From the Editor's Desk.....? Dear Readers,. Since, the ...... Cloud based systems Cloud computing offers firm's services that include: are one of the newest trends ...
Contents An Analysis on the Performance Evaluation of Banks in the Indian Context Mr. Asha Rani Mr. Sameer Lama Mr. Amit Kumar
1
Relationship between advertising and brand equity: A study using structural equation modeling Dr. D.S. Chaubey Mr. Manish Gurung
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Analysis of Hedge Ratio and Hedging Effectiveness in Indian Commodities.................. Dr. M. Babu S.Srinivasan
17
Managing human resources through cloud computing based erp system Prof. Neeraj Kataria Dr. Nikhil Kulshreshtha
25
An Empirical Study of Customer Experience and its Relationship with customer satisfaction.... Ms. Meenakshi Sharma Dr. D.S. Chaubey
37
Factors influencing buying decision of rural consumers
50 Dr. Manoj Singh Bisht 53
Investment Strategies before and after Recession Dr. Vipul Jain Dr. Deepak Sahni
56
Corporate social responsibility: Issues & Challenges Dr. Parikshit Kala Talent Retention: Winning Competitive Edge (A Study in Academic Sector) Mr. Dipesh Gangrade
63
Micro Finance – An important tool for empowerment of women Dr. R.H. Pavithra Dr. M.S. Ramananda
72
A study on profitability analysis of district cooperative bank Dehradun V. Alagu Pandian Manish Kumar Mishra
77
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From the Editor’s Desk.....? Dear Readers, Since, the inception of our Management Journal 'Vedaang', continous volumes of journal have rolled out from the portal of SGRRITS. Every issue of 'Vedaang' aims at developing & disseminating of advances in the field of management by maintaining the highest standards of intellectual thought combined with practical relevance. Editorial comments & invited papers on practices & developments in management arena appear from time to time as warranted by new developments. Overall Vedaang provides a communication forum for advancing management theory & practice. It is my hope that the present issue contributes to the field of management, bettering our advancement organization— the organization that undoubted by have an enormous impact on our instaitution's ability to improve quality of life for all. Jai Hind!
Dr. Shweta Sethi Editor
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AN ANALYSIS ON THE PERFORMANCE EVALUATION OF BANKS IN THE INDIAN CONTEXT Mr. Asha Rani*, Mr. Sameer Lama** & Mr. Amit Kumar* ABSTRACT The banking system is considered as an integral part of any economy that impinges on the economy and affects its performance extensively. Commercial Banks vehemently provides the flow of capital in an economy leveraging the robustand dynamic banking system of the country. This paper exemplifies the performance evaluation of four commercial banks listed in National Stock Exchange(NSE) over a period of last three years. The paper analyses various key parameters for performance evaluat,\lion of banks in the Indian context and makes the comparative analysis of the preceding three years. It also points out the segment under which the performance has been/is less than satisfactory for a particular bank (for a specified time frame) and accentuates the arguments for the same. Keywords: Performance, Evaluation, Commercial Banks, NSE, RBI
Objectives of the Study:
of banks profit centres. Dasgupta (2000, 2001) explains that due to the problem of non-performing assets in post-liberalized era, stakeholders and researchers have started taking interest in evaluating, measuring and managing the financial performance of Indian banks. Economic Value Added (EVA) has also been used as an advanced method for performance evaluation of banks by Gabriela Popa, Laurentiu Mihailescu and Codin Caragea (2009). CAMEL model has also been used successfully by many researchers to evaluate the financial performance of banks in one of the latest studies done by Sangmi and Nazir (2010).
1) The primary objective of the study is to analyze the performance of Commercial banks in the Indian context. 2) To understand the difference in the functioning of the private and the public sector banks for a period of three years on the basis of various key parameters. Limitation of the Study: 1) The sample size is limited in numbers and the time period of three years could have been extended for a period of five or ten years.
