Impacts of advertising and sales promotion on brand equity of soft drinks

Abstract

The paper aims to illuminate the relationship between advertising, promotions and brand equity. First of all, a preliminary research is conducted by means of group discussions and in-depth interviews to formulate a measurement scale. Then, to conduct the official research, 339 questionnaires are disseminated to respondents to collate data. The EFA, Cronbach?s Alpha, and CFA are utilized to test the scale. Hypotheses are tested by the SEM. Analytical results indicate that the determinants of brand equity in the soft drinks industry comprise: brand awareness, perceived quality, brand associations and brand loyalty. Advertising positively affects components of the brand equity; promotions can enhance the perceived quality; the brand awareness boosts brand associations; and the perceived quality promotes the brand loyalty.\r\n