Brand equity, brand loyalty and the mediating role of customer satisfaction: evidence from medical cosmetics brands

Abstract

Purpose- The importance of concepts such as brand loyalty, brand equity and customer satisfaction towards brands has been dramatically shown in marketing literature throughout recent decades. Current study aims to examine the mediating role of consumer satisfaction in relation to consumer-based brand equity and brand loyalty in the medical cosmetics industry, whilst empirically investigating the inter-relationships between dimensions of brand equity. Methodology- A theoretical model was adopted using Structural Equation Modeling (SEM) relying on data collected from 275 respondents. Moreover, the scales of this study borrowed from the literature were modified using validity and reliability tests. Findings- The empirical results reveal a significant inter-relationship between dimensions of brand equity-perceived quality, brand knowledge and brand trust. Further, the result remarkably indicates the three dimensions having a positive effect on consumer satisfaction and brand loyalty, and customer satisfaction partially mediates the relationship between brand equity and brand loyalty. Conclusion- The study findings may be applied to the cosmetics market, building, and enhancing long-term relationships with customers by focusing on brand equity culminating in successful brand loyalty. Keywords: Brand equity, brand loyalty, customer satisfaction, medical cosmetics, Iran. JEL Codes: M31, M11, L84