Research Methodology: This study is primarily based on secondary data available through the websites of RBI, NSE and different sources which has been cited accordingly. Descriptive statistics and ratio analysis has been used to analyze and examine the performance of different banks for a time frame of three years. The data has been processed and analyzed through the use of software, i.e. MS-Excel.
2) The paper is based mainly on the secondary information (data) collected through different sources/reports published in the web. 3) Primary data could not form a part of this study mainly due to time constraint. Review of Literature: Various studies have been conducted to measure the performance evaluation of banks globally. The existing literature on the performance evaluation of banks depicts that the analysis have been done mainly by taking the different branches of a particular bank and evaluating and interpreting the performance thereby. Ivan Ivandic (2005) used the contribution margin model (S-VC) to evaluate the performance
Introduction: Performance evaluations have been given importance since the times of Aristotle. Even today, performance evaluation forms a major element in the productivity and efficiency of any organization in a long run. The world has observed a number of scams and debacles in the last decade, to
* Assistant Professor, Department of Commerce, Shri Ram College of Commerce, University of Delhi Delhi - 110007 ** Assistant Professor, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110007
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Vedaang Vol. 5 No. 1, January-June 2014
name a few the Enron (2001), WorldCom (2002), Satyam (2009), etc. which occurred mainly due to financial and banking disruptions. The global problems which we are facing today are complex, and not amenable to easy solutions. The global financial crises has taught us that no country can be an island, and that economic and financial disruptions anywhere can cause ripples, if not waves, everywhere.1 Under such circumstances, nevertheless India has proved herself by standing still with its resilient and dynamic banking structure
yet the challenges continues. Undoubtedly, the Reserve Bank of India (RBI), with its stringent policies has safeguarded the voluminous transaction of all the commercial banks in the country but still the understanding of performance evaluation of the commercial banks becomes imperative. We have tried to analyze the performance evaluation of four commercial banks using the ratio analysis and descriptive statistics for a period of three years.
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An Analysis on the Performance Evaluation of Banks in the Indian Context
The performance evaluation of the four commercial banks in the table above indicates the following: l In terms of profitability, i.e., net profit margin and return on net worth Punjab National Bank has comparatively outperformed all the other three banks. l With regard to management efficiency, (the different parameters as per table) HDFC has taken the lead among the different banks in the last three years.
l The Profit
& Loss A/C ratio and the Capital Adequacy ratio for the last three years suggest that ICICI bank has taken the lead over the three different bank. l Again, in terms of leverage ratio ICICI bank stand still comparatively. l Though the EPS (earning per share) was highest in SBI (2009-10) but the dividend pay-out for 2009-10 was maximum in ICICI bank (37.31%).
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Vedaang Vol. 5 No. 1, January-June 2014
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An Analysis on the Performance Evaluation of Banks in the Indian Context
Analysis:
facilitate more earnings, we observe that HDFC over the period of three years has taken more risk than its return but comparatively its average performance has been less than satisfactory then the SBI over the period of three years. This also indicates the fallacy of conception of the people of our country that even in the liberalized world where private sector forms the major component of any economy, the average people still believes in the performance of the public sector and finds it comfortable to invest their hard-earned money in the public sector clearly indicating the rationale that safety oven an average return is more beneficial than taking risk with high returns.
