel (2011), in a research of evaluating of brand
equity and influencing factors from perspective of consumers and
using the brand equity model of David Aaker concluded that brand
loyalty and brand association directly affects brand equity. A
perceived quality and brand awareness indirectly affect brand
equity through brand loyalty.
In a study by Gilaninia and Mousavian (2010) entitled as “the effect
of brand loyalty on brand equity of the bank from perspective of
electronic cards customers”, by considering Aaker model, they
assessed the impact of brand loyalty (behavioral aspect) on brand
equity. And since brand loyalty can be influenced by other aspects
of the model (perceived quality, brand awareness and brand
association); then, those factors were studied as influencing factors
on loyalty and their impact on brand equity was assessed. The
results showed that loyalty, awareness and quality affect brand
equity, and brand awareness is one of affecting factors in
customers’ brand loyalty.
2.1 Conceptual Model
Due to the benefits that the Aaker model owns in this field and due
to the fact that he did not carry out experimental test on this model,
this model has been tested and validated in various statistical
populations Aaker model is a concept that seeks to identify the
characteristics that shape the perception of the consumer toward
the brand (Aaker, 1991). Brand equity is a multidimensional
concept, which includes brand loyalty, brand awareness, perceived
quality, brand association. In the following figure Aaker conceptual
model is presented for the purpose of conceptualization. The
hypotheses are based on the Aaker model (The model used in this
study) as follows:

perceived
quality

brand brand brand

awareness equity loyalty

brand
association

Fig. 1: Conceptual Model (Aaker, 1991)

H1: There is a significant relationship between perceived quality
and brand equity.
H2: There is a significant relationship between brand loyalty and
brand equity.
H3: There is a significant relationship between brand awareness
and brand equity.
H4: There is a significant relationship between brand association
and brand equity.
3. Method
The methodology of this paper is survey and its objective is to
determine the affecting factors in brand equity based on the Aaker
model; which is applicable according to objective. Using statistical
analysis, significant relationships between four variables of Aaker
model (brand loyalty, brand awareness, perceived quality, brand
association) and equity products will be studied from the
perspective of consumers.
The statistical population in this study, are consumers of Baraka
chocolate in Shahrvand Chain Stores, as 50 of them were selected
for the survey by using a random sampling.
In this paper Internet, library studies and questionnaires were used
to collect the required data and information. In addition, any
measuring tool should at least have validity and reliability. The
questions were designed in 5-point Likert scale.
Validity has different types (formal, content, standards and
structure). In this study, validity is studied according to the formal
type (based on judgments of informed people). Questionnaire is
used based on the main sources of research (Chang Cheng, 2006;
Papio, 2006; Delgado, 2005). To determine the reliability of the
questionnaire in this study, Cronbach's alpha is used. This method
is used for calculating the internal consistency of measurement
tools, such as questionnaires or tests that measure various
attributes. The information are extracted from the questionnaires,
and will be applied in general information table. Then all
information will be analyzed by using computers and statistical
software, especially SPSS software. Since the questionnaire was
designed based on Likert scale and the data are ranked and
according to the non-parametric distribution, Spearman correlation
coefficient should be used to assess the relationship between
variables. In analyzing the data, one must first evaluate
demographic characteristics of the respondents (including gender,
age, education) and then statistical indices related to each
questionnaire questions and research variables in research
questionnaires i.e. brand loyalty, brand awareness, perceived
quality, brand association be calculated (Sadaghiani and Ebrahimi,
2002).
The obtained reliability for the questionnaire is 0/807 and a more
detailed description is presented in the following table:
Table of Cronbach's alpha coefficients for research components
Indicators number of
alpha Sample size
items
Perceived quality 0/538 3 80
brand loyalty 0/555 2 80
brand awareness 0/177 6 80
brand association 0/107 4 80
Brand equity 0/562 2 80
4. Findings
4.1. Demographic Information
In this study 50 consumers of Baraka chocolate in Shahrvand Chain
Stores were selected, including 29 men and 21 women. In addition,
19 have the educational levels less than diploma, 12 people have
diploma, and 14 have bachelor degree.
Education
Cumulative
Frequency Percent Valid Percent Percent

Valid Less than Diploma 19 38.0 38.0 38.0

Diploma 12 24.0 24.0 62.0
Bachelor 14 28.0 28.0 90.0
Master Higher 5 10.0 10.0 100.0
Educational level
Total 50 100.0 100.0

Of the 50 respondents, 10 were under 20 years old and 9 people

over 50 years old. Number of different age groups are shown in
the table below.
Age
Cumulative
Frequency Percent Valid Percent Percent

Valid below 20 10 20.0 20.0 20.0

21-30 10 20.0 20.0 40.0
31-40 10 20.0 20.0 60.0
41-50 11 22.0 22.0 82.0
More than 51 9 18.0 18.0 100.0
Total 50 100.0 100.0
4.2 Data Normality
In order to test data normality, k-s test is used. If the significance
level of the k-s test is greater than 0.05 as displayed in this table,
the data can be assumed to be normal with high confidence.
Otherwise it cannot be said that the data distribution is normal.
Tests of Normality
Kolmogorov-Smirnova
Statistic df Sig.
awareness .127 50 .054
Percieved .092 50 .200*
quality
loyalty .131 50 .033
association .111 50 .172
Brand equity .168 50 .001
a. Lilliefors Significance Correction
*. This is a lower bound of the true significance.
As you can see, loyalty and equity components are not normally
distributed because the significance level for these two
components is less than 0/05. As a result, non-parametric tests
should be used for testing hypotheses.

