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InternationalConferenceonOperationResearch[Proceeding

Book],12February,2012,P.236249
DETERMINANTS OF CONSUMER-BASED BRAND EQUITY
IN NEPALESE DAIRY MILK SECTOR

Sajeeb Kumar Shrestha, M. Phil.


Teaching Assistant
Shanker Dev Campus
Ph. No: 014284634
Mobile: 9841281851
E-mail: drsajeeb@gmail.com
Abstract: This study attempts to investigate the impact of brand equity dimensions on
building brand equity of dairy milk sector in Nepal with moderating promotion mix variables.
It is used convenient sample of 377 respondents through survey research from different
territories in Kathmandu valley. This study used reliability analysis, descriptive statistics,
factors analysis, and correlation and regression analysis to test reliability, summarization
and measuring casual relationships among brand equity dimensions with brand equity itself.
The findings indicate that all the brand equity dimensions (perceived quality, brand
awareness, brand associations/image, brand loyalty and brand organization) have greater
impact on building brand equity. The research showed that Dairy milk companies should do
more on advertising and sales promotions programs to strengthen the brand value of their
products.
Keywords: brand equity, dairy milk, factor analysis.
1. Introduction
Brand equity is one of the most important concept in marketing, and it has well-recognized as
one of the most valuable intangible assets by most firms [1, 2, 3]. Brand equity is incremental
utility and value endowed to a product or service by its name [4,5,6,7]. The concept of brand
equity began to be used widely in the 1980s by advertising practitioners [8]. All

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conceptualizations of brand equity agree today that the value added to a product by
consumers associations and perceptions of a particular brand name [9, 10].
Keller [11] noted that consumer-based brand equity is the differential marketing effect of
brand knowledge on consumer response to the marketing of the brand, and it arises from a
brand that is familiar to customers and is associated in their memories.
David Aakers [12] brand equity model is the mother of many following researchers findings
and results. The model has become the standard template for researchers such as Kapferer
[13] and Mela et al. [14], yet their models are built upon similar factors that Aaker [12]
stresses. Consequently, it is felt that this model has been provided the whole spectrum within
the field of brand equity.
Shrestha [15] found that three among four variables of brand equity (perceived quality, brand
association and brand loyalty) have played significnat role in creating brand equity of dairy
milk brands in Nepal. But, It is found brand awareness has no significant impact on creating
the brand equity.
Anantaya and Sirada [16] investigated that Thai female consumer's purchase decision on
foreign brand makeup is not directed by brand loyalty, brand awareness, brand association
and brand perceived quality. Also the result derived can not predict the future trend regarding
brand equity and Thai female buyer.
Ukpebor and Ipogah [17] revealed all the dimensions of consumer-based brand equity will
have influence on consumer's perception of brand.
There have been three different perspectives for considering brand equity; the customerbased perspectives, the financial perspectives and combined perspectives. Early researches
have concentrated on measuring a brand's equity with the use of a variety of financial
techniques [18, 19, 9, 20]. This study has focused mainly on the customer based perspectives.
The advantage of conceptualizing brand equity from the Customer- based perspective is that

