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The impact of marketing communication and price promotion on brand equity

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This paper establishes a theoretical and empirical basis that shows the impact of marketing communications and price promotion on brand equity. The theoretical review supports applying analysis techniques based on structural equations models to confirm empirically the relationship between marketing communication efforts and the dimensions of brand equity: perceived quality, brand loyalty, brand awareness and brand image. This measurement model is verified on a sample group of families which purchased durable goods — in this case a washing machine. The results indicate the positive effect of marketing communication on brand equity, and offer strong support for the measures of perceived quality, brand loyalty, brand awareness and brand image as antecedents of brand equity.

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Correspondence to Angel F Villarejo-Ramos.

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1has been Professor of Marketing at Seville University (Spain) since 1994. His research has focused on marketing strategy, consumer behaviour, brand equity management and customer relationship management. His current interests include the evolution of brand equity management to customer equity management, specifically, the transition from brand loyalty to customer equity. He has published widely in marketing and management journals, and presented papers at international meetings.

2has been Professor of Marketing and Communication at Seville University (Spain) since 1996. His research has focused on internet marketing strategy, psychological processes and advertising effects. Currently, he is studying the design and interpretation of models to explain behaviours in online environments. Specifically, this involves evaluating the mediating role of the main intrinsic and extrinsic motives explaining users' web acceptance and use. He has published widely in marketing and management journals.

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Villarejo-Ramos, A., Sánchez-Franco, M. The impact of marketing communication and price promotion on brand equity. J Brand Manag 12, 431–444 (2005). https://doi.org/10.1057/palgrave.bm.2540238

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  • DOI: https://doi.org/10.1057/palgrave.bm.2540238

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