Customers’ positive feelings on a product brand create Purchase Intention (PI) of the customers (Aaker, 1991; Assael, 1998; and Wang and Kan, 2002). According to Farquhar (1989), Brand Equity (BE) is meant for ‘an added value or asset to a brand and product’ and such a value is made of customers’ positive feelings, thinking, and acting towards purchasing a product. Since PI is a result of BE, this study attempts to explore the positive relationship between BE and PI in the Sri Lankan context.
Sri Lanka was the first market to have an open economic policy in South Asian developing countries. To be specific, Bilkey and Nes (1982) indicate that consumers in the developed countries have preference for domestic products over foreign products, while consumers in the developing countries are more likely to prefer foreign products over the domestic products. Therefore, the market in Sri Lanka has been in intense competitive situation, as the high quality and international branded products are expected to do better than domestic products. For a good product, there should be brand loyalty and BE. Any product with high BE can capture high market share in
Sri Lanka. It is explicit that some of the best-known brands can be found simply in retail firms, outlets and super markets in Sri Lanka.
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