Family As A Source of Consumer-Based Brand Equity

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Family as a source of consumer-based brand equity

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DOI: 10.1108/10610420710751564

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Family as a source of consumer-based
brand equity
R. Bravo Gil, E. Fraj Andrés and E. Martı́nez Salinas
Universidad de Zaragoza, Zaragosa, Spain

Abstract
Purpose – The main purpose of the current work is to analyse the role played by the family on consumer-based brand equity. In the proposed model,
information of a brand provided by both the family and the firm (via price, promotion and advertising spending) is analysed as a source of consumer-
based brand equity and its dimensions.
Design/methodology/approach – An empirical study was conducted in young adults (18-35) via structural equations model. Brand equity is
analysed in six different brands of milk, toothpaste and olive oil.
Findings – Results prove that positive brand information provided by the family has effects on the formation of brand awareness-associations and
perceived quality, and this may lead in turn, to brand loyalty and overall brand equity. The effects of the information provided by the family are higher
than those of the marketing variables studied. Results also show that brand loyalty is much closer to the concept of overall brand equity than brand
awareness-associations and perceived quality.
Research limitations/implications – The sample size does not allow to analyse differences in the effects between types of products and consumers.
Practical implications – Due to the importance of the family on the formation of the consumer-based brand equity, firms should analyse how to take
advantage of this factor to approach new generations of consumers. Actions to foster family associations and brand recall may ease the transfer of
brand equity from one generation to another.
Originality/value – Family has been usually considered as an external influence factor of consumer behaviour, however, its importance as information
provider had not been analysed in the process of brand equity formation.

Keywords Family, Consumers, Brand equity, Young adults

Paper type Research paper

An executive summary for managers and executive brand in the family may generate a habit in the individual that
readers can be found at the end of this article. may explain a subsequent loyalty to that brand.
The relevance of the family in the brand equity formation is
particularly interesting in those individuals who leave home and
Introduction have to face new purchase situations, since in this stage, the
consumer hardly has any consumption experience but the one at
Since its appearance in the 1980s, brand equity has been one his family home. Moreover, these individuals often turn to their
of the main priorities in marketing research (Marketing families for advice when buying a product, given that they
Science Institute, 2002). Its importance stems from the firms’ consider their parents as a close and reliable reference (Shah
interest to create strong brands in order to obtain sustainable and Mittal, 1997; Feltham, 1998). This information may lead
competitive advantages and to differentiate their products to the creation of consumer-based brand equity.
(Aaker, 1991; Keller, 2003). The main purpose of the current work is to analyse the role
The family has been considered as a powerful influencer in played by the family on consumer-based brand equity. Thus,
consumer behaviour. However, its effects on the brand equity a model will be proposed where information of a brand
formation has been scarcely analysed. In fact, only Moore provided by both the family and the firm (via price,
et al. (2002) have directly addressed such effects. As outlined promotion and advertising spending) is analysed as a source
by these authors, the family may have a considerable influence of consumer-based brand equity and its dimensions. Results
on the consumer-brand relationship, and this may result in obtained will enable marketing managers to recognise the
the formation of consumer-based brand equity. Thus, the elements that generate higher equity for their brands from the
family puts the individual in contact with brands consumed at consumer’s perspective, and thus take actions to foster the use
home, providing a higher knowledge of those brands. of those elements.
Moreover, those brands may be linked to family memories, Our work begins with a revision of the previous literature on
which provides an emotional meaning (Olsen, 1993; consumer-based brand equity. Next, the effects of the family
Fournier, 1998). Furthermore, repetitive consumption of a and other determining factors on brand equity will be
analysed. This analysis will result in a series of hypotheses to
The current issue and full text archive of this journal is available at contrast. In section four we will outline the methodology
www.emeraldinsight.com/1061-0421.htm used, describing the products and brands analysed, the

The authors are grateful for the financial assistance provided through the
Journal of Product & Brand Management
16/3 (2007) 188– 199 CICYT project (SEJ2005-02315), through the GENERES (ref. S-09)
q Emerald Group Publishing Limited [ISSN 1061-0421] and PM062/2004 projects from the Government of Aragon, and through
[DOI 10.1108/10610420710751564] project Ref. 267-108 from the University of Zaragoza and Ibercaja.

