Impact of Brand Equity on Customer Intention to

Buy Products Online

Ajay Kumar Tiwari*

Abstract:

While many consumers in India frequently shop on the Internet, research on what is the
impact of Brand Equity on customer Intension to buy products Online is done to typically
understand consumers well. In the new economy, the role of brands and branding that is
characterised by digitisation and globalisation are attracting considerable attention. Online
Branding has become an important tool for marketers and organization in building a strong
and sustainable Brand. Brand equity is one of the most important factors affecting Online
Branding. In this research paper the significance and impact of “Online Brand equity” on
“customer intention to buy products online” is studied. This paper therefore proposes a
framework to enhance researcher’s understanding of consumer’s intention toward shopping
Online due to the impact of Brand Equity. The proposed framework uses the David Aaker’s
(1996) Brand Equity model as the starting point, further supported by the framework
proposed by George Christodoulides and Leslie de Chernatony (2004). The study considers
different factors affecting customer purchase intention. The study has analysed to find
whether “Brand Equity” or “Non- Brand Equity” factors are having greater impact on
customer purchase intention. The result shows that customer intention is impacted more by
the Brand Equity factors.

Keywords: Brand Equity, Non- Brand Equity, Customer Purchase Intension, Online
Purchase.

*VIT Business School, VIT University, Vellore (TN), 07MBA006, 9944308529, ajay_invncbl@yahoo.com
INTRODUCTION:
Today the Internet is a major communication and transaction medium. The explosive
expansion of e-commerce since the 1990s has dramatically changed the retail landscape in
the world economy. In the USA, the combined monetary value for Internet-related businesses
is expected to grow to around $1.4 trillion by 2003 (Davis, 1999). It is estimated that between
700 million and 950 million people used the Internet in 2004 and that close to 500 million of
these people were frequent users (i.e., more than once a week). Approximately 200 million
people engaged in buying products on the Internet, with worldwide online retail sales
approaching $70 billion in 2004 (e.g., United States: $44 billion; Europe: $10 billion; Asia:
$10 billion). Yearly Internet retail sales growth averaged 30% per year from 2001 to 2008
and is expected to grow at a similar rate in the near future. Despite the strong growth of
Internet sales, the internet as a channel for product sales has not been as successful as was
once projected. The low shopper conversion rate has been the greatest obstruction to sales on
Internet and growth, that is, the percentage of visitors to a retail site who actually make a
purchase. The conversion rate of Internet shoppers averages only 4.9% among the top 100
Internet retailers (Nielsen/ Net Ratings 2005), a rate significantly lower than experienced by
comparable firms using traditional retailing channels. Moreover, research shows that between
65% and 75% of consumers who initiate an online transaction fail to complete the transaction
(Mummert & Partner 2001). Different Survey and Research suggests that the process of
online shopping is not affected significantly by pleasurable experiences, social interaction,
and personal consultation by a Brand on the Internet.
Online shopping experience of customers can be made splendid by the strong Brand equity of
the Online brands. Different reports and surveys suggest that consumers feel helpless while
shopping online i.e. virtually in unfamiliar or complex product categories. Thus, improving
the Internet shopping experience should improve the conversion rate of potential buyers. To
increase the entertainment value, information value, and customer satisfaction of Web-based
shopping experiences, one approach is to use “Brand Equity” (Aaker, 1996). Brand equity is
like a virtual character that can be used as company representative.
Brand equity can serve as identification figures, as personal shopping assistants, as Web site
guides, or as conversation partners. In these roles, Brand equity has the potential to fulfill the
consumer’s desire for a more interpersonal shopping experience. Brand equity is having the
potential to make effective interaction and make the shopping experience more interpersonal.
Consequently, the information provided on the Web site should be perceived as more
important and critical, the shopping experience should become more enjoyable, and the
likelihood of a purchase should increase. The goal of this research is to investigate the
benefits of using Brand equity of online brands on Web sites in influencing customer
intention to buy products online. Brand equity creates a more positive perception of the
entertainment value and richness in information of a Web site. Consequently, shoppers are
more satisfied with the retailer, more positive about the product, and more likely to purchase
the product.
A brand is a name, term, sign, symbol, design, or combination of these which is used to
identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors (Kotler 2002). Alternatively, De Chernatony and McDonald (1992)
describe a brand as: . . . an identifiable product augmented in such a way that the buyer or
user perceives relevant unique added values which match their needs most closely.
Furthermore, its success results from being able to sustain these added values in the face of
competition.
This definition emphasises three aspects of a successful brand:
(1) a brand is dependent on customer perception;
(2) perception is influenced by the added-value characteristics of the product; and
(3) the added value characteristics need to be sustainable.