4.3. Inferential Statistics

First hypothesis: There is a significant relationship between
perceived quality and brand equity.
H0: There is no significant relationship between perceived quality
and brand equity.H1: There is a significant relationship between
perceived quality and brand equity.
Since data distribution is normal, nonparametric tests were used;
and as we have used Likert scale in the present study and want to
measure the relationship between the two components, Spearman
correlation test is used. In this test, as the amount of obtained sig
at 0/05 level and 95% degree of confidence is 0/002 which is less
than 0/05, it indicates a strong relationship between perceived
quality and brand equity; so that H0 is rejected and H1 which
indicates the existence of a significant relationship is confirmed.
Thus, there is a strong significant relationship between perceived
quality and brand equity.
brand
equity
.435** Correlation quality Spearman'
Coefficient s rho
.002 Sig. (2-tailed)
50 N

Second hypothesis: There is a significant relationship between

brand loyalty and brand equity.
H0: There is no significant relationship between brand loyalty and
brand equity.
H1: There is a significant relationship between brand loyalty and
brand equity.
In this test, as the amount of obtained sig at 0/05 level and 95%
degree of confidence is 0/045 which is less than 0/05, it indicates
a direct relationship between brand loyalty and brand equity; so
that H0 is rejected and H1 which indicates the existence of a
significant relationship is confirmed. Thus, there is a strong
significant relationship between brand loyalty and brand equity.

brand
equity

.285** Correlation loyalty Spearman'

Coefficient s rho
.045 Sig. (2-tailed)
50 N

Third hypothesis: There is a significant relationship between brand

awareness and brand equity.
H0: There is no significant relationship between brand awareness
and brand equity.
H1: There is a significant relationship between brand awareness
and brand equity.
In this test, as the amount of obtained sig at 0/05 level and 95%
degree of confidence is 0/000 which is less than 0/05, it indicates
a strong relationship between brand awareness and brand equity;
so that H0 is rejected and H1 which indicates the existence of a
significant relationship is confirmed. Thus, there is a strong
significant relationship between brand awareness and brand
equity.
 brand
equity
.574** Correlation awaren Spearman'
Coefficient ess s rho
.000 Sig. (2-tailed)
50 N

Fourth hypothesis: There is a significant relationship between

brand associations and brand equity.
H0: There is no significant relationship between brand associations
and brand equity.
H1: There is a significant relationship between brand associations
and brand equity.
In this test, as the amount of obtained sig at 0/05 level and 95%
degree of confidence is 0/000 which is less than 0/05, it indicates
a strong relationship between brand associations and brand equity;
so that H0 is rejected and H1 which indicates the existence of a
significant relationship is confirmed. Thus, there is a strong
significant relationship between brand associations and brand
equity.
brand
equity
.712** Correlation associa Spearman'
Coefficient tion s rho
.000 Sig. (2-tailed)
50 N
Comparing the variables ranking means between men and
women
As you can see above, there is no significant difference between
men and women in any of the components (according to a
significance level less than 0/05).
Test Statisticsa
aware associ
ness quality loyalty ation equity
Mann-Whitney U 258.00 303.00 279.00 285.50 216.50
0 0 0 0 0
Wilcoxon W 489.00 738.00 714.00 516.50 447.50
0 0 0 0 0
Z -.919 -.030 -.508 -.376 -1.745
Asymp. Sig. (2- .358 .976 .611 .707 .081
tailed)

a. Grouping Variable: gender

Comparing the variables ranking means between different

age groups

It can be seen that there are significant differences only in the

component of brand loyalty in the chocolate industry between
different age groups (due to the significant level less than 0/05).
 Test Statisticsa,b

aware associ
ness quality loyalty ation equity
Chi- 3.512 2.271 13.992 4.617 .315
square

df 4 4 4 4 4

Asymp. .476 .686 .007 .329 .989

Sig.

a. Kruskal Wallis Test

b. Grouping Variable: age

Comparing the variables ranking means between different

educational groups
As you can see above, there is no significant difference between
brand associations and educational level in the chocolate industry
of Iran, however there are significant differences between different
educational groups and other components (according to a
significance level less than 0/05).
 Test Statisticsa,b
aware associ
ness quality loyalty ation equity
Chi- 16.276 7.900 11.874 5.937 8.302
square
df 3 3 3 3 3
Asymp. .001 .048 .008 .115 .040
Sig.
a. Kruskal Wallis Test
b. Grouping Variable: education

5. Conclusion
The results of this study from 15 consumers of Baraka chocolate in
Shahrvand stories, show a significant relationship between
perceived quality and brand equity. There is also a direct relation
between brand loyalty and brand equity. There is a significant
relationship between brand awareness with brand equity and also
a very strong and significant relationship between brand
associations and the brand equity. It is recommended that
chocolate industry can increase brand equity by focusing on these
four components. Based on demographic study results showed that
there is no significant difference between men and women in any
of the components; and there are only significant differences
between different age groups in component of brand loyalty in the
chocolate industry of Iran. Thus, there is no significant difference
between different age groups in components of brand awareness,
perceived quality, brand loyalty and brand value. The results of this
study is in consistence with Karbasifar and Yardel (2011) in related
hypotheses of significant and direct relationship between brand
loyalty brand equity. The results differences in other two
hypotheses can be justified due to different names. The results
obtained in this study is also in consistence with Seyyedin (2010)
studies, as well.
Suggestions
It is recommended to use other models than Aaker model to have
better and more accurate evaluation and be compared to the
results of this study. Using Aaker model in biscuits and other food
industries can be the subject of future research.

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