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Dimensions of Brand Equity in the Chain Restaurant Industry

Four of the dimensions that combine to contribute to chain restaurants’ brand equity are brand awareness, brand image, perceived quality, and brand loyalty. A test of a structural model connecting these four attributes of brand equity was based on data collected from 188 patrons of five chain restaurant brands in Korea. The resulting data analysis demonstrates that the four dimensions of brand equity are interrelated. The model indicates that the foundation of brand equity is brand awareness. However, while brand awareness influences brand loyalty formation, its impact is mediated by the effects of brand image and perceived quality. In addition, although brand awareness is a prerequisite of brand loyalty, brand image and perceived quality bear a stronger impact on the development of brand loyalty. On balance, the implications of these findings support the restaurant industry’s practices of constant promotion, quality assurance, and process improvement.