DEBRE BERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
MASTER OF BUSINESS ADMINISTRATION

Factors affecting customers Based brand Equity

(In case of commercial bank of Ethiopia in Debre Berhan
Town)
A Thesis Submitted to the School of Graduate Studies of Debre
Berhan University in Partial Fulfillment of the Requirements
for the Award of the Degree of Master of Business
Administration (MBA)

BY: SELAMAWIT TESHOME

ADVISOR: BUZEYE ZEGEYE (PHD)

JUNE, 2023
DEBRE BERHAN, ETHIOPIA
 DEBREBIRHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
MASTER OF BUSINESS ADMINISTRATION

Factors Affecting Customer Based Brand Equity (In Case of

Commercial Bank of Ethiopia in Debre Berhan Town)

A thesis submitted to the school of graduate studies of Debre berhan

University College of Business and Economics in partial fulfillment for
the award of Master’s Degree in Business Administration Program

BY: SELAMAWIT TESHOME

ADVISOR: BUZEYE ZEGEYE (PHD)

JUNE, 2023
DEBRE BIRHAN, ETHIOPIA
 Declaration
I, Selamawit Teshome, declare that this thesis entitled: “Factors Affecting Customer
Based Brand Equity (In Case of Commercial Bank of Ethiopia in Debre berhan
Town)” is my original work. I have undertaken the research work independently with
the guidance and support of the research advisor. This study has not been submitted
for any degree or diploma program in this or any other institutions and that all sources
of materials used for the thesis has been duly acknowledged.

Declared By
Name: Selamawit Teshome
Signature: ____________________
Department: MBA
Date: June, 2023

`
 CERTIFICATION
This is to Certify that the thesis Entitled: “Factors Affecting Customer Based Brand
Equity (In Case of Commercial Bank of Ethiopia in Debre berhan Town)” submitted
in partial fulfillment of the requirements for the degree of master of business
administration (MBA) the postgraduate studies Debre berhan University and is a
record of original research carried out under my supervision and no part of the thesis
has been submitted for any other degree or diploma. The assistance and help received
during the course of this investigation have been duly acknowledged. I recommend it
to be accepted as fulfilling the thesis requirements.

Advisor Name: Dr. Buzeye Zegeye Signature Dates: 22 June,

2023

Internal Examiner Name --------------------Signature-------------Date:

------------------------

External Examiner Name-------------------------Signature-------------Date:

------------------------

Chairman Name--------------------------------------Signature-------------Date:
-----------------------
 TABLE OF CONTENT
Declaration.................................................................................................................................................i
`..............................................................................................................................................................i
CERTIFICATION...........................................................................................................................................ii
TABLE OF CONTENT....................................................................................................................................iii
LIST OF FIGURES..........................................................................................................................................v
LIST OF TABLES...........................................................................................................................................vi
LIST OF ABBREVIATIONS..............................................................................................................................vii
ACKNOWLEDGEMENTS..............................................................................................................................viii
ABSTRACT................................................................................................................................................ix
CHAPTER ONE...........................................................................................................................................1
INTRODUCTION.........................................................................................................................................1
1.1 Back ground of the Study......................................................................................................................1
1.2. Background of the Study Area...............................................................................................................2
1.3. Statement of the Problem....................................................................................................................2
1.4. Objective of the Study..........................................................................................................................4
1.4.1 General Objective.............................................................................................................................4
1.4.2 Specific Objectives.........................................................................................................................4
1.5. Research Questions............................................................................................................................4
1.6. Significance of the Study.......................................................................................................................5
1.7. Scope and Limitation of the Study...........................................................................................................5
1.8. Organization of the Study.....................................................................................................................5
1.9. Definition of Operational terms..............................................................................................................6
CHAPTER TWO...................................................................................................................................22
REVIEW OF RELATED LITERATURE.............................................................................................................22
2.1.1. Concept of Brand and Branding..........................................................................................................22
2.1.3 Dimensions of Brand Equity...............................................................................................................23
2.1.4 Customer-Based Brand Equity - The Aker’s Model....................................................................................24
2.1.4.1. Brand Awareness.....................................................................................................................24
2.1.4.2. Brand Association.....................................................................................................................25
2.1.4.3. Perceived Quality.....................................................................................................................26
2.1.4.4. Brand Loyalty..........................................................................................................................27
2.1.5 Customer-Based Brand Equity-Keller’s Model.........................................................................................28

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 2.1.6 Branding in the Service Industry...........................................................................................................29
2.1.7 Importance of Measuring Brand Equity.................................................................................................30
2.2. Empirical Review of Literatures.............................................................................................................30
2.3 Conceptual Framework......................................................................................................................33
CHAPTER THREE...............................................................................................................................34
RESEARCH METHODOLOGY............................................................................................................34
3.1 Description of the study area................................................................................................................34
3.2 Research Design...............................................................................................................................34
3.3 Approaches of the Study.....................................................................................................................35
3.4 Target Population..............................................................................................................................35
3.5 Method of Data Collection and Sample Size..............................................................................................35
3.6 Sampling Techniques and Sampling Procedures.........................................................................................37
3.7 Source of Data..................................................................................................................................37
3.8 Methods of Data Analysis....................................................................................................................38
3.9. Data Validity and Reliability Tests...........................................................................................................38
3.9.1 Validity.....................................................................................................................................38
3.9.2. Reliability.................................................................................................................................38
3.10 Ethical Consideration........................................................................................................................39
CHAPTER FOUR........................................................................................................................................40
DATA ANALISIS AND DISCUSSION..................................................................................................................40
4.1 Introduction.....................................................................................................................................40
4.2 Demographic Backgrounds of Respondents.............................................................................................40
4.3 Measurement of Reliability..................................................................................................................42
4.4 Descriptive Statistics...........................................................................................................................43
4.5 Correlation Analysis............................................................................................................................47
4.6 Regression analysis............................................................................................................................49
4.7. Tests for Linear Regression Model Assumptions....................................................................................50
4.8. Model Summary..........................................................................................................................52
4.9. ANOVA Result for Regression Model......................................................................................................54
CHAPTER FIVE..........................................................................................................................................55
4. SUMMARY, CONCLUSION AND RECOMMENDATION................................................................................55
5.1 Summary of Findings..........................................................................................................................55
5.2 Conclusion......................................................................................................................................57
5.3 Recommendation.............................................................................................................................58

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 5.4. Direction for further Area of Research.....................................................................................................59
REFERENCE................................................................................................................................................i
APPENDIXES..............................................................................................................................................v

LIST OF FIGURES
Figure 1.A conceptual framework...........................................................................................................33

Figure 2 the study area Map.....................................................................................................................34

Figure 3 Histogram for Normality Assumption.......................................................................................50

Figure 4 The normal P-P plot of regression standardized residual.........................................................51

Figure 5 The scatter plot graph of regression standardized residual......................................................51

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 LIST OF TABLES
Table 1.Selected commercial bank of Ethiopia in Debreberhan town.....................................................36

Table 2.Demographic information of the respondents............................................................................40

Table 3 Respondents’ descriptive frequency based on years of being customer and an account
holder of Commercial Bank of Ethiopia..................................................................................................41

Table 4 Time of frequencies when to get service in commercial bank of Ethiopia.................................42

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 Table 5Data Reliability Test....................................................................................................................43

Table 6Descriptive Statistics for variables..............................................................................................44

Table 7Descriptive statistics for Brand Awareness responses.................................................................44

Table 8Descriptive statistics for Brand Association responses...............................................................45

Table 9 Descriptive statistics for Perceived Quality responses...............................................................45

Table 10 Descriptive statistics for brand loyalty responses.....................................................................46

Table 11 Descriptive statistics for overall brand equity responses..........................................................46

Table 12 Correlation coefficient of variables..........................................................................................47

Table 13ANOVA Result for Regression Model......................................................................................54

LIST OF ABBREVIATIONS
CBBE……………………………………………….Customer Based Brand Equity

CBE……………………………………………… .Commercial Bank of Ethiopia

P V………………………………………………… Perceived Value

CC…………………………………………………..Corporate credibility

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ANOVA…………………………………………….Analysis Of Variance

SPSS…………………………………………….…..Statistical Packages for Social Sciences

MLR………………………………………………....Multiple Linear Regressions

IBM………………………………………………… International Business Machine

AMA………………………………………………...America Marketing Association

BAL………………………………………………….Brand Loyalty Program

BA………………………………………………….. Brand Affinity

DV…………………………………………………..Dependent Variable

IV…………………………………………………....Independent Variable

BAS………………………………………………….Brand Associations

BAW……………………………………………… .Brand Awareness

BLO………………………………………………….Brand Loyalty

PQU………………………………………………….Perceived Quality

OABE……………………………………………… Over all brand Equity

ACKNOWLEDGEMENTS
All praise belongs to the God with whose blessings I have accomplished what I had started to do. The
successful completion of this work has been possible largely due to invaluable assistance extended to

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me from many people to whom I would like to express my profound gratitude and feel highly
indebted.

I am highly grateful to, my advisor Buzeye Zegeye (Phd) for the invaluable guidance and comments;
he has extended to me towards the realization of this work. I also appreciate his kindness,
encouragement, suggestions and his sharing knowledge and experience that made it possible to attain
this research work. I would also like to thank all my family and friends for their moral supports and
encouragement for the success of this paper.

ABSTRACT
The main objective of the study is to measure the determinants of the customer - based brand equity of
Commercial Bank of Ethiopia in Debre birhan Town in the eight selected branches. The study was
conducted based on Aaker’s four-dimension customer-based brand equity model (brand awareness,
brand associations, perceived quality and brand loyalty). An explanatory research design is applied
in the research process. Primary data was collected from the customers of Commercial Bank of

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Ethiopia in Debre birhan Town in the eight branches using questionnaire; and to address the ultimate
sample elements, convenience sampling technique was used. The collected data was analyzed using
correlation analysis and multiple linear regressions. The result of the correlation analysis signifies
that brand awareness, brand associations, perceived quality and brand loyalty have significant
positive relationship with brand equity. The multiple linear regression analysis also revealed that
brand awareness, brand associations, perceived quality and brand loyalty have significant positive
impact to the brand equity of Commercial Bank of Ethiopia in Debre birhan Town in the eight
branches. However, the result has shown that variations among the determinants in their level of
influence to the brand equity. Accordingly, brand loyalty was found to have the strongest significant
positive influence on the brand equity followed by perceived quality. Brand awareness and brand
associations were also witnessed to have a statistically significant positive influence but quite in a
lesser extent. This implied that Commercial Bank of Ethiopia in Debre birhan Town in the eight
branches need to give due emphasis to brand loyalty and perceived quality in its endeavor to build
strong brand equity and excel from the competition.

