The Influence of Brand Equity on Sales Performance of Retail Pharmacies in Kisumu County.

Abstract

The concept of brand equity and its effect on various business parameters has elicited much interest among scholars in the recent past. The purpose of this study was to determine whether brand equity has an influence on sales performance of retail pharmacies in Kisumu County. The brand equity determinants put under study include: brand loyalty, brand awareness, perceived quality, brand associations and proprietary assets. There is need to establish whether these brand equity determinants have an impact on sales performance in retail pharmacies in Kisumu County. The study adopted the Resource Based View of the Firm Theory and Aaker’s Brand Equity Model. The research design used was a descriptive survey. Primary data was collected where structured questionnaires were administered to the targeted 40 respondents, achieving 100% success rate. The data was analyzed quantitatively using SPSS where both descriptive and inferential analysis was done. The regression analysis findings showed an overall significant and positive influence of brand equity on sales performance of retail pharmacies in Kisumu County. There is also positive relationship between brand equity and sales performance. While perceived quality, brand associations and brand awareness showed a great extent in influencing sales performance, brand loyalty and proprietary assets had little significance. Marketers are therefore strongly advised to find ways of building strong brand equity for better sales performance. Further studies can be done in other counties other than Kisumu County to find out the extent of relevance of brand equity determinants on sales performance.