A Study of Brand Equity Formation in the Fast Moving Consumer Goods Category

To identify key relationships in building brand equity in the fast-moving consumer good (FMCG) category in the United Arab Emirates. It is postulated that marketing elements impact brand equity dimensions which in turn impact the brand equity construct. Five marketing mix elements were selected—price, distribution intensity, advertising, price promotions and non-price promotions, and four dimensions of brand awareness, brand loyalty, perceived quality and brand associations, finally to overall brand equity. Data were collected from a broad sample. Structural equation modeling was used to test the relationships among the 10 constructs. Brand loyalty and perceived quality have a significant impact on brand equity, whereas brand awareness and brand association were weak. Brand awareness has a significant influence on brand loyalty. Distribution intensity and non-price promotions have a positive relationship with all the brand equity dimensions, whereas weak support was determined for pricing and advertising. In the FMCG category building strong brand awareness combined with wide distribution and supported by non-price promotions are critical to building brand loyalty which in turn impacts brand equity. This study contributes to the general body of knowledge on branding and provides a starting point for further research in the region