Managing consumer-based brand equity through brand experience in Islamic banking

Abstract

Purpose The purposes of the study are to investigate the role of brand experience in the generation of consumer-based brand equity (CBBE) in Islamic banking and to identify the important components of brand equity, in light of Aaker (1991) and Keller (1993), who combined effect on brand loyalty to effectively manage CBBE in Islamic banking. Design/methodology/approach Paper and pencil technique was used to collect data from the consumers of Islamic banking products. In total, 365 respondents were finally considered for data analysis. Convenient sampling technique was used to collect data. Correlation, multiple regression and hierarchical regression techniques were used with the aid of SPSS and AMOS to analyse the data. Findings The results show that perceived quality, brand image, brand experience, brand loyalty and brand awareness are positively associated and have a significant influence on overall brand equity. Based on the results, the study concludes that perceived quality is an important variable in the management of CBBE in Islamic banking to improve overall brand equity. Hence, it is concluded that perceived quality, brand experience and brand image are the most important focusing areas from CBBE in the management of Islamic banks’ brand equity and cannot be undervalued. Practical implications The research findings illustrate the importance of brand experience and effects of overall brand equity dimensions in the process of building strong brand equity of Islamic banks. Therefore, this research has implications not only for experiential marketing but also for human resource managers and brand managers. The scope of the present study is limited only to the consumers of Islamic banks products of Malaysia and Pakistan. Originality/value Brand management literature focused on the components of brand equity model and its importance in creating overall brand equity. Previous studies are yet to investigate the combined effect of brand equity components (perceived quality, brand awareness, brand image and brand loyalty) to manage overall brand equity. Therefore, the present research fills the gap by investigating the combination of best brand equity components that are very effective to manage brand loyalty and overall brand equity. Second, this study investigates the impact of brand experience on CBBE components in Islamic banking which has not been tested before in Islamic banking.