The human dimension of a brand influences brand equity: an empirical examination in the context of a luxury and a convenience brand

The objective of the present research is to examine the relationship between consumer's perception of Firm of Origin (FOO) of a company and the equity they associate with the brand. FOO is related to the importance consumers attribute to human dimension of a company. Brand equity (BE) is conceptualised as a three-dimensional construct including brand awareness/associations, perceived quality and brand loyalty. In order to investigate the relationship between brand equity and FOO, a FOO scale was developed and validated. Then, a survey was undertaken using a convenience sample. The questionnaire used to collect data included two categories of brands: convenience and luxury brands. The relationship between BE and FOO was examined using multivariate analysis of variance. In addition, the impact of FOO has been investigated on consumers' intention to purchase the brand products. Results indicate that brand equity varies with the importance associated with FOO. This is true for both luxury and convenience brands, and FOO affects each driver of BE, namely brand awareness/associations, perceived quality and brand loyalty. The principal contribution of this study is that it demonstrates empirically a positive relationship between the human dimension of the firm (FOO) and brand equity. The people considered are those placed at every level in the organisation: entrepreneurial, managerial and operational.