Keywords: customer-based brand equity, brand equity, brand awareness, brand associations,
Perceived quality, brand loyalty

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i
 CHAPTER ONE
INTRODUCTION
1.1 Back ground of the Study

Brand equity is built by providing great customer experiences that encourage people to
choose them over rivals that provide identical items. Buying behavior of people can be
changed by the help of brand name and equity. High brand equity levels are known to lead to
higher consumer preferences and purchase intentions (Cobb-Walgren et al. 1995). The
concept has gain significant attention from academic scholars, which in turn resulted in the
publication of several books and articles (Aaker 1991and Keller, 1990, et.al). David A.
Aaker‟s: 1991, defined Brand equity as “a set of assets and liabilities linked to a brand, its
name and symbol that add to or subtract from the value provided by a product or service to a
firm and/or that firm’s customers. According to Keller, (1993) Brand equity is from the two
perspectives, customer based brand equity and financial based brand equity. From the
Customer Based Brand Equity perspective, brand equity reflects the consumer’s
understandings, attitudes, emotions, and behavior toward a brand through their own
experience to compare with those of competitors brands and financial perspective was viewed
as a method that gave managers guidance in understanding brand enhancement.

Building a strong brand is the goal of many organizations because of the host of possible
benefits that may result (Hoeffler and Keller, 2002).A competitive advantage can be reached
through product branding which successfully can lead to several benefits: less price sensitive
customers, decreased perceived risk among the customers, and increased brand loyalty.
(Jamal &Hossein, 2013; Keller, 2008) This importance of being different highlights the
actuality of managing the brand in a strategic manner (Lisa, 2000), which can be done
through building strong brand equity.

Services business branding is difficult from products reasons for some characteristics such as
intangibility, heterogeneity, inseparability and indivisibility. Research in the service sectors
like banks shows that the brand equity dimensions and communications, have an effect on
attitude and customers’ substantially satisfaction and finally on brand preference in service
sector (Chernatony and Segal-Horn, 2003). Through branding, creating a favorable image of
the brand and build customer loyalty to the brand should be the most important management
objective and priority in the service sector including the banking sector and it is important

1
that identifying the factors affecting the brand equity of the banking sector because for
example if a company has a good brand awareness and brand loyal customers, the company
simply builds a favorable and sustainable brand equity.

Currently, the banking industry in our country has made remarkable developments, not only
growing in quantity but also constantly providing new products and services in order to best
meet customer needs. Besides, along with the explosion of science and technology, customer
awareness is also increasing more and more, which means that today's customers have a lot
of opportunities in choosing or changing banks to best suit their desires. Therefore, the
competitive pressure in the banking industry is now greater than ever. To be able to hold
market share, besides attracting new customers, retaining the existing customer is sorely
needed. Accordingly, within the scope of this research, the researcher focuses on factors that
affect brand equity in the banking sector in commercial bank of Ethiopia based on customer
view in addition to company and competitors. Although the existence of a number of models
on brand equity in the literature, this research will apply the most commonly used model of
Aaker and this study will attempt to show the factors affecting customer based brand equity
in case of Commercial bank of Ethiopia within the selected branches of Debre birhan town.

1.2. Background of the Study Area

Commercial Bank of Ethiopia (CBE) is one of the oldest public banks established in 1942 as
a State Bank. Since then, CBE has gone through different reforms and mergers coming out as
one of the most reputable and biggest commercial banks in the country. It has more than 37.9
million account holders in its 1900 plus branches stretching throughout the country. Its
outreach to individual depositors, small and medium scale businesses and private and public
mega investment projects has made it the largest single bank in the country to have a
significant impact on the economy of the country. CBE played a significant role as both the
engine of the country’s economic growth and mobilizing savings for further investment.

1.3. Statement of the Problem

A company's brand is important because it can determine how customers view the quality of
its products or services (Aaker, 2021). So Branding is very essential in any business
environment since it communicates so much information to customers on product quality and
it is more critical in industries such as banking where products seem to be more homogenous
thus making it difficult for customers to distinguish any clear difference between them It also

2
plays a significant role in differentiating products as unique from those of the competitors
(Kumar & Prasad, 2012). According to Larry (2001), strong brand equity can be achieved by
developing brands that address the basic needs of customers. In the face of homogeneity of
products in the banking industry, banks need to adopt appropriate branding strategies that can
lead to customer loyalty and hence strong brand equity and the study of brand equity in the
branding literature has been limited.

Researches in the service sectors like banks shows that the brand equity dimensions and
communications, have an effect on attitude and customers’ substantially satisfaction and
finally on brand preference in service sector (chernatony and segal-horn, 2003). Through
branding, creating a favorable image of the brand and build customer loyalty to the brand
should be the most important management objective and priority in the service sector
including the banking sector. There are few studies on the concept of brand equity in relation
to banks` Brand in our country, Ethiopia. Among the research studies in private banks,
Habtamu Muhabaw,2018, tried to identify the determinants of consumer based brand equity
in banking sector the case of private banks in Bahir-dar town, Tewedros, 2017, conducted his
study to evaluate the Role of Selected Promotional Elements in Building Brand Equity in
Case of Commercial Bank of Ethiopia. even though, brand equity in relation to banking
sector in our country is not sufficient regarding identifying factors of brand equity
specifically in commercial bank of Ethiopia. Since it is a governmental owned bank and it is
difficult to compare the company’s brand equity with the privately owned banks because
commercial bank has a wide reach, it has many customers base and the customers of
commercial bank of Ethiopia are more believe about commercial bank because it is a
government bank. This is the initials to identify the factors of brand equity in commercial
bank of Ethiopia and considered as a research gap since, the banking sector has provided
homogeneous service, and they use different branding strategy.

Therefore, Based on the above gap the researcher developed an interest in this area. Aaker
(1991) identified the conceptual dimensions of brand equity as brand awareness, brand
associations, perceived quality, brand loyalty, and other proprietary brand assets. As there is
lack of research on the relationship between customer-based brand equity of commercial
bank of Ethiopia with the dimensions of brand equity, by retesting the most popularly
adopted brand equity dimensions, this study aims to empirically test the customer-based
brand equity components and how they interact in the context of commercial bank of

3
Ethiopia customers as its measurement is felt important to develop and deploy adequate
benefits by the bank.

1.4. Objective of the Study

1.4.1 General Objective

The general objective of the study was able to investigate the factors affecting customer
based brand equity in the case of the eighth branches of commercial bank of Ethiopia in
Debre Berhan town.

1.4.2 Specific Objectives

This study has provided some insights about the factors affecting customer based brand
equity in CBE and has the following specific objectives.

 To examine the impact of brand awareness on customer based brand equity of

commercial bank of Ethiopia.
 To evaluate and review how perceived quality affect customer based brand equity of
commercial bank of Ethiopia.
 To investigate the effect of brand association on customer based brand equity of
commercial bank of Ethiopia.
 To assess the relationship between Brand loyalty and customer based brand equity of
commercial bank of Ethiopia.
1.5. Research Questions
The research would address the following key research questions.
 What is the impact of brand awareness on customer based brand equity of commercial
bank of Ethiopia?
 How perceived quality affects customer based brand equity of commercial bank of
Ethiopia?
 What is the effect of brand association on customer based brand equity of commercial
bank of Ethiopia?
 How brand loyalty affect customer based brand equity of commercial bank of
Ethiopia?
 What is the major factor among the four dimensions of customer based brand equity
of commercial bank of Ethiopia?

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1.6. Significance of the Study

This study has provided some insight about the factors affecting customer based brand equity
in CBE and will have the following significance. Conducting this research on one of service
giving company which is commercial bank of Ethiopia fill the existing empirical literature
gap for the next significant researches and the study will be expected to identify the factors
that have an influence on brand equity. The result of the study will be helpful. The research is
useful in identifying which factors have a great impact on brand equity and to know the
contribution of identifying those factors in Commercial Bank of Ethiopia In addition the
research enables the bank managers to fill the gap in relation to those identified factors that
have an influence on brand equity and useful for further investigation to the bank in related to
the factors of customer based brand equity in commercial bank of Ethiopia. Lastly, the study
can use as reference for the coming research door.

1.7. Scope and Limitation of the Study

The study focused in Debre birhan town so as to reach or critically investigate factors that are
listed under the statement problem. In addition to the one mentioned, the study tried to
investigate the data which show the factors that have an influence on brand equity by
considering certain researches and the bank as a whole under consideration theoretically. The
study was limited to investigate the factors that affect brand equity of commercial bank of
Ethiopia in Debre birhan town and the study seeks to examine the applicability of Aaker`s
customer-based brand equity model in commercial bank of Ethiopia.

1.8. Organization of the Study

This paper was divided into five sections, which give readers a comprehensive overview of
the study. The first section presents the introduction part of the study. The second section
discusses review of related literature; this is followed by the third section which is research
design and methodology of study. The last two sections cover the data analysis and
presentation and recommendation and conclusion.

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1.9. Definition of Operational terms

Operational definition of terms were used where, operation, terms/ variables are defined from
different technical perspectives. The following technical terms in the study as defined as
follows:

 Brand: A name, term, design, symbol or any other feature that identifies one seller's
good or service as distinct from those of other sellers.
 Brand Equity: David Aaker defined brand equity as a set of brand assets and
liabilities linked to a brand, its name and symbol that add to or subtract from the value
provided by a product or service to a firm and/or to that firm‘s customers‖ (Aaker,
1991, p.15).
 Brand Equity: is defined the differential effect that brand knowledge has on
consumer response to the marketing of that brand (Keller, 2013, p.69). In this research
it is acknowledged that brand equity exists in the consumers mind in terms of the four
brand assets: perceived quality, brand awareness, brand loyalty and brand associations
described by David Aaker.
 Customer: a customer is an individual or business that purchases another company's
goods or services. Customers are important because they drive revenues; without
them, businesses cannot continue to exist. In this study customers are those who use
banking services (https://www.investopedia.com//customer.asp).
 Customer-based brand equity (CBBE) model: refers to the model that used for
measuring the effect of brand equity upon customers ‘service choice.
 Brand Judgments: refers to customers ‘personal opinions and evaluations with
regard to the brand. (Keller; 2004). Brand judgments focus on customers ‘own
personal opinions and evaluations.
 Brand Awareness: reflects the knowledge and salience of a brand - the capacity to
recognize - in the mind of customers. (Aaker; 1996).
 Brand loyalty: is when a customer consistently buys products from one brand over
its competitors. Sometimes, customers remain loyal to a specific brand because they
want to associate with the ideals the brand's identity represents. In this way, a
customer bases their loyalty on an emotional connection the brand has established.
(Aaker; 2021).