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measurement scales used and the sample characteristics, and 1988). The best way for a brand to increase perceived quality
afterwards, we will show the results obtained in the empirical is to invest in improving its real objective quality. Moreover,
work. Finally, the major conclusions, limitations and future the firm has to communicate the quality of its brands through
lines of research will be commented. quality signals in its marketing actions. Thus, consumers
perceive brand quality through their direct experiences with
the brand and the information obtained in the environmental
Consumer-based brand equity
factors (Grönroos, 1984; Yoo et al., 2000). As in the case of
Research on brand equity, from the perspective of the brand associations, there are several factors to consider in
consumer, is aimed to analyse the consumer response to a order to analyse and measure perceived quality, such as
brand name (Shocker et al. 1994; Keller, 2003). In this sense, reliability, durability, appearance, performance, serviceability,
Lassar et al. (1995) defines brand equity as “the enhancement etc. (Parasuraman et al., 1985; Cronin and Taylor, 1992;
in the perceived utility and desirability a brand name confers Brucks et al., 2000).
in a product”. and in general, it is the consumer’s perception Finally, brand loyalty is defined as “a deeply held
of the overall superiority of a product carrying that brand commitment to rebuy or repatronize a preferred product/
name when compared to other brands (Lassar et al., 1995). service consistently in the future, thereby causing repetitive
There are many classifications and dimensions proposed in same-brand or same-brand set purchasing despite situational
the analysis of brand equity. Thus, Keller (2003) considers influences and marketing efforts having the potential to cause
brand knowledge, formed by the dimensions of awareness and switching behaviour” (Oliver, 1997). This dimension is
brand image, as an indicator of brand equity. Shocker and formed by two different components: attitudinal and
Weitz (1988) establish brand equity in function of brand behavioural (Dick and Basu, 1994; Taylor et al., 2004).
image and brand loyalty. Agarwal and Rao (1996) consider Both components explain the formation of brand loyalty. On
overall quality and choice intention as the main dimensions of the one hand, the attitudinal component indicates that loyalty
brand equity; Vázquez et al. (2002) indicate the importance of formation stems from a positive bond or commitment
stored associations expressing both functional and symbolic between consumer and brand, and this attitude, in turn,
utilities, etc. One of the most common classifications in brand arises from the coincidence between the brand attributes and
equity is the one proposed by Aaker (1991), who distinguishes the consumer’s preferences. On the other hand, from the
five dimensions: awareness, associations, perceived quality, behaviour component, loyalty formation is explained by the
brand loyalty and other brand-related assets. In practice, only consumer’s prior purchases which result in a certain purchase
the first four dimensions are analysed in consumer-based habit (Dick and Basu, 1994).
brand equity research, since the fifth dimension, other brand-
related assets, refers to patents, distribution channels of the The effect of the family on the brand equity
firm and other facets not directly related to consumers. formation process: proposed model and
Briefly, brand awareness refers to “the ability of a potential
buyer to recognize or recall that a brand is a member of a hypotheses
certain product category” (Aaker, 1991). The first step to There are different models on the literature to explain the
build brand equity is to create brand awareness. Aaker (1991) formation of brand equity (Dyson et al., 1996; Na et al., 1999;
considers that brand awareness may result in brand equity in Berry, 2000). One of the most commonly used is established
four different ways: creating a brand node in consumer’s by Aaker (1991), where brand equity is determined by its
memory, providing a sense of familiarity of the brand in the dimensions, and creates value for both the consumer and the
consumer’s mind, acting as a signal of trust in the brand and firm. Following this schema, Yoo et al. (2000) test the effects
being enough reason for the consumer to consider the brand of the information perceived by the consumer from different
in his consideration set. Brand awareness is the result of marketing actions on the formation of brand equity and its
consumer’s exposure to a brand (Alba and Hutchinson, 1987) dimensions.
and it is usually measured through brand recognition and Based on these models, this work proposes that information
recall (Aaker, 1996; Keller, 2003). provided by the family can also affect the formation of
Brand associations are defined as “anything linked in consumer-based brand equity. As mentioned previously, the
memory to a brand” (Aaker, 1991), and they represent the individual may receive recommendations to buy certain
meaning of the brand for the consumer. This dimension is brands from his parents, and also comes into contact with
closely related to brand awareness, since both dimensions several brands used at his family home. The individual
arise from the consumer-brand contact (Aaker, 1991; frequently considers his family as a reliable reference in
Fournier, 1998). Thus, each new experience with the brand relation to the purchase of certain products (Childers and
creates, reinforces or modifies the individual’s associations Rao, 1992; Moore et al., 2002), and thus, information on a
(Keller, 2003), and there are different classifications in brand obtained from the family may determine the consumer
relation to its relationship to product features, both tangible evaluation of a brand, and in consequence, affect the
and intangible, type of consumer, lifestyle, etc. (Aaker, 1991; formation of consumer-based brand equity. In this work
Biel, 1992; Keller, 1993; Park and Srinivasan, 1994). only positive information of a brand is analysed, since both
Associations have to be unique, strong and favourable to family recommendations to buy a brand, and observation of a
have a positive effect on brand equity (Keller, 2003). Osselaer frequently purchased brand in the family, is perceived by the
and Alba (2000) posit that brand associations may block consumer as a manifestation that his parents approve the use
consumer’s search of other type of information for the of the brand.
purchase decision. The proposed conceptual model can be seen in Figure 1.
Perceived quality is considered as “the consumer judgment We have used this model because it is based on the
about a product’s overall excellence or superiority” (Zeithaml, conceptualization of brand equity proposed by Aaker

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Family as a source of consumer-based brand equity Journal of Product & Brand Management
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Figure 1 Effects of family on the conceptual framework of brand equity Effects on dimensions of brand equity
Companies can create brand equity through its marketing
actions on the brand. In this sense, Keller (2003) posits that
brand equity should be managed over time by fine-tuning the
supporting marketing program. In the present paper, we
investigate consumers’ perceptions of three marketing
elements: advertising, price and promotion to be included
in our model. Although these variables do not cover the full
domain of marketing variables, they represent typical
marketing actions and their effects on brand equity have
been studied previously (Yoo et al., 2000; Villarejo and
Sanchez-Franco, 2005). This selection allows to compare the
results in our model with the ones obtained in these previous
works, since some of the hypotheses proposed were not
supported by both analysis.
Thus, regarding the dimension of brand awareness, as
pointed previously, this is the result of the individual’s
prolonged exposure to the brand (Keller, 2003). Therefore,
(1991), since this conceptualization has been frequently
the more intensive the advertising campaign, the more the
applied in the literature (Baldauf et al., 2003; Kim et al., 2003; consumer is exposed to the brand. Advertising recall as a basis
Pappu et al., 2005). Moreover, this selection allows to for reaching brand awareness is related positively to the
compare results from this analysis with those obtained in strength of the advertising spending (Deighton, 1984; Hoyer
recent works, where some of the relationships had been also and Brown, 1990). The advertising spending in a brand will
studied (Atilgan et al., 2005; Villarejo and Sanchez-Franco, increase the scope and repetitions of the advertising message,
2005). and as a consequence, a higher level of awareness will be
Due to the large number of relationships to be analysed, obtained for the brand. In general, Cobb-Walgren et al.
hypotheses have been classified in three sections. The first (1995) find a positive relation between the amount spent on
section is devoted to the effects of the information provided advertising and brand equity and its dimensions. In this sense,
by both the family and the firm through its marketing actions. advertising spending perceived by the consumer is also
The second section refers to the hypotheses concerning the positively related to brand equity as proved in previous works
relationships between dimensions of brand equity. Finally, the (Yoo et al., 2000; Villarejo and Sánchez-Franco, 2005).
third section is devoted to the relationships between each Likewise, the information provided by the family can foster
dimension and overall brand equity. All the relationships are consumer-brand contact. Thus, a brand that has been
shown in Figure 2 and they will be explained in depth in the traditionally consumed in the household for years will
following sections. provide awareness in the consumer’s mind that will remain

