Potential Impact of Sustainable Business Practices: Brand Equity in Fast Food and Millennials’ Purchase Intentions

Abstract

This study was carried out because we live in a world of constant change and high competition, where local fast-food brands in Chiclayo do not have an adequate position in the consumer’s mind compared to international franchises established in our town. The general objective was to determine the influence of brand equity on the purchase intention for local fast-food brands among Chiclayo millennials. The model proposed includes the constructs of brand equity in various category of food products. This document is intended to contribute to society and the scientific community by providing strategic support to brand owners who work with this approach and individual managers. A quantitative approach was used, with a basic type, explanatory level, and non-experimental cross-sectional design, using Cronbach’s alpha for reliability of the instrument and validity by expert judgment. Customers of local fast-food brands comprised the sample, with a total of 385 people surveyed independent of gender. SPSS v.27 and Microsoft Excel 2019 were used for simple random sampling. It was concluded that millennial consumers have regular brand equity and purchase intention for local fast-food brands, emphasizing that the knowledge dimension does not significantly influence purchase intention.

1. Introduction

In today’s globalized world, consumers seek to satisfy their needs quickly and efficiently due to their fast-paced lifestyles [1]. Millennials are a clear example of this type of consumer, as they constantly seek added value in what they consume [2]. It is worth mentioning that the food and beverage sector sustains high competition among brands, for which constant innovation is necessary [3]. Therefore, for local brands offering fast food, it is a real challenge to offer uniqueness due to the growing demand in their sector, given the existing wide variety [4]. As a result, there has been strategic interest in valuing brands and evaluating how they influence consumer purchasing behavior [5]. However, international franchise brands are still preferred over local brands due to their positioning [6]. This leads to the question: What is the influence of brand equity on the purchase intention for local fast-food brands among millennials in Chiclayo in 2022?

Recent research mentions that the perceived quality of a positioned brand influences consumers’ purchase intention [7]. Hence, it is considered fundamental to build an appropriate brand image since it is associated with quality. On the other hand, the consideration of these criteria is important because customers are guided by perceptions, symbols, memories, etc., when consuming [8], and reliability of a brand is considered a potential factor in making a purchase [9]. This leads to the notion that a well-established brand is more attractive compared to others that have not yet defined their attributes, according to the aforementioned premises.

The national fast-food market is highly competitive, which makes it difficult to prefer a single brand due to the variety of alternatives. Although 64% of entrepreneurs express that it is a challenge to establish a value proposition that makes their brand last in the market, the food sector is one of the most affected, with 85% experiencing this challenge [10]. In particular, the restaurant group has shown greater dynamism in fast food than others, growing by 2.10% [11]. It is worth noting that these statistics mainly represent consumption of international franchise brands that have adequate positioning in the local market, as opposed to local brands [12].

From an academic perspective, investigating brand equity in this context contributes to a better understanding of the factors that influence the building and management of strong brands in a highly competitive and dynamic industry [13]. The findings of these studies can enrich existing theories on brand equity and its application in the foodservice domain. On the other hand, for marketers and managers of fast-food restaurants, understanding brand equity is crucial for designing effective positioning, differentiation, and customer loyalty strategies [14]. In a market where consumers have a wide variety of choices and switching costs are low, having a strong and well-valued brand can be a key competitive advantage [15]. In addition, brand equity in the fast-food sector has significant financial implications. Strong and recognized brands can generate higher revenues, enable premium pricing and increase the market value of firms [16]. Therefore, understanding the components of brand equity and how to manage them properly is critical to the financial success of fast-food restaurants. Furthermore, the study of brand equity in this sector can provide valuable insights into consumer perceptions and preferences. This is particularly relevant in a context where consumer habits and customer expectations are constantly evolving, influenced by trends such as the search for healthier and more sustainable options. Knowing brand equity can help companies adapt their offer and communication to better meet consumers’ changing needs.

Therefore, the purpose of this research was to determine the influence of brand equity on the purchase intention for local fast-food brands among millennials in Chiclayo, characterizing their purchase intention, as well as determining the dimensions of brand equity that have a significant effect on the purchase intention for local brands among millennials in Chiclayo.

This research presents a multifaceted perspective on its impact in the context of sustainability. Firstly, it provides valuable insight into the potential interplay between sustainability and sustainable economic growth, highlighting whether local fast-food brands are adopting sustainable practices that make them appealing to millennials [1]. Additionally, it raises the pertinent issue of compliance with sustainability policies and regulations, and how this affects brand perception among consumers. The social wellbeing component also comes into play in the backdrop of the study, investigating how these brands contribute to the wellbeing of the local community and promote healthy dietary patterns [17]. Innovation and technology emerge as key factors, given the need to innovate in terms of business practices and environmentally friendly technologies, a significant facet of sustainability [13]. Lastly, the possibility of interdisciplinary collaboration is envisioned to unravel how sustainable practices impact brand perception [15]. In summary, this study, although seemingly focused on the marketing field and consumer choices, adeptly integrates into the broader fabric of sustainability, offering insight into how local fast-food brands could address sustainability-related challenges and how this influences the millennial generation and society as a whole.

