Determinants of customer based brand equity of credit cards issued by the licensed commercial banks in Sri Lanka

Abstract

Customer Based Brand Equity is an important concept in Brand Management as well as in the academic research. Customer Based Brand Equity has become as an important concept to win competition and to become as the dominant brand in consumers’ mind. In this scenario developing and managing Customer Based Brand Equity is critical for most organizations. Hence the study investigates the practicality and application of Aaker’s (1991) Customer Based Brand Equity model with respect to different Credit Cards offered by different licensed commercial banks in Srilanka to evaluate how really customers perceive the brand. The exogenous variables are Brand Awareness as measured by six items, Brand Associations by nine items, Perceived Quality by six items and Brand Loyalty by three items. According to Cooper, (1990) the sample is 150 because population is unknown and customers who are in Colombo area are selected as respondents. First to check whether the credit cards issued by the licensed commercial banks in Srilanka has or not an adequate Customer Based Brand Equity, it was measured descriptive statistics and one sample test for checking the confidence level. Thus it found that Credit Cards offered by different licensed commercial banks in Srilanka have high Customer Based Brand Equity with 95% confidence interval. Regression analysis was also employed to test the impact of each Brand Awareness, Brand Association, Perceived Quality and Brand Loyalty on Customer Based Brand Equity. Through this finding hypotheseswere tested. Perceived Quality, Brand Loyalty, Brand Awareness and Brand Association have significant positive impact on Customer Based Brand Equity.