Understanding (customer‐based) brand equity in financial services

Abstract

Purpose

The purpose of this study is to advance marketers' understanding of customer‐based brand equity (CBBE) within the context of a B2B financial service marketing setting.

Design/methodology/approach

Two nation‐wide studies were used to investigate whether brands are in fact differentiated in the minds of the target audience; test two competing explanations of the formation of CBBE using structural equation analyses; and reconcile satisfaction and CBBE theories within a single theoretical model.

Findings

The results suggest that these customers do differentiate brands, and that Netemeyer et al.'s model of CBBE is generally supported. In addition, the extended model of CBBE proposed herein explains more variance in loyalty intentions, while simultaneously demonstrating the importance of customer satisfaction in CBBE models, and incorporates customer attitudes into conceptualization of CBBE.

Research limitations/implications

First, the current research focuses specifically on CBBE. Second, the reported MDS results are exploratory in nature and must be interpreted with caution.

Practical implications

The results will help financial service marketers measure CBBE as well as relate brand power to customer satisfaction and customer attitude measurement through implementing the proposed framework in their own competitive setting.

Originality/value

The two nation‐wide studies reported herein enhance our understanding of CBBE and its relationship to customer attitudes and satisfaction research within a single theoretical model, as well as identifying the influential roles of both hedonic and utilitarian forms of brand attitudes in the formation of CBBE.

Citation

Taylor, S.A., Hunter, G.L. and Lindberg, D.L. (2007), "Understanding (customer‐based) brand equity in financial services", Journal of Services Marketing, Vol. 21 No. 4, pp. 241-252. https://doi.org/10.1108/08876040710758540