A well-designed product packaging, increased
perceived quality and brand equity are essential elements that can strengthen
brand loyalty in a keenly competitive retail environment. Although the impact
of packaging, perceived quality and brand equity on loyalty has gained
considerable attention in the marketing literature, there are limited studies
on the impact of packaging on brand loyalty mediated by perceived quality and
brand equity in the drug industry. In this respect, this paper aimed to examine
the mediation influence of perceived quality and brand equity on the
relationship between packaging and loyalty in the drug industry. The data for
this paper were collected from a sample of 316 customers using a systematic
sampling procedure. The study’s hypotheses were statistically examined via
structural equation modelling with the aid of smart PLS version 3.3.3. Findings
from this paper show that brand equity fully mediates the impact of packaging
on loyalty but partially mediates the path between
perceived quality and loyalty. The research also found that perceived quality
perfectly mediates the relationship between packaging and loyalty but partially
mediates the impact of packaging on brand equity. This paper, therefore,
established that perceived quality and brand equity are critical in designing
packaging to improve brand loyalty in the drug industry.
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