A two-phase confirmatory factor analysis and structural equation modelling for customer-based brand equity framework in the smartphone industry

The emergence of smartphones has brought a transformative change in the smartphone industry in terms of technological innovations and business decision-making dynamics. Smartphones have appeared in the market as the standard configuration and currently represent the fastest-growing market segment in the telecommunications industry. It is considered a highly involved product that is relevant and important to the buyer due to its daily use and multiple functionalities. With this growth in smartphone use, the market has been more competitive with the emergence of new brands leading to a wide range of brand selection opportunities for customers. Therefore, there is a need for smartphone companies to understand customers' brand equity before implementing strategic decision-making to promote their brands. This paper introduces a conceptual framework based on the theoretical framework of Keller and Aakar's Customer-Based Brand Equity (CBBE) models. This conceptual framework consists of nine constructs organised into three layers: marketing programs, brand equity dimensions, and brand equity. The framework has been validated using a quantitative survey of Nepalese smartphone users in two phases. In the first phase, Exploratory Factor Analysis (EFA) has been performed to measure the reliability of the constructs and the Factor Loading (FL) of the scales under each construct of the proposed framework. In the second phase, the survey questionnaire has been revised based on the analytical results of the first phase, and the full-phase survey has been conducted. The full-scale survey data has been analysed using Confirmatory Factor Analysis (CFA). Hence, the relationship between the constructs has been measured using Structural Equation Modelling (SEM) for the proposed framework. This proposed framework has focused on different strategic decision-making constraints of smartphone marketing, which decision-makers can utilise to develop market policies and other business decisions. The results have indicated that the Product Features (PF) have an important role in creating positive Perceived Quality (PQ) if the promotion has been made to create Brand Awareness (BA). Positive PQ helps in enhancing Brand Image (BI). Marketers need to focus on creating positive Brand Preference (BP), as BI is not sufficient in creating Brand Loyalty (BL) and Brand Repurchase (BR).