An important aspect to consider is street food, which according to Praesri et al. [18] has generated a business development model to promote tourist attraction, and it should also be considered that street food has sometimes served as an inspiration for local fast food to adapt dishes to local culture and traditions.

2. Literature Review

To provide a conceptual approach to brand equity and purchase intention, global research was consulted. At the international level, Kyguoliene and Zikiene [5] studied the impact of brand equity dimensions on the purchase intention for food products in their locality. Their results indicated that the dimension of brand awareness is not significant in the purchase intention for food products in Lithuania. However, elements such as image, quality, and brand trust are deeply associated and influence the purchase intention for food products. The fact that knowledge of the brand is not an important element is debatable since experience with a brand generates the possibility of appealing to the memory of said experience and, as long as this is positive, there will be greater intention to repeat the purchase. Similarly, Susilowati and Sari [4] researched the influence of brand equity dimensions on purchase intention. It was found that there is indeed a positive and significant relationship between awareness, association, perceived quality, brand loyalty, and purchase intention. This study indicated that despite consumer satisfaction regarding Richeese Factory’s products and services, it does not always translate into their purchase. Additionally, Buys et al. [19] investigated the impact of consumer-based brand valuation on the intention to purchase red meat products as consumer goods. They used a conceptual model to evaluate the influence of brand equity constructs on a brand. The results of this study established a positive and significant association between the two variables studied and determined an interdependent relationship among individual dimensions of brand equity.

On the other hand, Otero and Giraldo [20] found a positive relationship between love for a brand and brand equity, since consumers perceive impressions favorably, which increases the probability of repeat purchases. However, generating brand love today becomes an extremely difficult task, given the variety of brands that offer alternatives for fast-food consumption, which compete fiercely in price and quality. Likewise, Pérez et al. [17] aimed to discover which variables related to the brand influence consumer purchase intention. Their findings showed that food value and anticipated positive emotions have a significant impact on attitude towards a brand, which in turn affects the purchase intentions of Mexican consumers. However, anticipated positive emotions have a stronger impact than food value, and the best way to achieve purchase intention is through attitude towards a brand rather than attitude towards consuming a hamburger. On the other hand, Saidarkaa and Rusfianb [21] conducted a comparative study of three leading fast-food establishments in Indonesia, and their contribution indicated that brand awareness is the dominant factor in the formation of brand equity in the fast-food restaurant sector, while the duration of a brand’s operation is insignificant compared to the strength of the brand equity of a fast-food restaurant. Although studies such as that of Magbanua et al. [22] indicate that service quality is the most important aspect, implying that the way customers are treated by staff in a fast-food restaurant is more important for their likelihood to return to the same establishment, brand association continues to influence purchase intention in the sector by increasing awareness of the latest additions to the fast-food market in establishments. Recent research has also found that the use of digital environments and electronic word-of-mouth affect purchase intention with brand equity as a mediating variable [23]. In that sense, in recent years, where internet platforms have increased pre-purchase information search, it has been determined that digital environments influence brand attitude through electronic word-of-mouth, which in turn has a significant effect on purchase intention at fast-food restaurants [24].

At the national level, Chuqui et al. [25] studied the degree of influence of brand equity from the customers’ perspective on the intention to consume in well-known franchises in the capital city. They sought to measure brand valuation through four dimensions and, ultimately, their predominance in purchase intention. They clearly showed that there is a positive and significant influence of brand equity and its dimensions on purchase intention. Regarding the analysis of constructs, specific results were obtained whereby association, loyalty, and awareness manifest brand equity, while perceived quality does not show a significant degree of significance.

One of the most widely accepted definitions states that brand equity is the added value created by a brand through customer association and perception towards a particular product [14]. Lehmann and Srinivasan [26] mentioned three perspectives of brand equity: customer perspective, product market, and financial perspective. From the customer’s perspective, brand equity represents the customer’s perception and reaction (i.e., customer association with the brand). From the product market standpoint, it represents the value of the brand in the sales and revenue of a branded product compared to its unbranded equivalent. Finally, the financial perspective represents the net present value of anticipated future brand purchases. This study used the customer-based approach because it is beneficial for evaluating marketing strategies and brand positioning. In this regard, Keller [27] suggested that the source of brand equity is customer perception. Therefore, measuring and tracking brand equity at the customer level is a primary task for managers [28].

