The influence of word of mouth communication on customer equity and brand equity

Abstract

This study examines, the influence of word of mouth (WOM) on brand equity (BE) and customer equity (CE). WOM may influence in the productivity of a brand and can damage or increase the reputation of a brand in the eyes of customers. The purpose is to “determine the influence of word of mouth on brand equity and customer equity”. To fulfill the purpose, the research is based on the home appliance industry of Pakistan, Where word of mouth is very common. Customers ask frequently to their relatives and friends about home appliances before buying a product. Therefore, In this industry, word of mouth may influence on the brand equity and its current customers and future as well. . Thus 200 respondents contributed to fill the questionnaire. The sample (n=200) included the residents of Rawalpindi and Islamabad, Pakistan, who has experienced to buy a product in previous years. The research was based on quantitative and SPSS was used for data analysis. Findings comprise on the result that, A Strong association between WOM and brand loyalty (BL) and Perceived Quality (PQ) as well. Furthermore, WOM has a positive relation to all the BE and CE dimensions. Results reveal that, word of mouth influence on the brand quity and customer equity