IMPACTS OF DISTRIBUTION INTENSITY ON PERCEIVED QUALITY, BRAND AWARENESS AND BRAND LOYALTY - STRUCTURAL MODEL

The purpose of this empirical study was to determine the impacts of distribution intensity on perceived quality and brand awareness, and to analyze the effects of perceived quality and brand awareness on brand loyalty. A structural equation model was used to identify the size and the direction of proposed relationships. The model was tested on a sample of 956 students using three brand categories in the manufacturing industry and three brand categories in the service industry. The proposed hypotheses were supported by the model. The results show that distribution intensity is positively related to perceived quality and brand awareness. Moreover, perceived quality and brand awareness were shown to be significant and positive predictors of brand loyalty. Managerial implications are discussed in the paper. The findings of this study could be of special interests to managers, professionals and those doing research in the field of distribution and brand management.