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it enables managers to consider specifically how their marketing programs improves the
value of their brands in the minds of consumers [21].
This paper focuses to establish Perceived Quality (PQ), Brand Awareness (BAW), Brand
Associations/image (BAS), and Brand Loyalty (BL) as determinants of consumer based
brand equity with considering promotions mix variables like Advertising (AD) and Sales
Promotion (SP) as moderating variables to develop a conceptual model.
Very few researches were conducted on the impact of brand equity dimensions on measuring
brand equity of dairy milk in Nepal. The research tried to express the different sources of
brand equity dimensions with moderating promotion variables on measuring brand equity of
dairy milk markets in Nepal.
This study addresses the following research questions:
- What are the influential factors of brand equity dimensions, i.e., (perceived quality, brand
awareness, brand associations/image, and brand loyalty) on consumer based brand equity
creating of dairy milk in Nepal?
- What are the relations between the consumer-based brand equity dimensions with
consumer based brand equity itself of dairy milk in Nepal?
The present study has been focused on consumers based perception about brand equity on
brand equity of dairy milk markets in Nepal.
This study aims to achieve the following objectives:
- To examine the most influential factor among the brand equity factors on consumer
response.
- To measure the relations between the consumer-based brand equity dimension with brand
equity itself.
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This research framework of this study is shown below in Figure 1.
"Figure 1 about here"
1.1 Research Hypotheses
This research has set following alternative hypotheses:
H1: Perceived Quality has a significant positive direct effect on brand equity.
H2: Brand Awareness has a significant positive direct effect on brand equity.
H3: Brand Association/Image has a significant positive direct effect on brand equity.
H4: Brand Loyalty has a significant positive direct effect on brand equity.
2. Methods
The research design of this study is descriptive as well as analytical Research. This study
examines the impact of brand equity dimensions on measuring brand equity with considering
promotion mix variables.
Survey research is applied for this study. Direct responses of the respondents were taken.
Data were generated in five point likert scale anchored by Strongly Disagree = 1 to
Strongly Agree =5. Top of mind question like, 'Which brand of dairy milk comes to your
mind?' was also asked to the respondents. The questionnaire was developed on the basis of
literature review.
The researcher was taken the convenience sampling methods. 400 questionnaires were to the
respondents in different territories in Kathmandu valley, but only 377 responses have been
successfully obtained by the researcher. It is app. 94 percent success rate for this survey. 63
percent of the respondents are male whereas 37 percent of the respondents are female. It
indicates two-third of the respondents is male and one-third of the respondents are female.
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Majority of the respondents are age between 20-35 years old, accounting for 92 percent.
Likewise majority of the respondents are from bachelor level respondents, accounting for
43.2 percent.
The primary variable of the study is perceived quality, brand awareness, brand
association/image and brand loyalty. Here, overall brand equity is the dependent variable and
it is measured by the independent variables like, perceived quality, brand awareness, brand
association/image and brand loyalty. The moderating variables are added in this research are
promotion variables like, advertising and sales promotion.
The final version of the questionnaire was made up of three major parts: (i) evaluation of four
dimensions of brand equity (ii) evaluation of promotion variables (i. e., advertising and sales
promotion) analysis, and (iii) demographic questions. Databases such as SPSS 13.0, Excel,
were used for this research.
In order to accomplish the objectives of the study, reliability analysis was done to check the
scale item's reliability [22]. Factor analysis [23] was done to extract the real factors
representing brand equity. Descriptive statistics like mean and standard deviation was used.
Multiple regression analysis was used for testing hypotheses. The result of analysis has been
properly tabulated, analyzed and interpreted.
2.1 Regression model
BE = + 1 PQ + 2 BAW +3 BAS + 4 BL + 5 AD + 6 SP + U ................... (1)
Where, BE = Brand Equity; = Constant; i = Co-efficient or slope of regression model;
PQ = Perceived Quality; BAW = Brand Awareness; BAS = Brand Associations/Image; BL =
Brand Loyalty; AD = Advertising; SP = Sales Promotion; and U = Error term.
3. Results
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3.1 Top of Mind Recall
Almost 213 out of 377 respondent having 56 percent respondents have mentioned DDC milk
whereas only 27 percent respondents have recognized Sitaram milk. Others brands are not
represented effectively to consumer's top of mind.
"Table 1 about here"

3.2 Reliability Analysis


The reliability of used measurement scales was tested using Cronbach's alpha coefficient.
"Table 2 about here"
Table 2 shows the results of reliability of measurement scales used for measuring
independent and dependent variables of brand equity dimensions. The applied measurement
scales exhibits satisfactory levels of reliability. One scale item PQ5 was eliminated from
Perceived Quality to increase the value of the measurement. Similarly, one scale item BAW5
(among 5 items) was eliminated from Brand Awareness to increase the value of the
measurement.
For factor analysis, remaining 22 scales items from Perceived quality, Brand awareness,
Brand Associations/Image & Brand Loyalty were forwarded to test convergent validity and
discriminant validity of measurement scales [24]. It is done the dimension reduction and
factors extraction there.

