Abstract

This paper examines the effects of product innovation and service quality on brand equity mediated by relationship quality. To date, the patterns in past research show that there is less attention been paid to examine the importance of product innovation and service quality in affecting brand equity. Thus, in order to explore our knowledge in this area, this study was conducted among car users in Northern region of Malaysia. The data were analyzed using SPSS and Structural Equation Modeling (SEM). The findings indicated that product innovation and service quality have significant positive effects on relationship quality and brand equity. Moreover, the findings revealed that relationship quality mediates the relationship between product innovation and brand equity. It also shows that relationship quality mediates the relationship between service quality and brand equity. Based on these results, several implications and future research suggestions are discussed in this paper in order to explore our knowledge towards the importance of product innovation and service quality in affecting relationship quality and brand equity.

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