Brand Dilution’s Implications for Purchase Intention Through Brand Equity
Brand Dilution’s Implications for Purchase Intention Through Brand Equity

Summary/Abstract: Brand dilution, which refers to new brand’s damage to well-known brand’s reputation and distinctive character by entering the market, is an understudied topic in marketing. Furthermore, there are very few studies comparing the effects of different levels of blurring and tarnishing. This study aims to fill this gap by examining the indirect impact of brand dilution on purchase intention through brand equity and by comparing the effects of blurring and tarnishing. For this purpose, a survey was conducted with 960 university students selected using a convenience sampling method. The conditional process model (Model 8) developed by Hayes (2018) was used in the research. The research results indicate a negative impact of brand dilution on brand equity dimensions and purchase intention. Additionally, brand awareness/association and brand loyalty play a mediating role in the relationship between brand dilution and purchase intention. Familiarity with the product category plays a moderating role in the relationship between brand dilution and brand awareness/association, brand loyalty, and purchase intention. As participants’ familiarity with the product category increases, the influence of brand dilution on brand loyalty and purchase intention increases, while its influence on brand awareness/association decreases.

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