3.3 Descriptive Statistics


"Table 3 about here"

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Table 3 shows the mean of perceived quality, brand awareness, brand association/image,
brand loyalty items are above the level of 3.0. Except for moderating variables advertising
and sales promotion has mean value below 3. Brand loyalty, Overall brand equity and
moderating variables advertising and sales promotion has standard deviation more than 1 is
recorded, the rest of the mentioned variables were below or near to 1.0 standard deviation. It
means that the mean result is accurate.
3.4 Factor Analysis of Brand Equity Variables
Convergent and Discriminant validity of measurement instrument was tested using factor
analysis [24]. Before proceeding for factor analysis, appropriateness of factor analysis is
to be assessed. This can be done by examining adequacy through Kaiser-Meyer-Olkin
(KMO) statistic. KMO value greater than 0.5 is considered to be adequate [25].
From the table 4, value of KMO is acceptable indicating that pattern of correlation are
relatively compact and factor analysis can yielded distinct and reliable results. Barlett
test result is significant (P<.0001) represent that factor is acceptable. The items in the
individual category subjected to Principal Component Analysis (PCA) with Varimax rotation
and Kaiser normalization using SPSS 13.0.The items having factor loading less than 0.5 are
to be eliminated.
"Table 4 about here"
Table 5 gives the initial communalities estimates of variance accounted for all components or
factors. Extraction communalities are estimates of the variance in each variable accounted for
the factors in the solution. Small values indicate that variables do not fit well with factor
solution and can be dropped from the analysis. Principal component analysis (PCA) involves
a mathematical procedure that transforms a number of possibly correlated variables into a
smaller number of uncorrelated variables called principal components.
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"Table 5 about here"
Table 6 list eigen values associated with each linear component associated with each linear
component (factor). Before extraction 22 linear components were identified within the data
set. Eigen values associated with each factor represent the variance explained by each linear
component. Five components are identified totaling cumulative contribution of fifty percent.
"Table 6 about here"

Scree plot shown in figure 2 represent point of inflection of the curve. The curve trails
after five factors before stable plateau. Therefore, first five factors are retained.
"Figure 2 about here"
Table 7 gives components after varimax rotation. The matrix loading less than 0.5 are to be
suppressed or excluded from the output. Here, scale item BAW1, BAW4, BAS3, BAS8, and
BL1 are excluded.
"Table 7 about here"
Table 7 represents rotated component matrix representing matrix of factor loadings for each
variable on to each factor. It can be seen from table 5 that variables PQ1, PQ2, PQ3, PQ4,
BAS4, BAS5, and BAS6, having values of principal components of 0.509, 0.636, 0.521,
0.628, 0.639, 0.641, and 0.636 respectively have loadings on factor 1. The factor 1 is termed
as refinement of Perceived Quality. For factor 2 we see that BAW2, BAW3, BAS1, BL2,
and BL3, having values of principal components of 0.633, 0.574, 0.573, 0.65, and 0.621
respectively. These factors are clubbed into factor 2 as Brand Awareness dimension. For
factor 3 it is combination of variables BL4, BL5, and BL6 with values 0.673, 0.519, and
0.576 respectively and can be clubbed into refinement of Brand Loyalty factor. Factor 4 is
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combination of two BAS2, and BL5 with values 0.742, and 0.579 representing the refinement
of Brand Associations. Factor 5 has only one variable BAS7 with values 0.741 and termed
as Brand Organization.
3.5 Modified research framework and hypotheses
Based upon the factor analysis, one variable, Brand Organization, was added in the
conceptual framework and the modified framework is shown below.
"Figure 3 about here"
These modified hypotheses were being derived from this model are as follows:
H1: Perceived Quality has a significant positive direct effect on brand equity.
H2: Brand Awareness has a significant positive direct effect on brand equity.
H3: Brand Loyalty has a significant positive direct effect on brand equity.
H4: Brand Association/Image has a significant positive direct effect on brand equity.
H5: Brand Organization has a significant positive direct effect on brand equity.
3.6 Correlation Analysis
Karl Pearson's Correlation coefficient is used to find out the relationship between dependent
and independent variables. Correlation is used to describe the relationship between two
continuous variables, both in term of the strength of the relationship and the direction [26].
The analysis of correlation is derived and shown below table 8.
"Table 8 about here"
Table 8 depicts that there are significant correlations between perceived quality and overall
brand equity (r = 0.275, p < 0.01), brand awareness and overall brand equity (r = 0.103, p <