From another perspective, Kataria and Saini [29] stated that brand equity is generated from the greater trust that a customer has in a particular brand compared to others. For this investigation, the proposal of Kyguoliene and Zikiene [5] was considered, who established four dimensions to measure brand equity based on Aaker’s model [14]: perceived quality, brand awareness, brand image, and brand trust.

Perceived quality is one of the constructs that characterize brand equity. The perception of products, an intangible quality, and overall feeling about the brand are key to analyzing perceived quality, but not technical quality. It is based on key dimensions of product attributes associated with the brand, such as reliability and performance [30]. Perceived quality is defined as the quality resulting from the subjective evaluation made by the consumer, providing reasons for them to buy and making a difference compared to competing brands. This perception directly affects the purchasing decision [14]. Perera et al. [31] and Dissabandara [32] concur that perceived quality has a significant impact on purchase intentions and is closely associated with them.

The following hypothesis was therefore proposed:

H1. 

Perceived quality significantly influences purchase intention among millennial consumers.

Regarding brand awareness, it is defined as the ability of a potential buyer to identify or be aware that a brand belongs to a product category. It also refers to the memorization and recall of the brand [30]. Various experts have substantiated the correlation between brand awareness and purchasing intentions. Tariq et al. [33] and Noorlitaria et al. [34] both support the idea that brand awareness is closely connected to purchasing intentions. In this sense, it was established that:

H2. 

Brand awareness significantly and positively influences millennials’ purchase intention.

Brand image is the main driver of brand equity and refers to the consumer’s perception and overall feeling about a brand [35]. It is the product of the association that reflects favorable attributes of the brand in the consumer’s mind when choosing to purchase. A brand that creates a differentiator in the mind and memory of the customer causes a distinguishing element in the reaction, making the image relevant for this purpose [27]. Therefore, it was proposed that:

H3. 

Brand image positively and significantly influences the purchase intention of millennials.

As for brand trust, it is a logical and relevant element in the relationship between a buyer and seller, and it is part of the brand–consumer relationship and, therefore, brand equity [30]. Trust is considered a component that forms emotional memory and is linked to an individual’s expectations regarding the brand’s safety, especially in situations of risk for the consumer [36]. Therefore, it was proposed that:

H4. 

Brand trust positively and significantly influences millennials’ purchase intention.

Regarding purchase intention, it holds a significant place in the literature. Its study is important as it can provide support for companies to increase sales, achieve market segmentation, and implement of appropriate strategies [37]. Thus, another concept refers to it as the customer’s intention to carry out a particular behavior [38]. On the other hand, Turney and Littman [39] stated that it is the customer’s prediction of which company they will choose at the time of consumption and could be identified as an unconscious aspect of purchasing behavior [40]. Meanwhile, Chu and Lu [41] defined it as the range of a buyer’s willingness to acquire a certain product or service. Zeithaml [42] mentioned that consumers, when making a purchase, will be guided by their previous actions, preferences, and even their environment to gather information, evaluate possible options, and make a decision. Additionally, according to Schiffman and Kanuk [43], purchase intention measures a consumer’s propensity to acquire a product, and they mentioned that the higher the purchase intention, the greater the consumer’s willingness to buy a product. This characteristic is particularly important for an organization, as it is more profitable to retain a customer than to acquire a new one [44], as consumers’ purchase intentions depend heavily on brand awareness [45]. In fact, it has been found that brand-loyal consumers often do not evaluate products before purchasing, as their choices are based on past experiences [46]. According to Moradi and Zarei [47], brand equity is the cause of both brand preferences and purchase intentions. Brand equity may be seen as an exogenous variable, whereas brand preference and purchase intents can be seen as endogenous factors. Thus, it was proposed:

H5. 

Brand equity positively and significantly influences the purchase intention of millennials.

The literature also suggests that purchase intentions are strongly motivated by the store where the product is sold [48].

For the current study, the following conceptual model was used, considering four dimensions of brand equity and one unidimensional variable of purchase intention [5], as presented in Figure 1.

3. Materials and Methods

This research was approached from a quantitative perspective, employing data collection and data analysis to answer the research questions and test the study hypotheses using statistical measures [49]. It was a basic type of research, aimed at providing comprehensive knowledge through observable facts or relationships between variables (independent and dependent) established in this study. The research level was explanatory, as it aimed to determine influence, with a non-experimental design since the study variables were not manipulated, and it had a cross-sectional nature as it was conducted within a specific time frame [50].