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 A brand's perceived quality: refers to the public's understanding of its products or
services. Positive brand perception can promote customer loyalty and help a company
grow its customer base. (Aaker; 2021).
 Brand associations: This component measures the connections that customers have
to a brand. (Aaker, 2021).

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical Related Literature Review
2.1.1. Concept of Brand and Branding

There are numerous definitions of a brand; different scholars provide their own explanation
towards the meaning of a brand. According to Czinkota & Ronkainen (1999), the word Brand is a
trademark or distinctive name identifying a product or a manufacturer. It refers a name, term,
symbol, sign or design used by a firm to differentiate its offerings from those of its competitors.
Kapferer (2008) also defines brand as a name that influences buyers. He further notes that brand
commands people’s attention because they have element of saliency, differentiability, intensity
and trust. Successful brand conveys a consistent message and create an emotional bond with
consumers.

American Marketing Association (AMA) defines a brand as a “name, term, sign, symbol, or
design, or a combination of them, intended to identify the goods and services of one seller or
group of sellers and to differentiate them from those of competition.” Kotler & Armstrong, 2012,
“A strong service brand is essentially a promise of future satisfaction. It is a blend of what the
company says the brand is what others say, and how the company performs the service all from
the customer's point of view. Brands are more than just names and symbols. They are a key
element in the company’s relationships with consumers. Brands represent consumers’ perceptions
and feelings about a product and its performance, everything that the product or the service means
to consumers. In the final analysis, brands exist in the heads of consumers.

According to Kotler (2009), brands are important valuable intangible assets for companies, a
distinctive tool that builds a long-term relationship with the consumers, and protects its‟ rights.
For consumers, brands reflect their experience and knowledge; simplifying the processing of
information accumulated over time about the company and its products or brands. In addition,
brands reflect consumers` experiences and knowledge; thus, simplify the processing of
information accumulated over time about the company and its products or brands. Consequently,
brands act as signals for products of high quality and low perceived risk, thus, enable the
consumers to capture both cognitive and non-cognitive values expressed in the positive feelings
or self-expression experienced (Aaker, 1996).
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 2.1.2. Brand Equity

Aaker (1991) defines brand equity as a set of assets and liabilities linked to a brand name and
symbol that adds to or subtracts from the value provided by a product or service to a firm and that
firms customers. These assets can be grouped into five dimensions: brand awareness, brand
associations, perceived quality, brand loyalty and other proprietary assets. Keller, (1993) defines
brand equity from as “the differential effect of brand knowledge on consumer response to
marketing the brand”. A brand is said to have positive (negative) customer-based brand equity
when consumers react more (less) favorably to an element of the marketing mix for the brand
than they do to the same marketing mix element when it is attributed to a fictitiously named or
unnamed version of the product or service (Keller, 1993). Simom and Sullivan (1993) as well as
Biel (1997) describe brand equity in terms of cash flow differences. Between where the brand
name is added to a firm product and in other side where the same product does not have brand
name. Estimating a financial value for the Brand is necessary but it doesn’t provide marketers
tools to understand the process of building brand equity.

According to yoo and donthu (2001), consumer-based brand equity approach is focusing on the
steps of processing information and building confidence in the purchase decision by consumers. It
also enhances efficiency and effectiveness of marketing mix decisions such as price, profits and
brand extensions their study results indicated that the new brand equity scale is applicable,
reliable, and relevant in different product categories in different cultures. These authors also
pointed out that the four dimensions brand equity model that comprise of brand awareness, brand
association, perceived quality and brand loyalty are valid to identify brand equity.

2.1.3 Dimensions of Brand Equity

In recent brand equity literature, there are different prominent views of brand equity dimensions
that provide valuable insights into the body of customer based brand equity and among mostly
cited brand equity studies the followings are the prominent once Keller, (1993), revealed that
Dimensions of Brand Equity are Brand awareness and brand image. When the consumer is
familiar with the brand and holds some favorable, strong, and unique brand associations in the
memory, then customer-based brand equity occurs. According to Aaker (1996), Brand loyalty,
perceived quality, brand awareness, and brand associations are the four dimensions of brand
equity and represent customer perceptions of the brand and could be applied across markets and

9
products. Park, and Srinivasan, (1994), brand equity dimension is based on brand associations
(Attribute-based and non-attribute-based component of brand equity). The non-attribute-based
component of brand equity appears to play a more dominant role in determining a brand’s equity.
Cobb Walgren, Ruble, and Donthu (1995), stated that Perceived quality, brand awareness, brand
associations, advertising awareness are the dimensions of brand equity and they found that a
brand with greater advertising budget yielded substantially higher levels of brand equity. In turn,
the brand with the higher equity generated significantly greater preference and purchase
intentions.

Yoo, Donthu, and Lee (2000), identified that the dimension of brand equity is based on Brand
loyalty, perceived quality, brand awareness/associations and brand equity is positively related to
perceived quality, brand loyalty, and brand associations. The relationship of perceived quality and
brand associations to brand equity is much weaker than the relationship of brand loyalty to brand
equity. According to Mishra and Datta (2011) brand equity dimensions are Brand Name, Brand
Communication, Brand Association, Brand Personality, Brand Awareness, Brand Image,
Perceived Brand quality, Brand Loyalty and importance of the effect of the brand assets treated
as antecedents like brand name, awareness, personality and consequences like brand preference
and purchase intention on customer based brand equity. Branding is more than selling a product
or service, such as a current account, a bank credit card or a life insurance policy. It is about
finding out a target market and then designing a product and a brand personality that satisfied
those needs of certain target markets. Branding is about discovering clear function needs among
scattered and identifiable segments of customers, understanding the motivations.

2.1.4 Customer-Based Brand Equity - The Aker’s Model

The concept of Customer-Based Brand Equity (CBBE) has been given a detailed analysis by
Keller, (2003). He came up with a justifiable recommendation on how it is structured and how we
can make use of many variables in order to build strong brand equity. The determinants of
customer-based brand equity were conceptualized by Aaker (1996) as five elements namely
Brand Awareness, Perceived Quality, Brand Association, Brand Loyalty and other proprietary
brand assets. The elements are discussed in detail as follows.

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 2.1.4.1. Brand Awareness

According to Ambler et al. 2002, Brand awareness is the extent and ease to which customers
recall and recognize the brand and can identify the products and services with which it is
associated. Brand awareness represents a condition in which the consumer is familiar with the
brand and recalls some favorable, strong, and unique brand associations. This definition focuses
on the individual consumers and the consumer’s reactions to marketing of a particular product.
Brand awareness refers to the strength of a brand’s presence in consumers’ minds. It is an
important component of brand equity. Aaker, 1991; Keller, (1993) in particular, brand name
awareness relates to the likelihood that a brand name will come to mind and the ease with which
it does so and People will often buy a familiar brand because they are comfortable with the
familiar. Brand awareness consists of brand recognition and brand recall performance. According
to Netemeyer et al. (2004), defines Brand Awareness as the extent to which consumers think
about a brand when a product under that brand name mentioned is the ability to identify or
recognize the brand by the consumer. (Rossiter& Percy, 1987).Aaker (1991) defines brand
awareness as the strength of a brands presence in the consumers mind. It refers to the ability that
consumers recognize and recall a brand when thinking of a particular product.

Keller (1998) argues that brand awareness is developed from the familiar, frequency appearance
of the brand in consumer mind through meeting their relevant needs and previous buying
experience. He also suggests that brand awareness can influence customer buying decisions
through strong brand associations. Keller (2008) affirms that brand equity increases when
consumers have awareness and familiar with a particular brand, they have to hold a strong and
positive association of that brand in mind. Aaker (1996) points to the important role of brand
awareness in brand equity valuation, as it measures the market share of customer minds or brand
top-of-mind perceptions.

2.1.4.2. Brand Association

A brand association is the most accepted aspect of brand equity (Aaker 1992). Associations
represent the basis for purchase decision and for brand loyalty (Aaker 1991). Brand associations
consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes
(Kotler and Keller 2006, p. 188) and is anything linked in memory to a brand. Other researchers
(Farquhar & Herr 1993, Brown &Dacin 1997, Biel 1992) identify different types of association

11
that contribute to the brand equity. Chen (2001) categorized two types of brand associations -
product associations and organizational associations. Product Associations: it includes functional
attribute associations and non-functional associations (Chen, 2001). Functional attributes are the
tangible features of a product (Keller, 1993). While evaluating a brand, consumers link the
performance of the functional attributes to the brand, (Pitta &Katsanis, 1995). If a brand does not
perform the functions for which it is designed, the brand will has low level of brand equity.
Performance is defined as a consumer’s judgment about a brand’s fault-free and long-lasting
physical operation and flawlessness in the product’s physical construction, (Lassar et al., 1995).

Non-functional attributes include symbolic attributes which are the intangible features that meet
consumers‟ needs for social approval, personal expression or self-esteem. These include
trustworthiness, perceived value, differentiation and country of origin of the brand (Keller, 1993).
Organizational Associations: it include corporate-ability associations, which are those
associations related to the company’s expertise in producing and delivering its outputs and
corporate social responsibility associations, which include organization’s activities with respect to
its perceived societal obligations (Chen 2001). According to Aaker (1996), consumers consider
the organization that is the people, values, and programs that lies behind the brand.

2.1.4.3. Perceived Quality

Perceived quality is viewed as a dimension of brand equity rather than as a part of the overall
brand association (Keller, 1992). Perceived quality is the customer’s judgment about a product’s
overall excellence or superiority that is different from objective quality (Zeithaml, 1988).
Objective quality refers to the technical, measurable and verifiable nature of products/services,
processes and quality controls. High objective quality does not necessarily contribute to brand
equity, (Anselmsson et al., 2007).

