Sources of brand equity for online companies

The purposes of this paper are to test sources of brand equity for online companies and to examine the role of selective internet marketing activities on the brand equity sources.

These objectives were pursued by testing the nomological validity of the model using structural equation modelling.

The paper finds evidence for the proposed sources of brand equity for online companies based on brand awareness and recognition, brand association (trust) and loyalty. The investigated antecedents namely functionality, fulfilment and customer service on line, significantly influence the sources of brand equity.

The study is cross‐sectional, the dimensions to measure sources and antecedents of brand equity may not be comprehensive enough. The stimuli represent only a few online retailers.

Businesses are well advised to invest resources in creating brand recognition, customer loyalty and trust. Both of these can be achieved by developing internet marketing efforts around functionality, fulfilment of the promise and customer service support.

The nomological validity of the measurement and structural models for companies that operate on the internet, constitute a modest contribution. It is believed that a model, which integrates both, creates a more systemic view of brand equity. Apart from this one, there is no other study measuring the impact of internet marketing activities on brand equity sources.