The population considered for this study was individuals belonging to the city of Chiclayo, within the age group of 25 to 40 years, which corresponds to the millennial generation. As the population size was unknown, the formula for an infinite population was used, resulting in a sample size of 386 individuals. The inclusion criteria considered were customers of local fast-food establishments within the specified age range, without gender distinction. The study subjects were selected using probability sampling (simple random sampling method), with data collected from the researcher’s acquaintances, who replicated the instrument through social networks. According to Martín et al. [51], the simplicity of applying this method lies in the fact that each element of the sample has an equal chance of being selected from the population, considering that they belong to the required age range for the research.

The questionnaire was adapted based on Kyguoliene and Zikiene’s model [5] and was administered through Google Forms with the help of a filter question to verify the characteristics of the respondents (if they belonged to the specified age group and if they were customers of a local fast-food brand). In addition, taking into account the level of education and income, the data were collected in the months of September and October 2022 using a hybrid approach, including virtual platforms such as Facebook, WhatsApp, and Instagram and in person by submitting the questionnaires to the analysis unit in shopping malls. This questionnaire consisted of 18 questions, with 15 for measuring brand equity, consisting of four dimensions, and three questions for measuring purchase intention (

Table 1. Measurement statements for brand equity dimensions and purchase intentions.

Dimensions	Measurement Statements
Perceived quality	When you have chosen to consume fast food products from local brands, have you been satisfied with them? Are you satisfied with the service offered by local fast food brands? Do you consider the price of local fast food brands’ products to be affordable? Do the local fast food brands fulfil their role in meeting your needs? Are you confident that the products offered by local fast food brands can meet your expectations? The experience that local fast food brands can offer you is good?
Kyguoliene and Zikiene [5], Shariq [30], Perera et al. [31] and Dissabandara [32]
Brand Awareness	Can you recognise which are the local fast food brands in your city? Can you distinguish the qualities of local fast food brands in your city?
Kyguoliene and Zikiene [5], Shariq [30], Tariq et al. [33], Noorlitaria et al. [34]
Brand Image	Do local fast food brands make you feel comfortable? Do local fast food brands convey a positive image to you? Does your personality match what some local fast food brands offer?
Kyguoliene and Zikiene [5], Zhang [35], Shariq [30]
Brand Trust	Do local fast food brands care about constant improvement? Do local fast food brands deliver what they offer? Do you give a lot of consideration to pre-consumer reviews of local fast food brands?
Kyguoliene and Zikiene [5], Ballester [36] Shariq [30]
Purchase intention	Do you prefer eating at local fast food brands? The likelihood that you would choose to eat at local fast food brands is high? Would you be interested in eating at local fast food brands in the future?
Kyguoliene and Zikiene [5], Moradi and Zarei [47]

). Both questionnaires used a seven-point Likert scale for measurement. Before applying the instrument to the final sample, a pilot test was conducted, which yielded a Cronbach’s alpha coefficient of 0.827 for the brand equity variable and 0.691 for purchase intention. These results confirmed the validity and reliability of the measurement instruments. Additionally, the questionnaire was subjected to a validation process through the judgement of three experts in the marketing area, who approved its application after incorporating the proposed semantic suggestions. Once the instrument was applied to the final sample, the following Cronbach’s alpha coefficients were obtained: 0.911 for the brand value variable, 0.963 for the perceived quality dimension, 0.892 for brand awareness, 0.927 for brand image and 0.938 for trust. As for the purchase intention variable, Cronbach’s alpha coefficient was 0.765. All these values exceed the minimum threshold of 0.70 established by the literature, which supports the internal consistency and reliability of the scales used.

To confirm the factor structure of the brand equity and purchase intention variables, a confirmatory factor analysis (CFA) was conducted to assess the construct validity of the measurement scales and to verify the fit of the theoretical model to the empirical data [52]. A measurement model was specified in which the dimensions perceived quality, brand awareness, brand image, and trust were considered exogenous latent variables, while purchase intention was treated as an endogenous latent variable. The fit indices obtained were satisfactory: χ² = 537.42, p < 0.001; CFI = 0.97; TLI = 0.96. These values meet the criteria recommended in the literature, indicating a good fit of the model to the data [53]. Furthermore, the convergent validity of the scales was assessed by calculating the average variance extracted (AVE) and composite reliability (CR). AVE values ranged from 0.59 to 0.84, exceeding the minimum threshold of 0.50, while CR values ranged from 0.85 to 0.95, exceeding the recommended threshold of 0.70 [54]. These results support the convergent validity of the scales used. Discriminant validity was assessed by comparing the square root of the AVE of each latent variable with the correlations between pairs of latent variables. The square root of the AVE of each latent variable was higher than the correlations with other latent variables, confirming discriminant validity [55].

