The Impact of Brand Equity on Purchase Intention in BOP Market, Sri Lanka

Abstract

One of the vital issues in brand building is customer-based brand equity (CBBE). Any brand can measure its equity based on proportions like salience, performance, imagination, judgment, feelings, and resonance. Brand equity has emerged as one of the critical drivers affecting consumer behaviour and purchase decisions in many markets, more so within Bottom of the Pyramid divisions constrained by poor economic resources. The BOP market in Sri Lanka forms a large chunk of its population distinguished by specific buying behaviors based on cultural, social, and economic factors. Brand equity components drive important Customer trust, loyalty, and purchase intention. Most of the studies related to brand equity have targeted either premium or middle-income markets, and hence, the specific effects of these characteristics on bottom of the pyramid customers remain unobserved, thereby presenting a significant research gap. Sri Lankan BOP customers focus on the cost and practical value of their purchases but have shown significant brand awareness and loyalty when trust and perceived quality are established. For brands looking to enter this category, challenges include overcoming obstacles such as price sensitivity, infrastructural limitations, and informal economies, while also satisfying the need for reliability and emotional involvement. Brands that focus on trust and functional excellence tend to perform better at engaging customers in BOP markets. The current literature has discussed the relation of brand equity with purchase intention in various industries as luxury products, technology, and hotels. However, very few studies evaluate the interplay of components of brand equity in bottom-of-pyramid markets. The Sri Lankan BOP market is influenced by unique socio-cultural factors and economic processes. This necessitates a localized understanding of such interrelationships. Given the context, this paper has investigated the influence of dimensions of brand equity on purchase intention in the Sri Lankan BOP market and offers strategic branding implications for enterprises that target this particular market segment. This underlines the vital role of branding strategies that will be in tune with beliefs and preferences, with high need for community involvement, trust building, and functional superiority. The study contributes to theoretical understanding and provides practical suggestions for marketers in promoting sustainable development at the bottom of the pyramid market in Sri Lanka, where the existing literature has some lacunae.This research follows a quantitative approach based on the positivist paradigm. Primary data from 390 respondents spread across Sri Lanka, belonging to various socioeconomic backgrounds, have been collected through a structured questionnaire. Data analysis has been performed by using SPSS, where the reliability analysis, regression analysis, and testing of hypotheses were done to assess the effect of brand equity dimensions on purchase intention. The findings indicate that the dimensions of brand performance, judgments, and resonance drive purchase intentions in BOP consumers, while brand salience, imagery, and feelings show no statistical significance. The insights suggest that driving purchase intention in this segment requires an effort on functional excellence, emotional trust, and community involvement. Drawbacks include a small convenience sample of 390 respondents focused on individuals with monthly earnings under Rs.60,000, limiting generalizability. Recollection and social desirability bias might reduce response accuracy. Due to a lack of empirical research linking Keller's brand equity concept to purchase intention, quantifying indicators was problematic. Quantitative methods were utilised, although qualitative ones may have shown customer behaviour better. The findings have significant implications for both marketers and policymakers. Marketers can leverage these insights to design branding strategies that prioritize trust and emotional engagement while fostering long-term consumer relationships. Policymakers may also utilize these findings to promote sustainable consumer behavior and market inclusivity.