Authenticity is Key: The Relationship between Perceived Brand Authenticity and Customer-Based Brand Equity in Fashion Retail

Abstract

In today's rapidly changing and increasingly complex world, companies face the challenge of ambiguity in consumer perceptions. Consequently, social media has emerged as an indispensable tool for companies to connect with their customers and gain a better understanding of their needs, wants, and desires. To remain competitive, organizations strive to establish themselves as authentic and relatable since customers tend to prefer brands they trust. This study aims to investigate the correlation between perceived brand authenticity and customer-based brand equity in the fashion retail sector. Specifically, the objective is to determine whether there is a positive association between the perceived brand authenticity and its dimensions (credibility, integrity, symbolism, and continuity) and customer-based brand equity and its dimensions (brand loyalty, brand associations, brand awareness, and perceived quality). To accomplish this objective, the study focuses on three popular fashion retail brands: Patagonia, UNIQLO, and SHEIN, each possessing varying degrees of brand authenticity. Data were collected through a Qualtrics survey from 118 college students at the University of Michigan. The findings of the study support the hypothesis that perceived brand authenticity is positively associated with customer-based brand equity. This information could prove beneficial for companies looking to enhance their brand equity. By focusing on building an authentic brand, companies can establish stronger relationships with their customers and improve their overall brand equity.