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0.05), brand loyalty and overall brand equity (r = 0.284, p < 0.01), brand association and
overall brand equity (r = 0.308, p < 0.01) and brand organization and overall brand equity (r
= 0.152, p < 0.01).
3.7 Multicollinearity Statistics
To be linearity, one assumption of multiple regression is that all the independent variable has
no relation with each other. If one or more independent variables are related with each other
there is seen the problem of multicollinearity [27].
"Table 9 about here"
From table 9, tolerance values of all brand equity dimensions are above 0.10. Simultaneously,
the VIF value is less than 10; it is ascertain that there is no effect of multicollinearity problem
that creates dependency in independent variables [23, 28].
3.8 Multiple Regression Result and Their Interpretations
"Table 10 about here"
From table

10, the model of BE = 3.065 + 0.26 PQ + 0.101 BAW + 0.271BL + 0.293 BAS

+ 0.144 BO + 0.057 AD 0.032 SP + U


3.9 Testing of Hypotheses
p-value of Perceived Quality coefficient is 0.000 which is significant at 5% level of
significance. So, Hypothesis 1 is accepted.
p-value of Brand Awareness coefficient is 0.017 which is significant at 5% level of
significance. So, Hypothesis 2 is accepted.
p-value of Brand Loyalty coefficient is 0.000 which is significant at 5% level of significance.
So, Hypothesis 3 is accepted.
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p-value of Brand Association/Image coefficient is 0.000 which is significant at 5% level of
significance. So, Hypothesis 4 is accepted.
p-value of Brand Organization coefficient is 0.001 which is significant at 5% level of
significance. So, Hypothesis 5 is accepted.
4. Discussion
This study was limited to establishing the impact of brand equity dimensions on overall brand
equity of dairy milk markets in Nepal.
-

For product stimuli, it is taken only product category like dairy milk brands in Nepal and
other popular brands like soft drinks, brewery, and biscuits are not taken as stimuli for the
study.

Financial performance measurements have not been performed in this research.

The study is based on the data available from the self administered questionnaire methods
among the selected consumers.

Convenience sampling is taking for participation.

Data are primary in nature.

For top-of-mind recall, DDC dairy milk brand has got first ranking on consumers' rating. The
second rank is Sitaram milk, followed by Todays dairy milk.
In Regression analysis, all the brand equity dimensions like perceived quality, brand
awareness, brand loyalty, brand association/image and brand organization are significant.
These all factors are influential factors for creating brand equity of dairy milk markets in
Nepal with considering moderating promotion mix variables.
All the brand equity dimensions are significantly correlated to overall brand equity.

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This findings is consistent with as prior research [7, 6, 29, 1]. The study is consistent with
Shreatha [15] to measure consumer-based brand equity of dairy milk brands in Nepal. The
findings express that perceived quality, brand association and brand loyalty have played
significant role in creating brand equity of dairy milk in Nepal. But, brand awareness has
been found to have negative impact on creating the brand equity.
The study is also similar with Ukpebor and Ipogah [17] to indicate the importance of
consumer based-brand equity on consumer perception of brand: a case study of fast food
restaurants in Sweden. The findings concluded that brand association and brand loyalty are
influential dimensions of brand equity. Weak support was found for the perceived quality and
brand awareness dimensions.
The result of present study is not consistent with the research done by Anantaya and Sirada
[16] on the impact of brand on Thai female consumers in purchase decision of foreign
makeup product. It is found contrast result is Thai female consumer's purchase decision on
foreign brand makeup is not directed by brand loyalty, brand awareness, brand association
and brand perceived quality.
References
[1]

Erenkol, A.D. and Duygun, A., 2010, Customers perceived brand equity and a
research on the customers of bellona which is a turkish furniture brand. The
Journal of American Academy of Business, 16, 1.

