ABSTRACT Brand equity (BE) is measured in different international brands by international institutions each year. However, this valuation important for companies to see the customer, because their survival and success depends on their customers. In current study, effective factors on brand equity (price, advertisement, promotions and family) were investigated, using their effects on aspects of brand equity (brand image, awareness of it, loyalty to it and its perceived qua lity). In fact model of Gill et al (2007)  was used to study effective factors on brand equity from a consumers&apos; point of view. In this model for the first time family variable is studied along with others. Statistical population was LG home-product consumers in whole Kermanshah city. Since the number of members in this population was infinite, a sample size of 384 persons was derived from Morgan&apos;s table; these were selected by cluster sampling. Statistical significance of Pearson&apos;s correlation coefficients were tested at alpha= 0.01. The results indicated that the loyalty factor was the most effective variable factors affecting brand equity (r= 0.729). Regarding model of Gill et al. the largest positive correlation was found between the positive information about the brand in the family and its perceived quality (r= 0.642). This means that the family is an effective source of power on behavior and perception of the consumer

Fatemeh Ahmadi

Fereshteh Tahmasebi

Firozeh Hatami

Neda Mohamadi

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Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231– 6345 (Online) 
An Open Access, Online International Journal Available at http://  http://www.cibtech.org/sp.ed/jls/2014/01/jls.htm 
2014 Vol. 4 (S1) April-June, pp. 821-825/Tahmasebi et al. 
Research Article 
© Copyright 2014 | Centre for Info Bio Technology (CIBTech)  821 
 
PRIORITIZATION AND VALUATION FACTORS AFFECTING ON 
BRAND EQUITY BASED ON THE GILL MODEL: A CASE STUDY ON 
BUYERS OF LG HOME PRODUCTS IN KERMANSHAH CITY, IRAN 
*
 Fereshteh Tahmasebi
1
, Fatemeh Ahmadi
2
, Neda Mohamadi
3
 And Firozeh Hatami
4 
1
Department of Management, Islamic Azad University of Kermanshah, Iran 
2
Department of Management, Islamic Azad University of Kermanshah, Iran 
3
Department of Management, Islamic Azad University of Kermanshah, Iran 
4
Department of Management, Islamic Azad University of Kermanshah, Iran 
*Author for Correspondence 
  
  ABSTRACT 
Brand equity (BE) is measured in different international brands by international institutions each year. 
However, this valuation important for companies to see the customer, because their survival and success 
depends on their customers. In current study, effective factors on brand equity (price, advertisement, 
promotions and family) were investigated, using their effects on aspects of brand equity (brand image, 
awareness of it, loyalty to it and its perceived qua lity). In fact model of Gill et al (2007) was used to study 
effective factors on brand equity from a consumers' point of view. In this model for the first time family 
variable is studied along with others. Statistical population was LG home-product consumers in whole 
Kermanshah city. Since the number of members in this population was infinite, a sample size of 384 
persons was derived from Morgan’s table; these were selected by cluster sampling. Statistical significance 
of Pearson's correlation coefficients were tested at alpha= 0.01. The results indicated that the loyalty 
factor was the most effective variable factors affecting brand equity (r= 0.729). Regarding model of Gill 
et al. the largest positive correlation was found between the positive information about the brand in the 
family and its perceived quality (r= 0.642). This means that the family is an effective source of power on 
behavior and perception of the consumer. 
 
Keywords: Brand Equity, Factors Affecting Brand Equity, Aspects of Brand Equity, Model of Gill, Consumer 
 
Brand name is on of intangible assets of any company that reserves a high value for its owner (Ebrahimi 
et al, 2009). BE is the perception of consumer from all advantages and superiorities of a brand compared 
to rival brands (Farquhar, 1989). Aaker (1991) for the first time introduced BE and Yoo et al (2000) 
developed this notion in subsequent studies; finally four brand aspects including, its image, awareness 
toward it, loyalty to it and its perceived quality were defined as brand specific aspects, which were 
affected by three variable that are, price, advertisement and promotions. following Gill et al (2007), the 
family was also added to the factors affecting BE (Ebrahimi et al, 2009). In current study we used the 
model of Gill et al (2007). 
 
THEORETICAL AND EXPLANATION 
The main objective of this study was to investigate effective factors on BE from a consumer’s point of 
view. Since there have been little studies investigating factors that improve BE, further research is 
needed. conducting this study, the researcher aims to help in identifying characteristics of LG buyers and 
the reason for their purchase, to investigate attitude of buyers toward the respective product and to 
compare this with similar products and to identify why each customer chooses LG and prefers it to other 
similar products. 
 
