An Exploratory Study of Consumer-Based Brand Equity in Turkish Banking Industry

Abstract

The study examines whether consumer-based brand-equity (CBBE) significantly differs across three bank types—state, private, and foreign. The findings reveal that consumer perceived quality and brand loyalty are significantly higher for private banks than state and foreign banks. Perceived quality was positively correlated with brand loyalty. Customers with higher education and income, and females perceived higher service quality for and felt more loyal to private banks. The results demonstrate the challenges that foreign banks may face in building brand-equity in developing countries, offers insights to banks to build brands, and closes the gap in the area of the brand-equity theory.

KEYWORDS:

• bank types
• brand equity
• globalization of banks

Acknowledgments

An earlier version of this article was presented at the MBAA/MMA 2009 Conference in Chicago, March 18–20, 2009.

Notes

Note. FL = factor load; CA = Cronbach's alpha; VE = variance explained.

Note. Scale: 1 = strongly disagree; 4 = strongly agree.

*p < .10. **p < .05. ***p < .01.

FS = factor score.

**Significant at p < .05 level. ***Significant at p < .01 level.