The Influence of Brand Equity on Insurance Industry Customer Responses (A Case Study of Fire Insurance the Iran Insurance Company in Tehran)


Volume 4, Issue 3, Number 6, Pages 79-100, Published Online July 20, 2016

Full-Text PDF


Ebrahim Noormahmoudi and Gholamreza Zomorrodian


The main objective of this study is to experimentally test a conceptual model of brand equity. This study attempts to verify the determinants of brand equity of services based on customers’ perception of Iran Insurance Company services. Hence, this research attempts to investigate the influence of brand equity on customers’ responses. Data was collected by a questionnaire and was analyzed by structural equation modeling using SPSS 18 and LIZREL 8.5. Population was customers of Iran Insurance Company who purchase its fire insurance during the period of research. A sample of 384 tourists was selected by convenience sampling approach. Structural equation modeling indicated that brand awareness has a positive and significant influence on perceived quality and brand associations. Perceived quality and brand associations had also significant influence on brand loyalty and brand equity. Brand equity has also significant influence on brand preference, brand extension, price premium, and purchase intention.


Brand equity, Consumer responses, Brand preference, Brand Association


Aaker, D.A. (1991), Managing Brand Equity. Capitalizing on the Value of Brand Name, the Free Press, New York, NY.
Aaker, D.A. (1996), “Measuring brand equity across products and markets”, California Management Review, Vol. 38 No. 3, pp. 102-120.
Aaker (2001), Strategic Market Management. New York, NY: John Wiley and Sons, Inc.
Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34, 347–356.
Agarwal, M.K. and Rao, V.R. (1996), “An empirical comparison of consumer – based measures of brand equity”, Marketing Letters, Vol. 7 No. 3, pp. 237-347.
Atilgan, E., Aksoy, S. and Akinci, S. (2005), “Determinants of the brand equity. A verification approach in the beverage industry in Turkey”, Marketing Intelligence and Planning, Vol. 23 No. 3, pp. 237-48.
Atilgan E, Akinci S, Aksoy S, Kaynak E. 2009. Customer-Based Brand Equity for Global Brands: A Multinational Approach, Journal of Euro marketing, 18 (2), pp.115-132
Baek, Tae Hyun & Karen white hill King (2009), “Exploring the Consequences of Brand Credibility in Services”, Journal of Services Marketing, Vol. 25, PP. 260-272.
Barton Weitz. 1988. “A Perspective on Brand Equity Principles and Issues.” In Defining, Measuring, and Managing Brand Equity. Report No. 88-104. Ed. Lance Leuthesser. Cambridge, MA: Marketing Science Institute, 2-4.

Bharadwaj, S. G., Varadarajan, P. R., & Fahy, J. (1993). Sustainable competitive advantage in service industries: a conceptual model and research propositions. The Journal of Marketing, 83-99.
Buil, I., Martínez, E., and de Chernatony, L. (2013),”The influence of brand equity on consumer responses”, Journal of Consumer Marketing, Vol. 30 No. 1 pp. 62-74.
Chattopadhyay, T., Shivani, S., & Krishnan, M. (2009). Determinants of brand equity-A blue print for building strong brand: A study of automobile segment in India. African Journal of Marketing Management, 1(4), 109-121.
Chaudhuri, A. (1999), “Does brand loyalty mediate brand equity outcomes?” Journal of Marketing Theory and Practice, Vol. 7 No. 2, pp. 136-46.
Chen, K. J. (2001), “Using free association to examine the relationship between the characteristics of brand associations and brand equity”, The Journal of Product and Brand Management, Vol. 10 No. 7, pp. 439-51.
Bao, Y. & Sheng, S. & Nkwocha, I. 2010, “Product difficulty incongruity and consumer evaluations of brand extensions”, Journal of Retailing and Consumer Services. vol. 36, pp. 340-348.
Cobb- Walgren, C. J., Ruble C. A. & Donthu, N. (1995). “Brand Equity, Brand Preference, and Purchase Intent,” Journal of Advertising, 24 (3). 25-40.

