Consumer-based brand equity in banking industry: A comparison of local and global banks in Turkey

Purpose: The purpose of this paper is to examine bank brand equity from consumer perspectives by comparing the consumer-based brand equity (CBBE) dimensions of local and global banks in Turkey. The paper determines if and how CBBE differs across three types of banks (state, private, and foreign). Design/methodology/approach: Measurements of brand equity dimensions were drawn from the literature, which included brand awareness, perceived quality, brand image, brand association, organizational association, and brand loyalty. Data were collected from adult customers of three types of banks. Findings: It was found that the overall CBBE, perceived quality, brand image/association, and brand loyalty were significantly higher for private banks than for state and foreign banks. Organizational association was the highest for state banks, followed by private banks, and the lowest for foreign banks. Foreign banks scored the lowest in perceived quality, brand loyalty, and the overall CBBE. Originality/value: The results help foreign banks understand branding challenges/threats they may face from local banks in new markets. Such challenges might pertain to low levels of organizational associations and service quality perceived for foreign banks, as found in this study. The findings close the gap in the area of the brand equity theory that has not been adequately developed for the banking/financial industry.