Perceived quality is hence formed to judge the overall quality of a product/service. Boulding,
(1993) argued that quality is directly influenced by perceptions. Consumers use the quality
attributes to infer‟ quality of an unfamiliar product. It is therefore important to understand the
relevant quality attributes are with regard to brand equity. Zeithaml (1988) and Steen kamp
(1997) classify the concept of perceived quality in two groups of factors that are intrinsic
attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspects of a
product (e.g. colour, flavour, form and appearance); on the other hand, extrinsic attributes are

12
related to the product, but not in the physical part of this one e.g. brand name, stamp of quality,
price, store, packaging and production information (Bernue´s et al.2003). Service quality: Service
quality is defined as a form of attitude that results from the comparison of expectations with
perceptions of performance over time (Parasuraman et al, 1988). The increasing competition and
uncertain economic conditions have generated an increasing demand of expectation for quality
services. In the same vein, a decreasing tolerance for poor service quality is observed (Hart et al,
1990). Parasuraman, Berry and Zeithaml (1991) demonstrate perceived service quality as the
customer based performance measure. Headley and Bowen (1997) inform that service quality is
the difference between what customers’ needs and what they certainly perceive as outcome.
Service quality can be defined in the marketing literature as a post consumption assessment of
services by customers. Holdford & Reinders (2001), Perceived service quality is also seen in the
customer’s global point of view or judgment of the overall excellence or superiority of the service
Ugboma, et al. (2004). According to Mostafa (2005), service quality has become a famous
research topic because of its important relationship to costs, profitability, customer satisfaction,
customer retention, service guarantees, and financial performance.

2.1.4.4. Brand Loyalty

Aaker (1991) defines brand loyalty as the attachment that a customer has to a brand. If customers
buy a product with little or no concern to the brand name but only look to the price, product
feature and convenience, then there is little equity. But if the consumers instead continue to
purchase the brand though competitors have superior prices, features, and convenience, then the
brand has high equity. Most researchers Chaudhari and Holbrook (2001); Oliver (1999) believe
that the best way to operate brand loyalty is to measure both attitudes and behavior.

 Behavioral Loyalty

Behavioral loyalty can be indicated by a number of repeated purchases (Keller, 1998) or

commitment to re-buy the brand as a primary choice (Oliver 1999). It is defined as the degree to
which a buying unit, such as a household, concentrates its purchases over time on a particular
brand within a product category, (Schoell and Guiltinan, 1990).

 Cognitive Loyalty

13
It refers to the consumers‟ intention to buy the brand as the first choice (Keller, 1998). It refers to
the tendency to be loyal to a focal brand as demonstrated by the intention to buy it as a primary
choice” (Oliver, 1997). It is a means that a brand comes up first in a consumers` mind, when the
need to make a purchase decision arises, that is the consumers‟ first choice. The cognitive loyalty
is closely linked to the highest level of awareness (top-of mind), where the matter of interest also
is the brand, in a given category, which the consumers recall first. Thus, a brand should be able to
become the respondents‟ first choices (cognitive loyalty) and is therefore purchased repeatedly
(behavioural loyalty) (Keller 1998).

 Price Premium

Price premium is defined as the amount a customer will pay for the brand in comparison with
another brand offering similar benefits and it may be high or low and positive or negative
depending on the two brands involved in the comparison. It is the customers` willingness to pay
higher price for a brand in comparison with another brand offering similar benefits (Aaker 1996).

 Customer Satisfaction

Yi (1990) defined customer satisfaction as “ an emotional response to the experiences provided

by, associated with particular products and services purchased, retail outlets, or even molar
patterns of behaviors such as shopping and buyer behavior, as well as the overall market place”
(Yi, 1990, p. 69). Although, there are a number of customer satisfaction theories in the literature
such as contrast theory, dissonance theory, and equity theory, research shows that expectation-
disconfirmation paradigm has received much empirical attention (Parasuraman et al., 1988).
However, other empirical findings demonstrate that customer satisfaction can also be measured
through product or service performance (Anderson and Sullivan, 1993; Churchill and Surprenant,
1982) or an outcome of service quality (Anderson et al., 1994).

2.1.5 Customer-Based Brand Equity-Keller’s Model

A major contribution to branding theory was that made by Kevin Keller (1993; 2001; 2003)with
his introduction of the concept of customer-based brand equity and the brand
hierarchy(Keller,2003). Brand equity, according to Keller, is the effect that brand knowledge has
on consumer response to the marketing of a brand, with the effect occurring when the brand is
known and when the consumer possesses favorable, strong and unique brand associations (Keller,

14
1993). The Customer-Based Brand Equity (CBBE) model identifies four steps which denote
questions asked by customers, and represent a „branding ladder‟, with each step dependent on
achieving the previous one (Keller, 2001).

These steps consist of six brand building blocks, with a number of sub-dimensions (Keller, 1993).
To build a strong brand, the aim is to reach the pinnacle of the pyramid where a harmonious
relationship exists with customers. Briefly overviewed, the first step of the CBBE model is to
ensure the correct „brand identity‟. Answering the first question customers ask about brands -
Who are you? The purpose is to create an identification of the brand, and an association with a
specific product class or need (Keller, 2003). The initial step consists of the brand building block,
„salience‟. The second step answers the customer question - What are you? By establishing
„brand meaning‟ in their minds, and linking brand associations with certain properties (Keller,
2001), two brand building blocks make up this step - „performance‟ and „imagery‟. They are 1.
Identity (Who are you?) 2. Meaning (What are you?) 3. Response (What about you?) 4.
Relationships (What about you and me?)

The next step is „brand response‟ whereby the proper customer responses to the brand
identification and meaning are elicited (Keller, 2003). This step is achieved with the „judgments‟
and „feelings‟ building blocks, and answers the question - What about you? „Brand
relationships‟ constitutes the final step in the CBBE pyramid where brand response is converted
to an intense, active loyalty relationship between customers and the brand (Keller, 2001).
Addressing the customer question of what about you and me? The final brand building block and
the pinnacle of the pyramid is „resonance‟.

2.1.6 Branding in the Service Industry

While brand equity associated with tangible goods has received a great deal of attention in the
literature, a basic understanding of the nature of brand equity for services has yet to emerge. Most
of what is known about brand equity for services is based on theoretical or anecdotal evidence
(Krishnan and Hartline, 2001). Simoes and Dibb , (2001) argue that branding plays a special role
in service companies because strong brands increase customers‟ trust of the invisible, enabling
them to better visualize and understand the intangible and reduce customers‟ perceived financial,
social or safety risk. Blankson and Kalafatis, (1999) suggest that service brands are particularly
different in that service characteristics are different from those of physical goods and that they

15
rely on employees‟ actions and attitudes. This difference is seen to focus around the belief that
services are conceptually different from products in that services are seen to have a number of
unique characteristics including intangibility, inseparability of production and consumption,
heterogeneity of quality and perish ability.

2.1.7 Importance of Measuring Brand Equity

Brand equity has been extensively discussed in over the past decade and there seem to be a
consensus amongst the scholars that a brand has high brand equity when it generates positive
connotations in the consumers‟ minds and is therefore likely to be the preferred purchase over
other brands or non-branded products (Pappu et al, 2005, Yoo et al, 2001). Keller (1993) notes;
that customer-based brand equity occurs when the consumer is familiar with the brand and holds
some favorable, strong and unique brand associations in memory. It has also been argued that
brands with high brand equity can charge a premium price for their products (Kuhn et al, 2008).
Nevertheless, measuring brand equity remains an important factor of brand management and can
be used in order to 'guide marketing strategy and tactical decisions, to assess the extendibility of a
brand, to evaluate the effectiveness of marketing decisions, and to track the brand's health
compared to its competitors over time,'(Ailawadi , 2003).

Aaker (1991) adds to this idea and argues that as part of its role in adding value for the customer,
brand equity has the potential to add value for the firm by generating marginal cash flows in at
least a dozen ways. There seem to be a consensus in the scholarly community that the study of
brand equity is of great importance in order to build and maintain a strong brand and it therefore
seems relevant to the mobile phone industry, which is a fast moving industry where it is
important to be able to keep up with the competitors.

2.2. Empirical Review of Literatures

There were several researches done on the Customer Based Brand Equity of different products.
However, there are inadequate studies conducted in relation to the Customer Based Brand Equity
in the Banking sector of Ethiopia that will aiming to conceptualize the customer based brand
equity in the financial service sector with respect to its effect on perception of brand. The
followings are among the researches carried out in relation to brand equity of financial sector
specifically in banks. Teshome Muluneh, N (2018), conducted a research on Measuring
Consumer-Based Brand Equity in Case of Awash Bank. The study was to empirically test the
16
customer based brand equity dimensions and how they interact within the context of Awash Bank
customers’ based on most commonly cited model of Aaker’s (1996) and evaluated the
relationship between dependent variable (brand equity) against with the independent variables
(perceived quality, brand awareness, brand association, and brand loyalty) and the findings of the
study showed that all four dimensions of customer based brand equity (perceived quality, Brand
awareness, Brand association, and Brand loyalty) has a significant and positive effect on
customer-based brand equity of Awash Bank.

Muse Mekonnen, (2017), a research conducted on the role of brand equity on customers’ bank
choice a case study on Enat bank sc. The research tried to answer to basic research questions:
How brand equity affects customer’s bank choice? And which brand equity dimension has more
effect on customers’ bank choice? The purpose with this research is that to light on the extent of
customer based brand equity in banking industry and to find out how customers perceive the
value and brand of the bank they are using for the financial services of their business and personal
wish for and the research used a quantitative method and a deductive approach for this thesis.
Hypotheses were created with theory as a base and tested on a sample population of Enat Bank
selected branches customers in Addis Ababa. According to the findings in this research the most
important factors for customer’s bank choice are related to brand associations, brand activity and
brand loyalty towards the brand equity of the bank and having positive feelings about the bank,
the service from employees and their ability, the satisfaction from the financial services of the
bank, and the uniqueness of the bank are the most important part.

Tsegaye Alemu (2017), research on the Role of Selected Promotional Elements in Building Brand
Equity in case of Commercial Bank of Ethiopia; study was carried out with the intention of
examining the role of selected promotional elements in building brand equity by taking the case
of Commercial Bank of Ethiopia (CBE). The study applied Structural Equation Modeling to test
hypotheses and determine the effect relationships between variables. The study found out that,
television advertising, non-price sales promotion and sponsorship programs of CBE positively
affect brand equity through the four brand equity dimensions and the research tried to look at the
effect of television and radio advertising, non-price sales promotion and sponsorship programs
that are used by the bank in positively contributing to the development of brand equity through
the mediating dimensions of brand equity. These dimensions namely, brand awareness, brand
association; perceived quality and brand loyalty are conceptualized as mediation routes between

17
promotional elements and brand equity. On other hand, radio advertising was found to have no
effect on the dimensions and the resulting brand equity.

Habtamu Muhabaw, (2018), conducted a research on Determinants of Consumer Based Brand

Equity in Banking Sector the case of private banks in Bahir-Dar town conducted and the scale
constructed to measure consumer-based brand equity included brand awareness and brand image
captured through Product Attributes, Service Attributes, and Symbolic Attributes. The research
used an explanatory and descriptive research design and questionnaires administered to gather
research data and the findings indicate that image related attributes particularly; Service
Attributes and Symbolic Attributes proved to be very essential and are found to be strong
predictors of brand equity of banking sectors particularly in the case of private banks in Bahir-
Dar. On the contrary, Brand awareness attributes had no significant impact on ratings of brand
equity.

