Influence of Brand Equity on Financial Performance of Mobile Telecommunication Firms in Nairobi, Kenya

Abstract

This study sought to examine how brand equity influence financial performance of mobile telecommunication in Nairobi, Kenya. The population of the study comprised of two thousand seven hundred and fifty subscribers distributed across four mobile telecommunication firms. The study adopted mixed methods research design. Convenience sampling, stratified sampling and purposive sampling techniques were employed. Primary data was collected using structured questionnaires while secondary data was obtained from financial statements. Data was summarized and analyzed using descriptive statistics and inferential statistics methods. The research findings indicate that brand loyalty, perceived quality, brand awareness and brand association have a significant influence on financial performance of mobile telecommunication firms implying that the stronger the brand equity the stronger financial performance of the firms. It was concluded that there is potential to enhance financial performance by addressing elements of concern to subscribers such as pricing, variety of products and services, reliability of network services amongst other issues which directly improves brand equity. It is recommended that mobile phone service providers invest more in new product development initiatives, improve their network systems to enhance reliability, invest further in branding, advertising & promotions and address issues of pricing in respect to benefits.