Prior to administering the questionnaire, a consent form was provided to indicate participation in the research. Instructions for completing the questionnaire were then given to the selected sample, who had approximately 20 min to complete it.

Considering the choice to use Google Forms as the main tool, in order to ensure the integrity and completeness of the information collected, the “Mandatory response” functionality was activated for each of the items in the questionnaire. This measure ensured that all participants provided an answer to each question before submitting the form, thus eliminating the possibility of “non-response error”.

It should be noted that even in cases where questionnaires were distributed face-to-face in the shopping centers, the online data collection approach was maintained. Individuals who agreed to participate in the study were provided with the link to the digital questionnaire, allowing them to complete it virtually via their personal mobile devices. This approach not only facilitated respondent participation, but also ensured consistency and standardization in the data collection process, regardless of the distribution method used.

For data processing, the statistical software SPSS v.27 and Microsoft Excel 2019 were used to obtain statistical tables and graphs. Thus, we analyzed the normality of variables using the Kolmogorov–Smirnov test, where a p-value of <0.05 indicated the choice of the non-parametric Spearman’s correlation coefficient for correlation analysis, and multiple regression analysis was conducted to test the influence.

To ensure the validity of the results obtained when assessing the influence of brand equity on purchase intention using a multiple regression model, the assumptions underlying this statistical technique were checked for compliance. First, the linearity of the relationship between the independent variables (brand equity dimensions) and the dependent variable (purchase intention) was tested by analyzing scatter plots and residual plots, which showed clear linear patterns [55]. The independence of the errors was assessed using the Durbin–Watson statistic, whose value was 1.98, indicating the absence of autocorrelation [56]. Homoscedasticity was verified through analysis of plots of standardized residuals against predicted values, which showed no systematic patterns, confirming a constant variance of the residuals [57]. The normality of the residuals was checked visually using histograms and Q-Q plots, which revealed an approximately normal distribution. Furthermore, the Kolmogorov–Smirnov test (D (385) = 0.04, p = 0.20) was not significant, supporting the assumption of normality [55]. Finally, the absence of multicollinearity among the independent variables was assessed by calculating variance inflation factors (VIF) and tolerance indices. The VIF values ranged between 1.32 and 2.87, while the tolerance indices ranged between 0.35 and 0.76, indicating the absence of multicollinearity [56].

4. Results

The study sample consisted mostly of women (54%) with higher education (64.8%). In terms of income level, 41.5% of the sample indicated that their income was PEN 1000–2000, and in terms of age, the majority were between 25 and 30 years old, accounting for 69.4% of the sample. Furthermore, the brands that were most commonly known among the respondents were D’Pulpa, Ilegal, Sanguchito, and Cix Pizzas y Hamburguesas. Descriptive data for the analyzed sample are shown in

Table 2. Sociodemographic data distribution.

		Frequency	Percentage
Gender	Female	247	64%
	Male	139	36%
Level of education	Secondary	37	9.5%
	Without formal education	5	1.3%
	Higher education (technical)	94	24.4%
	Higher education (university)	250	64.8%
Level of income	PEN 1000–2000	160	41.5%
	PEN 2000–3000	95	24.6%
	PEN 3000 or more	34	8.8%
	PEN 500–1000	97	25.1%
Age range	25 to 30 years old	268	69.4%
	31 to 35 years old	79	20.5%
	36 to 40 years old	39	10.1%
Local brands consumed	Cix Pizzas y Hamburguesas	55	14.3%
	D’Pulpa	71	18.4%
	El Taller Brewing Company	28	7.3%
	Ilegal	63	16.3%
	Ken-Do	35	9.1%
	Maki cix	38	9.8%
	Otros	16	4.1%
	Pop wings	8	2.1%
	Random Burguer	4	1.0%
	Sanguchito	54	14.0%
	Ta Buenazo	14	3.6%
	Total	386

.

Regarding the general objective, focused on determining the influence of brand equity on the purchase intention for local fast-food brands among Chiclayo millennials, it was found that 40.1% of the change in purchase intention was explained by the perceived brand equity by the respondents, as shown in

Table 3. Model summary—Influence of brand equity on purchase intention.

Model	Model	Model	Adjusted R-Squared	Standard Error of Estimate
1	1	1	0.400	2.423

Predictors: (Constant), brand equity.

. This was a significant percentage that established brand equity as a variable that influences the purchase intention of millennial consumers in Chiclayo, specifically regarding fast-food products.

Similarly, the influence of brand equity on the purchase intention of millennial customers was significant (Sig. < 0.05). This established that consumers, when perceiving an adequate brand equity, show a higher intention to purchase fast-food products, as shown in

Table 4. ANOVA—Significant influence of brand equity of purchase intention.

