The Effects of Brand Loyalty on Bank's Brand Equity from the Perspective of Electronic Card Holders

A brand is a mechanism for achieving competitive advantages for a firm. Brand equity, which has become an important marketing concept since 1980s, is the added value endowed by the brand name. Consumer-based brand equity is a multidimensional construct consisting of various attitudinal and/or behavioral components. Considering Aaker’s model (1991), this study begins with a study of the effect of brand loyalty on brand equity. Since loyalty is affected by the three factors of awareness, associations and perceived quality, the next section examines the effect of these three factors on brand loyalty and on brand equity. For data analysis and examination of the theory, SEM (Structural Equation Modeling) has been used. The results showed that brand loyalty, brand awareness, associations, and perceived quality have significant direct effects on brand equity, and that perceived quality has a significant direct effect on brand loyalty.