Nevertheless in terms of management efficiency and capital adequacy ratio, HDFC and PNB has outperformed the ICICI and the SBI but still SBI has taken a lead in terms of earnings clearly indicating the supremacy of being in hand of public sector. The descriptive statistics in the table above obviously makes a predicament that the average return of the State Bank of India (SBI) is much higher than the other three banks simultaneously the average risk taken by the SBI over the preceding three years is also more than the other banks. Contrary to the myth that the more risk would 5
Vedaang Vol. 5 No. 1, January-June 2014
Conclusion: In a liberalized economy where the existence of private sector forms a major part towards the GDP of the economy, it becomes imperative for the policy makers and the researchers to analyze the performance evaluation, particularly of the financial institution like banks. In economic reality, bank faces several challenges to sustain the economic development of every country. Many issues, problems and risks can interfere in the bank's activity, with a great influence over the performance and profitability. Though there is a direct correlation between performance and profitability but profitability in isolation cannot be judged as a core criterion for understanding the overall performance of the banks. The different performance indicator as highlighted above needs to be thoroughly analyzed and interpreted before any immutable decision is taken. It is to be understood that profitability is not only the criteria to evaluate the performance of the financial institutions like banks. The different parameters like the capital adequacy ratio, dividend
payout ratio, returns on equity, etc. needs to be thoroughly analyzed in order to understand the performance evaluation of commercial banks of any country. References Amir Hussain Shar, Muneer Ali Shah and Hajan Jamali (2010); Performance evaluation of pre- and postnationalization of the banking sector in Pakistan: An application of CAMEL model. Claudiu Cicea & Daniela Hincu (2009); Performance evaluation methods in commercial banks and associated risks for managing assets and liabilities, Vol. 7, 2009 ISSN: 1943-7765. Fernando A. F. Ferreira, Sergio P. Santos & Paulo M. M. Rodrigues (2009); Adding value to bank branch performance evaluation using cognitive maps and mcda: A Case Study. Chiaku Chukwuogor-Ndu, Jill Wetmore (2006); Comparative Performance Evaluation of small, medium large U.S. Commercial Banks, Vol. 1, Issue 2, 2006. www.yahoofinance.com www.nseindia.com
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RELATIONSHIP BETWEEN ADVERTISING AND BRAND EQUITY: A STUDY USING STRUCTURAL EQUATION MODELING Dr. D.S. Chaubey* & Mr. Manish Gurung** ABSTRACT
Brand equity becomes an important element for being able to establish the differentiation regarding the products and services. In order to understand how much advantage would be provided by the advertising to the enterprises in building brand equity, it is necessary to assess the different factors and messages conveyed in advertising for building brand equity. The study explores Relationship between advertising and brand equity. 500 questionnaires were distributed among potential respondents for this study, of which 430 were returned. After completing the screening process, only 361 responses were considered complete and valid to undergo data analysis.In this study, exploratory factor analysis was used to identify the salient attributes of advertising that buildup the brand equity. In addition, SEM (Structural Educational Modeling) was employed to identify the relationship among the variables. The research hypotheses were tested by Structural Equation Analyses (SEM) using AMOS. Results prove that the proposed model exhibits a reasonably good fit to the data. Some of the suggestions were drawn for further study. Keywords: Consumer behavior, Brand Equity, Brand Association, Brand Loyalty, Brand Personality, etc.
Introduction The opening up of the Indian economy has given a level playing field for foreign brands against Indian brands. Several multinational companies have begun to focus their attention on Indian markets. The presence of global brand into Indian market has enhanced the competition into different brand. Brand is one of the most important concepts related to the marketing science. Extensive competitive environment that the enterprises are confronted with today and their competition in being different among thousands of similar products that could draw consumers' attention necessitate the products to have certain elements of differentiation other than their physical characteristics. Hence the brand becomes an indicator of value and power (Marangoz, 2007A). However the value and power possessed by each brand demonstrate differences from others. Brand equity provides a strong platform for introducing new products and insulates the brand against competitive attacks. The current brand strategy
followed by business houses in India need a dramatic makeover. in the present changing business environment, firm has to adapt innovative advertising, market communication and branding to remain in the market and enhance brand equity of the product. The Indian companies have to respond to these challenges with better strategies and by delivering the brand promise to the customers. From the perspective of the trade, brand equity contributes to the overall image of the retail outlet. It builds store traffic, ensures consistent volume, and reduces risk in allocating shelf space. Therefore determination of the level of the value that the brand has is of great importance for the administrators of the enterprise and in terms of the decisions they make. In this study, the methods for measuring the brand equity and consumer based brand equity which is one of the methods used for measuring brand equity purposes, is explained in detail. In this paper we will try and understand the minds of the consumers and try to evolve a strategy that will closely resemble their outlook
