The Causal Relationships Between Sub-dimensions of Brand Equity and Customer Equity in The Chain Restaurant Industry

The purpose of this research is to examine the causal relationships between sub-dimensions of brand equity and customer equity in the chain restaurant industry. It has long been acknowledged that managing brand equity and customer equity are critical factor for chain restaurant’s success. Based on the literature review, four dimensions of brand equity were proposed: brand awareness, brand image, perceived quality, and brand loyalty. Theoretical relationships between those four constructs and customer equity were derived based on the previous literature. Data analysis demonstrates that large part of branding strategies is antecedents of customer value strategies. Specifically, brand image enhancement, perceived quality management, and brand loyalty formation enhance customer equity, consequently increasing long-term value of a chain restaurant brand. Theoretical and managerial implications are discussed.