The Influence Of Advertising Spending On Brand Equity: An Empirical Study

There is a growing emphasis on building and managing brand equity these years. In the competitive market environment, building and managing brand equity is an essential company strategy for achieve superiority and success. Now, the study of brand equity focuses more on the concept and extension, but little on the source of the equity. Brand equity originates from marketing mix strategy, and so the relationship between brand equity and marketing mix becomes an important part in the brand equity study field.Compare to the mature west brand equity study, our brand equity study is only at the beginning, especially the influence of marketing mix, as advertising, on brand equity. Advertising is an important part of marketing mix, but the cost of advertising is expensive and the effect of advertising is difficult to measure. It is necessary to explore the influence of advertising on brand equity because many advertising spending are wasteful.In this paper, empirical study is used to explore the relationship between advertising and brand equity from the consumer view. Brand equity has many dimensions. Boonghee Yoo and Naveen Donthu(2000) build a conceptual framework of brand equity, in which marketing elements are related to the dimensions of brand equity, that is perceived quality, brand loyalty, brand awareness combined with brand associations. This framework provide a good idea to measure the relationships between marketing mix and brand equity, which is measuring the influence of marketing mix on the dimensions of brand equity. Based on the framework, this paper adds a perceived valve in the dimensions and explores the relationships...