Maryam Nadernezhada and YounosVakilalroaiab, (2013), a research on measuring brand equity

in banking industry in case study of Mellat Bank and the study tried to examined the influencing
factors on brand equity in banking industry which are brand loyalty, brand awareness, brand
compatibility and perceived quality. Using a descriptive and non-experimental study, the
proposed study gathers data and analyses them using t-student test. The results indicate that three
components including brand loyalty, brand awareness and brand equity compatibility on brand
equity of Mellat bank branches in Mazandaran province are in desirable level but the effect of
perceived quality indicator on brand equity of Mellat Bank is not desirable. The study provides
necessary suggestions to improve the quality of services for the proposed case study.

Miguel Maria Torres, (2015), a research conducted on understanding brand equity on financial
services in case study on the Portuguese banking sector. According to the researcher, the factors
contribute the most for the brand equity creation model combined four independent variables
(Corporate Credibility, Perceived Value, Service Quality, and Brand Affinity) are expected to
have a positive influence on brand equity. A questionnaire was distributed in Portugal, gathering
valid responses from the analysis of the survey and found that From the analysis of the survey the
three out of the four variables selected were found to be significant for the brand equity
construction (Corporate credibility (CC), perceived value (PV) and brand affinity (BA) help
banks to increase reputation, overall perception of quality and emotional connections with their
brand, which ultimately increases the value of their brand.
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2.3 Conceptual Framework

Brand equity is a multidimensional concept and a complex phenomenon. Keller (2002) separated
it into two components: awareness and association. Aaker (1991, 1996) grouped it into five
categories: perceived quality, brand loyalty, brand awareness, brand association, and other
proprietary brand assets such as patents, trademarks, and channel relationships.

Among these five brand equity dimensions, the first four represent customers` evaluations and
reactions to the brand that can be readily understood by consumers (Barwise, 1993;
Yoo&Donthu, 2001), it has been widely adopted to measure customer based brand equity in
previous studies. Though several dimensions of brand equity are identified in the literature, the
interrelations among the various dimensions of brand equity are not well understood. In this study
customer based brand equity concept will be measured by breaking it down into sub components
and testing the relations between these sub components. So the end results will give opportunity
to managers to develop detailed brand strategies. And Customer Based Brand Equity Model
Aaker (1991) is used as the conceptual frame work.

Brand awareness

Brand asociation Brand

Equity
Perceived quality

Brand loyalty

Independent Dependent Variable

Figure 1.A conceptual framework
Source: Aaker (1991) and Yoo and Donthu (2001)
19
 CHAPTER THREE

RESEARCH METHODOLOGY

This chapter highlights research methodology that has been used in the study. It gives an
overview of research design, population and sample size, sampling techniques, data
collection and data analysis that were used in the research.

3.1 Description of the study area

Figure 2. the study area Map

Debre berhan is a city in central Ethiopia which is located in the Semein Shoa Zone of Amhara
region about 120 km north east of Addis Ababa on Ethiopia High Way. The town has an
elevation of 2,840 meters, which makes it the highest town of this size in Africa. Today it is the
administrative center of Semen Shoa Zone of the Amhara Region.

3.2 Research Design

Saunders, Lewis and Thornhill (2000) as cited by Farhadi (2009) broadly classified research
design as exploratory, descriptive, and explanatory. The author further defined exploratory
research as a research design which has a primary objective to insights into and understanding of

20
the problem situation tackling the research and descriptive research as a type of a research design
that has a purpose to describe something. Moreover, if the research is concerned with learning of
why (i.e. how one variable produces changes in another) the research is said to be explanatory.
The research used Co relational and explanatory study since the major focus of the study is
identifying if there is a correlation among the independent variables perceived quality, brand
awareness, brand association and brand loyalty with the dependent variable overall brand equity.
This study tried to explain the relationship between and among the research variables.

3.3 Approaches of the Study

There are three different research approaches which are qualitative, quantitative and mixed.
Quantitative research is the systematic and scientific investigation of quantitative properties and
phenomena and their relationships (Kothari, 2005). In order to achieve the objectives of this
study, the research follow a quantitative research method which deals with use of statistical tools
and numbers to address the previously mentioned research questions. Quantitative approaches
were used for the data to be collected from respondents through questionnaire.

3.4 Target Population

The target populations of the study were active account holders of commercial bank of Ethiopia
at Debre berhan town selected from the eight branches of the town. The reasons for choosing the
target population is that an account holders of the bank where they are closer to the bank in daily
basis and the account holders are expected to know more about the bank they are using.
Currently, commercial bank of Ethiopia has 161782 number of customers in eight branches in
Debre berhan town and the study targeted those town branches’ account holders, (source; Annual
report of 2022 CBE Debre berhan District).

3.5 Method of Data Collection and Sample Size

The primary data was collected through close ended questionnaires from account holders of the
selected commercial bank of Ethiopia branch customers and the secondary data obtained through
review of published document and any other related materials. These data was used to get a
comprehensive conceptual and empirical foundation for the study subject matter is also
considering the town. The number of people included in a research study to reflect a population is
referred to as sample size in research. According to Taro Yamane (1967), a mathematical

21
statistician devised a formula for estimating or determining sample size in respect to the
population under study, allowing inferences and conclusions drawn from the survey to be applied
to the complete population from which the sample was drawn. The sample sizes that the
researcher includes eight branches of the town including each branch account holder customers
from total populations about 161782 account holders in Debre berhan town, (source; Annual
report of 2022, CBE Debre brehan District).

Table 1.Selected commercial bank of Ethiopia in Debre berhan town

Name of CBE branches in Debre berhan Town Number of customers

1
Debre berhan branch 93135

2
Nigus Hailemelekot branch 2979

3
Hailemariam Mamo branch 16026

4
Baso branch 5980

5
Industrial Park branch 2486

6
Shawareged Gedle branch 3589

7
Nigus Sahilesilassie branch 9747

8
AtseZereyaikob branch 27840

Total 161782

Source; Annual report of 2022 CBE Debre berhan District

From these target populations the sample size was sufficient for the data that were gathered 50
questionnaires from each branch that would meet the sample size. The reason is that the
researcher has selected a convenience sampling method for that to save time, money and energy.
22
The number of sample was selected using taro Yamane formula with 95 percent confident level
and 5% the level of acceptable error.

n = N/ (1+N (e) 2
Where: n - The sample size
N - The population size
e - The acceptable sampling error
Therefore, n =161782/ (1 +161782 (0.05)2

n = 400

3.6 Sampling Techniques and Sampling Procedures

The study was conducted using a convenience sampling technique. Convenience sampling refers
to the sampling procedure of obtaining those people or units those are most conveniently
available. This technique enables to obtain a large number of completed questionnaires quickly
and economically, (Zikmund 2003). The technique obtaining those customers or units those are
most conveniently available in the selected branches of commercial bank of Ethiopia. The study
only included an account holders of the bank and the questionnaires were given to them
specifically by cross checking their accounts and /or passbooks that they hold at the eight selected
branches of commercial bank of Ethiopia in Debre berhan Town.

3.7 Source of Data

To achieve the objectives of the study, primary source of data were utilized. Primary data was
collected from customers of the eighth branches of Commercial Bank of Ethiopia in Debre berhan
Town through administering structured questionnaire. The questionnaire was adopted and
customized for this study based on the multi-dimensional scale that measured customer-based
brand equity as it is the most widely used and often accepted measure (Lee and Leh, 2011;
Washburn and Plank, 2002). Hence, brand equity is conceptualized in accordance with Aaker’s
(1991) model of which the descriptions of the dimensions and the constructs are brand awareness,
brand associations, perceived quality and brand loyalty which are considered as independent
variables and overall brand equity as dependent variable. The study used both primary and
secondary data. The primary data gathered from selected account holders of the bank and who
23
would have knowledge about the questions that would rise for them. The secondary data were
collected from various sources that help material related to the study such as different report
published materials, related literature as well as websites and in other data relation factors to the
banks` customer based brand equity.

3.8 Methods of Data Analysis

Data analysis is simply the process of organizing and summarizing a mass of raw data into
meaningful form (Healey, 2011). Quantitative techniques were used for this purpose. This entails
the generation of data that are numerical, or transforming what is observed, reported or recorded
into quantifiable units (Denscombe, 2003). Pearson correlation analysis was used and conducted
to test the relationship between overall brand equity and the dimensions of brand equity as there
are more than two variables.

Multiple linear Regression analysis was applied to examine the most dominant factor influencing
the customer based brand equity and the acceptability of the model confirmed by ANOVA
analysis and the research used a quantitative research type and uses an explanatory research
design and inferential methods of data analysis that the data was quantified, measured or counted
and involved collecting and analysing numerical data and applied a statistical tests and correlated
the dependent and independent variables using latest IBM Statistical Package for Social Science
(SPSS) software programs.

3.9. Data Validity and Reliability Tests

3.9.1 Validity

The notion of validity is significant when considering a research instrument. In line with this, the
researcher attempted to observe validity. The validity of the study was ensured using data
collecting tools that were based on sound theoretical foundations. Therefore; the study has
ensured the instruments or procedures used in the research measured what they were supposed to
measure i.e. independent variables (brand awareness Brand loyalty brand association perceived
quality) and dependent variable (customer based brand equity) by crosschecking different
theorists and sources. Additionally, the scales items on the questionnaire were adopted from
standardized questionnaires from, Odunlami (2013) and Indumathi (2016).

24
 3.9.2. Reliability

Reliability analysis measures how consistent results are yielded over time and across situations.
Cronbach`s alpha, a statistical test used to examine the internal consistency of the attributes, will
determine for each dimension. This statistical test will show how strongly the attributes are
related to each other and to the composite score. The composite score for each section of the
questionnaire will be obtained by summing the scores of individual statements. According to
Zikmundetal, (2010) scales with coefficient alpha between 0.6 and 0.7 indicate fair reliability, a
Cronbach`s alpha score of .70or higher are considered as adequate to determine reliability. The
closer the reliability coefficient gets to 1.0, the better. The actual sample size is only 399 and the
specified numbers of questionnaires were distributed for active account holders of the bank
customers.

3.10 Ethical Consideration

In ethical consideration the researcher will be inform the participants about the aim of the study
and they were participated based on their own willingness. Privacy and confidentiality were also
maintained. In the beginning all legal permissions were secured. The response of each
target/sample/ population was as secrete to protect them from any fear. All these would be
considered for the effectiveness of the issue under the study. Finally, the researcher has given
heartfelt gratitude to all communities and other responsible bodies for their cooperation to the
successful completion of this work.