Model		Sum of Squares	df	Root Mean Square	F	Sig.
1	Regression	1511.911	1	1511.911	257.495	0.000 a
	Residual	2254.700	384	5.872
	Total	3766.611	385

Dependent variable: purchase intention. ^a Predictors: (Constant), brand equity.

.

The result for brand equity among millennial consumers showed a significant influence on purchase intention, as indicated by the beta value of 0.634, suggesting a high influence, as presented in

Table 5. Coefficients—Significant influence of brand equity on purchase intention.

Model		Unstandardized Coefficients		Standardized Coefficients	T	Sig.
		B	Standard Deviation	Beta
1	(Constant)	3.186	0.773		4.121	0.000
	Brand equity	0.179	0.011	0.634	16.047	0.000

Dependent variable: purchase intention.

, which provided evidence in favor of H₅. This led to the recognition that consumers generate a higher purchase intention when they have a better perception of the brand equity of the fast-food establishment at which they consume products. In relation to the general objective, it was established that brand equity has a significant effect on the purchase intention of Chiclayo millennial consumers in local fast-food establishments, with brand equity explaining 40.1% of the change in purchase intention.

The analysis of brand equity showed that millennial consumers rated the brand equity of local fast-food brands in Chiclayo as average (mean = 4.90). They also rated the quality of these brands as average, indicating a moderate level of trust in the quality of their products. The consumers mentioned having an average level of knowledge about these local brands, while their perception of the brand image and trust they had in the products offered by these brands was also rated as average. This suggested that consumers consider these establishments to have moderate quality compared to other more well-known brands that are positioned in their minds, and since these local brands are not widely recognized, their trust level is average, as shown in

Table 6. Mean by dimension of brand equity.

Variable	Mean	Dimensions	Media by Dimension
Brand equity	4.90	Perceived quality	4.88
		Brand awareness	5.05
		Brand image	4.66
		Trust	5.02

.

Furthermore, regarding their perception of the value of local brands, millennials expressed higher average scores for the brands Ilegal (5.88), El Taller (5.53), Makicix (5.45), Cix Pizzas y Hamburguesas (5.98), and Sanguchito (5.92), while the remaining brands received lower average scores. Similarly, it was found that the perception of brand equity had a similar average value between males and females. On the other hand, in terms of income level, those with lower incomes had a better perception of the value of local brands compared to those with higher incomes. In terms of age range, younger individuals assigned higher values to brands compared to those who were older. Finally, in terms of educational level, university students showed a better perception of the value of these local brands, as shown in

Table 7. Brand equity of local brands of fast food among millennials in Chiclayo.

		Brand Equity
		Mean	Standard Deviation
Local brands consumed	Cix Pizzas y Hamburguesas	5.98	0.77
	D’Pulpa	4.89	0.77
	El Taller Brewing Company	5.53	0.62
	Ilegal	5.88	0.84
	Ken-Do	3.93	0.81
	Maki cix	5.45	0.87
	Otros	3.03	0.65
	Pop wings	3.47	1.26
	Random Burguer	4.51	0.26
	Sanguchito	5.92	0.74
	Ta Buenazo	4.30	0.69
Gender	Female	5.13	0.62
	Male	5.15	0.80
Income level	PEN 1000–2000	4.96	0.82
	PEN 2000–3000	5.88	0.78
	PEN 3000 or more	4.87	0.82
	PEN 500–1000	4.84	0.75
Age range	25 to 30 years old	5.15	0.67
	31 to 35 years old	4.56	0.85
	36 to 40 years old	3.57	0.93
Level of education	Secondary	4.65	0.66
	Without formal education	4.48	1.53
	Higher education (technical)	4.80	0.83
	Higher education (university)	4.99	0.76

.

It was found that millennials have a moderate intention to purchase products from local fast-food establishments, showing interest in consuming products from local brands, as shown in

Table 8. Mean of purchase intention by item.

Variable	Variable Mean	Mean by Item	Item
Purchase intention	5.14	4.75	Do you prefer to consume local brands of fast food?
		4.99	Is there a high probability of consuming local brands of fast food?
		5.69	Would you be interested in consuming local brands of fast food in the future?

. However, they do not currently show a preference for them. Nevertheless, the fact that local brands are considered one of their consumption alternatives presents an opportunity to offer them local products.

In terms of the purchase intention for local fast-food brands among millennials from Chiclayo, the analysis showed higher purchase intentions for the brands Cix Pizzas y Hamburguesas (5.21), El Taller (5.42), Ilegal (5.62), Maki Cix (5.82), and Sanguchito (5.26). Additionally, females expressed a higher intention to purchase products from local brands, as well as individuals with incomes ranging from PEN 2000 to 3000. Regarding age, there was a higher purchase intention among individuals aged 31 to 35, and among those with university and technical educations, as shown in

Table 9. Purchase intentions for local brands of fast food among millennials from Chiclayo.

