The Impact of Customer Relationship Factors on Brand Equity : In Suppliers Companies of Iranian Petrochemical Industry

University essay from Luleå/Department of Business, Administration, Technology and Social Sciences

Abstract: The main purpose of the thesis is to determine the degree of relationship between customer relationships and brand equity in the customer-based brand equity (CBBE) perspective.
The lack of comprehensive and approved definition of brand equity (BE) has in turn produced various methodologies to measure the construct. Even though there is no generally accepted definition of BE, there is some consensus in that BE indicates the added value endowed by the brand for product. Brand equity is based on the product position of the brand in the mind of customers. A consumer who believes that a brand delivers superior performance is excited to use the product, and is likely to be willing to pay a premium for the brand, and to go to extra trouble to locate and buy it, to recommend it to others, to forgive a mistake or product flaw, or to otherwise engage in behaviors that benefits the firm that markets the brand. Thus, one source of economic value from a positive brand image results from consumers’ behaviors toward existing items with that brand name. The study presents several objectives such as customer relationships and Brand equity that provide new insight in Brand equity (BE) areas. Our study develops a theory-based framework and empirically exhibits that exploration and exploitation are major constructs that can positively effect on overall brand equity for the improvement of long-term relationships in the petrochemical suppliers companies. We have selected 400 companies of Petrochemical industry suppliers as population sample size. Descriptive analysis, and structural equation model (SEM) has been developed on collected data. The result shows that Factors of customer relationships such as Trust, customer satisfaction and relationship commitment has a significant effect on brand equity in suppliers companies of Iranian Petrochemical industry.