Examining the Effect of Brand Equity Dimensions on Customer Loyalty: A Study of the Insurance Industry

Saeid  Shiravandi; Farzad Karimi; Hassan  Ghorbani Dinani

Authors

Saeid Shiravandi Ph.D. Candidate, Department of Management, MO. C., Islamic Azad University, Isfahan, Iran Author https://orcid.org/0009-0003-3572-1019
Farzad Karimi Department of Management, MO. C., Islamic Azad University, Isfahan, Iran Author https://orcid.org/0000-0002-6886-9648
Hassan Ghorbani Dinani Department of Management, MO. C., Islamic Azad University, Isfahan, Iran Author https://orcid.org/0000-0001-6691-134X

Keywords:

brand equity, customer loyalty, insurance industry

Abstract

Brand equity is one of the critical aspects of marketing, and continuous improvement in product and service quality is essential for achieving effective marketing. Accordingly, this study aimed to identify and examine the effect of brand equity dimensions on customer loyalty. In terms of purpose, this study is classified as applied research, and in terms of research method, it is descriptive. In this study, the initial indicators of brand equity were first analyzed using the conceptual review technique, and existing trends and patterns in performance criteria were identified. Subsequently, exploratory factor analysis was used to identify the final indicators, and then a structural equation modeling approach was employed to examine the effect of each dimension of the focal construct (brand equity) on customer loyalty using AMOS software. The statistical population consisted of teachers employed by the Lorestan Province Department of Education (N = 4,500), from whom a sample of 380 participants was selected based on the Morgan table. Data were collected using standardized questionnaires. The analysis of the research data indicated support for all six hypotheses. Brand awareness (β = 0.845), brand association (β = 0.832), perceived quality (β = 0.820), brand experience (β = 0.910), and brand image (β = 0.780) were identified and confirmed as dimensions of brand equity. Furthermore, the relationship between these factors, conceptualized as brand equity, and customer loyalty in the insurance industry was examined and confirmed with a beta coefficient of 0.843. Given the results of hypothesis testing, the identified dimensions of brand equity, and their effects on customer loyalty, it can be concluded that incorporating these dimensions into the design of marketing programs can enhance the effectiveness and goal orientation of such programs.

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