Source: Kevin Lane Keller; Strategic Brand Management (Prentice-Hall, Inc. 1998); David Aaker, Building Strong Brands
(New York: The Free Press, 1996)
Branding has been characterised as the process of creating value through the provision of a
compelling and consistent offer and customer experience that will satisfy customers and keep
them coming back (Aaker, 1991; De Chernatony and McDonald, 1992). As customers
develop trust in the brand through satisfaction in use and experience, companies have the
opportunity to start building relationships with them, strengthening the brand further and
making it more difficult for competitors to imitate.
The “brand equity” refers to the added value a brand name gives to a product or service
(Aaker, 1991). Brand equity empowers companies to negotiate lower costs of distribution,
increased effectiveness in marketing communication, and expanded growth opportunities
from brand extensions and licences.
This definition implies that brand equity can be analysed on two levels, depending on the
beneficiary of value. The study of brand equity as value to customers is known as “customer-
based brand equity” (or customer brand equity) and its study as financial value to the firm is
known as “firm-based brand equity” (or organisational brand equity).
Brand equity research in marketing has largely concentrated on customer-based as opposed to
firm-based brand equity. This is because, unlike the firm-based approach which centres
around financial valuation issues and provides little usable information for brand managers,
the customer based approach offers insights into customer behaviour convertible into
actionable brand strategies (Keller, 1993). According to Erdem and Swait (1998), brand
names act as signals for consumers.

Source: Kevin Keller

Brand Equity: Traditional and Online specific factors
David Aaker(1996) recommended ten different factors affecting Brand equity in Traditional
scenario. Aaker also recommended, ten different factors affecting Brand equity in Online
scenario. It was further justified by George Christodoulides and Leslie de Chernatony by
extensive research practices. The factors affecting Brand equity in the Online scenario has
been taken into consideration for studying their effect on Customer intention to buy products
Online.

Source: David Aaker(1996) and ‘George Christodoulides & Leslie de Chernatony’(2001)

Online: Brand Equity and Non- Brand Equity factors

Online- Brand Equity factors:
In this research paper eight brand equity factors & their sub- factors have been considered in
studying their impact on Customer intention to buy products online. They have been taken on
the basis of the importance given to them by David Aaker(1996) and ‘George
Christodoulides & Leslie de Chernatony’. These factors and their respective sub- factors are
mentioned below:
Online Brand experience- Customer participation, Connection; Interactivity- Customer
support, Interaction with company personnel; Customisation- Individual level- search and
preferences; Relevance- Relevant search and Information; Site- Design- Presentation Quality,
Ease of use, Site- Navigation, Information Architecture, Style/ Atmosphere; Customer-
Service- Timely and well arranged Information- Furnishing product, security and shipping
Information, Product Availability- Links to Inventory, After Sales service, Automatic Order
conformation; Order Fulfilment- Timely Delivery; Quality of Brand relationships- Emotional
bond and personal commitment, Trust in Brand.
Different factors affecting customers to buy products Online:
Websites provide different medium and environment for customers to buy products online.
There are different factors that affect Customer intention to buy products online. Efthymios
Constantinides (2004) proposed these factors as per the different categories they belong to.
These factors include both Brand equity factors and Non- Brand equity factors. All the
factors can be listed as mentioned below.
Fig. 006- Factors affecting customer intention to purchase

Source: Efthymios Constantinides, 2004, Internet Research Volume 14.

