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RESEARCH PRODUCT

Effects of value and innovation on brand equity in retailing

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description

This paper analyses retailer brand equity on the basis of two variables that are particularly relevant in marketing: the perception of value, because of its renewed interest for retailing, and retail innovativeness, because it is a recent line of research with interesting challenges. Considering Holbrook's (Consumer value: a framework for analysis and research. London: Routledge, 1999) value dimensions of efficiency, excellence, entertainment and aesthetics, this study investigates the relationship between those values and brand equity as well as the moderator effect of innovation. The study was conducted on a sample of 820 individuals who purchased from various stores selling food, household goods, textiles and electronics. Hierarchical linear regression methodology was applied. The results indicate that value has a direct significant effect on brand equity and entertainment is the dimension with the greatest contribution. In addition, efficiency and aesthetics stimulate brand equity more when perceived innovation is high than when it is low. Given that value dimensions influence brand equity in different ways, retailers should direct their efforts according to the importance of each dimension for the consumer. The study of brand equity and innovation has traditionally focused on the product, and so the novelty of this study lies in the application of these concepts to the services context.