Figure 2 Structural model

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Family as a source of consumer-based brand equity Journal of Product & Brand Management
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after leaving home (Olsen, 1993; Fournier, 1998). Moreover, With respect to the information of the brand provided by
when facing new purchase situations, young adults may ask the family, this information may also determine consumer
their parents for information and advice (Moore et al., 2002). perceived quality of the brand. Thus, the young adult’s
Consequently, we propose the following hypotheses: perception of brands recommended or used by other
H1a. The higher the advertising spending of a brand experienced consumers, may affect the perception of quality
perceived by the young adult, the higher the brand of such brands. This is especially the case of the family, who is
awareness. usually considered by the young adult as an experienced buyer
H1b. The higher the positive brand information provided by of certain products (Childers and Rao, 1992; Keillor et al.,
the family of the young adult, the higher the brand 1996). This perception involves a more positive attitude
awareness. toward the brand, and it may result in the purchase of that
Formation of brand associations, like the formation of brand brand (Feltham, 1998, Moore et al., 2002). Hence, we
awareness, arises from consumer-brand contact. In this case, postulate:
each new contact creates, modifies or reinforces associations, H3a. The higher the advertising spending of a brand
that is, it determines the meaning that the consumer perceived by the young adult, the higher the
attributes to a brand (Keller, 2003). Therefore, we may perceived quality of the brand.
assume that advertising spending and family information may H3b. The higher the positive brand information provided by
also determine brand associations. the family of the young adult, the higher the perceived
Hence, the higher the advertising spending of a brand, the quality of the brand.
more the consumer is exposed to the brand, and in H3c. The higher the price of the brand perceived by the
consequence, the stronger and more numerous will be the young adult, the higher the perceived quality of the
associations in the consumer’s mind. Again, this relation is brand.
empirically proved by Villarejo and Sanchez-Franco (2005); H3d. The more frequent the price promotions of the brand
the same occurs in the work by Yoo et al. (2000), however, in perceived by the young adult, the lower the perceived
the latter, both brand awareness and brand associations are quality of the brand.
considered jointly. The family contribution to the formation
of associations may also be crucial. Thus, the studies that
analyse consumer-brand relationships reveal the importance Relationships between dimensions of brand equity
of this factor. Fournier (1998) shows that the family may Brand equity dimensions are closely interrelated.
foster the formation of consumer-brand affective bonds. Nevertheless, loyalty has been considered as a construct
These associations provide an emotional value to brands that preceded by the other three dimensions: awareness,
differentiates them from the rest of competing brands. Olsen associations and perceived quality. In order to establish this
(1993) also stresses the role of the family in the formation of causal order, Chiou et al. (2002) have based their arguments
brand associations, and in the case of the individual leaving on a cognitive-affective-behavioral hierarchical model. Thus,
his family home, this author considers that these associations they consider perceived quality as a cognitive construct which
may act as “bridges” or “fences” in the intergenerational results in affective response toward the brand. Finally, this
transfer of brand loyalty. Hence, we posit: affective response determine the consumer behaviour, and
H2a. The higher the advertising spending of a brand they may lead to product purchase and brand loyalty. Roberts
perceived by the young adult, the more the et al. (2004) turn to purchase decision stages to justify a
associations linked to that brand. causal order between perceived quality and loyalty. Thus,
H2b. The higher the positive brand information provided by perceived quality would be related to the information
the family of the young adult, the more the associations evaluation stage and loyalty would be mainly related to the
linked to that brand. purchase decision stage. Yoo et al. (2000) also suggest a
The origin of the consumer perception of quality mainly lies possible causal order between these dimensions. In this case,
their arguments are based on the hierarchy of effects theory
in the perception of quality-related intrinsic and extrinsic
attributes (Na et al., 1999). Among the extrinsic attributes, (Lavidge and Steiner, 1961). Thus, they propose that
the firm’s marketing actions through advertising, price and marketing actions may have an impact on associations and
promotions, have a predominant role. Advertising spending is perceived quality, and this impact may then result in brand
a signal that the firm is investing in the brand (Kirmani and loyalty. Consequently, we hypothesize:
Wright, 1989), and in the case of consumer, there is a positive H4a. The higher the brand awareness, the higher the brand
loyalty.
relationship between advertising spending and the consumer’s
H4b. The more the associations linked to a brand, the higher
perceived quality of the brand (Milgrom and Roberts, 1986;
the brand loyalty.
Simon and Sullivan, 1993; Cobb-Walgren et al., 1995).
Price is also perceived as a quality signal. Thus, high-price H4c. The higher the perceived quality of a brand, the higher
brands are generally perceived as higher quality brands than the brand loyalty.
those with a low price. This has been outlined in numerous
studies (Milgrom and Roberts, 1986; Rao and Monroe,
1989). Along the same line of argument, price promotions Relationships between dimensions and brand equity
may erode the brand’s perceived quality since they reduce the Each dimension of brand equity: awareness, associations,
product price (Suri et al., 2000; Jorgensen et al., 2003). The perceived quality and loyalty, has, in turn, a positive effect on
long-term effect of constant promotions generates uncertainty overall brand equity. Overall brand equity is regarded as a
about the brand quality (Winer, 1986), which results in a global preference for the brand over similar alternatives, as
more negative brand perception. explained in different definitions of this concept (Farquhar,