* Dean Research and Studies, Uttranchal University, Dehradun **Senior Lecturer, Uttranchal University, Dehradun
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Advertising is not about selling product, but about promoting the qualities that differentiate your product from so many others. Advertising is about positioning that brand by promoting and communicating your product's differentiators to a targeted mass audience. The goal of advertising is to focus attention on what sets your firm apart from others. Branding, through repeated, frequent advertising, is the most effective way to accomplish that goal. Advertising means generating opportunities, and good advertising is generating thousands of potential opportunities every day. The only way to be heard is to speak, and the only way to be remembered is to repeat over and over a very simple, compelling, single-minded message. Consider that the public is faced with roughly 700 ads and brands per day. To stand out, you must not merely speak, but yell, breaking through the clutter and getting the attention of the prospect with the use of strong creative and a quick, easy-to-retain message. The most effective and efficient way to do so is through frequent, repeated advertising in the same publications or airwaves reaching the same industry or targeted audience. A successful advertising campaign brings many other benefits that law firms never seem to address. Some are extremely important when building a brand or positioning your firm within the marketplace. Advertising is an investment in growth, generating opportunities, positioning a brand and reaching thousands of potential customers. When weighing the value of an advertising campaign and whether advertising is right for your firm, one should consider the various benefits like ability to communicate, reminding ability, retaining ability and ability to help firm for movement and growth and its stimulating ability for promoting conversation between firm, among clients, potential clients and competing firms and its nature for helping customer in eliminating brand confusion.
satisfy the needs of the customers. The needs of the customers today are experiences and not just the products. The Indian Organizations have to concentrate on delivering the experiences to the customers leading to satisfaction and association with all the dimensions of the brand. These experiences can be delivered by involving the customer in the supply chain which demands improvement from the organization in terms of training the employees and aligning the culture to deliver value to the customers. The participation of the customers can be ensured by using novel methods of communication and branding. The Profit and Sustainability of Indian Brands will depend on how efficiently and quickly the organization can adapt to these new demands of the customers. Before the shift in focus towards brand s and the brand building process, brands were just another step in the whole process of marketing to sell products. “For a long time, the brand has been treated in an off-hand fashion as a part of the product” (Urde 1999, p. 119). Kotler (2000) mentions branding as “a major issue in product strategy” (p. 404). As the brand was only part of the product, the communication strategy worked towards exposing the brand and creating brand image. Aaker and Joachimsthaler (2000) mention that within the traditional branding model the goal was to build brand image ; a tactical element that drives short-term results. Kapferer (1997) mentioned that “the brand is a sign -therefore external- whose function is to disclose the hidden qualities of the product which are inaccessible to contact” (p. 28). product and to distinguish it from the competition. “The challenge today is to create a strong and distinctive image” (Kohli and Thakor 1997, p. 208). Brand Building Models Kapferer (1997) mentions that there is shift frm generic product to branded product. Before the 1980's there was a different approach towards brands. “Companies wished to buy a producer of chocolate or pasta: after 1980, they wanted to buy KitKat or Buitoni. In other words, the shift in focus towards brands began when it was understood that
Review of Literature BRAND is a promise made to the consumers by the company. Brand, not only has Functional and Mental dimensions but also Social and Spiritual dimensions. The challenge in front of Indian organizations today is to first understand and then 8
Relationship between advertising and brand equity: A study using structural equation modeling
they were something more than mere identifiers. Brands, according to Kapferer (1997) serve eight functions such as identification, practicality, optimization, characterization, continuity, hedonistic and ethicality of the product. In this the first two are mechanical and concern the essence of the brand: “to function as a recognized symbolin order to facilitate choice and to gain time” (p. 29); the next three are for reducing the perceived risk; and the final three concern the pleasure side of a brandThe present research employed a conceptual framework by Srivastava and his colleagues (1998) in order to address posited relationships between advertising, R&D, brand equity, and shareholder value. These relational and intellectual marketbased assets can intertwine to create a unique competitive edge for the firm in the marketplace (Srivastava et al. 1998).
