(The Mediating Role of Advertising in Corporate Reputation and Brand Equity Relationship)

Abstract

Purpose – The main purpose of this study was to examine whether advertising plays an intermediary role in the relationship between corporate reputation and brand equity. From the fact that corporations cannot survive or differentiate themselves only with products in the long run due to competitive environment, it was assumed that corporate reputation, brand value and advertising are significant contributors to corporate sustainable profitability, growth and existence Design/Method/Approach – The population of the study is the users of mobile phone service providers in Turkey. The study sample consisted of 324 people who were users of one of the three mobile phone service providers/operators currently operating in Turkey. Study data were collected using Corporate Reputation Scale, Brand Value Scale and Advertisement Scale, which was developed by the researchers with a pilot study. Statistical mediation analyses (via multiple linear regression analysis) were conducted to determine if advertising mediate the relationship between corporate reputation and brand value. Findings – As a result of the study, it was found that advertising statistically significantly partially mediates (mediator role) the relationship between corporate reputation and brand value. Discussion – Among GSM users, the level of perceived corporate reputation is an effective variable in terms of perceived brand equityi and adverstising has a mediating role in this positive relationship between corporate reputation and brand equity.