The impact of subjective norms, eWOM and perceived brand credibility on brand equity: application to the higher education sector

Purpose The growing competitive environment in which higher education institutes are immersed has caused them to strengthen their competitive position of a brand and its equity in emerging countries. However, there are several contradictions between the empirically approved determinants and the dimensions of brand equity in higher education. The purpose of this paper is to investigate the structural relationship between subjective norms, electronic word-of-mouth (eWOM), perceived brand credibility and brand equity, taking cross-culturally comparisons between Sri Lanka, and Vietnam. Design/methodology/approach A survey was used to collect data from a sample of 800 undergraduates of private higher education institutions in Sri Lanka and Vietnam in 2019. These data were gathered using purposive sampling and analyzed using a structural equation model. A total of 768 questionnaires were considered valid. In testing the hypothesis and structure among the variables, structural equation modelling was used to determine the relationship between subjective norms, eWOM, perceived brand credibility and brand equity for the higher education institutes in emerging countries. Findings For the conceptual framework, the author found that this structural equation model complies with the empirical data. The structural equation model shows that subjective norms, eWOM and perceived brand credibility were significantly related to brand equity. Perceived brand credibility was found to be the mediating variable. Further, the location was found to moderate the relationship between perceived brand credibility and brand equity, highlighting that Vietnamese students are more relying on perceived brand credibility in creating brand equity than their Sri Lankan counterparts. Research limitations/implications The study was conducted at private higher education institutes in Sri Lanka and Vietnam. Future research could benefit from perceptions of undergraduates in public higher education institutes. This study discusses the implications of developing branding strategies for higher education institutions. Originality/value The current research contributes to the services marketing and branding literature in the higher education context. The paper presents the crucial elements in building brand equity for higher education institutes to fill the existing gaps in higher education branding literature. The findings of the current study provide strategies to improve the higher education sector.