Online- Other Non Brand equity factors:

There are other Non- Brand equity factors that affect customer intention to buy products
online. These factors are mentioned below:
Functionality factors (On the basis of Usability): Convenience- Product Display, Ease of
Ordering; Accessibility/ Findability- Search facilities- Ease to find Information, Site- speed;
Psychological factors (On the basis of Trust): Trust, Transaction security, Customer data
safety, Guarantees/ Return policies; Content factors (On the basis of Marketing Mix):
Product, Price, Promotion
In this research paper, analysis is done by studying carefully, to understand “Which has
greater impact on customer intention to buy products online- ‘Brand equity factors’ or ‘Non-
Brand equity factors’?”.
Customer Intention to buy products Online:
Customer Intention to buy Online is characterized by his willingness to buy. E.g. to make
repurchase, to suggest others to buy etc
The contention in this paper is that, Brand equity influences customers to select and buy
products of a Brand. Whether Brand equity has greater impact, in comparison to other non-
brand equity factors on customer intention to buy products online or not? In this research
paper it is analysed- “Which one has greater impact on Customer intention to buy products
Online- Brand equity factors or Non- Brand equity factors?”.
Within this framework, the impact of brand equity & Non- Brand equity factors was studied
and resulting measures were tested using data obtained from different respondents.

