The Effect of Marketing Communication on Brand Equity with Brand Image, Brand Trust, and Brand Loyalty as the Intervening Variables

An enterprise organization need good brand equity to survive in a fiercely competitive market. Marketing communication plays an important role in establishing brand equity. The study aims to analyze the effect of Marketing Communication that consists of advertising, sales promotion, and eWOM on brand equity with brand image, brand trust, and brand loyalty as the intervening variables. This study employs a quantitative method with a sample of 314 respondents, who are consumers of smartphones. The data is analyzed with SEM technique with Amos 21 application. Results of the study indicate a significantly positive effect of advertising and eWOM on brand image. eWOM exerts a larger effect on brand image than advertising. However, sales promotion does not affect brand image. Sales Promotion and eWOM have a significantly positive effect on brand trust, while advertising has a significantly negative effect on brand trust. Brand trust has a significantly positive effect on brand loyalty. Nevertheless, the brand image does not affect brand loyalty. Meanwhile, brand loyalty has a significantly positive effect on the brand equity of smartphone products purchased by consumers. Of the three variables of marketing communication studied, eWOM has the largest indirect effect on brand equit.