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1990; Aaker, 1991). Thus, higher brand awareness in the The questionnaires were answered by a random sample of 360
consumer’s mind, along with strong, unique, positive young adults aged between 18 and 35 years. Each individual
associations, leads the consumer to increase his preference answered only one questionnaire, thus each brand was
for the brand. Likewise, the higher perceived quality and assessed by 60 young adults.
purchase frequency, the more positive the consumer Requirements to respond to the questionnaire were that
assessment of the brand, and therefore the higher respondents had to live away from the family unit, be regular
consumer-based brand equity. The results of the preceding buyers of the products of our study and live, both respondents
empirical studies have demonstrated, on the whole, effects of and their parents, in Spain. This requirement was essential to
some of the dimensions on overall brand equity (Yoo et al., guarantee that both parents and children had access to the
2000; Zinnbauer and Bakay, 2004; Atilgan et al., 2005). same brands and thus assess the family influence effectively.
Consequently, this study proposes positive relations between The sample was composed by 63.1 percent of women and
each dimension and overall brand equity. 36.9 percent of men. This distribution is in accordance with
H5a. The higher the brand awareness, the higher the overall the situation in Spain, since women, much more frequently
brand equity. than men, are in charge of buying the products considered in
H5b. The more the associations linked to a brand, the higher the study. With respect to the variable of age, high
the overall brand equity. percentages of the sample corresponded to age intervals
H5c. The higher the perceived quality of a brand, the higher 18-22 (32.7 percent) and 23-26 (39.3 percent), and low
the overall brand equity. percentages to age intervals 27-31 (15.5 percent) and 32-35
H5d. The higher the brand loyalty, the higher the overall (12.5 percent). These differences involved no limitation to
brand equity. our study, since the youngest age intervals were of special
interest for the analysis because our work focuses on young
adults’ first purchases. Approximately half the sample lived
with flatmates (51.7 percent), whereas the rest lived alone or
Methodology with his partner (48.3 percent). After the first refinement
process, where questionnaires with unanswered questions or
The data gathered for the empirical work were obtained inconsistent responses were removed, we obtained 349 valid
through a survey among young adults in a major city of Spain. questionnaires.
In this work, three types of convenience products were The variables were measured by means of the scales
analysed. developed in the literature. More specifically, to measure the
Moore et al.(2002) posit that family influences in young young adult’s perceptions of advertising spending, price and
adult consumer behaviour are specially important in promotions, we made use of the scales developed by Yoo et al.
convenience products. In this type of products, consumer (2000). These scales are shown in Table II.
may search for information about brands only in those
sources that are easy to access, such as his family, and he does
not spend much time asking other experienced consumers as Table II Scales of consumer perception of advertising spending, price
in the case of durables. Thus, we chose three brands of three and promotion
frequently consumed products in Spain: milk, olive oil and Advertising spending (ADVE)
toothpaste. The brand selection was made through a pretest
AD1 X spends a great amount of money in advertising
with university students. In the pretest, students were asked to
AD2 The ad campaigns for X are seen frequently
indicate their degree of familiarity and level of use of the
AD3 X spends more money in advertising than its competing brands
brand in a seven-point scale. We chose those brands that were
familiar to the sample, with a familiarity degree above the Price (PRIC)
mean value of 4. And among those selected brands, we finally PR1 The price of X is high
chose the brands with the highest and lowest levels of use for PR2 This brand is cheap in relation to its competing brands (r)
each category of products. The selected brands are shown in PR3 X is expensive
Table I.
Thus, we designed six different questionnaires where Promotions (PROM)
respondents were asked to answer questions related to their PM4 Price deals for X are frequently offered
perception of the brand’s advertising spending, price and PM5 Too many times price deals for X are presented
promotions; questions concerning the information provided PM6 Price deals for X are more frequent than for its competing brands
by their families; and questions about brand equity and its Note: X refers to the focal brand; (r) reverse coded
dimensions.

Table I Selected brands


High frequency of purchase Low frequency of purchase Wilcoxon signed rank test
Olive oil Carbonell (5.02) La Española (2.65) Z ¼ 6.77 *
Toothpaste Colgate (5.43) Profiden (2.57) Z ¼ 5.63 *
Milk Pascual (4.41) RAM (1.59) Z ¼ 8.07 *
Notes: the scores of columns 2 and 3 refer to the mean obtained in the responses to frequency of use, measured in a 1-7 scale where the maximum indicates a
higher frequency of use; the last column refers to the differences in distributions; * ¼ significant differences at 5%