RESEARCH QUESTIONS:
RQ1: What is the impact of the important Brand equity factors on Customer intention to buy
products online (as per the Indian customers)?
RQ2: What is the impact of the other non- Brand equity factors on Customer intention to buy
products online (as per the Indian customers)?
RQ3: Which one is having greater positive impact on Customer intention to buy products
online?
HYPOTHESIS DEVELOPMENT:
H1: There is no significant impact of Brand equity factors on Customer intention to buy
products online.
H2: There is no significant impact of Non- Brand equity factors on Customer intention to buy
products online.
H3: There is no significance difference between the impacts of Brand equity and Non- Brand
equity factors on customer intention to buy products online.
LITERATURE REVIEW:
Many researchers have studied different facets of Online Branding. Rowley (2004) projected
the meaning, need and benefits of Online branding. She defined Online Branding then
explained the need and importance of Online branding. It was proposed that Web pages have
a significant role in online branding, so it elaborated how Web site elements can be arranged
and grouped in order to communicate brand values and messages. Finally a model for the
process associated with building online brands is proposed and discussed.
Rowley (2004) did study on “Online branding: the case of McDonald’s” and explored the
different approaches to deliver the messages of the Brand through its website. It explains the
importance and attention to Brands and Online Branding and different elements of the web
sites playing critical role in the delivery of messages has been discussed. The author has
studied the McDonald’s campaign “I’m loving it”- How website plays an important role? She
found that Internet significantly contributes towards Brand.
Geoffrey (2007) study on “i-Branding”: developing the internet as a branding tool presented a
conceptual framework of branding via the internet form; to show how that framework can, by
organising and integrating current knowledge, assist marketing planners in the development
of successful internet-based branding strategies. Author also describes about applying
internet-based tools to the tasks of marketing communication and customer relationship-
building in particular. Four pillars of Branding has been considered and evaluated.
Roblyn (2004) did study on “Evaluating the Branding potential of web-sites across borders”
and evaluated the Branding potential of websites. The author has presented the AIPD-
“Attracting, Informing, Positioning and Delivering” approach for evaluating commercial
websites within or across borders. This approach comprehensively specifies the different
Internet strategies required for the websites for domestic or international purposes. The
author has considered firms in the software sector. In this study comparison has been made
between the Internet strategies of Japanese and US software firms. The results showed that
US firms created more dynamic and innovative Internet strategies for web-sites.
Rios and Hernan (2008) studied “Brand equity for online companies” and analysed if the
traditional approach to measuring brand equity applies to online companies. He emphasized
that traditional consumer-based brand equity measures and concepts for online companies
differ in degree, not kind. Differences are due to variability in services. Author argued that
brand equity has some specific and differentiated antecedents for online retail. He supports
partially for the application of the offline brand equity theoretical framework based on brand
awareness, brand associations and loyalty for online companies. Brand loyalty and brand
value associations directly create brand equity.
Haizhong did study on “Global brand equity model: combining customer-based with product-
market outcome approaches” and found that there is a growing interest in brand formation
and brand valuation among global firms today, but global marketers typically ignore one of
the key factors of brand building– corporation ability association. The Author explored the
structural relationship between CAA and consumer-based brand equity variables and its
product-market outcomes.
Christodoulides and de Chernatony (2004) did extensive study on “Dimensionalising on- and
offline brands’ composite equity” and approaches the subject of brand equity measurement
on and offline. He argued that since branding on the Web needs to address the unique
characteristics of computer-mediated environments, it was posited that classical measures of
brand equity were inadequate for this category of brands. Aaker’s guidelines for building a
brand equity measurement system were thus followed and his brand equity ten was employed
as a point of departure. The main challenge was complementing traditional measures of brand
equity with new measures pertinent to the Web.
Perea and Benedict (2004) did study on “What drives consumers to shop online?” and
proposed a framework i.e. Technology Acceptance Model (TAM) as a basis to increase
researchers’ understanding of consumers’ attitudes toward online shopping and their intention
to shop on the Internet. Author found that attitudes toward online shopping and intention to
shop online are not only affected by ease of use, usefulness, and enjoyment, but also by
exogenous factors like consumer traits, situational factors, product characteristics, previous
online shopping experiences, and trust in online shopping. Park and Gul Kim (2003) did
remarkable study on “Identifying key factors affecting consumer purchase behaviour in an
online shopping context” and investigated the relationship between various characteristics of
online shopping and consumer purchase behaviour. Results of the online survey with 602
Korean customers of online bookstores indicate that information quality, user interface
quality, and security perceptions affect information satisfaction and relational benefit, which
in turn, are significantly related to each consumer's site commitment and actual purchase
behaviour.
METHODOLOGY:
RESEARCH PURPOSE: This research is having the basic research design as Descriptive,
since it involves the description and study of the characteristics of Brand equity and Non-
Brand equity factors from a particular group of respondents chosen from the population. This
study also considers the Causal research design. Since the Impact of Brand equity on
Customer intention to buy products online is studied, there exist causal relationship between
Dependent and independent variables being studied.
RESEARCH APPROACH: This Research study is Quantitative in nature. So, quantitative
research techniques are used to do required analysis of the data. Statistical and mathematical
tools are used on the data to analyse, interpret and conclude the result of the analysis.
RESEARCH STRATEGY:
SAMPLING: The Sampling for this Research study was done by selecting 250 elements (no.
of respondents) out of chosen targeted population. In this research non-probability sampling
technique is used for selecting the elements out of population from whom the data is
collected. Under the non-probability sampling we would be using purposive sampling for this
research. Purposive- Judgement sampling is used for the selection of samples from
population. This study requires responses of people who are frequent users of internet and
who buy products online. This requires collecting data from people who are net savvy and
belong to place where proper Internet connectivity is available. This study is having eighteen
Brand equity variables and ten Non- Brand equity variables. So, total twenty eight variables
are there. The sample size could be taken as: 28*10= 280. So, 280 respondents were selected,
out of which 30 respondents gave responses improperly. These 30 respondent’s responses
were not eligible to be analysed. Therefore, remaining 250 respondents have been taken into
consideration whose data was used during analysis.
TIME- HORIZON:
The data was collected for this research for a particular interval of time. So, Cross- sectional
study was conducted during the interval of “Jan, 2009 to April, 2009”.
DATA COLLECTION:
PLACE- Chennai, Bangalore, Delhi, Mumbai and Vellore. These locations were chosen for
data collection, because people residing here are highly educated and have high Income
levels. The people are net savvy and have bought products (who already bought few times)
online. In Vellore mainly VITU students and CMC doctors were targeted who are net savvy
and usually buy products online.
The secondary data was collected from Academic electronic Databases, Internet and Online
Journals, Research articles/ Reports, News papers, Magazines, Books etc.
The Primary data was collected through structured Questionnaire. As this is a Quantitative
study so questionnaires were distributed to desired samples to gather particular set of
information required for the study.
Questionnaire- The questionnaire was designed in such a way so as to get clear idea of
respondents regarding their perception towards Brand equity and Non- Brand equity factors.
It was designed to elicit response that clarifies the impact on purchase intention of
respondents in online scenario.
DATA ANALYSIS:
After all the data been collected the analysis of the data begins. Here we used SPSS 7.5 for
analysis of the data, also windows excel for the graphs related works. So the data were
presented in descriptive and graphical form.
The data collected has been evaluated by:
Percentage Analysis;

