From Rebranding to Brand Equity: The Sequential Mediating Roles of Brand Authenticity and Customer Perceptions

This study explores the impact of rebranding on brand equity using brand perceptions as a mediator and brand awareness, brand associations, perceived quality and brand loyalty as mediators, between the variables. With an increasing trend in rebrands to be competitive, there is a lack of empirical research on the processes by which rebranding can add to brand equity. This study fills this gap by examining the impact of customer perception on the rebranding efforts and its consequences in terms of increased brand value. The research design was quantitative, cross sectional and survey data were used from consumers who are familiar with the rebranded brand. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the proposed model using SPSS software with SmartPLS program. The hypothesized relationships between the constructs were assessed through reliability, validity and structural model assessments. The findings indicate that there is a significant difference between the perceptions of the customers and rebranding (β = 0.843, p < 0.001); the difference between rebranding and brand awareness (β = 0.824); the difference between rebranding and brand associations (β = 0.822); the difference between rebranding and perceived quality (β = 0.734); and the difference between rebranding and brand loyalty (β = 0.730). In addition, brand awareness (β = 0.295, p = 0.004) and brand loyalty (β = 0.355, p < 0.001) have significant positive influences on brand equity, while the influences of brand associations and perceived quality are not significant. Model accounted for 71.5% of the variance in the brand equity. This research builds upon Consumer Based Brand Equity Theory by providing an empirical evidence that rebranding is a way of improving brand equity by brand perception. The results provide a theoretical basis and practical recommendations for managers aiming to enhance the effectiveness of rebranding initiatives and boost the brand value in the long term.