Dean, D.H. (2004), “Evaluating potential brand associations through conjoint analysis and market simulation”, Journal of Product and Brand Management, Vol. 13 No. 7, pp. 506-13.
Czellar, S. (2003), “Consumer attitude towards brand extensions: an integrative model and research propositions”, International Journal of Research in Marketing, Vol. 20 No. 1, pp. 97-115.
Erdem, T., Swait, J. and Valenzuela, A. (2006), “Brand as signals: a cross-country validation study”, Journal of Marketing, Vol. 70, January, pp. 34-49.

Farquhar, P. H. (1989), “Managing brand equity”, Marketing Research, pp. 24-33.
Fishbein, M. and Ajzen, I. (1975), Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA.
Gil, R. B., Andre´s, E. F., and Salinas, E. M., (2007), “Family as a source of consumer-based brand equity”, Journal of Product and Brand Management, Vol.16, No. 3, pp.188-199.
Glynn, M. S., Motion, J. M. and Brodie, R. J. (2007) ‘Sources of Brand Benefits in Manufacturer-Reseller B2B Relationships’, Journal of Business and Industrial marketing, 22(6): 400-09.
Guoqun, F. & Jiali, D. 2007, “Ownership effects in consumers’ brand extension evaluations”, Higher Education Press and Springer. Front. Bus. Res. China. Vol. 1(2), pp 193–210.
Hellier, P.K., Geursen, G.M., Carr, R.A. and Rickard, J.A. (2003), “Customer repurchase intention. A general structural equation model”, European Journal of Marketing, Vol. 37 Nos 11/12, pp. 1763-800.
Hoeffler, S. and Keller, K.K. (2003), “The marketing advantages of strong brands”, Brand Management, Vol. 10 No. 6, pp. 421-45.
Kayaman, Ruchan. , &Arasli, Huseeyin. (2007). “Customer based brand equity: evidence from the hotel industry”. Managing Service Quality, 17(1), 92-109.

Keller, K.L. (1993), “Conceptualizing, measuring and managing customer-based brand equity”, Journal of Marketing, Vol. 57, pp. 1-22.
Keller, K.L. (2003), Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 2nd ed., Prentice Hall, New York, NY.
Keller, K.L. and Lehmann, D.R. (2003), “How do brands create value?”, Marketing Management, May/June, pp. 27-31.
Keller, K.L. and Lehmann, D.R. (2006), “Brands and branding: research findings and future priorities”, Marketing Science, Vol. 25 No. 6, pp. 740-59.
Kim, J.-H. And Hyun, Y.J. (2011), “A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector”, Industrial Marketing Management, Vol. 40, pp. 424-38.
Konecnik, M. and Gartner, W.C. (2007), “Customer-based brand equity for a destination”, Annals of Tourism Research, Vol. 34 No. 2, pp. 400-21.
Kotler, P. (2000). Marketing management: The millennium edition (pp. 87-103). Upper Saddle River, NJ: Prentice-Hall.

Lassar, W., Mittal, B. and Sharma, A. (1995), “Measuring customer-based brand equity”, Journal of Consumer Marketing, Vol. 12 No. 4, pp. 11-19.
Lee YK, Back KJ, Kim JY. 2009. Family restaurant brand personality and its impact on consumer‘s emotion, satisfaction, and band loyalty. Journal of hospitality & Tourism Research, 33(3), pp. 305-328.
Lehmann, D.R., Keller, K.L. and Farley, J.U. (2008), “The structure of survey-based brand metrics”, Journal of International Marketing, Vol. 16 No. 4, pp. 29-56.
Leone, R.P., Rao, V.R., Keller, K.L., Luo, A.M., McAlister, L. and Srivastava, R. (2006), “Linking brand equity to customer equity”, Journal of Service Research, Vol. 9 No. 2, pp. 125-38.
Marinova, S., Cui, J., Marinov, M., & Shiu, E. (2011). Customer’s relationship and brand equity: A study of bank retailing in China. WBC, Poznau, 6-9.