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Family as a source of consumer-based brand equity Journal of Product & Brand Management
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To measure information of the brand provided by the family, Table IV Dimensions and overall brand equity scales
we have developed a scale that analyses information obtained
via observation and direct communication. This scale can be Awareness (AWAR)
seen in Table III. Thus, the first three items in the scale refer AW1 When I think about this product, X is the first brand that comes to
to information through observation (FA1, FA2, FA3), and the my mind
other three to recommendation (FA4, FA5, FA6). Both AW2 I can easily recognize this brand among other competing brands
observation and direct communication are considered in the AW3 I am aware of X
process of family communication cited in the socialization
literature (Moschis, 1985), and they seem to be especially Associations (ASSO)
adequate to the study of young adults (Moore et al., 2002). AS1 Some characteristics of X come to my mind quickly
Finally, the dimensions of brand equity were measured AS2 I can quickly recall the symbol or logo of X
according to the work by Yoo and Donthu (2001). We have AS3 X has strong personality
chosen these scales for two main reasons. First, they cover the AS4 X is different from its competing brands
most commonly accepted dimensions of brand equity (Aaker, Perceived Quality (QUAL)
1991); and second, they have been utilised in different PQ1 X has undoubtedly the best quality in the marketplace
contexts, including the country where the analysis is
PQ2 I can always trust on X if I want a product of high quality
performed (Villarejo and Sánchez-Franco, 2005).
PQ3 The quality of X is very high
Nevertheless, some items were added or modified in order
to obtain a better understanding and to cover other interesting Loyalty (LOYA)
aspects pointed by Villarejo and Sánchez-Franco (2005) or LO1 I consider myself to be loyal to X
Aaker (1996). The composition of such scales is displayed in LO2 I always buy X
Table IV. All the variables were measured through seven-point LO3 If I were asked for a recommendation, I would suggest to buy X
Likert scales. LO4 I recommend X whenever I can
Brand Equity (BEQU)
Results BE1 It makes sense to buy X instead of any other brand, even if they are
Once the data were obtained, we proceeded to validate the the same in quality or price
scales proposed in the context of our study. Thus, we first BE2 Even if another brand has the same features as X, I would prefer to
propose several exploratory analyses to test the scales buy X
reliability and dimensionality. Therefore, we utilise BE3 If there is another brand as good as X, I prefer to buy X
Cronbach alpha and item-to-total correlations as reliability BE4 If another brand is not different from X in any way, it seems smarter
criteria. With respect to dimensionality, we carried out an to purchase X
exploratory factor analysis of the main components using
Note: X refers to the focal brand
varimax rotation for each scale. The results of these analyses
were adequate for all the scales, with Cronbach alpha and
item-to-total correlations above the values generally accepted.
With respect to discriminant validity, we calculated reliability
Next, we carried out a confirmatory analysis of the scales
intervals for each pair of scales. This analysis produced
through the EQS software in order to study the convergent
adequate results for all the intervals. However, the awareness
and discriminant validity of the model proposed. Concerning
and associations interval contained the value 1, which
convergent validity criteria, items with factor loadings or
revealed problems in the discriminant validity between these
individual reliability scores below 0.5 were removed (Hair
two scales.
et al., 1999). Specifically, an indicator in the price perception
To solve this problem, we considered two alternatives: first,
scale (PR2) was eliminated. Likewise, the process led to the
to consider a joint dimension including awareness and brand
successive removal of three items in the family information
associations; and second, to establish a second order
scale (FA6, FA4, FA5). All these items corresponded to the
structure. Thus, we made an analysis comparing the
information provided by the family via recommendation.
structure of each alternative. This comparative analysis is
Therefore, after the purification process, the family scale was
shown in Table V.
reduced to information via observation. Regarding brand
The results showed, on the whole, better fit in the first
equity scales and their dimensions, four indicators were
alternative, that is, the joint dimension of awareness and
successively removed (AW3, AS4, AS2, BE1).
associations. The values obtained for the indicators of this
structure were more adequate, with special relevance of the
Table III Scale of positive information provided by the family comparative indexes such as AIC, ECVI, NCP or SNCP that
showed higher suitability in the joint structure of awareness
Family
and associations. Likewise, this type of structure had
(FAMI)
previously been used by other authors like Yoo and Donthu
FA1 My parents have bought X for a long time (2001) or Washburn and Plank (2002), who also revealed in
FA2 I have seen my parents buying this brand in many occasions their works the empirical difficulty of differentiating those
FA3 X has been at home since I was a child dimensions. Hence, reliability and validity analyses were
FA4 When I left my family home, my parents recommended me to buy X considered again. We eliminated the same items as in the
FA5 My parents’ opinion is that X is a good brand previous case, except for the structure of awareness and
FA6 My parents recommended me to use X associations where five items were removed (AW3, AS4, AW2,
AS2, AS3). The results showed adequate values for all the

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Family as a source of consumer-based brand equity Journal of Product & Brand Management
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Table V Comparative of factor structures in awareness and associations scales


Optimal First order 1 factor Second order 2 factors

Global fit indexes


X2 (degrees of freedom) 339.92 (168) 679.92 (208)
p-value p . 0.05 p , 0.001 p , 0.001
S-B x2 257.30 530.60
p-value p . 0.05 p , 0.001 p , 0.001
GFI .0.8 0.91 0.84
RMSEA (0.05-0.08) 0.05 0.08
ECVI Minimum 1.34 2.34
NCP Minimum 171.92 471.92
SNCP Close to 0 0.49 1.35

