International Journal of Business and Management; Vol. 8, No. 19; 2013 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education 45 Customer Based Retail Brand Equity (RBE) Dimensions Effect on Retail Brand Equity for OK Supermarket in Bindura Albert Musekiwa 1 , Douglas Chiguvi 1 & Hope Hogo 1 1 Bindura University, P. Bag 1020, Bindura, Zimbabwe Correspondence: Albert Musekiwa, Bindura University, P. Bag 1020, Bindura, Zimbabwe. E-mail: musekiwalbert@gmail.com Received: June 13, 2013 Accepted: August 20, 2013 Online Published: September 18, 2013 doi:10.5539/ijbm.v8n19p45 URL: http://dx.doi.org/10.5539/ijbm.v8n19p45 Abstract The concept of retail brand equity has become a competitive tool for successful retailers in today’s competitive market characterised by increase in demands by customers, increased competition and shrinking disposable income. Most stores have realised that it is cheaper to retain than to attain new customers through brand equity. This study sought to determine the nature of relationship between retail brand equity dimensions and retail brand equity for OK supermarket in Bindura. OK supermarkets are the biggest retail chain in Zimbabwe by number of outlets and market share but with dollarization the country has seen increased interest by big some of the big players in Southern Africa like Pick n Pay and Shoprite. It follows that for OK to maintain its pole position it can no longer afford to do business as usual, brand equity provides a sustainable competitive advantage. A sample of 100 respondents was interviewed at the store front. The results revealed that brand awareness, loyalty and perceived quality have significant impact on brand equity. The store managers were urged to increase promotional activities, loyalty programs and psychological factors (tangibles and intangibles) so that the firm could increase brand equity. Keywords: retail brand equity (RBE), retail awareness, retail association, perceived quality, retail loyalty 1. Introduction The concept of retailer brand equity has attracted the attention of marketing practitioners and researchers over the recent years (Arnett et al, 2003; Krammer, 1999; Thompson, 1998). Successful retailers depend on combining the success of the manufacturer’s brand and the service nature of the industry. The different dimensions of in store setting such as colour, smell, music, crowding can influence consumer’s perceptions of store ambience. These help customers to decide whether or not they visit the store, how greatly they spend time in it, and how much money they spend in it (Grewal et al, 2003).Baker et al (2002) postulate that store environmental factors significantly affect consumer’s perceptions of merchandise (price and quality) and employee service. The increase in consumer demands, competition and slow market growth are some of the factors that have complicated the marketing environment (Bloemer & Oderken-Schrodder, 2002). Consequently, retail brand equity has become a strategic issue in the business performance. Retailer equity provides benefits like the retailer can charge premium price, guaranteed repeat purchases, it provides competitive advantage where competing products provide same benefits, and the retailer can successfully develop private labels which over the years have contributed a large proportion to sales with some cases of 70% of sales (Carpenter and Tybout, 1998). 1.1 Background: OK Supermarkets in Zimbabwe OK supermarkets have been operating in Zimbabwe since 1942 providing a range of retail products and allied services in response to customer demands. It trades under four brand names: OK stores, Bon Marche’, OK express and OK Mart (okziminvestor, 2012). It covers three main product categories namely: grocery, basic clothing and textiles and houseware. The groceries category includes dry groceries, butchery, delicatessen, takeaway, bakery, provisions, fruit and vegetables. The bakery and fruit and vegetables are outsourced to Innscor and Favco respectively (okziminvestor, 2013).The store targets low, middle and high income customers. It adapts its offerings to suit the different customers segments. For example the product range you would find in Bon Mache Borrowdale is targeted to the high income while that you would find in OK Mbare is targeted to low income customers.