A Theoretical Model of the Effects of Advertising and Sales Promotion on Brand Equity

This paper is aimed to review and construct a theoretical model of the effects of advertising and sales promotion on brand equity. Much literature and empirical studies have shown that: (1) advertising spending has significant positive effects on perception quality, brand loyalty and brand association combined with brand awareness; (2) attitude toward advertisements has positive effects on perception quality and brand association combined with brand awareness; (3) monetary promotion has negative influences on perception quality and brand association combined with brand awareness; (4) non-monetary promotion has positive influences on perception quality, brand loyalty and brand association combined with brand awareness; (5) perception quality, brand loyalty and brand association combined with brand awareness have positive and direct impacts on overall brand equity. Finally, this paper presents some suggestions for future research