A Structural Equation Modeling on Analysis of Preference Advertisement in Building Brand Equity

Abstract

Preference advertisement is a promotional system in which marketer claims the superiority of their product or brand over competing product(s) or brand, directly or indirectly. Preference advertisement helps in comparing alternative brands on bases of features, price, and other distinctive information. Brand equity is the total worth of the brand. Brand equity can be measured in two different perspective i.e. cognitive psychology is the attribute perception that is related to the awareness regarding the brand features and associations whereas another information economics is associated towards strong brand name which is created through the quality of the product and good quality generates a premium prices for the brand. In the monetary terms it’s the value that the organization expects from the brand. Preference advertisement can either be transferred directly to the brand. The objective of this study is to analyze the impact of preference advertisement in building the brand equity. Therefore to achieve the objective, different analysis tools used in the study are: mean, confirmatory factor analysis and structural equation modeling technique. The finding shows that preference advertisement has a significantly positive impact on building the brand equity.