Incremental fit indexes


NFI .0.9 0.95 0.94
NNFI .0.9 0.97 0.92
CFI .0.9 0.97 0.93
IFI .0.9 0.97 0.94
AGFI .0.8 0.88 0.79

Parsimonious Fif indexes


Normed x2 (1-3) 2.02 3.27
PNFI Maximum 0.76 1.11
AIC Minimum 465.92 815.92

cases, and the final results of the reliability and convergent Table VI Final results of the analysis of reliability and convergent
validity analysis are displayed in Table VI. After this analysis, validity
discriminant validity for the new relationships was tested
again. The final results were satisfactory and are shown in Scale Item l (t) R2 Cronbach Alpha EVA *
Table VII. Determining factors
After the item purification process, we developed the Advertising (ADVE) AD1 0.92 0.85 0.92 0.79
structural model in order to test the hypotheses proposed. Fit
AD2 0.95 0.90
values are shown in Table VIII. These values proved to be
AD3 0.79 0.63
adequate and obtained values above the recommended
Family (FAMI) FA1 0.99 0.98 0.97 0.90
minimum. Thus, in global fit indexes the GFI results are
FA2 0.97 0.95
above 0.8; in incremental fit indexes such as CFI, NFI or IFI
FA3 0.89 0.80
values are above the threshold of 0.9; and in parsimony fit
Price (PRIC) PR1 0.80 0.63 0.85 0.77
indexes the normed chi-square value is within the
recommended 1-3 interval (Hair et al., 1999). PR3 0.95 0.89
The results of the standardized parameters allowed to Promotions (PROM) PM1 0.83 0.70 0.91 0.78
accept the majority of the hypotheses proposed. These results PM2 0.90 0.81
are displayed in Table VIII and Figure 3. PM3 0.91 0.83
Since the dimensions of awareness and associations were Dimensions of brand equity
measured together, the hypotheses that refer to them were Awar.-Assoc. (AWAS) AW1 0.73 0.54 0.68 0.51
also jointly contrasted in every case. AS1 0.70 0.49
Thus, in H1a and H2a we established positive effects of the Perceived Q.(QUAL) QU1 0.79 0.62 0.87 0.71
perception of advertising spending on the dimensions of
QU2 0.88 0.77
awareness and associations. The results obtained are in line
QU3 0.85 0.73
with the hypotheses (b ¼ 0:19* , t ¼ 3:89).
Loyalty (LOYA) LO1 0.90 0.83 0.91 0.71
In a similar way, hypotheses H1b and H2b established effects
LO2 0.88 0.77
of the positive brand information provided by the family on the
LO3 0.87 0.76
dimensions of brand awareness and associations. Results are
also in line with the hypotheses (b ¼ 0:65* , t ¼ 11:51). LO4 0.71 0.51
Hypotheses H3a-H3d refer to the effects of information Brand equity
provided by the firm and the family on perceived quality. In B. Equity (BEQU) BE2 0.88 0.78 0.93 0.81
the case of the firm, this information was obtained by the BE3 0.92 0.84
consumer through the signals of advertising spending, price and BE4 0.91 0.83
promotions of the brand. Results show positive and significant Note: EVA ¼ extracted variance analysis
values in the parameters of advertising spending (b ¼ 0:20* ,

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Table VII Results of the discriminant validity analysis


ADVE FAMI PRIC PROM AWAS QUAL LOYA
FAMI (0.18; 0.38)
PRIC (0.34; 0.54) (0.09; 0.15)
PROM (0.05; 0.19) (0.03; 0.21) (20.3; 0.05)
AWAS (0.38; 0.58) (0.62; 0.82) (0.05; 033) (20.1; 0.18)
QUAL (0.30; 0.50) (0.39; 0.59) (0.19; 0.43) (20.1; 0.17) (0.39; 0.59)
LOYA (0.15; 0.35) (0.48; 0.64) (20.1; 0.11) (20.01; 0.2) (0.79; 0.95) (0.68; 0.80)
BEQU (0.05; 0.29) (0.42; 0.62) (20.1; 0.09) (0.05; 0.29) (0.61; 0.81) (0.54; 0.74) (0.76; 0.88)
Notes: Figures in the table refer to confidence intervals of correlations between each pair of factors; discriminant validity is determined following the criteria
that value 1 be outside of the confidence interval (Peter, 1981)

Table VIII Results of the structural model


Hypotheses Standardized Beta (t) Hypotheses support
H1-2a (Advertising ! Awareness and Associations) 0.19 * (3.89) Yes
H1-2b (Family ! Awareness and Associations) 0.65 * (11.51) Yes
H3a (Advertising ! Perceived Quality) 0.20 * (3.97) Yes
H3b (Family ! Perceived Quality) 0.45 * (8.12) Yes
H3c (Price ! Perceived Quality) 0.22 * (5.59) Yes
H3d (Promotions ! Perceived Quality) 2 0.01 (20.48) No
H4a,b (Awareness and Associations ! Loyalty) 0.94 * (6.45) Yes
H4c (Perceived Quality ! Loyalty) 2 0.10 (20.80) No
H5a,b (Awareness and Associations ! Brand Equity) 0.24 (1.28) No
H5c (Perceived Quality ! Brand Equity) 2 0.07 (20.60) No
H5d (Loyalty ! Brand Equity) 0.66 * (5.41) Yes
Model fit indexes Global fit Incremental fit Parsimony fit
x2 ¼ 544 (218) (p , 0:001) NFI ¼ 0.92 x2 (normed) ¼ 2.50
x2 (SB) ¼ 964 (p ¼ 0:000) NNFI ¼ 0.94 PNFI ¼ 0.80
GFI ¼ 0.87 CFI ¼ 0.95 AIC ¼ 660
RMSEA ¼ 0.06 IFI ¼ 0.95
ECVI ¼ 1.90 AGFI ¼ 0.84
NCP ¼ 326
Notes: See Table IV; * p , 0:05

