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An Exploratory Analysis of Marketing Elements and Brand Equity in the UAE FMCG Category

Purpose: The purpose of this research is to explore the relationship between the marketing elements, brand equity (BE) dimensions and BE construct in the UAE fast-moving consumer goods (FMCG) category with a view to strengthening the understanding of the relationship as postulated by Aaker (1991) and validate the scales developed to test the constructs in previous studies. Design/methodology/approach: Aaker (1991) proposed that the BE construct is built on brand awareness, brand loyalty, perceived quality, brand associations, and other proprietary brand assets, which in turn are built by managing the elements of marketing. A priori, it is postulated that there are 10 constructs of which five are marketing elements (price, distribution intensity, advertising, price promotions, and non-price promotions) and four BE dimensions (brand awareness, brand loyalty, perceived quality, and brand associations) and a final construct—overall brand equity. Thirty-three items were carefully selected from previous studies covering all the constructs. Data were collected from 536 respondents using major brands to stimulate answers on a 5-point Likert scale questionnaire. Exploratory factor analysis was done to identify factors and rename them to be descriptive of the factor. Scale reliability was conducted on the overall items and the individual factors and also for the individual summated scales as per the factors. Findings: The 33 items were factored into seven factors with the four marketing elements’ factors (price, distribution, advertising, and promotions price and non-price factored into one) as per the a priori assumptions. Items measuring BE and its dimensions were factored into three factors instead of the theoretical five constructs. The BE factor encompasses the BE dimensions with brand awareness with brand association (BABA) and brand image coming up as separate factors. Seven of the eight factors also showed strong scale reliability. Practical implications: This study suggests that the four marketing elements can be modeled and measured based on the items selected. BE dimensions do not factor into the assumed dimensions but the three dimensions that are factored can be renamed to be more representative and incorporated into the model. Furthermore, these items can be used to construct measurement scales for the identified constructs within the UAE and the larger Gulf Cooperation Council (GCC) region. Originality/value: This study, being the first of its kind in the UAE, contributes to the general body of knowledge on branding and marketing. The respondents covered are both Arabs and Asians, who constitute the majority of the population in the region. The sample size is large and covers gender, age groups, ethnic background, income group, and education level hence being highly representative of the actual consumers. The constructs identified and the items tested can be used for further studies and also used to construct measurement scales which can be used in practical business situations.