Country of Origin as a predecessor in forming perception towards Brand Equity for automobiles: Testing the mediating effects of brand loyalty and perceived quality.

Abstract

This study inspects the multifaceted drivers of brand equity for passenger cars and describes conceptual underpinnings and real-world usability for global companies. A unique conceptual framework is established focusing on conceptual and practical fundamentals in the research pertaining to branding and consumer behaviour. The constructs used in the study are researched well already. The well researched Aaker’s Model of Brand Equity is adopted for this study. The model has five dimensions but this study has considered only two dimensions named perceived quality and brand loyalty as mediators to test the impact of Country of Origin (COO) on brand equity for passenger cars. The empirical findings are portrayed through the lens of a comprehensive survey conducted using a convenience sampling within the Indian context. Data was collected from 504 respondents and its analysis was done using structural equation modelling. In SPSS, Model 4 of PROCESS Macro was used in determining the mediating effects as suggested by (Hayes, 2013). The results indicate the relevance of COO in determining brand loyalty and perceived quality for passenger cars. Additionally, country of origin, brand loyalty and perceived quality are important determiners of brand equity. The study also highlights that COO and brand equity are positively mediated by brand loyalty and perceived quality.