		Purchase Intention
		Mean	Standard Deviation
Local brands consumed	Cix Pizzas y Hamburguesas	5.21	0.98
	D’Pulpa	4.97	1.13
	El Taller Brewing Company	5.42	0.96
	Ilegal	5.62	1.03
	Ken-Do	4.11	0.96
	Maki Cix	5.82	1.09
	Otros	3.81	0.85
	Pop wings	4.75	1.09
	Random Burguer	4.08	1.42
	Sanguchito	5.26	1.07
	Ta Buenazo	4.31	0.81
Gender	Female	5.63	0.87
	Male	4.92	1.02
Level of income	PEN 1000–2000	5.01	1.06
	PEN 2000–3000	5.20	1.03
	PEN 3000 or more	4.97	1.24
	PEN 500–1000	5.07	0.96
Age range	25 to 30 years old	4.78	0.63
	31 to 35 years old	5.47	0.79
	36 to 40 years old	3.92	0.95
Level of education	Secondary	4.95	0.75
	Without formal education	4.60	2.09
	Higher education (technical)	5.17	1.09
	Higher education (university)	5.17	1.04

.

The analysis of the model determined that brand equity is an important factor influencing 45.7% of millennials’ purchase intention, as demonstrated in

Table 10. Model summary—Influence of the dimensions of brand equity in purchase intention.

Model	R	R-Squared	Adjusted R-Squared	Standard Error of Estimate
1	0.676 a	0.457	0.452	2.316

^a Predictors: (Constant), trust dimension, knowledge of the brand dimension, brand image dimension, perceived quality dimension.

.

The dimensions of brand equity showed a significant influence on the purchase intention of millennial consumers (Sig. < 0.05), establishing that brand equity assessed through brand trust, brand awareness, brand image, and perceived quality of fast-food brands significantly influences their intention to purchase the products offered by these businesses. Therefore, this influence is shown in

Table 11. ANOVA—Significant influence of all of the dimensions of brand equity on purchase intention.

Model		Sum of Squares	df	Root Mean Square	F	Sig.
1	Regression	1723.224	4	430.806	80.326	0.000 a
	Residual	2043.388	381	5.363
	Total	3766.611	385

Dependent variable: purchase intention. ^a Predictors: (Constant), trust dimension, brand awareness, brand image, perceived quality.

.

As shown in Figure 2, among the brand equity dimensions, it was found that perceived quality (Sig. < 0.05), trust (Sig. < 0.05), and brand image (Sig. < 0.05) had significant influences on consumers’ purchase intention, supporting H₁, H_3, and H₄, while brand awareness did not (Sig. > 0.05), rejecting H₂. This suggests that, more than brand knowledge itself, it is the experience of consuming, the trust generated in the product, and the image associated with it that have greater influence on the intention to purchase products. Among these three dimensions, trust had the strongest influence on purchase intention (Beta = 0.462), indicating that consumer confidence in the establishment and brand of the purchased product plays a significant role in their decision to buy the product. This objective highlighted the aspects that millennial consumers consider important when evaluating and choosing to purchase fast-food products based on brand equity. Thus, quality, trust, and image were the dimensions with the greatest impact on purchase intention, consistent with the findings of Kyguoliene and Zikiene [5], while brand awareness did not show an influence, as shown in

Table 12. Coefficients—Significant influence of each dimension of brand equity on purchase intention.

Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Standard Deviation	Beta
1	(Constant)	2.929	0.758		3.866	0.000
	Perceived quality	0.582	0.201	0.162	2.900	0.004
	Brand awareness	0.206	0.146	0.066	1.412	0.159
	Brand image	0.307	0.147	0.105	2.086	0.038
	Brand trust	1.433	0.147	0.465	9.766	0.000

Dependent variable: purchase intention.

.

These results open up a discussion regarding the statement made by McDonald and Sharp [36], who argued that consumers’ purchase intentions are entirely dependent on brand awareness and loyalty. However, in this study, it was not found that millennial consumers of fast food pay significant attention to brand awareness as an influencing factor in their purchase intention.

As shown in Figure 3, three intervening variables were considered in the model, with moderating roles, to identify their effect on the relationship between brand equity and the purchase intention for fast-food products, the results of which are shown below.

As shown in

Table 13. Summary of the interaction effect of moderating intervening variables.

Model	R2	p (ANOVA)	Category	p-Value
Model 1 Gender × BE → PI	0.408	<0.001	Male	0.297
Model 2 Level of income × BE → PI	0.413	<0.001	500–1000	0.020
			2000–3000	0.321
			3000 or more	0.985
Model 3 Level of education × BE → PI	0.414	<0.001	Without formal education	0.033
			Higher education (technical)	0.174
			Higher education (university)	0.247

Brand equity (BE), purchase intention (PI).