25
 CHAPTER FOUR

DATA ANALISIS AND DISCUSSION

4.1 Introduction

This study was conducted with an objective of measuring the determinants of customer-based
brand equity with a focus on Commercial Bank of Ethiopia particularly on the eighth selected
branches at Debreberhan Town. This section of the study presents results of data collected
through questionnaire. These results were presented in tables and graphs. The researcher
distributed 399 questionnaires to the customers of CBE at eight branches in DebreberhanTown .
The study adopted and deployed standardized structured questionnaire to collect data developed
based on Aaker’s (1991) four brand equity models: brand awareness, brand associations,
perceived quality and brand loyalty, (Barwise, 1993; Yoo and Donthu, 2001; Washburn and
Plunk, 2002).

4.2 Demographic Backgrounds of Respondents

The demographic profiles of the respondents were analysed and presented using descriptive
statistics such as frequency and percentage.

Demographic information of these respondents is presented in the table 2 below. It

presents about sex, age and educational level of the respondents.

Table 2.Demographic information of the respondents

Category Frequency (%)

Sex Male 234 58.6

26
 Female 165 41.4

18-30 150 37.6

31-40 115 28.8

41-50 46 11.5

Age 51-60 54 13.5

Above 60 34 8.5

Total 399 100.0

Education level Frequency Percent

Certificate 111 27.8
Diploma 134 33.6
Degree 94 23.6
master’s degree 42 10.5
above master’s degree 18 4.5
Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

The demographic backgrounds of sample respondents in three parameters are presented on table2,
Out of the total respondents of 399, 234 (58.6 %) were male and 165 (41.4 %) are female and all
respondents were participants and valid. On the other hand, out of all the respondents 150
(37.6%) of them falls in the age range between 18-30, followed by in the age range of 31-40
accounted 115 in number (31.6 %). The least participants were above in the age of 60, 34 (8.5%)
and the majority of respondents were in the age range of 18-30 and this revealed that the majority
of respondents were youngsters.

Among the respondents, 134 ((33.6%) were holder of diploma followed by certificate holders
accounted 111 in number and 27.8%. Above master`s degree holders scored the least participants
which in number 18 (4.5%) out of 399 respondents next to master`s degree 42 (10.5%) and
degree holders 94 (23.6%).

27
Table 3 Respondents’ descriptive frequency based on years of being customer and an account
holder of Commercial Bank of Ethiopia

Years of being customer of CBE

Frequency per cent Valid per cent Cumulative
Valid Below 1 year 49 12.3 12.3 Percent
12.3
1-5 years 105 26.3 26.3 38.6
6-10 years 114 28.6 28.6 67.2
Above 10 years 131 32.8 32.8 100.0
Total 399 100.0 100.0

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Among the respondents, 131(32.8%) were scored above 10 years being an active account holders
and customers of Commercial bank of Ethiopia followed by from the year ranges 6 up to 10 years
of being an active account holders and customers of the bank. The least respondents were
customers who were an account holder before a year in commercial bank of Ethiopia.

Table 4 Time of frequencies when to get service in commercial bank of Ethiopia

Times of Service getting

Frequency per cent Valid per cent Cumulative per cent

Valid Daily 102 25.6 25.6 25.6

Weekly 118 29.6 29.6 55.2
Monthly 147 36.8 36.8 92.0
Quarterly 28 7.0 7.0 99.0
Yearly 4 1.0 1.0 100.0
Total 399 96.4 100.0

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Among the respondents` response most of them 147 (36.8%) of the respondents come in to the
bank to get service in monthly basis followed by in weekly basis 118 (29.6%) of the respondents
said. The least respondents 4 (1.0%) come and get service in yearly those who were respondents
next to quarterly which accounted 28 (7.0%).

28
4.3 Measurement of Reliability

Cronbach‟s alpha is a coefficient of reliability used to measure the internal consistency of the
scale; it represented as a number between 0 and 1. According to Zikmund et al., (2010) scales
with coefficient alpha between 0.6 and 0.7 indicate fair reliability, a Cronbach‟s alpha score
of .70 or higher are considered as adequate to determine reliability. The closer the reliability
coefficient gets to 1.0, the better.

A good test is one that assesses different aspects of the trait being studied. Cronbach's alpha
generally increase as the inter correlations among test items increase, and is thus known as an
internal consistency estimate of reliability of test scores. Because inter correlations among test
items are maximized when all items measure the same construct. For this study Cronbach‟s alpha
was used to assess the internal consistency of variables in the research instrument.

Table 5Data Reliability Test

Cronbach's Alpha N of Items

Brand awareness 0.782 4
Brand association 0.751 8
Perceived quality 0.796 6
Brand loyalty 0.823 5
Overall brand equity 0.764 5
Overall reliability test 0.878 28

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

From 28 constructed questionnaires, the highest Alpha registered was 0.823 for Brand Loyalty,
0.796 for perceived quality, 0.782 for brand awareness, 0.764 for overall brand equity, and 0.751
for brand association respectively. All four constructs scored above the acceptable value of 0.70.
The value of Cronbach`s alpha for Brand loyalty was then calculated as a score of 0.823
exceeding overall brand equity which is 0.764 and perceived quality scored 0.796 and met the
recommended cut-off value scored above the acceptable Crnobach`s alpha which is 0.70.A total
of twenty eight items with an overall reliability test of 0.878 as shown on table above were then
retained for the five constructs in the study for further analysis.

29
4.4 Descriptive Statistics

In order to compare the respondents’ responses for the overall brand equity of commercial bank
of Ethiopia, descriptive statistics of mean and standard deviation was used. The mean indicates to
what extent the sample group averagely agrees or disagrees with the different statements. The
higher the mean the more the respondents agree with the statement while the lower the mean the
more the respondents disagree with the statement. In addition, standard deviation shows the
variability of an observed response.

Table 6Descriptive Statistics for variables

Statistic Statistic Std. Error Statistic

Brand Awareness 399 3.6504 .03786 .75622

Brand Association 399 3.6269 .03012 .60163

Valid N (list wise) 399

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

As the group descriptive statistics table revealed that brand awareness scored a mean of 3.6504
and a mean of 3.6416 brand loyalty which were higher than the rest constructed variables which
shows that respondents were agreed on the brand awareness and brand association statements and
perceived quality scored the least mean 3.2406 next to brand association as a mean of 3.6269
which shows near to disagreed on the perceived quality statements.

30
Table 7Descriptive statistics for Brand Awareness responses

Descriptive Statistics
N Mean Std. Variance

Statistic Minimu Maximum Statistic Std. Statistic Statistic

m
BAW1
399 1 5 3.6516 .04857 .97013 .941
BAW2
399 1 5 3.6441 .04901 .97901 .958
BAW3
399 1 5 3.6541 .04855 .96973 .940
BAW4

Valid N 399

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Table 8Descriptive statistics for Brand Association responses

Descriptive Statistics

N Mean Std. Variance

Statistic Minimu Maximum Statistic Std. Statistic Statistic

m
BAS1 399 1 5 3.6942 . 04508 . 90044 .811

BAS2 399 1 5 3.6917 .04483 ..89539 . 802

BAS3 399 1 5 3.6967 .04491 . 89710 805

BAS4 399 1 5 3.6917 .04483 . 89539 .802

BAS6 399 1 5 3.6992 .04488 . 89655 . 804

BAS7 399 1 5 3.6917 .04483 .89539 .802

BAS8 399 1 5 3.6992 .04488 .89655 .804

31
 Valid 399
N
Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Table 9 Descriptive statistics for Perceived Quality responses

Std.

Statistic Minimum Maximum Statistic Std. Statistic

PQU1 399 1.00 5.00 3.0376 .05769 1.15227

PQU3 399 1.00 5.00 3.1479 .05876 1.17370

PQU4 399 1.00 5.00 3.1905 .05818 1.16214

PQU5 399 1.00 5.00 3.3333 .05110 1.02072

PQU6 399 1.00 5.00 3.5689 .04530 .90484

Valid 399
N (list
Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Table 10 Descriptive statistics for brand loyalty responses

Descriptive Statistics

N Mean Std. Variance

Statistic Minimum Maximum Statistic Std. Statisti Statistic

c
BLO1 399 1 5 3.3784 .05776 1.1538 1.331
2
BLO2 399 1 5 3.1905 .05957 1.1899 1.416
1
BLO3 399 1 5 3.2782 .05896 1.1778 1.387

32 1
 BLO4 399 1 5 3.1955 .05953 1.1891 1.414
0
BLO5 399 1 5 3.2506 .05911 1.1808 1.394
1
Valid 399
N

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

Table 11 Descriptive statistics for overall brand equity responses

Descriptive Statistics

N Mean Std. Variance

Statistic Minim Maxim Statistic Std. Statistic Statistic

OAB EDI1 399 1 5 3.5639 .0651 1.30145 1.694

5
OABEDI2 399 1 5 3.5539 .0671 1.34182 1.800
8
OABEDI3 399 1 5 3.5614 .0654 1.30735 1.709
5
OABEDI4 399 1 5 3.5689 .0655 1.30889 1.713
3

Valid N 399

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

4.5 Correlation Analysis

To achieve the research objectives, this study deployed correlation analysis. A correlation
analysis was performed to investigate whether there is association between the dimensions of
brand equity and customer based brand equity (overall brand equity) of commercial bank of
Ethiopia besides significance levels of the association were computed. A correlation coefficient is
a very useful means to summarize the relationship between two variables with a single number

33
that falls between -1 and +1, Field (2005). A correlation analysis with Pearson’s correlation
coefficient (r) was conducted on all variables in this study to explore the relationships between
variables. To interpret the strength of relationships between variables, the guidelines suggested by
Field (2005) were followed. Field`s classification of the correlation efficient (r) is as follows: 0.1
- 0.29 is weak; 0.3- 0.49 is moderate; and > 0.5 is strong.

Table 12 Correlation coefficient of variables

Correlations
Brand_ Brand_ Perceived_ Brand overall
Loyalty Brand_
Awareness Association Quality
Equity
** ** **
Brand Pearson 1 .432 .832 .945 .938**
Awareness Correlation
Sig. .000 .000 .000 .000

(2-
tailed)
N 399 399 399 399 399
Brand Pearson .432** 1 .427** .416** .413**
Association Correlation
Sig. .000 .000 .000 .000

(2-
tailed)
N 399 399 399 399 399
Perceived_ Pearson .832** .427** 1 .805** .802**
Quality Correlation
Sig. .000 .000 .000 .000

(2-
tailed)
N 399 399 399 399 399
Brand Pearson .945** .416** .805** 1 .991**
Correlation
34
 Loyalty Sig. .000 .000 .000 .000

(2-
tailed)
N 399 399 399 399 399
Overall Pearson .938** .413** .802** .991** 1
Brand Correlation
Sig. (2 .000 .000 .000 .000
equity
tailed)
N 399 399 399 399 399
**.Correlation is significant at the 0.01level (2-tailed).

