Employee-based brand equity

Publication Type:
Thesis
Issue Date:
2010
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This dissertation examines the importance of company branding strategy aimed at company employees. The focus of brand equity research to date has been to advance the knowledge and understanding of the relationship between the brand and the customer. However, brand equity can also affect a company's employees. This study proposes a theoretically structured approach to measure brand equity from the employee perspective, and its outcomes. This study incorporates theoretical customer-based brand equity (CBBE) approaches of information economics and cognitive psychology to develop and test the employee-based brand equity (EBBE) framework. The present study employed a conceptual framework which addresses the relationship between brand equity and employee. This approach allows the researcher and practitioner to explore the perception of the company brand from the individual employee perspective. Driven by the recognition of a need for empirical validation, the present study was guided by the research question: What is the role of brand equity for the employee? The following interrelated sub-questions have been formulated: (1) How can employee based brand equity be conceptualised and measured? (2) What are the outcomes of employer brand equity? In this study it is hypothesised that where employees perceive their employer brand to have high equity, they are more able to deliver the company's brand promise to customers and are more likely to stay longer with the company. Using the literature review as the point of departure, a conceptual EBBE framework was developed. A six-step approach was applied to ensure the comprehension of the measures. Using structural equation modelling (SEM) as the data analysis method, all major fit indices indicate satisfactory results. The results support hypothesised relationships between constructs in the conceptual model. The findings in this research confirm the necessity of understanding EBBE, which can enhance employee's brand commitment such as perceived value, person-organisation fit and identification with organisation. The empirical results of this study demonstrate that EBBE has a significant and positive impact on employees' brand commitment. Moreover, this study confirms that brand commitment affects employee behaviour, such as customerorientation and retention.
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