Brand Equity and Consumer Purchase Intention of Branded Coffee Among Supermarket Customers in Nairobi County

Abstract

The proliferation of brands, increased competition and globalization of markets presents customers with a wide range of brands when making purchasing decisions. Firms have to rethink their branding decisions. The study sought to establish the effect of brand equity on the purchase intentions of branded coffee among supermarket customers in Nairobi County. The study was anchored on brand equity model and the theory of planned behaviour. A descriptive cross sectional research design was adopted. The population of study were customers purchasing branded coffee in eighteen supermarkets in Nairobi. A sample of 384 respondents was selected using proportionate sampling technique. Primary data were collected using a semi structured questionnaire. A response rate of 90.6% was achieved. The results revealed that the most preferred coffee brand was Dormans coffee and Nescafe with 27.7% and 22.7% respectively while the most preferred coffee type was instant coffee and roasted coffee. The findings revealed that perceived quality had the highest mean while advertising spending had the lowest mean. The results established a positive and statistically influence of the brand equity on purchase intention of branded coffee. The results further revealed that brand loyalty, perceived quality, store image had positive effect on purchase intention while brand image, awareness, advertising spending, price and price deals and country of origin were statistically insignificant. The study concludes brand equity influences purchase intention of branded coffee among supermarket customers in Nairobi County. The study adds credibility to the existing body of knowledge on the link between brand equity and purchase intention and concludes that managers should augment all brand equity dimensions which may in turn encourage customers to purchase branded coffee.