Addis Ababa University College of Business and Economics School of Commerce Graduate Studies
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Measuring Customer Based Brand Equity: Evidence from the Ethiopian Bottled Water Market By: Ephrem Bogale Addis Ababa University College of Business and Economics School of Commerce Graduate Studies A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters of Arts in Marketing Management Advisor: Berhanu Denu (PhD) June, 2015 Addis Ababa Declaration I, Ephrem Bogale Shiferaw, declare that the study entitled “Measuring Customer based Brand Equity: Evidence from the Ethiopian Bottled water market” is the result of my own effort in research undertaking. The study has not been submitted to any degree or Diploma in any college or university. It is submitted to Addis Ababa University College of Business and Economics, School of Commerce in partial fulfillment of the requirements for the Degree of Masters of Arts in Marketing Management. Statement of Certificate This is to certify that Ephrem Bogale Shiferaw has carried out his research work on the topic of “Customer Based Brand Equity: Evidence from the Ethiopian Bottled water market” for the partial fulfillment of Masters of Arts Degree in Marketing Management at Addis Ababa University College of Business and Economics school of commerce. This study is an original work and not submitted earlier for any degree either at this university or any other university and is suitable for submission of Master’s Degree in Marketing Management. Advisor: Brhanu Denu (PHD) BOARD OF EXAMINERS APPROVAL SHEET ADDIS ABABA UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS SCHOOL OF COMMERCE Measuring Customer Based Brand Equity: Evidence from the Ethiopian Bottled Water Market. By Ephrem Bogale Approved by Board of Examiners Advisor Signature Internal Examiner Signature External Examiner Signature Acknowledgments I take this opportunity to express my profound gratitude to Addis Ababa University, for giving me the chance to pursue my graduate studies in marketing management. I would like to thank my advisor Dr. Brhanu Denu for the useful comments, remarks and Advises. Furthermore I would like to thank my friends for helping me in administering the survey questioner of this study. I also like to thank the participants of the survey, who have willingly shared their opinion by scarifying their precious time during the process of data collection. Last but not least, my thanks go to my family members and everyone, who supported me throughout the process of this thesis. I will be grateful. ` Table of Contents Declaration ................................................................................................................................ ii Statement of Certificate ........................................................................................................... iii Acknowledgments..................................................................................................................... v List of tables ........................................................................................................................... viii List of Figures .......................................................................................................................... ix Acronyms and Abbreviations ................................................................................................... x Abstract .................................................................................................................................... xi Chapter One - Introduction ....................................................................................................... 1 1.1. Background ................................................................................................................ 1 1.2. Statement of the problem ........................................................................................... 7 1.3. Research question ....................................................................................................... 9 1.4. Research Objectives ................................................................................................... 9 1.5. Definition of terms ................................................................................................... 10 1.6. Significance of the study .......................................................................................... 10 1.7. Scope and delimitation of the study ......................................................................... 11 1.8. Organization of the study ......................................................................................... 11 1.9. Ethical issues ............................................................................................................ 12 Chapter Two - Literature Review ........................................................................................... 13 2.1. Theoretical Review .................................................................................................. 13 2.1.3. Customer Based brand Equity .............................................................................. 16 2.1.4. Measuring consumer based brand Equity ............................................................. 17 2.1.5. Customer Based Brand Equity Models ................................................................ 18 2.1.5.1. Aaker’s Brand Equity model ............................................................................ 18 2.1.5.2. Keller’s Brand Equity Model ............................................................................ 19 2.1.5.3. Yoo and Donthu (2001) Brand equity model ................................................... 21 2.2. Empirical Evidence .................................................................................................. 23 2.2.1. Validity of Yoo and Donthu Brand equity scale .................................................. 23 2.2.2. Studies based onYoo and Donthu’s (2001) work ................................................. 25 2.2.3. Previous CBBE Studies in the Ethiopian Context ................................................ 27 2.3. Conceptual framework ............................................................................................. 28 2.3.1. Research Hypothesis............................................................................................. 30 Chapter Three - Research Methodology ................................................................................. 32 3.1. Study design ............................................................................................................. 32 3.2. Source of data ........................................................................................................... 32 3.3. Population and Sample design ................................................................................. 32 3.4. Research instrument ................................................................................................. 34 3.5. Data Analysis methods ............................................................................................. 35 3.6. Model Evaluation criteria ......................................................................................... 35 Chapter Four - Data presentation and Analysis ...................................................................... 40 4.1. Data Screening ......................................................................................................... 40 4.2. Data Analysis ........................................................................................................... 40 4.3. Confirmatory factor Analysis ................................................................................... 46 4.3.1. Convergent and Discriminiant Validity ................................................................ 47 4.3.2. Goodness of fit of the measurement model .......................................................... 50 4.4. Structural Equation Modelling ................................................................................. 50 4.4.1. Goodness of fit of the Structural model ................................................................ 51 4.4.2. Regression weights and standardized Regression Weight Analysis .................... 52 4.4.3. Squared multiple correlation analysis ................................................................... 53 4.5. Discussion ................................................................................................................ 55 Chapter Five - Conclusion and Recommendation .................................................................. 58 5.1. Conclusion ................................................................................................................ 58 5.2. Recommendation ...................................................................................................... 59 5.3. Limitations and Further Research ............................................................................ 61 Reference ................................................................................................................................ 63 APPENDIX A SURVAY INSTRUMENTS ...................................................................... 68 APPENDIX B CORRELATION MATRIX OF THE DATA SET ................................... 76 APPENDIX C MEAN S. D., SKEWNESS & KUROTOSIS ............................................ 77 APPENDIXD MEASURMENT MODEL & MODEL FITSUMMARY ......................... 78 APPENDIXE THE