Research Background 
 Konecnick et al, investigated customer related aspects of BE from a tourist's point of view; BE was 
studied in two markets of Slovenia. the results indicated that the BE measured by brand aspects was 
Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231– 6345 (Online) 
An Open Access, Online International Journal Available at http://  http://www.cibtech.org/sp.ed/jls/2014/01/jls.htm 
2014 Vol. 4 (S1) April-June, pp. 821-825/Tahmasebi et al. 
Research Article 
© Copyright 2014 | Centre for Info Bio Technology (CIBTech)  822 
 
different in these markets. The results also showed that however mental image plays an important role in 
assessment, the examination of awareness, quality, and loyalty aspects are also needed for a more 
complete evaluation of BE (Konecnick et al, 2007). The stock price fluctuations were used for detecting 
dynamic nature of BE; the authors concluded that stock market reflects the future perspective of a brand 
(Sullivan and Simon, 1993). One of studies in this field in Iran entitled “investigating the relationship 
between customer's images of brand-defining aspects and the performance of the brand from the 
customer's point of view (case study of Banke Melat)". The results showed that there was a significant 
correlation between brand-defining aspects and its performance (Alahyaree, 2009). 
Conceptual Model 
Conceptual model of the study (Gill, 2007) is presented in figure 1. 
 
 
Figure 1: Conceptual Model Hypotheses 
 
1) A rise in advertisement costs is positively related to awareness of the brand. 
2) Positive information about the brand in the family is positively related to awareness of the brand. 
3) A rise in advertisement costs is positively related to images of the brand. 
4) Positive information about the brand in the family is positively related to its images. 
5) a rise in advertisement is positively related to perceived quality of the brand. 
6) Positive information about the brand in the family is positively related to perceived quality of the 
brand. 
7) Price of the brand is positively related to its perceived quality.  
8) Amount of promotions in the brand is inversely related to its perceived quality.  
9) Awareness of the brand is positively related to loyalty to it. 
10) The brand association is positively related to loyalty to it.  
11) Perceived quality of the brand is positively related to loyalty to it.  
12) Awareness of the brand is positively related to BE. 
13) Association of a mark is positively related to BE. 
14) Perceived quality of the brand is positively related to BE. 
15) Loyalty to the brand is positively related to its BE. 
 
METHODOLOGY 
The current investigation is a descriptive-correlational study conducted in 2012. Statistical population was 
comprised of LG home-product buyers in the whole Kermanshah city. Since the size of the statistical 
Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231– 6345 (Online) 
An Open Access, Online International Journal Available at http://  http://www.cibtech.org/sp.ed/jls/2014/01/jls.htm 
2014 Vol. 4 (S1) April-June, pp. 821-825/Tahmasebi et al. 
Research Article 
© Copyright 2014 | Centre for Info Bio Technology (CIBTech)  823 
 
population was infinite, a sample size of 384 was determined using Morgan's table (Momeni, 2007). 
Cluster sampling method was used and the members of each cluster were selected by simple random 
sampling. In this study the effects of the family, advertisement, price, promotions (independent variables) 
and awareness , image, perceived quality of the brand, and loyalty to it (intermediate variables) on BE 
(dependent variable) were investigated. Data were collected using standard questionnaires (Yoo et al, 
2000; Gill, 2007); in the technical section, research variables were evaluated through 28 questions; the 
answers were arranged from "completely disagree" to "completely agree" according to five-point Likert 
scale template. Content validity and construct validity were used in order to validate the questionnaire. 
Content validity was confirmed by experts. Construct validity was evaluated by factor analysis. 
Cronbach's alpha for reliability of questionnaire was more than 0.7. SPSS was used to calculate and test 
the significance of Pearson correlation coefficients (alpha= 0.01). 
 
RESULTS 
In this study 384 people took part, of which 64% were female and 36% were male. Most of these people 
were between 30 to 45 years old. More than a half of participants had BS degree or higher. Table 1 shows 
that for all variables (except promotions and perceived quality) H0 is rejected and all hypotheses (except 
the 8th) are attested within 0.99 % confidence limit. Regarding the 8th hypothesis (p-value= 0.021) it 
could be concluded that there is no inverse correlation between promotions of the brand and perceived 
quality and according to Pearson's correlation coefficient (r= 0.273) it could be concluded that they are 
positively correlated. Pearson's correlation coefficients indicated that in all hypotheses, the relation 
between independent and dependent variables was positive (r>0), among which the relation between 
loyalty to brand and BE was the highest (r= 0.729) and that of rise in advertisement and perceived quality 
was the least (r= 0.156). 
 
