Effect of Retailer Brand Equity on Consumers Purchase Intention: Evidence from Selected Supermarkets in Addis Ababa

Abstract

The aim of the study is to explore the effect of retailer brand equity on supermarket consumers’ purchase intention. We quantitatively measured the effect of brand equity dimensions (i.e., brand awareness, brand image, brand quality and more of brand loyalty) on the purchase intentions of supermarket consumers. A total of 384 questionnaires were distributed to conveniently available consumers and 323 usable questionnaires were used for analysis. The findings revealed that retailer awareness, perceived retailer quality, retailer image and retailer loyalty have a significant positive effect on consumers’ supermarket purchase intentions, retail awareness being the highest influencer of purchase intention. The practical worth of the study is that it would help supermarket managers to direct their focus on brand equity dimensions while designing marketing strategies and making decisions in order to enhance market share and gain a competitive advantage through raising consumers’ purchase intention. In addition, the study assists all businesses in the retail sector to recognize the contributions of creating a strong brand as a means of getting a competitive advantage.

Keywords: Brand Equity, Retailer Awareness, Retailer Image, Perceived Retailer Quality, Retailer Loyalty, Consumer Purchase Intention

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