Source; own survey questionnaires analyses in IBM SPSS statistics processor, 2023

The above correlation analysis table illustrates the relationship between each brand equity
dimension and overall brand equity. The results indicates that, there is a moderate positive
significant correlation between brand association and Brand awareness (r = 0.432, p=.000<0.01),
and there is a strong positive correlation between perceived quality and brand awareness where (r
=0.832, p=.000< 0.01) and there is moderate positive correlation between perceived quality and
brand association where r=0.427, p=.000< 0.01. There is a strong positive significant correlation
between Brand loyalty and Brand Awareness where (r = 0.945, p=.000< 0.01), and there is a
moderate positive significant correlation between brand loyalty and Brand association where (r =
0.416, p=.000< 0.01).

There is a strong positive correlation between brand loyalty and perceived quality where (r =
0.805, p=.000<0.01) and overall brand equity has a strong positive significant correlation with
brand association, perceived quality, and brand loyalty (r = 0.938, r=0.802 and r=0.991 where
p=.000< 0.01 for all correlation), and there is a moderate positive relationship with brand
association where (r = 0.413, p=.000< 0.01).

As a conclusion commercial bank of Ethiopia brand dimensions are interrelated with each other
dimensions positively related to the overall brand equity of Commercial bank of Ethiopia. As per
the table above, the coefficients revealed that three factors which are brand awareness, perceived
quality, and brand loyalty on customer based brand equity of commercial bank of Ethiopia had
strong positive correlation related with the overall brand equity and brand association has a
moderately correlated with the overall brand equity of commercial bank of Ethiopia which shows

35
there a direct relationships between overall brand equity and those factors (brand awareness,
brand association, perceived quality, and brand loyalty).

4.6 Regression analysis

Regression analysis is a statistical method to deal with the formulation of mathematical model
depicting the relationship among variables which can be used for the purpose of prediction of the
value of dependent variable, given the value of the independent (Kothari,2004). Linear regression
estimates the coefficients of the linear equation, involving one or more independent variables that
best predict the value of the dependent variable. The regression analysis has been conducted to
measure the variables that explain the variance in the overall brand equity. Multiple linear
regressions were conducted to identify the relationship and to determine the most dominant
variables that influenced overall brand equity of commercial bank of Ethiopia. Moreover, in order
to test the effect of independent variables (brand awareness, brand association, perceived quality
and brand loyalty) on overall brand equity. The result has been shown in table below.

Table13 shows descriptive analysis for regression assumption

Descriptive Statistics
Mean Std. Deviation N
Overall Brand Equity 3.6571 .62666 399
Brand Awareness 3.6504 .75622 399
Brand Association 3.6269 .60163 399
Perceived Quality 3.2406 .61166 399
Brand Loyalty 3.6416 .59336 399

Source: Own Questionnaire, IBM statistics subscription processor, 2023

4.7. Tests for Linear Regression Model Assumptions

Normality of the data should be tested before running the regression analysis because multiple
regressions require that the independent variables in the analysis be normally distributed.

36
This figure below signifies that normality assumption holds as the histogram is a bell- shaped and
the residuals are normally distributed around its mean of zero.

Source: Own Questionnaire, IBM statistics subscription processor, 2023

Figure 3 Histogram for Normality Assumption

The following figure shows that independent variables (IV) in the regression have a straight-line
pattern with the dependent variable (DV) representing a Linear relationship. In conclusion, the
normally distributed plot portray the Linearity assumption is fulfilled.

Source: Own Questionnaire, IBM statistics subscription processor, 2023

37
Figure 4 The normal P-P plot of regression standardized residual

Source: Own Questionnaire analysis, IBM statistics subscription processor, 2023

Figure 5 The scatter plot graph of regression standardized residual

The errors term shave constant variances and this assumption is check by the graph of
standardized versus standardized predicted y value.

4.8. Model Summary

Table 14 Regression Model summary
Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .975a .951 .951 .13874
a. Predictors: (Constant), Brand Loyalty, Perceived Quality,
Brand Association, Brand Awareness
Source: Own Survey Questionnaire, IBM statistics subscription processor, 2023

The result indicate that correlation of the dimensions of brand equity (independent variables) with
customer based brand equity (dependent variable) is 0.975 and almost 95.1 per cent of the
variance in respondents’ perception of Commercial Bank of Ethiopian brand was explained by
the dimensions of brand equity. The R Square statistic tells us the proportion of variance in the
dependent variable that is accounted for by the independent variables. In this case the co- efficient
of determination (R2) 0.951 which means 95.1 per cent of the variance on customer based brand
38
equity (overall brand equity) can be explained by the four dimensions of brand equity; brand
loyalty, perceived quality, brand association and brand awareness, and the rest 4.9 per cent to be
explained by other factors.

Table15. Predictors of Customer Based Brand Equity

Coefficients a
Model Unstandardize Standardized T Sig. 95.0%
d Coefficients Coefficients
Confidence Interval
for B
B Std. Beta Lower Upper

Error Bound Bound

1 (Constant) .146 .058 2.509 .012 .032 .261
Brand .370 .020 .446 18.93 .000 .331 .408
Awareness

Brand .004 .013 .004 .333 .740 .021 .030

Association
Perceived .002 .012 .002 .158 .874 .025 .022
Quality
Brand Loyalty .591 .024 .560 24.30 .000 .543 .639

Dependent Variable: Overall Brand Equity

Source: Own Survey Questionnaire, IBM statistics subscription, 2023

The results of the regression analysis highlighted that not all the dimensions of brand equity
contribute equally to the customer based brand equity of commercial bank of Ethiopia. The Beta
values show the magnitude of relationship between variables, higher values being an indication of
strong relationship. The study indicated that among the four brand equity dimensions, brand
Loyalty is the first with the largest β value of 0.560 followed by brand awareness with β value of
0.446, brand association 0.004, perceived quality with β value of 0.002 respectively.
This signifies that when brand loyalty goes up by1standard deviation, brand equity goes up by
0.560 standard deviations. When brand awareness goes up by 1 standard deviation, brand equity

39
goes up by 0.446 standard deviations. When brand association goes up by 1 standard deviation,
brand equity goes up by 0.004 standard deviations and when perceived quality goes up by 1
standard deviation, over all brand equity goes up by 0.002 standard deviations. Brand loyalty, and
brand awareness are statistically significant as per their respective standardized coefficient (beta
value). But the variable perceived quality and Brand association are not statistically significant
and did not contribute much towards overall customers based brand equity.
The implication of this result is that, brand loyalty to commercial bank of Ethiopia`s bank brand
was most significantly related to customer based brand equity among all the other dimensions of
brand equity. Brand Awareness is the second to significantly relate to customer based brand
equity. The level of influence of all dimensions can be an input for the bank by directing in which
areas to concentrate and work on. For instance it is valuable for commercial bank of Ethiopia to
give more weight to brand loyalty and brand awareness contributing factors so that there is a
significant effect on overall brand equity of the bank. The interpretation for this outcome can be,
among the four dimensions of overall customer based brand equity, brand loyalty and brand
awareness make relatively superior contribution in case of commercial bank of Ethiopia`s brand
equity.

4.9. ANOVA Result for Regression Model

Table 13ANOVA Result for Regression Model
ANOVAa
Model Sum of def. Mean F Sig.
Squares Square
1 Regression 2.660 4 .665 1.616 .169b
Residual 162.183 394 .412 0.000
Total 164.843 398
a. Dependent Variable: Overall Brand Equity
b. Predictors:(Constant),Brand Loyalty, Perceived Quality, Brand Association,
Brand Awareness
Source: Own Survey Questionnaire, IBM statistics subscription, 2023

The ANOVA table above shows that the F value 162.183, a value of (.000), with p<0.05 when
the four variables are considered together. The model explains the relationship between the
independent variables (brand awareness, brand association, perceived quality and brand loyalty)

40
and the dependent variable (customer based brand equity).The ANOVA test table confirms the
acceptability of the model.

CHAPTER FIVE

4. SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings
The general objective of the study was to identify factors of customer based brand equity of
commercial bank of Ethiopia`s active account holders through identifying the relationship
between the different brand equity dimensions and the overall brand equity of commercial bank
of Ethiopia. On the basis of these objectives, the study considered four dimensions of brand
equity to understand factors affecting the overall brand equity and investigated the perception of
commercial bank of Ethiopia`s active account holders towards the bank brand. Also this research
tested if there is a relationship between every dimension and the customer based brand equity of
commercial bank of Ethiopia. After the analysis of the data the following findings were
identified. Male respondents accounted 234 (58.6 %) of all respondents and 150(37.6 %) of the
total respondents were between in the age range of 18-30 years of age. About 134 (33.6%) of the
respondents were diploma level of education.
Reliability was tested using Cronbach`s alpha to know the internal consistency of variables in this
research instrument. Based on that, the value of Cronbach`s alpha for Brand loyalty was then
calculated as a score of 0.823 exceeding overall brand equity 0.764 and perceived quality scored
0.796, brand awareness scored 0.782 and brand association as 0.751. All constructs meet the