Avg. mean scores of Brand Equity and Non- Brand Equity factors;

Factor Analysis of Brand Equity and Non- Brand Equity factors;

Correlation Analysis of Brand Equity and Non- Brand Equity factors;

Regression Analysis of Brand Equity and Non- Brand Equity factors;

AVERAGE MEAN SCORE:
Brand Equity factors Mean Non- Brand Equity factors Mean

Customer participation 4.25 Product Display 1.38

Connection 4.31 Ease of Ordering 1.44

Customer support 4.25 Search facilities 1.42

Interaction with company 4.30 Site- speed 1.43

personnel
Individual level- search and 4.32 Transaction security 1.42
preferences
Relevant search and 4.40 Customer data safety 1.47
Information
Presentation Quality 4.42 Guarantees/ Return policies 1.42
Ease of use 4.38 Product variety and Quality 1.43
Site- Navigation 4.45 Better Pricing policies 1.40
Information Architecture 4.44 Promotional campaigns and 1.36
schemes
Style/ Atmosphere 4.46
Timely and well arranged 4.48
Information
Product Availability 4.52
After Sales service 4.48
Automatic Order conformation 4.50

Timely Delivery 4.49

Emotional bond and personal 4.48
commitment
Trust in Brand 4.48
Total 79.41 14.17

Graph Showing- Impact Of Brand Equity Factors On Customer Intention To Buy

Products Online:
 Note: SD- Strongly dissatisfied, D- Dissatisfied, N- Neutral, A- Agree, SA- Strongly Agree.
Impact of Brand Equity Factors on Customer Intention to Buy Products Online:
VARIABLES SD % D % N % A % SA % MEAN MODE

Customer - - 1 0.4 44 17.6 97 38.8 108 43.2 4.25 5

Participation
Connection - - 2 0.8 35 14.0 97 38.8 116 46.4 4.31 5

Customer Support - - - - 43 17.2 101 40.4 106 42.4 4.25 5

Interaction with - - - - 40 16.0 94 36.6 116 46.4 4.30 5

Company Personnel
Individual level - - 2 0.8 38 15.2 87 34.8 123 49.2 4.32 5
Search and
Preferences
Relevant Search and - - 2 0.8 30 12.0 85 34.0 133 53.2 4.40 5
Information
Presentation Quality - - - - 28 11.2 89 35.6 133 53.2 4.42 5

Ease of Use - - - - 28 11.2 99 39.6 123 49.2 4.38 5

Site Navigation - - 2 0.8 18 7.2 95 38.0 135 54.0 4.45 5

Information - - - - 19 7.6 101 40.4 130 52.0 4.44 5

Architecture
Style/ Atmosphere - - 2 0.8 15 6.0 98 39.2 135 54.0 4.46 5

Timely Information - - 1 0.4 13 5.2 100 40.0 136 54.4 4.48 5

Product Availability - - - - 10 4.0 101 40.4 139 55.6 4.52 5

After sales Service - - 1 0.4 11 4.4 105 42.0 133 53.2 4.48 5

Automatic Order - - 1 0.4 11 4.4 101 40.4 137 54.8 4.50 5

Confirmation
Timely Delivery - - - - 12 4.8 104 41.6 134 53.6 4.49 5

Emotional Bond - - 1 0.4 12 4.8 102 40.8 135 54.0 4.48 5

Trust in Brand - - 1 0.4 15 6.0 96 38.4 138 55.2 4.48 5

TOTAL - - 16 0.36 422 9.38 1752 38.93 2310 51.33

Graph Showing- Impact of Non- Brand Equity Factors on Customer Intention to Buy Products Online:
Note: SD- Strongly dissatisfied, D- Dissatisfied, N- Neutral, A- Agree, SA- Strongly Agree.
Impact Of Non- Brand Equity Factors On Customer Intention To Buy Products Online:

