To What Extent Does Advertising Affect Brand Equity: The Food Industry

Abstract

The importance of brand equity to the success of businesses has become increasingly apparent in recent years, in particular as it is an incredibly powerful means of gaining competitive advantage. The significance of competitive advantage is especially noticeable in the food industry, where there is such vigorous competition among food firms to compete for success in the market. Resultantly, it is essential for these firms to create strong and unique brands that will appeal to a vast number of consumers. In order to create strong brands, firms must recognise and understand their target market. They must be aware of how consumers evaluate brands, and be able to identify the most effective methods that can be used to influence consumer purchase behaviour. Research shows that advertising can be an extremely effective and influential marketing tool, capable of persuading consumers to purchase specific food products. Consequently, this study evaluated the impact of effective advertising on consumer-based brand equity within the food industry. The study was further developed through the addition of a demographic dimension which examined whether a consumer’s gender or age determined their response to food advertising. The data for this study was collected using convenience sampling, with questionnaires distributed via email. The results indicated that there is a significant relationship between food advertising and each of the four brand equity dimensions evaluated: brand awareness, brand associations, perceived quality and brand loyalty. Further, it was established that although age significantly influenced the extent to which consumers responded to advertising, gender appeared to make little difference. These findings have a number of managerial implications. As advertising is proven to be directly associated with a food product’s brand equity level, marketers should focus on increasing both the effectiveness and frequency of their advertisements in addition to ensuring that they develop the four fundamental brand equity elements