Linking Brand Equity to Shareholder Value: Evidence from the Indian Automobile, FMCG, and Banking Sectors
DOI:
https://doi.org/10.53983/ijmds.v14n3.007Keywords:
Brand Equity, Shareholder Value, Brand Awareness, Brand Loyalty, Perceived Quality, Automobile Sector, FMCG Sector, Banking SectorAbstract
The paper examines the strategic interface between brand equity and shareholder value, situating the analysis within India’s automobile, FMCG, and banking sectors. It investigates how brand awareness, brand association, brand loyalty, and perceived quality collectively shape brand equity, and how brand equity, in turn, influences shareholder value. The study integrates primary data collected from 912 respondents representing the automobile, FMCG, and banking sectors with secondary data on shareholder value compiled from listed firms over the years 2015–2024 for the 20 sample companies. Structural Equation Modeling (SEM) was employed to validate the hypothesized framework and assess sectoral differentials. The findings affirm brand equity as a pivotal intangible asset driving shareholder value, though its magnitude varies across sectors. In the automobile sector, perceived quality and loyalty emerge as dominant drivers, underscoring the centrality of product performance and consumer retention. Within FMCG, brand awareness and association exert stronger effects, highlighting the sector’s dependence on market visibility and consumer connectivity. The banking sector demonstrates a more balanced configuration, where trust, credibility, and service consistency strengthen the equity–value linkage. By delineating these sectoral nuances, the study enriches academic discourse on brand-driven financial performance and provides actionable insights for managers, investors, and policymakers seeking to optimize value creation in emerging markets.
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