41
recommended cut-off value which is 0.70. A total of (28) twenty eight items with an overall
reliability test of 0.878 as shown on table above were then retained for the five constructs in the
study for further analysis.
Descriptive statistics of mean and standard deviation was used to compare the respondents’
responses for the overall brand equity of commercial bank of Ethiopia. As the group descriptive
statistics table revealed that brand awareness scored a mean of 3.6504 and a mean of 3.6416
brand loyalty which were higher than the rest constructed variables which shows that
respondents were agreed on the brand awareness and brand association statements and perceived
quality scored the least mean 3.2406 next to brand association as a mean of 3.6269 which shows
near to disagreed on the perceived quality statements.
Pearson’s correlation coefficient (r) was conducted on all variables in this study to explore the
relationships between variables. To interpret the strength of relationships between variables, the
guidelines suggested by Field (2005) were followed. Based on that, commercial bank of
Ethiopian brand dimensions are interrelated with each other dimensions positively related to the
overall brand equity of Commercial bank of Ethiopia. As per the table above, the coefficients
revealed that three factors which are brand awareness, perceived quality, and brand loyalty on
customer based brand equity of commercial bank of Ethiopia had strong positive correlation
related with the overall brand equity and brand association has a moderately correlated with the
overall brand equity of commercial bank of Ethiopia which shows there a direct relationships
between overall brand equity and those factors (brand awareness, brand association, perceived
quality, and brand loyalty).
Multiple linear regressions (MLR) were conducted to identify the relationship and to determine
the most dominant variables that influenced overall brand equity of commercial bank of Ethiopia.
The implication of this result is that, brand loyalty to commercial bank of Ethiopia`s is most
significantly related to customer based brand equity among all the other dimensions of brand
equity. Brand Awareness is the second to significantly relate to customer based brand equity. The
level of influence of all dimensions can be an input for the bank by directing in which areas to
concentrate and work on. For instance it is valuable for commercial bank of Ethiopia to give more
weight to brand loyalty and brand awareness contributing factors so that there is a significant
effect on overall brand equity of the bank.
The interpretation for this outcome can be, among the four dimensions of overall customer based
brand equity, brand loyalty and brand awareness make relatively superior contribution in case of
commercial bank of Ethiopia`s brand equity.
42
43
5.2 Conclusion
Based on the analysis prepared, there is a strong positive significant relationship between brand
awareness and overall brand equity of Commercial bank of Ethiopia. This implies that,
commercial bank of Ethiopia`s active account holders awareness about the company significantly
determines the level of customer based brand equity of the bank.
There is a strong positive significant relationship between brand loyalty of commercial bank of
Ethiopia`s active account holders and overall customer based brand equity of the bank. Thus,
customers` loyalty to Commercial Bank of Ethiopia`s has a significant influence on the level of
customers based brand equity of the bank. There is positive but insignificant relationship between
customers association of the bank and the overall brand customer based equity of commercial
bank of Ethiopia. Commercial bank of Ethiopia`s brand have less representation on the minds of
active account holders of Commercial Bank of Ethiopia and this symbolization at the side of the
customers has put an insignificant influence on the level of customer based brand equity of the
bank. Among the independent variable; perceived quality is not statistically significant and
Customers` perception about the quality of service provided by commercial bank of Ethiopia has
a not much significant influence on the level of customer based brand equity of the bank.
The level of influence of all dimensions can be an input for the bank by directing in which areas
to concentrate and work on. For instance it is valuable for commercial bank of Ethiopia to give
more weight to brand loyalty and brand awareness contributing factors so that there is a
significant effect on overall brand equity of the bank. Generally, based on the regression analysis;
among the four dimensions of overall customer based brand equity of Commercial Bank of
Ethiopia brand loyalty and brand awareness make relatively superior contribution in case of
commercial bank of Ethiopia`s brand equity. Commercial Bank of Ethiopia`s brand dimensions
are interrelated with each other and all the dimensions are positively related to the overall brand
equity of commercial bank of Ethiopia. Among the all the dimensions brand loyalty has strongest
relationship with over all brand equity. Thus, there is also strong positively interrelated brand
awareness, perceived quality and brand loyalty and moderate positive associations with the
overall brand equity of commercial bank of Ethiopia that supports a competitively attractive and
distinct brand position which could create a favorable feeling and behavior toward the brand and
lead to a strong bank branding.

44
5.3 Recommendation
The recommendations were drawn based on the findings of the study. The researcher
recommends basically on the following data acquired from the respondents and discussed and
interpreted in the findings of discussion and interpretation parts.
 This study revealed that commercial bank of Ethiopia active account holders has a
positive attitude towards the bank brand. However, this doesn`t mean this attitude will
continue same way forever and long-lasting. Because in this rapid business world today`s
satisfied customers may not be adequate for tomorrow with the intense competition in the
banking industry and ever growing technology, customers` expectation to anything will
also change.
 Therefore, commercial bank of Ethiopia must engage in conducting different researches to
investigate the up to date desire of its customers so as to keep its customers satisfied as
well as delighted as much as possible. Commercial bank of Ethiopia provides feedback
and /or suggestion books and boxes on board for its customers on every working day to
receive feedback from the customers.
 Different brand equity dimensions contribute to overall equity indifferent ways, and an
order exists among the four dimensions in addition as marketing/brand managers often
have limited resources (e.g. money, time, and manpower) to implement branding
strategies, these findings can help them prioritize and allocate resources across the
dimensions.
 Commercial bank of Ethiopia should strive on giving better service quality for its loyal
customers. The customer loyalty program of commercial bank of Ethiopia should be
enhanced through meeting its loyal customers’ desired service levels, dealing effectively
with those whom dissatisfied customers, customer complaints positively for an input for
future improvement, providing taking convenient service for them and give better
recognition to this loyal customers and providing them with very attractive rewards as
their loyalty to the bank. Managers should also consider, the inter correlations among the
four dimensions of brand equity and when concentrating on creating customers` loyalty
program and they should not undervalue the effects of other dimensions of brand equity.
 Service quality is one of the key success factors in achieving competitive advantage in the
banking industry and is mainly based on front line staffs that have direct interaction with
the customers these service providers in case of commercial bank of Ethiopia include
tellers who pay to and receive money from customers of the bank, agents, and merchants.
In order to provide this quality and standardized service they must be well trained as they
are the brand representatives and ambassadors of the bank and can make or break the
reputation of the bank.

45
  Commercial bank of Ethiopia is better to provide tea and recreation time to its loyal
customers` until they get served based on their wants to be served on from the bank that
may enables the bank differentiate their brand from others competitive bank brands and
should keep its trustable banking service to its customers. Since there are variety of
services given provided by the bank,
 Commercial bank of Ethiopia should reduce its overcrowded service giving circumstance
in either in reducing the types of services given by the bank or maximizing its branches as
well as its employees because that may lead directly to lose its loyal customers forever
easily and losing the loyal customer is much more costly than gaining new customers.
 There is lack of empirical research in the area of customer based brand equity especially
on the local brands; with this regard the findings of this research will have a significant
insight for future researches. Only quantitative data is used in this research, it is
recommended for future researchers to include qualitative data by using in depth
interviews.
5.4. Direction for further Area of Research
There is lack of empirical research in the area of customer based brand equity especially on the
local brands; with this regard the findings of this research will have a significant insight for future
researches. Only quantitative data is used in this research, it is recommended for future
researchers to include qualitative data by using in depth interviews.
Commercial Bank of Ethiopia is engaged in providing funds to country huge mega projects like
Great Ethiopian Renaissance Dam, purchase foreign currencies and remittance service
internationally etc.
However, this research was limited and only focuses on the active account holders of the bank
and therefore, it is advisable to include other business activities of the bank to measure the overall
brand equity of the bank. This study has been conducted using Aaker`s four determinants of brand
equity dimensions. Nevertheless, future studies in this context should consider more variables and
models to make more conclusive and decisive research.

46
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Hair, J.J.F. Anderson,R.E.,Tatham,R.L.,&Black,W.C,2010.MultivariateDataAnalysis (7th ed.):
Peason Prentice Hall.

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 APPENDIXES
DEBREBIRHAN UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
POST GRADUATE PROGRAM
DEPARTMENT OF BUSINESS ADMINISTRATION
Research Questionnaires
Dear respondents; my name is Selamawit Teshome Dagne; a post graduate student of
Business Administration at Debrebirhan University, department of business and economics. I
am conducting a research entitled Factors affecting Customer Based Brand Equity in case of
commercial Bank of Ethiopia in Debrebirhan town and the purpose of the research is to
identify the Factors of customer-based brand equity of Commercial Bank of Ethiopia in
general.

Thank you in advance for your willingness to participate on these research questionnaires.
Part I. Personal information
1. Gender
Male Female
2. Age
18-30 years 31-40 years 41-50 years 50-60years

Above 60

3. Your level of education

Certificate Diploma Bachelor’s Degree Master’s Degree
Above Masters

Part II. Customers` perceptions and attitude towards dimensions of brand equity
Please select the degree of agreement/disagreement with the following statements associated
with the determinants of your brand choice right (√) sign that best describe your view,
1=strongly disagree, 2= disagree, 3= neutral, 4= agree and 5= strongly agree)

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S.N. Ratings Scales
Statements on brand equity factors Strongly Strongly
disagree disagree Neutral Agree agree
(1) (2) (3) (4) (5)
Brand Awareness
1 Commercial Bank of Ethiopia comes up first in
my mind when I need to use bank service.
2 I can recognize Commercial Bank of Ethiopia
among competing brands.
3 Commercial Bank of Ethiopia is the only bank
recalled when I need to use bank service.
4 I don`t have difficulty in imagining
Commercial Bank of Ethiopia in my mind.
Brand Association
1 Commercial Bank of Ethiopia is safe to use.
2 I can quickly recall the logo of Commercial
Bank of Ethiopia.
3 The brand is familiar to me and it is
conveniently located.
4 Commercial Bank of Ethiopia is well regarded
by my friends.
5 I consider the company and people who stand
behind the brand are very trustworthy.
6 Commercial Bank of Ethiopia`s brand has
unique image compared to other competing
brands.
7 I can get more benefits from Commercial Bank
of Ethiopia when compared to other banks.
8 I believe that Commercial Bank of Ethiopia is
contributing to the society’s development.

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 Perceived Quality

1 Commercial Bank of Ethiopia has a good

service quality.
2 Commercial Bank of Ethiopia provides better
service in banking service at all.
3 I chose Commercial Bank of Ethiopia because
it provides a quality service.
4 Commercial Bank of Ethiopia is very reliable.
5 I don`t have difficulties in finding any
information I require from commercial bank of
Ethiopia.
6 Commercial Bank of Ethiopia is better as
compared to other banks in terms of on time
service delivery performance.
Brand Loyalty
1 I am satisfied with my visit to and get service
from commercial bank of Ethiopia.
2 I will keep on using with Commercial Bank of
Ethiopia.
3 Commercial Bank of Ethiopia provides the
best service I had seen ever.
4 I feel very proud of myself in using
commercial bank of Ethiopia as my first choice
and to get service.
5 I would recommend this Bank to others to use.
Over all brand equity dimensions
1 I will definitely use with Commercial Bank of
Ethiopia because its price is reasonable than
the other banks that offer similar service.
2 I use Commercial Bank of Ethiopia because it

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 is a pioneer in banking service trustfully.
3 I will not use other banks, even if Commercial
Bank of Ethiopia is not available.
4 Commercial Bank of Ethiopia is better as
compared to other banks in terms of on time
performance, customer service, safety.
5 I regularly visit and get service in commercial
bank of Ethiopia

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