t ¼ 3:97) and price (b ¼ 0:22* , 5.59), but not in the case of analysed. The results obtained for this relationship show that
promotions (b ¼ 20:01, t ¼ 20:60). Thus, only hypotheses the effect of the awareness-associations dimension on brand
H3a and H3c were supported. In relation to the effect of positive equity is not significant, thus none of these hypotheses can be
brand information provided by the family, results were also confirmed (b ¼ 0:24, t ¼ 1:28). The same occurs for H5c,
positive and significant (b ¼ 0:45* , t ¼ 8:12) and thus where we analyse the effect of perceived quality on brand equity.
hypothesis H3b was supported. In this case the results were not significant either (b ¼ 20:07,
Regarding brand loyalty determining factors, we established t ¼ 20:60), thus H5c is not confirmed. On the other hand, H5d,
in hypotheses H4a-H4c that this dimension is determined by concerning the effect of loyalty on brand equity, did obtain
the effect of awareness, associations and perceived quality. positive and significant results. Therefore, we can state that
The results obtained showed a positive and significant loyalty has a positive effect on brand equity (b ¼ 0:66* ,
relationship between the awareness-associations dimension t ¼ 5:41).
and brand loyalty (b ¼ 0:94* , t ¼ 6:45). H4c establishes a
positive relationship between perceived quality and loyalty.
The results for this relationship were not significant, thus this Conclusions
hypothesis was not verified (b ¼ 20:10, t ¼ 20:80). In the light of these results, the main conclusion is that
Finally, with respect to H5a-H5d, these hypotheses analysed positive brand information, provided by the family to the
the effects of awareness, associations, perceived quality and young adult via observation, has an important influence on
loyalty on brand equity. As we explained above, the hypotheses the brand equity formation process. Furthermore, the
referred to the effect of awareness and associations were jointly regression coefficients of this analysis show that the effects
considered in the analysis, thus H5a and H5b, concerning of family information on the dimensions of awareness,
awareness and associations respectively, were also jointly associations and perceived quality are higher than those

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Figure 3 Results of the structural model

produced by the information obtained by the consumer analyse differences among the selected product categories.
through their perception of marketing variables such as price, Likewise, it would have been useful to include other type of
promotion or advertising spending. As a consequence, we signals or information provided by the firm, such as other
may posit that the family determines the creation of the young marketing actions, product innovation, distribution strategies,
consumer-based brand equity. etc. In the same way, it would be of interest to control not
Other interesting aspects are those generated by the rest of only advertising spending but also creativity or any facet
relations in the structural model. Thus, awareness and related to the advertising impact on the consumer. Besides, it
associations have been proved to be determining factors of would be important to analyse the differences between the
brand loyalty; this loyalty, in turn, significantly influences effects of the family on young adult students and the effects
overall brand equity. These results are, in general, in line with on young workers, and also the differences between young
the previous literature. Thus, awareness and associations have adult consumers with different degrees of family cohesion.
been considered as a joint dimension, which is in line with the
previous works by Yoo and Donthu (2001) and Washburn
and Plank (2002), where the difficulties to differentiate Managerial implications
empirically between both awareness and associations are also
shown. Moreover, this joint dimension can lead to brand The family is an important factor to be considered in
loyalty, and this fact is also in line with the argument that in consumer behaviour and also in the formation of brand
this type of products, brand awareness may be a determining equity. Young adults obtain information from their parents
factor of the consumer’s brand choice (Hoyer and Brown, that allows them to acquire knowledge, and to foster different
1990; Pitta and Katsanis, 1995). Furthermore, results have attitudes and behaviours toward certain brands. In
shown that awareness, associations or perceived quality are consequence, this information may act in the formation of
not enough arguments to establish the superiority of a brand consumer-based brand equity and, as seen in the results of
over other competing brands. As argued above, the reason this work, it is a high relevant factor to consider in the process.
may be that the previous dimensions have a cognitive or Due to this fact, Moore et al. (2002) suggest that marketing
attitudinal character, whereas loyalty also involves the managers should analyse thoroughly family influences in the
individual’s commitment to purchase the brand, and thus it research of consumer behaviour. In this sense, it is important
is closer to the concept of brand equity (Yoo et al., 2000; to study whether family is an important factor to consider in
Zinnbauer and Bakay, 2004). the purchase of a certain category of products, and if so,
Regarding limitations, we have analysed six brands from which brands are benefiting of these influences. This study is
three different product categories. Thus, the results have to be so-called by these authors as “intergenerational influences
interpreted with caution before a generalisation can be made. audit”. and may lead managers to plan how to obtain benefits
Moreover, the small size of the sample does not allow to of these influences.

