Brand Equity And Consumer Buying Behaviour Of Commercial Bank Services In Nairobi, Kenya

Abstract

There has been an increase in financial access in the country over the past years and as a result an increased number of commercial banks operating in the market as well. This has led to intensified competition among these banks as they try to acquire new customers and strive to retain their existing ones. Hence the pressure to build and maintain strong brands. It is for these reasons that understanding the concept of brand equity and its influence on consumer buying behaviour is of significance. The study’s design was descriptive and quantitative in nature. The design of the study was considered appropriate due to the need to quantify the relationship between variables and to obtain information concerning current status the matters in the study as well as explaining what exists in relation to variables. Primary data was collected with the use of questionnaires from bank service users in Nairobi. The questionnaire was divided into two parts with the first part having demographic information and the second part containing questions on brand equity as well as consumer buying behaviour. The data collected was analyzed by conducting a correlation analysis, followed by regression analysis using SPSS. Eventually, the results state that brand awareness, perceived quality, brand loyalty and brand association all have a positive and significant correlation with consumer buying behaviour. The regression outcome further showed that all the brand equity elements reliably predict consumer behaviour of commercial bank services in Nairobi Kenya. Further findings on the specific brand equity elements, revealed that brand association has the most influence on consumer buying behavior followed by brand loyalty and eventually perceived quality respectively. Brand awareness however had very minimal influence on consumer buying behavior.