VARIABLES SD % D % N % A % SA % MEAN MODE

Product Display 164 65.6 78 31.2 8 3.2 - - - - 1.38 1

Ease of Ordering 147 58.8 97 38.8 6 2.4 - - - - 1.44 1

Search Facility 147 58.8 100 40.0 3 1.2 - - - - 1.42 1

Site Speed 143 57.2 106 42.4 1 0.4 - - - - 1.43 1

Transaction 149 59.6 97 38.8 4 1.6 - - - - 1.42 1

Security
Customer Data 142 56.8 99 39.6 9 3.6 - - - - 1.47 1
Safety

Guarantees/ 150 60.0 94 37.6 6 2.4 - - - - 1.42 1

Return Policies

Product Variety 150 60.0 93 37.2 7 2.8 - - - - 1.43 1

and Quality
Better Price 157 62.8 87 34.8 6 2.4 - - - - 1.40 1
Policies
Promotional 162 64.8 85 34.0 3 1.2 - - - - 1.36 1
Campaigns and
Schemes
TOTAL 1511 60.44 936 37.44 53 2.12 - - - -

H3: There is no significance difference between the impacts of Brand equity and Non- Brand
equity factors on customer intention to buy products online.
The Avg. mean scores of Brand equity and Non- Brand equity factors are 4.412 and 1.417, so
respondents Agree that Brand equity factors have more impact on Customer intention to buy
products online. Brand equity factors have more impact on customer intention to buy
products online in comparison to Non- Brand equity factors.
Therefore, Null hypothesis: “H3: There is no significance difference between the impacts of
Brand equity and Non- Brand equity factors on customer intention to buy products online.” is
not accepted.
 Factor Analysis:
Loading of Brand Equity Variables on Brand Equity factors (extracted):
Factors 1 2 3 4 5 6 7 8

Variables

Relevant Search and 0.337

Information
Product Availability 0.312

Automatic Order 0.573

Confirmation
Emotional Bond 0.528

Trust in Brand 0.495

Connection 0.637

Timely Information 0.548

Presentation Quality 0.416

After sales Service 0.555

Interaction with Company 0.466

Personnel
Individual level Search and 0.485
Preferences
Ease of Use 0.467

Site Navigation 0.499

Customer Support 0.513

Timely Delivery 0.387

Customer Participation 0.323

Style/ Atmosphere 0.434

Information Architecture 0.302

Labelling of Brand Equity factors:

Brand Punctual Care to Interactive Site Supportive Participating Information

commitment connectivity attract comfort navigation brand for style architecture

Relevant Connection Presentat Interactio Site Customer Customer Information

search and ion n with navigation support participation architecture
information quality company
personnel

Product Timely After Individual Timely Style/

availability information sales search and delivery Atmosphere
service preference

Automatic Ease of use

order
confirmation

Emotional
bond and
commitment

Trust in
brand

Loading of Non- Brand Equity Variables on Non- Brand Equity factors (extracted):
Factors 1 2 3 4 5

Variables

Ease of Ordering 0.552

Search Facility 0.747

Product Variety and Quality 0.514

Promotional Campaigns and Schemes 0.140

Site Speed 0.815

Product Display 0.571

Customer Data Safety 0.444

Guarantees/ Return Policies 0.815

Transaction Security 0.495

Better Price Policies 0.818

Labelling of Non- Brand Equity factors:

Promotion and Site speed Display and safety Guarantees and Secured and
Support for return policies economical
Purchase

Ease of order Site speed Product display Guarantees and Transaction security
return policies

Search facility Customer data Better price policies

safety

Product variation
and quality

Promotional
campaigns and
schemes
 CONCEPTUAL FRAMEWORK:

