Brand Equity and Its Effect on Consumers’ Buying Behaviour in the Nigerian Food and Beverage Industry

Abstract

This study is focused on brand equity and consumers buying behavior. Given the increasing awareness that positive consumers’ buying behavior is an important determinant to the survival of any brand, companies are beginning to pay more attention to building lasting brand equity. The survey research design was employed. The study covers 2 food and beverage industries in Lagos state, Nigeria. Stratified random sampling technique was used to select 430 customers as sample objects.The instrument was a 30-item structured questionnaire of the likert type scale type. The analytical tools used comprises of the principal component factor analysis, correlation and multiple regression analysis. The findings revealed that brand awareness has exhibited a relatively overwhelming significant effect on consumers buying behavior, indicating the vital importance of advertising to building brand equity. It is concluded that brand equity has become an important determinant of consumers’ buying behavior towards brand values within the food and beverage industries due to its potentials to stimulate positive consumer buying decisions. It is recommended that consumers’ buying behavior can be influence by building a strong brand equity, effective brand loyalty scheme, effective product that is perceived to be of good quality to the consumers and all brand related thoughts, feelings, image should be factored into the production process.