[2]

Hao, L., Gao, C. and Liu, Z., 2007, Customer-based brand equity and improvement
strategy for mobile phone brands: foreign versus local in the Chinese market.
International Management Review, 3 (3), 76-85.

[3]

Wang, H., Wei, Y. and Yu, C., 2008, Global brand equity model: customer-based
with product-market outcome approaches. Journal of Product Management,
17(5),305-316.

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[4]

Keller, K.L., 2003, Strategic brand management: building, measuring, and


management brand equity (2nd ed.). Pearson Education, Upper Saddle River,
NJ.

[5]

Park C, S. and Srinivasan, V., 1994, A survey-based method for measuring and
understanding brand equity and its extendibility. Journal of Marketing
Research, 31, 271-288.

[6]

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,
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[7]

Marinova, S., Cui, J., Marinov, M. and Shiu, E., 2011, Customers relationship and
brand equity: a study of bank retailing in China. WBC, poznau, 6-9.

[8]

Barwise, P., 1993, Brand equity: snark or boojum? International Journal of


Research in Marketing, 10(1), 93-104.

[9]

Swait, J., Erdem, T., Louviere, J. and Dubelaar, C. ,1993, The equalization price: a
measure of consumer-perceived brand equity. International Journal of
Research in Marketing, 10(1), 23-45.

[10]

Chen, C., 2001, Using free association to examine the relationship between the
characteristics of brand associations and brand equity. The Journal of Product
and Brand Management, 10(6/7), 439-451.

[11]

Keller, K. L., 1993, Conceptualizing, measuring and managing customer-based


brand equity. Journal of Marketing, 57(1) 1-22.

[12]

Aaker, D., 1991, Managing Brand Equity: Capitalizing on the Value of a Brand
Name. New York: Free Press.

[13]

Kapferer, J. N., 1997, Strategic Brand Management: Creating and Sustaining Brand
Equity Long Term (2nd ed.). London: Kogan Page.

[14]

Mela, C., Gupta, S. and Lehman, D., 1997, The long-term impact of promotion and
advertising on consumer brand choice. Journal of Marketing Research, 34(2),
248-261.

[15]

Shreatha, S.K., 2011, Measuring consumer-based brand equity: a case study of


dairy milk brands in Nepal (Unpublished M. Phil. Dissertation). Tribhuvan
University (Faculty of Management), Kathmandu, Nepal.

[16]

Anantaya, P. and Sirada, C., 2009, The impact of brand on Thai female consumers
in purchase decision of foreign makeup product (Unpublished Masters

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Dissertation). School of Sustainable Development of Society and Technology,
Thailand.
[17]

Ukpebor, P. and Ipogah, B., 2008, A study to indicate the importance of consumer
based-brand equity on consumer perception of brand: a case study of fast food
restaurants (Unpublished MBA dissertation). School of Management,
Blekinge Institute of Technology, Karlskrona, Blekinge Tekniska Hogskola
(BTH), Sweden.

[18]

Farquhar, P. H., 1989, Managing Brand Equity. Marketing Research, 1(9), 24-33.

[19]

Simon, C. J. and Sullivan, M.W., 1993, The measurements and determinants of


brand equity: a financial approach. Marketing Science, 12(1), 28-52.

[20]

Kapferer, J. K., 2004, The New Strategic Brand Management (3rd ed). London:
Kogan Page Limited.

[21]

Cobb-Walgren, C.J., Beal, C. and Donthu, N., 1995, Brand equity, Brand
Preferences, and Purchase Intent. Journal of Advertising, 24(3), 25-40.

[22]

George, D. and Mallery, P., 2009, SPSS for windows, step by step (8th ed.). Delhi,
Patparganj: Dorling Kindersley (India) Pvt. Ltd., licensees of Pearson
Education in South Asia.

[23]

Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C., 1998, Multivariate Data
Analysis (5th ed.). London: Prentice Hall.