Online Brand experience

Interactivity

Customisation

Brand Equity Site- Design

factors

Customer Service

Order fulfillment

Quality of Brand Customer Intention

Relationships to buy products
online:
The degree of
willingness to buy

Convenience

Accessibility

Trust
Non- Brand
Equity factors
Product

Price

Promotion
FINDINGS:
The maximum no. respondent’s age varied from Below 20 and 20-49 years. Many
respondents were ‘B.Tech students from VITU & other different colleges’ and
‘Professionals’, who are net savvy and prefer buying products online. This indicates that the
maximum users are of young age level. The data obtained reveals that 46.45 respondents use
internet for 2- 4 hrs. per day and 44.8% use for 4- 6 hrs. So, maximum no. of respondents are
net savvy and use internet frequently. From the percentage analysis it is clear that 63.65
respondents Strongly Agree and 35.65 Agree that they are having Intention to purchase
products online.
The Average of means Score of Brand equity factors is calculated as 4.412 and the avg. of
means of Non- Brand equity factors is calculated from the above table as 1.417. The
Numeric values used for different represents: 1- Strongly Disagree, 2- Disagree, 3- Neutral,
4- Agree, 5- Strongly Agree.
So, There is significance difference between the impacts of Brand equity and Non- Brand
equity factors on customer intention to buy products online. And, Brand equity factors have
more positive impact on Customer intention to buy products online.
Factor Analysis result extracts:
Brand Equity factors:
KMO Measure of sampling adequacy has the value 0.699. So, the sample taken for the study
is highly adequate. Bartlett’s test of sphericity has a value of 1208.476 and significance
level .002(i.e. < 0.10), so the factors are valid and adequate for the study.
Eight Brand equity factors, that are having the cumulative percentage of variance as 57.022
percent are extracted by Factor analysis. That means the eight factors extracted, together
account for 57 percent of the total variance. So, we are able to economise on the number of
variables. These factors are: “Brand commitment”, “Punctual connectivity”, “Care to attract”,
“Interactive comfort”, “Site navigation”, “Supportive brand”, “Participating for style”,
“Information architecture”.
Non- Brand Equity factors:
KMO Measure of sampling adequacy has the value 0.574. So, the sample taken for the study
is highly adequate. Bartlett’s test of sphericity has a value of 541.884 and significance level .
106, so the factors are valid and adequate for the study.
Five Non- Brand Equity factors are having the cumulative percentage of variance as 57.746
percent. That means the five factors extracted, together account for 58 percent of the total
variance. These factors are: “Promotional influence on ordering”, “Site speed”, “Display for
safety”, “Guarantees and return policies”, “Secured and economical”.
Correlational Analysis suggests that,
There is high correlation between most of the Brand equity factors and also between Non-
Brand equity factors. This suggests that, Independent factors chosen are fairly good factors.
Brand Equity factors are more correlated with Purchase Intension than Non- Brand equity
variables and it is justified by the respondents
Regression analysis results :
Brand Equity factors:
H1: There is no significant impact of Brand equity factors on Customer Intention to Buy
Products Online.
The p- level is 0.0721. This indicates that the model is statistically significant at a confidence
level of (1- 0.0721)*100, or 92.79. The p- level indicates the significance of the F- value.
The R2 value is 0.957. t- tests for significance of individual independent variables indicate
that at the significance level of 0.10 (equivalent to a confidence level of 90%), more number
of variables are statistically significant in the model and have greater impact on Purchase
Intension of Respondents. They are: Customer participation- cstmprtc, Individual level search
and preferences- indsnp, Relevant search and information- relsni, Presentation Quality-
prsnqlty, Product availability- prdtavlb, Automatic order confirmation- atordcnf.
So, Brand equity factors have greater impact on the respondent’s (customers) intention to buy
products online i.e. there is significant impact of Brand Equity factors on Customer Intention
to Buy Products Online.
So, Null Hypothesis “H1: There is no significant impact of Brand equity factors on Customer
intention to Buy Products Online” is not accepted. Therefore, there is significant impact of
Brand Equity factors on Customer Intention to Buy Products Online.
Non- Brand Equity factors:
H2: There is no significant impact of Non- Brand equity factors on Customer intention to buy
products online.
The p-level to be 0.067. This indicates that the model is statistically significant at a
confidence level of (1- 0.067)*100, or 93.30. The p- level indicates the significance of the F-
value.
The R2 value is 0.069 as shown in Table: R6. That explains the lesser variance. So overall,
there is much lesser (Negligible) Impact of Non- Brand Equity factors on Purchase Intension
of (customers) respondents. t- tests for significance of individual independent variables
indicate that, at the significance level of 0.10 (equivalent to a confidence level of 90%), very
few variables are statistically significant in the model.. They are: Product display, Product
variety and Quality,
Non- Brand equity factors have much lesser (Negligible) impact on respondent’s (customers)
Intention to buy products online i.e. there is no significant impact of Non- Brand Equity
factors on Customer Intention to Buy Products Online.
So, Null Hypothesis “H2: There is no significant impact of Non- Brand equity factors on
Customer intention to Buy Products Online” is accepted. Therefore, there is no significant
impact of Non- Brand Equity factors on Customer Intention to Buy Products Online.
H3: There is no significance difference between the impacts of Brand equity and Non- Brand
equity factors on customer intention to buy products online.
There is significance difference between the impacts of Brand Equity & Non- Brand equity
factors on Customer Intension to buy products Online. Brand Equity factors have more
positive Impact on Customer intension to buy products Online.
H3 is not accepted (rejected)- There is significance difference between the impacts of Brand
Equity & Non- Brand equity factors on Customer Intension to buy products Online. Brand
Equity factors have more positive Impact on purchase Intension.
The Study findings suggest that Brand Equity factors have more significant positive impact
than Non- Brand equity factors, on Customer Intention to Buy Products Online.

