Promotion Effects on Brand Equity (A Case Study of Iran Insurance Company)

The objective of the present research is to study the effect of advertising and sales promotion onbrand equity in the insurance industry. The statistic population of the research was customers ofIran Insurance Company in Ghazvin province, 385 of which were studied as a sample. In order tocollect data, questionnaires were used and to test research hypotheses, structural equationmodeling (SEM) was used. Results showed that advertising costs affected brand association, butthey did not have any effects on perceived quality and brand awareness. Attitude toward brandhad an effect on all three variables: perceived quality, brand awareness and brand association.Monetary promotions affected perceived quality, however, they did not have any effect on brandassociation. On the other hand, non-monetary promotions were effective in both perceivedquality and brand association. Also, brand awareness affected both perceived quality and brandassociation and eventually, perceived quality and brand association affected customer loyalty.

Keywords:

Brand Association , Brand Awareness , Perceived quality , Brand Loyalty