The Effect of Marketing Mix on Brand Equity in Saffron Industry

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The Effect of Marketing Mix on Brand Equity in Saffron Industry

Journal Title: Journal of Agricultural Economics & Development - Year 2023, Vol 37, Issue 1

Abstract

Introduction In agricultural industry, saffron is one of the most valuable products that can be produced and exported due to its special characteristics. Iran is the largest producer of this product in the world due to its vast land and dry and semi-arid climate. The research title "The Effect of Marketing Mix on Brand Equity" has been the focus of many researchers in the marketing field across various industries. This particular study aims to identify the appropriate strategies to create a competitive advantage and enhance brand equity in Iran's saffron industry through the implementation of the marketing mix. The research examines the relationship between the elements of the marketing mix and brand equity, with the ultimate goal of assisting companies involved in saffron production, purchase, and sale in developing strategies to increase their brand equity. The researchers emphasize that saffron, as a strategic product in Iran's growing economy, requires the development of effective marketing channels. Hence, this research aims to identify the factors that influence the marketing mix on brand equity in the saffron industry. To achieve this objective, the study measures the relationship between the marketing mix elements (product, distribution channel, price, and promotional activities) and four dimensions of brand equity (brand awareness, perceived quality, store image, and brand loyalty) using structural equation modeling (SEM).Materials and MethodsThe current research is applied in terms of purpose and descriptive-correlation in terms of method. The statistical population includes people within reach who were consumers of Iranian saffron. Considering the unlimited size of the statistical population and Morgan's table, 384 people were selected by simple random. To collect data from the questionnaire containing 40 closed questions, 24 questions of the marketing mix scale of Sharma and Gautam (2018), 16 questions of the standard brand equity questionnaire of Yu et al. (2000) with a 5-point scale. Likert has been used to measure the variables of the conceptual model.This research has investigated the relationships between variables using PLS2 software and structural equation modeling. There is no need for the distribution to be normal compared to other existing software (Kline, 2014). This method is a statistical model to investigate the relationship between latent variables and manifest variables.Results and DiscussionThe findings of the research indicate that the product dimension of the marketing mix has the strongest relationship with the dependent variables of the study. Specifically, the effect of the product on perceived quality, store image, brand loyalty, and brand awareness is positive and significant. More specifically, the effect of the product on perceived quality is positive and significant. Similarly, the product has a positive and significant effect on the store image. Additionally, the product dimension has a positive and significant impact on brand loyalty and brand awareness. However, the effect of price on perceived quality is not found to be positive and significant. On the other hand, the effect of price on the store image is positive and significant. The impact of price on brand loyalty is not significant, and the effect of price on brand awareness is not positive and significant. Regarding the distribution dimension of the marketing mix, it has a positive and significant effect on perceived quality. However, the effect of distribution on the store image is not positive and significant. Furthermore, distribution has a positive and significant impact on brand loyalty and brand awareness. In terms of the promotion dimension of the marketing mix, it has a positive and significant effect on perceived quality. However, the effect of promotion on the store image is not positive and significant. Overall, these findings suggest that the product dimension of the marketing mix plays a critical role in influencing brand equity, while the effects of price, distribution, and promotion vary in their impact on the dependent variables of perceived quality, store image, brand loyalty, and brand awareness.ConclusionCenters operating in the saffron industry should prioritize the creation of high-quality products and the establishment of brand loyalty. Additionally, they can enhance the positive perception of customers by focusing on the desirability of after-sales services, maintaining regular communication with customers through representatives, and ensuring that the price of their products aligns with their quality. By implementing these strategies, companies can improve the customers' mental image of the company, leading to enhanced perceived quality, brand awareness, and customer loyalty. This, in turn, will have a positive impact on their overall success in the market.

Authors and Affiliations

A. R. Konjkav Monfared,A. Jamadi,Z. Doaei,A. Haghbin,

Keywords

EP ID EP725979
DOI 10.22067/jead.2023.79925.1169
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