DISCUSSION:
The Study findings suggest that Brand Equity factors have more significant positive impact
than Non- Brand equity factors, on Customer Intention to Buy Products Online.
There is significance difference between the impacts of Brand Equity & Non- Brand equity
factors on Customer Intension to buy products Online. Brand Equity factors have more
positive Impact on Customer intension to buy products Online.

LIMITATIONS OF STUDY:
1. This study is a cross sectional study. So, the results may not be valid for a longer period of
time to be used by businesses for decision making.
2. The sample size is 250, which is comparatively small to analyse and generalize for the
larger population regarding the customer purchase intention to buy products online.
3. The respondents were only taken from the southern west region e.g. Chennai, Bangalore
and Vellore and two major cities Delhi and Mumbai. The purchase intention of the people
residing in these areas may not be same as for different other regions of the country.

CONCLUSION:
This paper has sought to study and analyse the “Impact of Brand Equity on Customer
Intension to buy products Online”, in the light of the contemporary Indian scenario. Aaker’s
(1996) guidelines on Brand Equity and George Christodoulides framework for Brand Equity
factors affecting Customer purchase Intension has been followed and taken as the starting
point. The challenge was to study and analyse the Impact of Brand Equity factors on
Customer Intension to buy products Online. Different important factors affecting Customer
Purchase Intension Online, according to Efthymios Constantinides (2004), has been
considered to differentiate Brand Equity and Non- Brand equity factors. The Conceptual
framework of this study has helped in studying and analysing the Impact of Brand Equity and
Non- brand Equity factors on Customer intension to buy products Online. A Structured
Questionnaire was used to get responses of different customers (using Internet to buy
products Online). Using, ‘Average Mean Scores of Brand equity and Non- Brand equity
factors’ and ‘Factor analysis’, the effectiveness of chosen factors and their Impact on
Purchase Intension has been studied. It was further analysed using Multiple Regression
Analysis for brand Equity and Non- brand equity factors. The study and analysis results
showed that brand equity factors have more positive Impact on Customer intension to buy
Products Online.
In this research paper a framework has been proposed to enhance researchers and Web-
marketers understanding of customer’s Intension towards shopping on the Internet. The study
and its findings suggest that, Brand Equity plays an important role in impacting Customers to
buy products Online. Using the research findings, Web- marketers can evaluate the website
performance and enhance it by valuing and utilising Brand equity factors more effectively.
This will certainly enhance the Customer perception of the Brand and strengthen their
Intension to buy products Online.
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