[24]

Rajh, E., 2005, The effects of marketing mix elements on brand equity. Economic
Trends and Economic Policy, 1032, 30-59.

[25]

Kaiser, H.F. and Rice, A, 1974, Little jiffy mark IV. Educational and Pschological
Measurement, 34(1), 111-17

[26]

Pallant, J., 2007, SPSS Survival Manual. Australia: Ailen & Unwin.

[27]

Wilson, J. H. and Keating, B., 2010, Business forecasting with accompanying excelbased forecastxtm software (5th ed.). New Delhi: Tata McGraw Hill Education
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Burns, A.C. and Bush, R.F. (2007). Marketing Research (5th ed.). New Delhi:
Dorling Kindersley (India) Pvt. Ltd., licensees of Pearson Education in South
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[29]

Tong, X. and 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.

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Table/Figures:
Figure 1
Schematic diagram of research framework
Brand Equity dimensions
Perceive Quality
Brand Awareness
Brand Equity
Brand Association/Image

Brand Loyalty
Promotion Mix
Advertising
Sales Promotion

Figure 2
Scree Plot
6

Eigenvalue

0
1

10

11

12

13

14

15

16

17

18

19

20

21

22

Component Number

Figure 3
Modified theoretical figure of research framework
Brand Equity dimensions
Perceived Quality
Brand Awareness
Brand Equity
Brand Loyalty

Brand Association/Image

Promotion Mix
Brand Organization

Advertising
Sales Promotion

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Table 1
Top of Mind Recall
Brands
DDC
Sitaram
Today
Others
Total

Code
PQ
BAW
BAS
BL
OBE
AD
SP

Frequency
213
102
39
23
377

Percent
56.50
27.05
10.34
6.11
100

Table 2
Reliability Analysis
Particulars
Perceived Quality
Brand Awareness
Brand Association/Image
Brand Loyalty
Overall Brand Equity
Advertising
Sales Promotion

Alpha
0.703
0.609
0.701
0.710
0.737
0.788
0.814

Table 3
Descriptive Statistics of Brand Equity and Moderating Variables
Particulars
Perceived Quality
Brand Awareness
Brand Associations/Image
Brand Loyalty
Overall Brand Equity
Advertising
Sales Promotion

Mean
3.776
3.776
3.860
3.907
3.113
2.178
2.345

S. D.
0.992
0.992
0.963
1.042
1.270
1.270
1.220

Table 4
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Bartlett's Test of Sphericity

Approx. Chi-Square
Df
Sig.

0.879
2086.474
231
0.000

Table 5
Communalities
(PQ1) Trust the quality of Milk 'X'
(PQ2) Very good quality
(PQ3) Offers excellent features
(PQ4) Reliable products
(BAW1) Characteristics come to mind quickly
(BAW2) Recognize quickly among other brands
(BAW3) Familiar with

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1
1
1
1
1
1
1

Extraction
0.47
0.479
0.503
0.459
0.37
0.507
0.467

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(BAW4) Recall symbol or logo
(BAS1) Unique brand image than other brands
(BAS2) Respect people who consume Milk 'X'
(BAS3) Like brand image
(BAS4) Trust the company
(BAS5) Tasty
(BAS6) Good for health
(BAS7) Belongs to reputed organization
(BAS8) Based on modern technology
(BL1) Loyal to Milk 'X'
(BL2) First choice while buying
(BL3) Provides me satisfied products
(BL4) Purchase even if price will be higher
(BL5) Recommend to friends
(BL6) Will not buy if Milk 'X' is at the store
Extraction Method: Principal Component Analysis.

