Innovativeness, customer value, and the growth of SMEs in Uganda: a case of radio broadcast media in Kampala.
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The study examined the relationship between firm Innovativeness, Customer Value, Brand Equity, Brand Preference and the growth of FM radio broadcasting organizations in Uganda. Through a cross-sectional study, respondents categorized as radio station managers, advertisers and the listening audience was used to determine innovativeness, customer value, brand equity, brand preference and the growth of 17 FM radio stations in Kampala. The listening audience was further segmented along occupation lines as demographic patterns are reflected in the buying behavior and decision making processes of individuals, thereby making a correlation with a consumer’s media usage patterns possible. Regression analysis found a good fit between the predictors and the dependent variables. Innovativeness and customer value were found to be significant antecedents of brand equity and brand preference. Brand equity, brand preference and SME growth were significantly correlated. The results confirmed empirical studies which established that innovations that create and deliver added value contribute significantly to the success of brands. Significant growth in both sales and profitability comes to brands that show large improvements in their strength and value along the dimensions of brand image, brand loyalty, perceived quality, and brand awareness. Brands that fail to demonstrate strength and value along those dimensions are not the preferred brands and show the least growth in sales and eventually profitability. These results support previous findings that state that innovative brands create more customer value, and brand equity is a strong antecedent for brand preference, which in turn translates into growth in sales, market share, and profitability.