Does Brand Loyalty Mediate Brand Equity Outcomes?

Abstract

A causal modelling approach is used to analyze the direct and indirect influences of brand attitudes, habit and brand loyalty on brand equity outcomes such as market share, shelf facings and price. Hypotheses concerning these relationships are developed and tested in two separate studies. The first study surveyed shoppers at a campus store while the second study surveyed mall shoppers. Results indicate that brand attitudes are directly and indirectly related to market share and shelf facings but only indirectly related to price, with the indirect path occurring through brand loyalty. The results are shown to replicate adequately when using different samples of shoppers and products. The implications of the study are discussed in terms of their significance for managers.