Martı´nez, E. and Pina, J.M. (2009), “Modeling the brand extensions’ influence on brand image”, Journal of Business Research, Vol. 62 No. 1, pp. 50-60.
Netemeyer, R., Krishnan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., Ricks, J. and Wirth, F. (2004), “Developing and validating measures of facets of customer-based brand equity”, Journal of Business Research, Vol. 57, pp. 209-24.
Pappu, R., Quester, P.G. and Cooksey, R.W. (2006), “Consumer-based brand equity and country-of-origin relationships”, European Journal of Marketing, Vol. 40 No. 5/6, pp. 696-717.
Parker, T. B. (2005). This brand’s for me: Brand personality and user imagery based self-Congruity. Published Doctoral Dissertation, University of Florida.
Pike, S., Bianchi, C., Kerr, G. and Patti, C. (2010), “Consumer-based brand equity for Australia as a long haul tourism destination in an emerging market”, International Marketing Review”, Vol. 27 No. 4, pp. 434-49.
Pride, W. M., & Ferrell, O. C. (2003). Marketing: concepts and strategies. Boston: MA: Houghton Mifflin Company.
Rangaswamy A, Burke R, Oliva TA. (1993), “Brand equity and the extendibility of brand names. Int J Res Mark; 10 (March):61 ± 75.

Sarlak, A., (2013), “Assessing determinants of brand equity of financial institutions ( Case study: Mizan finance and credit institute)”, Fourth International Conference on Marketing of banking services, Tehran, Marketing center of banking services. (In Persian)
Seitz, V., Razzouk, N. and Wells, D.M. (2010), “The importance of brand equity on purchasing consumer durables: an analysis of home air-conditioning systems”, Journal of Consumer Marketing, Vol. 27 No. 3, pp. 236-42.
Shocker, Allan D., Rajendra K. Srivastava, and Robert W. Ruekert. 1994. “Challenges and Opportunities Facing Brand Management: An Introduction to the Special Issue.” Journal of Marketing Research 31 (May): 149-158
Sirgy, M.J., Grewal, D., Mangleburg, T.F., Park, J.-O., Chon, K.-S., Claiborne, C.B., Johar, J.S. and Berkman, H. (1997), “Assessing the predictive validity of two methods of measuring self-image congruence”, Journal of the Academy of Marketing Science, Vol. 25 No. 3, pp. 229-41.
Tong, X., & Hawley, J. M. (2009). Measuring customer-based brand equity: Empirical evidence from the sportswear market in China. Journal of Product and Brand Management, 18(4), 262-271.
Vazquez, R., Del Rio, A. B., & Iglesias, V. (2002). Consumer-based brand equity: Development and validation of a measurement instrument. Journal of Marketing Management, 18(1/2), 27–48.
Wong, H.Y. and Merrilees, B. (2007), “Multiple roles for branding in international marketing”, International Marketing Review, Vol. 24 No. 4, pp. 83.

Wung, H., Wei, Y. and Yu, C. (2008), “Global brand equity model: combining customer-based with product-market outcomes approaches”, Journal of Product and Brand Management, Vol. 15 No. 5, pp. 305-16.
Yasin, N.M., Noor, M.N. and Mohamad, O. (2007), “Does image of country-of-origin matter to brand equity?” Journal of Product and Brand Management, Vol. 16 No. 1, pp. 38-48.
Yoo, B., Donthu, N. and Lee, S. (2000), “An examination of selected marketing mix elements and brand equity”, Journal of the Academy of Marketing Science SPRING 2000 28: 195-211.
Yoo, B. & Donthu, N. (2001). “Developing and Validating a Multidimensional consumer based Brand Equity Scale,” Journal of Business Research, 52 (1). 1- 14.

Zeithaml, V. A. (1988), “Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence”, Journal of Marketing 52 (July): pp. 2-22.



No comments

Be the first one to leave a comment.

Post a Comment



Events 2016


Events 2016