The Relationship between Advertising Effectiveness and Brand Equity (An Empirical Study of Samsung Household Appliance Advertisements)

Companies spend a considerable amount of money on advertisement to introduce their products to consumers in order to attract their attention and persuade them to prefer their brand. But can these expenses lead to a favorable result? The purpose of this study is assessing advertising effectiveness and establishing a theoretical and empirical basis that shows the impact of advertising effectiveness on brand equity. The citizen of Isfahan city who have watched the target advertisements were the population of the study. Random sampling method was used for collecting data. In order to measure advertising effectiveness one sample t-test is used and for analyzing the relationships between advertising effectiveness and brand equity dimensions (perceived quality, brand loyalty, brand awareness and brand association) regression analysis is used. The results indicate that advertising of Samsung Corporation is effective and advertising effectiveness has a positive effect on brand equity.