Objectives and Methodology Brand equity is a phrase used in the marketing industry which describes the value of having a wellknown brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well-known names. Preliminary Studies of the Research Motivated by the idea that marketer may have different brand equity dimensions, it would be appropriate to develop different measures for each industry to measure the factors affecting the brand equity. The goal of the study is to analyse the relationship between advertising and brand equity of the product . For this purpose,a structured questionnaire was designed and piloted on a predetermined sample of 361 respondents of Dehradun, the state capital of Uttarakhand from different demographic characteristic. After collection of data it was analysed and interrelationship between different construct of advertising promoting brand equity was tested using structural equation modeling. Some important findings and appropriate conclusions were drawn to make the research more meaningful.
Advertising communicates these elements of brand value to customers, and it helps marketing managers build, increase, and maintain customer relationships with the brand. This brand value contributes to brand equity (Keller 1998; Srivastava and Shocker 1991). Brand equity is generated when customers have a high level of awareness and familiarity with the brand and hold some strong, favorable, and unique brand associations in memory (Keller 1998). A brand with significant equity can result in customers being more accepting of a new brand extension, less sensitive to price increases, and more willing to seek the brand in a new distribution channel (Keller 1993). Brand equity can also reinforce partner relationships with other external entities such as retailers and distributors. Distribution cha nnels are willing to cooperate with firms that maintain high brand equity across their brand portfolios, and other strategic partners may also be interested in cobranding with these brands (Srivastava et al. 1998). Therefore, advertising can play a key role in increasing the value of market-based assets by creating brand equity, which can function as a stepping stone between advertising and shareholder value. Incorporating brand equity with a conceptual framework may provide a comprehensive structure for exploring the ultimate utility of advertising in business organizations.
Hypotheses The following hypothesis has been assumed for the proposed study H1: there is no significant impact of brand image and assurance, brand information and awareness, brand association and loyalty and brand conviction on brand trust H2: there is no significant impact of brand image and assurance, brand information and awareness, brand association and loyalty and brand conviction on brand equity H3: there is no significant impact of brand trust on brand equity Table 1 shows the demographic characteristics of respondents. 9
Vedaang Vol. 5 No. 1, January-June 2014
Table-1 Demographic Characteristics of Respondents
Categories
Age
Gender
Marital Status
Education Level
Income Level
Occupation
Count
Percentage
Upto 20 Years 20-30 Years 30-40 Years 40-50 Years 50 to 60 years above 60 Years
361 36 124 72 75 43 11
100 10.0 34.3 19.9 20.8 11.9 3.0
Male Female
214 147
59.3 40.7
Married Unmarried No formal education Under Graduate Graduate PG and Above Professional Qualification Upto Rs 15000 15000-25000 25000-35000 35000-50000 Above 50000 Student Business Service Professional House Wife Any Other
268 93 50 69 32 125 85 113 85 41 95 27 58 49 145 32 68 9
74.2 25.8 13.9 19.1 8.9 34.6 23.5 31.3 23.5 11.4 26.3 7.5 16.1 13.6 40.2 8.9 18.8 2.5
The demographic characteristics of the respondents presented in the above table reveals that out of total 361 respondents 10.1% respondents were of the age group Upto 20 years. 34.3 were in the age group 2030 Years, 19.9% were in the group of 30-40 and 20.8% respondents were in the age group of 40-50 years. 11.9% respondent were in the age group of 50-60 Years and remaining 3% respondent were in the age group of above 50 years. For a research dealing with brand equity of Hair care product it is important to know the Sex of the respondents as in the current scenario, males are equally personality conscious as compared to women. From the above
table it is clear that 59.3% were Male and the rest that is 40.7% were female. The information pertaining to Marital Status of respondents shows that 74.2% were married and the rest were unmarried. Educational qualification was another demographic which reveled interesting facts. 34.6% were those respondents who were Post graduate and above, no formal educational categories respondents were 13.9%followed by Graduate with 8.9 and finally under graduate category with 19.1 percentage. Middle income category respondent account for 54.8% and it is also significant to note that sample is dominated by 10
Relationship between advertising and brand equity: A study using structural equation modeling
service category respondents as it account for 40.2% respondents in the sample.
