Determinants of Customer-Based Retailer Equity: An Empirical Verification Approach from Indian Large Retail Market

Abstract

The aim of this study is to examine and verify the applicability of customer-based brand equity model based on Aaker’s well-known brand equity framework from customers’ standpoint in the Indian large retailing. It is conceptualized that retailer equity is determined by four dimensions-retailer awareness, retailer associations, and perceived retailer quality and retailer loyalty. Mall intercept method is applied to choose and contact shoppers with the structured questionnaire at the outlets of large Indian retailers. A total of 312 valid and useable questionnaires are obtained, wherein responses are recorded on 5 point Likert-type scale, with 1 being strongly disagree and 5 strongly agree. Then, the analysis was carried out by Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM). Findings of this study reveal that except retailer awareness, all the other three retailer equity dimensions- retailer associations, perceived retailer quality and retailer loyalty have the positive and significant influence on overall retailer equity. Among these, retailer loyalty is found to be the most influential determinant of overall retailer equity. Thus, based up on the results, it was confirmed that Aaker’s brand equity model is also applicable to the Indian large retail industry. Hence, retailers should consider relative importance of these dimensions while evaluating their overall equity. This study is of great interest for large retailers who wish to increase their brands’ value proposition to the marketplace.