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Thus, firms with experienced brands in the marketplace Chiou, J.S., Droge, C. and Hanvanich, S. (2002), “Does
may aim actions at fostering the effects of the family on brand customer knowledge affect how loyalty is formed?”, Journal
equity. Moore et al. (2002) propose actions such as of Services Research, Vol. 5 No. 2, pp. 113-25.
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Deighton, J. (1984), “The interaction of advertising and
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December, pp. 763-70.
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Dick, A.S. and Basu, K. (1994), “Customer loyalty: toward
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Further reading
product quality: an integrative review”, Journal of Marketing
Research, Vol. 26, August, pp. 351-7. Srivastava, R.K. and Shocker, A.D. (1991), “Brand equity:
Roberts, J., Morrison, P., Chandrashekaran, M. and a perspective on its meaning and measurement”, working
Gordon, A. (2004), “Measuring sources and outcomes of paper series, report no. 91-124, Marketing Science
brand equity”, Communication in ANZMAC Conference Institute, Cambridge MA.
(Australian and New Zealand Marketing Conference),
proceedings: available at: http://130.195.95.71:8081/ About the authors
WWW/ANZMAC2004/CDsite/papers/Roberts1.PDF
Shah, R.H. and Mittal, B. (1997), “Toward a theory of Rafael Bravo Gil is Assistant Professor in Marketing at the
intergenerational influence in consumer behaviour: University of Zaragoza, Dpto. de Economı́a y Dirección de
an exploratory essay”, in Brucks, M. and MacInnis, D.J. Empresas. Facultad de Ciencias Económicas y Empresariales,
(Eds), Advances in Consumer Research, Vol. 24, Association Zaragoza (Spain). He is the corresponding author and can be
for Consumer Research, Provo, UT, pp. 55-60. contacted at: rbravo@unizar.es
Shocker, A. and Weitz, B. (1988), “A perspective on brand E. Fraj Andrés is Associate Professor in Marketing at the
equity principles and issues”, Defining, Measuring and University of Zaragoza. Dpto. de Economı́a y Dirección de
Managing Brand Equity: Conference Summary (Report Empresas, Facultad de Ciencias Económicas y Empresariales,
no 88-104), Marketing Science Institute, Cambridge, MA. Zaragoza (Spain).
Shocker, A., Srivastava, R.K. and Ruekert, R.W. (1994), E. Martı́nez Salinas is Senior Lecturer in Marketing at the
“Challenges and opportunities facing brand management: University of Zaragoza, Dpto. de Economı́a y Dirección de
An introduction to the special issue”, Journal of Marketing Empresas, Facultad de Ciencias Económicas y Empresariales,
Research, Vol. 31, May, pp. 149-58. Zaragoza (Spain).

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Executive summary .
The hypothesis “the higher the positive brand information
provided by the family of the young adult, the higher the
This executive summary has been provided to allow managers and perceived quality of the brand” was proved to be true.
executives a rapid appreciation of the content of this article. Those .
The higher the brand loyalty the higher the overall brand
with a particular interest in the topic covered may then read the equity.
article in toto to take advantage of the more comprehensive
description of the research undertaken and its results to get the full Three convenience products were tested, and admittedly this
benefit of the material present. is an area where past research has indicated a stronger than
normal influence by the family, but there was a definitive feel
Family first? to the results from this study, that will give firms cause to
reflect.
How young adults receive brand information Taking things forward, with a glance to the past
Parents often worry about their diminishing influence. In an Businesses since earliest times have known that regular
undefined, far-off time, nostalgia dictates that parents spoke customers and positive word-of-mouth is the key to their
and children listened. In the modern era of mass success. One provides a steady income, the other the basis for
communication, of course, the world has changed. Recent new customers and growth. Sometimes big business, for all its
conventional wisdom would seem to dictate that the men and sophistication, loses sight of the most basic lessons.
women of the marketing profession shape the world’s young There is a sense that if the Sumerian people who lived in
people’s minds. A scary thought, even for marketers. what is now troubled Iraq had written management texts they
TV advertising, guerrilla marketing, viral marketing, and would have written about customer loyalty and customer
product placement – these are the tools with which advocacy. The Sumerians distinguished themselves in ancient
impressionable minds are shaped. The strong patriarch in times as the civilization that developed writing systems to
the home is a joke figure; the strong matriarch exists only as a record data. Their contemporaries in Ancient India wrote in
character in costume drama. Or so it would seem. One of the Sanskrit of religion, in Ancient China philosophy. The
great joys of the research process is its occasional ability to see Sumerians recorded facts, figures, bills, accounts and
conventional wisdom turned on its head. It is the media-age inventories. They were the first bean counters and the world
equivalent of silencing the bar room bore, seeing pomposity has never been the same since. Sumerians were business
pricked. people, and marketers follow in their tradition – more closely
In Spain, at least, family matters. The influence of than modern marketers might care to imagine. The influence
information from the family turns out to be a vital element of family was strong then, it is now – even in these fractured
in the purchasing decisions of 18-35 year-olds, according to a times.
study by Gil, Andrés and Salinas of the Universidad de Brand managers need to better understand these family
Zaragoza. It is an under-researched area of the brand equity influences. It is a Cinderella area of research whose time has
debate. This study could change all of that. The first question come. It is a vital factor to consider in building brand equity.
it raises is “if this is the Spanish experience, what about each It is word-of-mouth steroids. Parents impart knowledge that
of my major markets?” helps form attitudes and shape behaviours. It is the parenting
Proof positive role, and it continues long after the nest is empty.
Every parent whose advice seems to routinely go unheeded Marketing research can appear more concerned with
can take heart from the knowledge that when it comes to fashion than with reality. Reality would seem to state that
consumer products, at least, they have a powerful voice. In human behaviour doesn’t change all that much. Media-driven
this survey, information from the family was a greater fashion needs to generate more excitement. A message that
influence than the other marketing variables studied. That is, can be extrapolated from Gil, Andrés and Salinas’ work is
at least when it comes to convenience products – three types don’t lose sight of the basics.
of convenience products provided by six different brands were The family unit, in all of its post-modern guises, is still the
studied. basic building block of society, and family influence matters.
As in any study of this type, a number of hypotheses were It matters more than most commentators would have the
put forward and tested as data were gathered and analysed. world believe. It may be thought that in the battle of the
Some hypotheses stood up. For others there was no significant message the family beats the firm. The truth is that both can
evidence to support them. The significant findings were: win. For the heads of families there is comfort. For the firms
.
There are positive effects from advertising spend on brand there is work to be done.
awareness and associations.
.
Similarly positive effects from information provided by the (A précis of the article “Family as a source of consumer-based
family were established. brand equity”. Supplied by Marketing Consultants for Emerald.)

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