This study aims to examine ethical practices in the banking sector by testing the relationships between customer perceptions of ethicality and brand attributes like affect, image and equity.
Drawing on the social exchange theory, the authors advance the consumer’s perspective in explaining brand equity in the banking sector. Following the survey technique, the authors used the Hayes’ Macro Process in analysing the data collected from 148 bank customers in New Zealand.
The findings suggest that customers’ perception of ethicality, brand image and affect are significantly associated with brand equity. Also, brand image and affect significantly mediate the relationship between customer’s perception of ethicality and brand equity.
The main limitation of this study is the use of survey and cross-sectional methods. Future research may adopt mixed-method techniques to provide insightful information on how these variables influence brand equity.
The study demonstrates the mechanisms that facilitate brand equity and contributes to theory by analysing the factors of brand equity in the banking sector, which has been less investigated.
