Determinants of Consumer Based Brand

Equity of Dairy Milk in Nepal

Presented By:
Sajeeb Kumar Shrestha
International Conference on
Operation Research
Feb, 1&2, 2012

1. Introduction

Consumer-Based Brand equity is the differential

marketing effect of brand knowledge on consumer
response to the marketing of the brand (Keller,
1993).

Aaker (1991) views brand equity as a

multidimensional concept which is made up of
perceived quality, brand loyalty, brand awareness,
brand association and other proprietary assets.

Yoo and Donthun (2001) has employed four of

Aakers components of brand equity,i.e., brand
awareness, brand loyalty, brand awareness and
brand association excluding proprietary assets
dimensions as it is not important in the
measurement of customer-based brand equity.
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2. Statement of the Problem

The study addresses
research questions:

the

following

Which among four dimensions of consumer

based brand equity appears to have affect on
brand equity of dairy milk brand in Nepal?

How do consumer-based brand equity

dimensions interact among each other to
product indirect effect on brand equity of dairy
milk in Nepal?
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3. Objectives of the Study

The study aims to achieve the following
objectives:

To measure the consumer-based brand equity

dimensions that have stronger effect on brand
equity.

To examine the relations between the

consumer-based brand equity dimensions.

4. Significance of the Study

The choice of the dairy milk brand as the
setting for this research in the context of
measuring brand equity has been considered
particularly appropriate following important
reasons:

All people of urban area are very much aware

about the dairy milk.
Nepalese dairy milk industry has been growing
and becoming more market dominant.
With growing sophistication, branding has
become associated with a mix of values that
gives consumers a message about a product.
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5. Research Gap
In Nepalese context, there is no past research on
measuring consumer based brand equity in dairy
milk brands in Nepal.

6. Research Framework
Independent Variables

Dependent Variable

Brand Equity Dimensions

Brand Equity

Perceived Quality
Brand Awareness
Brand Associations/Image
Brand Loyalty

PESTL Analysis
Political
Economic
Social
Technological
Legal Norms

Feed back

7. 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 Associations/Image has a significant positive direct
effect on brand equity.
H4:Brand Loyalty has a significant positive direct effect on brand
equity.
H5:Perceived Quality has a significant positive direct effect on
brand equity with considering PESTL analysis.
H6:Brand Awareness has a significant positive direct effect on
brand equity with considering PESTL analysis.
H7: Brand Associations/Image has a significant positive direct
effect on brand with equity considering PESTL analysis.
H8:Brand Loyalty has a significant positive direct effect on brand
equity with considering PESTL analysis.
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8. Research Methodology

This research is basically descriptive and analytical

in nature based on primary data. The questionnaire
survey has been designed to obtain responses.
In this study 400 questionnaire has been distributed
among them, 377 questionnaire has been taken as
valid.
Data has been generated in five point likert scale
anchored by Strongly Disgagree = 1 to Strongly
Agree =5.
Correlation, Regression and other descriptive
statistical tools have been used for analysis.
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9. Major Findings

Among all dimensions, brand association/image has more

Cronbach's alpha value (0.701) recorded.
For top-of-mind recall, almost 300 out of 377 respondent having
79.6 percent respondents have mentioned DDC dairy milk.
p-value of Correlation between variables like overall brand
equity with its dimensions perceived quality, brand awareness,
brand association/image, brand loyalty are all reported in less
than .01 and all coefficient values between the brand equity
dimensions is significant.
(In Regression Model 1), p-value of brand awareness coefficient
is (0.172) which is not significant at 5% level of significance. So,
hypothesis 2 is rejected.
(In Regression Model 2) p-value of brand awareness coefficient
is (0.201) which is not significant at 5% level of significance. So,
hypothesis 6 is accepted.
All other six hypotheses are accepted in Model 1 and 2.
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10. Conclusion
DDC

has got first ranking on consumer's rating.

The second rank is Sitaram milk, followed by
Today milk.

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.

Perceived

quality has very low impact on creating

brand equity in dairy milk in Nepal.

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11. Future Research

Confining

this study to Nepal's dairy milk industry is

acknowledged as a limitation, although it is argued
that findings may be relevant to other FMCG
products like, noodles, biscuits, brewery, soft drinks,
soap, shampoo and tea etc. Also the study can be
performed in FMCS like airline, hotel, tourism
destination, media sector and communication sector.
Extending the research to include other territories of
the country is recommended, while the findings could
benefit further by the inclusion of performance
measurements of the brands chosen for the study.

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Thank You.

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