Media is a facilitating institution of communication. Rapid industrialisation and technological revolution have brought a qualitative and quantitative change in the media. Today, it is seen that there is stiff competition among the media and all of them are bringing substantial qualitative change to offer better to their customer. Advertising scenario in India cannot be understood without considering its effectiveness among the people. For this, it is necessary for the marketer to assess the appealing ability of the media to the consumers. It seen in the above table that television is one of the most appealing media as revealed by 69.8% respondents in the sample. It was followed by advertisement in magazine that account for 24.1% respondents. News paper and advertising on mobile was indicated by 0.8 and 5.3% respondents in the sample.
Table 2 -Media Accessibility
A B C D E F G
Description Radio Magazine Television Newspaper Hoardings Advertising on electronic media Others Total
Frequency 160 272 343 342 309 272
Percent 8.8% 14.9% 18.8% 18.8% 16.9% 14.9%
Percentage
126 1824
6.9% 100.0%
34.9%
44.3% 75.3% 95.0% 94.7% 85.6% 75.3%
100%
The present era truly represents an age of the 'information revolution'. The business institutions are using several media of advertisements to communicate their message to the consumers. It is firmly believed that the consumers may have access to many sources located at different points by which they can get an opportunity to read/watch an advertisement and generate a need for acquiring some products /services and ultimately settle on buying decision. With this, an attempt was made in this study to determine the accessibility of respondents to various media of advertisements. For this purpose, the respondents were requested to indicate their accessibility to various media of advertisements. Multiple response were processed with the help of SPSS software and indicates that radio has got very less accessibility among the respondents. Advertising on internet and magazine has got almost equal accessibility to 75.3% respondents each. Simillarly television and newspaper has got accessible among 95% respondents each. Hoardings were indicated by 85.6% respondents. this signifies the better media accessibility among the respondents.
Reasons
N
Description
B C
Newspaper
D
Advertising of product on mobile
E
Total
Frequency
Percent
Magazine
87
24.1
Television
252
69.8
3
.8
19
5.3
361
100.0
Percent of Cases
Percent
it shows the comparative study over the other brands Better use of celebrities
109
22.4% 30.2%
115
23.6% 31.9%
it is stylish in nature
147
30.2% 40.7%
54
11.1% 15.0%
62
12.7% 17.2%
487
100.0% 134.9%
It presents the correct information of the products Other reasons Total
An attempt was made to assess the reason which makes an advertisement to be the favourite one to the respondents. The analysis explains that there are various reasons which can be attributed for making an advertisement of most favourite for the respondents. These reasons may include, it shows the comparative study over the other brands, Better use of celebrities, it is stylish in nature, and It presents the correct information of the products and many other other reasons. The analysis signifies that in comparison to other reasons, the stylish presentation of advertisement is the prominent reasons for making an advertisement to be most liked by majority of the respondents. Table 5 Ability to identify Product without advertising
Table 3-Most Appealing Media Sl No. A
Responses
Sl No. A B
11
Description Yes NO Total
Frequency 203 158 361
Percent 56.2 43.8 100.0
Vedaang Vol. 5 No. 1, January-June 2014
Advertisements are made to develop a Brand, It is created to develop Brand Recognition and also Goodwill of any product. Advertisements are also made to develop awareness among public whether it is new Product or Public Service Message. Lowinvolvement advertising needs extensive repetition in advertising (Hawkins 1998.) the repetition of advertisement of product enhance its recognition and customer get conditioned with the brand. With this in mind an attempt was made to know the ability of customer to identify the product without advertising. The survey reveals that more than half of the respondents(56.2%) were in position to identify Product without advertising. In comparison to this 43.8% respondents could not identify product without advertising.