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

0.283
0.609
0.655
0.34
0.451
0.514
0.593
0.66
0.532
0.465
0.575
0.661
0.474
0.663
0.392

Table 6
Total Variance Explained
Component

Initial Eigenvalue

% of Cumulative
Variance
%
1
5.971
27.139
27.139
2
1.785
8.115
35.254
3
1.243
5.652
40.905
4
1.084
4.929
45.834
5
1.038
4.72
50.555
6
0.977
4.441
54.995
7
0.919
4.177
59.173
8
0.872
3.965
63.138
9
0.828
3.762
66.899
10
0.765
3.479
70.378
11
0.724
3.292
73.67
12
0.706
3.208
76.878
13
0.673
3.058
79.935
14
0.647
2.941
82.876
15
0.609
2.766
85.642
16
0.574
2.607
88.249
17
0.529
2.402
90.651
18
0.473
2.148
92.799
19
0.456
2.071
94.87
20
0.414
1.88
96.75
21
0.382
1.736
98.486
22
0.333
1.514
100
Extraction Method: Principal Component Analysis.
Total

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Extraction Sums of
Squared Loadings
% of Cumulative
Total
Variance
%
5.971
27.139
27.139
1.785
8.115
35.254
1.243
5.652
40.905
1.084
4.929
45.834
1.038
4.72
50.555

Rotation Sums of
Squared Loadings
Total % of Cumulative
Variance
%
3.376 15.346 15.346
2.871 13.049 28.395
2.032 9.235 37.629
1.469 6.677 44.307
1.375 6.248 50.555

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InternationalConferenceonOperationResearch[Proceeding
Book],12February,2012,P.236249
Table 7
Factor Structure after Varimax Factor Rotation
Component
2
3

1
(PQ1) Trust the quality of Milk 'X'
(PQ2) Very good quality
(PQ3) Offers excellent features
(PQ4) Reliable products
(BAW1) Characteristics come to mind quickly
(BAW2) Recognize quickly among other brands
(BAW3) Familiar with
(BAW4) Recall symbol or logo
(BAS1) Unique brand image than other brands
(BAS2) Respect people who consume Milk 'X'
(BAS3) Like brand image
(BAS4) Trust the company
(BAS5) Tasty
(BAS6) Good for health
(BAS7) Belongs to reputed organization
(BAS8) Based on modern technology
(BL1) Loyal to Milk 'X'
(BL2) First choice while buying
(BL3) Provides me satisfied products
(BL4) Purchase even if price will be higher
(BL5) Recommend to friends
(BL6) Will not buy if Milk 'X' is at the store
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 8 iterations.

0.509
0.636
0.521
0.628
0.633
0.574
0.573
0.742
0.639
0.641
0.636
0.741

0.65
0.621
0.673
0.519
0.576

0.579

Table 8
Correlation Analysis of Consumer-Based Brand Equity Dimensions
OBE

OBE
Perceived Quality
Brand Awareness
Brand Loyalty
Brand Association
Brand Organization

Correlation
p-value
Correlation
p-value
Correlation
p-value
Correlation
p-value
Correlation
p-value
Correlation
p-value

Perceived
Quality

Brand
Awareness

Brand
Loyalty

Brand
Association

Brand
Organization

1
.275
0
.103
0.045
.284
0
.308
0
.152
0.003

1
0
1
0
1
0
1
0
1

1
0
1
0
1
0
1

1
0
1
0
1

1
0
1

Table 9
Collinearity Statistics
Brand Equity variables
Perceived Quality
Brand Awareness
Brand Loyalty

OperationalResearchSocietyofNepal

Tolerance
0.999
0.997
0.99

VIF
1.001
1.003
1.01

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InternationalConferenceonOperationResearch[Proceeding
Book],12February,2012,P.236249
Brand Association
Brand Organization

0.987
0.998

1.013
1.002

Table No. 10
Output of Regression Coefficients, ANOVA and R2
Constant
PQ
BAW
BL
BAS
BO
AD
SP
R
R2
Adj. R2
S. E.
F-Value

Coefficient value of B
3.065
0.26
0.101
0.271
0.293
0.144
0.057
-0.032

S. E.

p-value
0.116
0.042
0.042
0.042
0.042
0.042
0.052
0.053

0.000
0.000
0.017
0.000
0.000
0.001
0.272
0.544

.536
0.287
0.274
0.811
21.226

0.000
p-value of F test
Sig. at 5% level
Model : BE = 3.065 + 0.26PQ + 0.101BAW + 0.271BL + 0.293BAS + 0.144BO + 0.057AD 0.032SP + U

OperationalResearchSocietyofNepal

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