Unpacking Brand Equity in Emerging Banking Markets: A Structural Equation Modeling Approach to Mediated Customer Loyalty in Nepal

This study investigates the structural relationships between customer-based brand equity (CBBE) dimensions, customer satisfaction, and customer loyalty within the commercial banking sector of Nepal. Utilizing a sample of 779 bank customers across six commercial banks in the Kailali and Kanchanpur districts, structural equation modeling (SEM) via AMOS-22 was conducted to evaluate the hypothesized paths. The findings demonstrate that brand trust (β=0.90) and perceived quality (β=0.60) serve as the strongest antecedents of overall brand equity, followed by brand image (β=0.37) and brand awareness (β=0.32). Furthermore, customer satisfaction was found to partially mediate the relationship between brand equity and customer loyalty (indirect effect = 0.145, p=0.001). Strategic implications for banking institutions in developing markets are discussed.

Brand Equity, Structural Equation Modeling, Customer Satisfaction, Customer Loyalty, Nepalese Banking

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