customer, motivate them for action, convince them and persuades them for final purchase. The success of advertising depend upon its ability to convince the target market to purchase product or service. With this in mind an attempt was made to know how far the advertisement of hair care product is convincing to them. Survey reveals that 44.6% respondents are of the opinion that it is very convincing. 21.9% say that it is somewhat convincing. 11.9% respondent remain undecided. 6.9% respondents indicated that it is not very convincing. And remaining 14.7% respondent said that it is not at all convincing to them. Researcher is interested to investigate the relationship of various advertising factor and brand equity. After a thorough analysis of various published resources, comments, viewpoints, discussions and observations of many researchers as well as practitioners for this customers perception towards various advertising attributes were constructed, and respondents were asked to rate on a five point scale. Various attributes of advertising were taken and grouped into different factors and composite mean ware calculated using SPSS20 software. The various factor was named as brand awareness, brand preferences, brand image, brand association, brand loyalty, brand trust and brand equity. the proposed interrelationships between various factor is presented in the following model.
Table 6 -How convincing did you find this advertisement
Sl No. Description
Frequency Percent
A
Very Convincing
161
44.6
B
Somewhat convincing
79
21.9
C
Undecided
43
11.9
D
Not very Convincing
25
6.9
E
Not at all convincing
53
14.7
Total
361 100.0
An advertising has an important role in the today's business. A good advertisement inform the
Table 7 Principle components and associate variable Factor Name of Dimension F1
Brand image and assurance factors
Statement
Mean
I usually get better value for my money in advertised brands of products than in unadvertised brands
3.42
In general, I trust advertising of the product on various advertising
3.69
Products that I have seen in the advertisement build up a positive image in my mind I feel positive effect of advertising of product on the building brand advertising is more effective in building product awareness
3.35 3.56 3.67
I feel positive television advertising and become more aware about I belief that Advertising conform the product quality I usually rely on product information as advertised
cont....
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Relationship between advertising and brand equity: A study using structural equation modeling
F2
Brand information and awareness
Advertisement add the value endowed by the brand name ,
3.42
After observing the advertisement my association with the brand
3.38
Advertisements explain the usage and applications of products
3.51
After viewing this ad, I would consider purchasing the product.
3.63
Advertisements provide necessary and sufficient information about The benefits described in the ad are believeable to me.
F3
Brand Association and Loyalty Factors
advertising of the product helps me to be loyal to the brand
After observing advertising of the product i try to associate myself with the advertised brand
3.47
3.2493
Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors.
F4
Brand Conviction
After observing advertisements of the product, I would like to try the advertised product. advertising in different media builds up strong brand awareness,
3.59 3.6039
celebrity engaged in advertising help in building brand preferences Advertisements displayed in various media helps in building strong brand image
F5
Brand Trust
Advertising enhance the consumer’s trust about the overall quality or excellence of a product or service.
F6
Brand Equity
Advertisement build my confidence translates my loyalty and willingness to pay a premium price for the brand
Figure-1 Structural Equation Model
13
3.11
3.42
Vedaang Vol. 5 No. 1, January-June 2014
Table 8 Regression Weights:
Table 11.2 RMR, GFI
(Group number 1 - Default model)
Model
RMR
GFI
AGFI
PGFI
Default model
.003
1.000
.999
.048
.387
Saturated model
.000
1.000
1.223
.221
Independence model
.216
.613
.459
.438
.073
.371
.711
-.009
.098
-.097
.923
F6
