Investigation of the effect of brand dilution on brand equity and purchase intention: An application on university students

The aim of this study is to examine the moderator role of product category familiarity in the effect of trademark dilution on brand equity and purchase intention. For this purpose, data were collected from 960 students at a university in Turkey through a questionnaire. It was determined that those who were not exposed to dilution had higher brand awareness/association, perceived quality, perceptions of brand loyalty, and purchase intention than those who were exposed to dilution. Perceptions of brand awareness/association, and purchase intention of those exposed to tarnishing is lower than those exposed to blurring. Trademark dilution has a negative effect on brand awareness/association, perceived quality, brand loyalty, and purchase intention. Brand awareness/association, perceived quality and brand loyalty have a positive effect on purchase intention. While brand awareness/association and brand loyalty have a mediating role in the relationship between trademark dilution and purchase intention, perceived quality does not. While familiarity with the product category has a moderator role in the relationship between trademark dilution and brand awareness/association, brand loyalty and purchase intention, it does not have a moderator role in the relationship between trademark dilution and perceived quality. According to the results of the research, as the knowledge level of the participants about the product category increases, the effect of trademark dilution on brand awareness/association decreases and the effect on brand loyalty and purchase intention increases.