Table 1: Hypothesis testing 
Hypothesis 
Independent 
variables 
Dependent 
variables 
Amount of 
correlation 
Significant 
level 
Conclusion 
1 advertisement 
awareness of 
brand 
**
0/177 0/000 excepted 
2 family 
awareness of 
brand 
**
0/155 0/000 excepted 
3 advertisement brand association 
**
0/188 0/000 excepted 
4 family brand association 
**
0/581 0/000 excepted 
5 advertisement Perceived quality 
**
0/156 0/000 excepted 
6 family Perceived quality 
**
0/642 0/000 excepted 
7 Price of  brand Perceived quality 
**
0/247 0/000 excepted 
8 promotion Perceived quality 
**
0/273 0/000 rejected 
9 awareness of brand loyalty to brand 
**
0/506 0/000 excepted 
10 brand association loyalty to brand 
**
0/503 0/000 excepted 
11 Perceived quality loyalty to brand 
**
0/497 0/000 excepted 
12 awareness of brand brand equity 
**
0/482 0/000 excepted 
13 brand association brand equity 
**
0/484 0/000 excepted 
14 Perceived quality brand equity 
**
0/674 0/000 excepted 
15 loyalty to brand brand equity 
**
0/729 0/000 excepted 
 
CONCLUSION 
The results indicated that among four aspects of BE, the loyalty to the brand (r= 0.729) was the most 
influential factor that had a positive and large effect on BE. Yoo et al (2000) showed that this was true for 
Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231– 6345 (Online) 
An Open Access, Online International Journal Available at http://  http://www.cibtech.org/sp.ed/jls/2014/01/jls.htm 
2014 Vol. 4 (S1) April-June, pp. 821-825/Tahmasebi et al. 
Research Article 
© Copyright 2014 | Centre for Info Bio Technology (CIBTech)  824 
 
two different societies. In Iran, Shams et al (2008) reported similar findings. The results indicated that 
positive information about the brand in the family was positively related to variables, awareness of the 
brand, brand image, and perceived quality of the brand. Gill et al. (2007) and Pearson (1996) have 
identified the family as one of the most influential factors on consumer's behavior. Our results showed 
that a rise in advertisement costs was positively correlated with variables, awareness of the brand, brand 
image, and its perceived quality which are in accord with Keb and Algreen (1998) and Zarbi et al, in Iran 
(2008). These authors concluded that advertisement was a powerful tool to introduce a company, product, 
or service and could attract the subject toward the issue. The price had a positive relation with perceived 
quality of the brand; Wood (2000) and Myers (2003) reported similar findings. These studies indicated 
that price is representative of the brand quality and generally higher prices signal a better quality and vice 
versa. The results showed that amount of promotions of the brand was not negatively but positively 
related to perceived quality of the brand which is in contrast with our hypothesis. The results of 
Dastjerdee (2006) and Atilgan et al, (2005) are inconsistent with current study; these authors concluded 
that a rise in promotion costs could decrease the customer's perceived quality of the brand. Our results are 
consistent with Gill et al. (2007) and Aaker (1991). The brand association was positively related to loya lty 
to the brand and BE; these are in accordance with Yoo et al. (2000) and Atilgan et al. (2005). They 
concluded that associations form a base for costumer’s decision making and consequently their loyalty to 
the brand. The results showed that perceived quality of the brand was positively related to loyalty to the 
brand and its BE. Wood (2000) and Shams et al, (2008) found similar results; they indicated that high 
perceived quality shifts the consumer toward a brand rather than its competitors. Our results showed that 
loyalty to the brand is positively related to the BE. According to Pearson (1996) loyalty to the brand was 
more influential than other variables. The following propositions are put forward after above results: Due 
to its effect on BE, managers should specifically attend to the family factor. They should also apply 
messages that show the quality and/or distinction of the product. Managers could use changes in the price 
as a tool for creating a good image of the quality; that is when prices rise, the customer links it to a rise in 
quality. Managers could use promotion as a tool for increasing selling in short periods. Brands and marks 
that remember people of past products in the family could be used for new ones. In future studies we 
propose investigating the effect of other marketing variables on BE. In addition, due to considering 
cultural differences and family in the model of Gill et al, studying other societies using this model would 
be fruitful.  
 
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An Open Access, Online International Journal Available at http://  http://www.cibtech.org/sp.ed/jls/2014/01/jls.htm 
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PRIORITIZATION AND VALUATION FACTORS AFFECTING ON BRAND EQUITY BASED ON THE GILL MODEL: A CASE STUDY ON BUYERS OF LG HOME PRODUCTS IN KERMANSHAH CITY, IRAN

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PRIORITIZATION AND VALUATION FACTORS AFFECTING ON BRAND EQUITY BASED ON THE GILL MODEL: A CASE STUDY ON BUYERS OF LG HOME PRODUCTS IN KERMANSHAH CITY, IRAN

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