The Impact of Strong Brands on New Brands: with Special reference to Textile Industry

Abstract

This study is an in-depth investigation to study the impact of strong brands on the new brands in the textile industry in Sri Lanka. It aims to help consumers predict old brand purchases through an improved understanding of the effects of three major variables: customer satisfaction and loyalty with the store, expressed through word-of-mouth; and trust in old brands. An additional aim is to explore variations in brand adoption and the inter-relationships between the selected constructs. This investigation is based on the through and supporting literature studied through; the theory of Brand Equity and the brand Purchase Likelihood theory. This is a quantitative study, and information was obtained from the primary data taken from the selected sample through convenience sampling technique. In research that identified and measured the relationship through the hypotheses developed and the hypotheses testing, results demonstrated that new entry brands directly affect brand equity. Identified, four variables of service encounter have significant indirect effects through relationship quality on brand equity. Therefore, this study makes a significant contribution to the existing knowledge about the relationship between brand equity and consumer satisfaction in consumer behavior.