, the analysis of gender did not show a moderating influence on the relationship between brand equity and purchase intention (p-value > 0.05). On the other hand, income level did play a moderating role in this relationship. In fact, the findings suggested that millennial consumers with lower incomes (PEN 500 to 1000) have a higher purchase intention in terms of their perception of the brand equity of fast-food outlets (p-value < 0.05) compared to those with incomes ranging from PEN 1000 to 2000, while those with higher incomes did not show that brand equity can boost their intention to buy fast-food products. Finally, the level of education of consumers showed that those with no education have a higher purchase intention (p-value < 0.05).

5. Discussion

The findings of this study provide important implications for the strategic management of local fast-food brands in Chiclayo, Peru. First, it highlights the importance of building trust and positive experiences with millennial consumers to influence their purchase intention, which is consistent with Otero and Giraldo [19]. To achieve this, it is recommended that managers implement experiential marketing strategies, loyalty programs, and continuous improvements in service and product quality. These actions would strengthen the emotional bond with the brand and, in turn, enhance positive word-of-mouth, as suggested by Pérez et al. [20].

In addition, the results showed that the income and education level of millennials moderate the relationship between brand equity and purchase intention. This implies that managers should adapt their branding and segmentation strategies considering these socio-demographic aspects. For example, they could develop differentiated value propositions and communications for lower-income and educated segments, emphasizing attributes such as accessibility and convenience, while for more affluent and educated segments, they could focus on aspects such as premium quality and brand experience. Future studies could further explore these differences and their impact on the effectiveness of branding strategies in different markets, as suggested by Saidarkaa and Rusfianb [21].

Another key aspect to consider is the management of brand communication on digital platforms and social media. Given that millennials are digital natives and heavy users of these media, local brands should take advantage of them to build trust, awareness, and engagement with their audiences. Likewise, influencer marketing and user-generated content strategies could be implemented to enhance the credibility and reach of the brand message, in line with Susilowati and Sari’s proposal [4].

To ensure the effectiveness of these actions, it is essential that local brands regularly monitor their brand equity and key dimensions such as trust, perceived quality, and image. This implies the adoption of specific metrics and tools, such as tracking studies and social listening, to assess the impact of branding initiatives on purchase intent over time. In this way, managers will be able to make data-driven decisions and timely adjustments to their strategy, as indicated by Lassar et al. [28].

Finally, it is suggested to deepen the findings of this study in future research. On the one hand, experiments or longitudinal studies could be conducted to establish stronger causal relationships between brand equity and purchase intention, as recommended by Chuqui et al. [25]. On the other hand, it would be valuable to explore how other factors, such as corporate social responsibility or perceived quality of ingredients, influence fast-food consumers’ decisions, in line with Musiliu and Ajayi [7] and Buys et al. [18].

6. Conclusions

The findings of this study provide valuable insights for local fast-food brand managers in Chiclayo to develop effective branding strategies aimed at boosting the purchase intent of the millennial segment. Firstly, it is recommended to focus on building trust and generating positive brand experiences, as these factors were shown to have the greatest influence on purchase intent. To achieve this, managers should ensure consistency in product and service quality, implement loyalty programs that reward customer loyalty, and train staff to provide friendly and efficient service. In addition, they could consider using local ingredients and eco-friendly packaging to project a more authentic brand image that is committed to the community and the environment.

Likewise, marketers should develop communication strategies that highlight the brand’s unique attributes and differentiate it from the competition, both locally and internationally, investing in designing an attractive and memorable logo, creating catchy slogans that reinforce the desired positioning, and using appetizing product images in promotions. It is also recommended to harness the power of word of mouth, encouraging satisfied customers to share their experience with family and friends, both in person and on social media. To this end, contests and sweepstakes could be implemented on platforms such as Facebook and Instagram, where users share photos or videos enjoying the brand’s products.

Another relevant finding is that the influence of brand equity on purchase intention is higher among millennials with lower income and education levels. Therefore, managers should adjust their segmentation and targeting strategies to effectively reach this audience. Some tactics could include offering low-cost combos, special promotions for students, and strategically locating stores in popular areas or near educational institutions. In addition, communication on social networks and local media should be adapted to the language and preferences of this segment, using an approachable and dynamic tone, and highlighting benefits such as convenience and savings.

On the other hand, an opportunity was identified for local brands to expand their product portfolio while maintaining their focus on positioning and brand perception. In this regard, managers could consider introducing healthier or customizable options that respond to the consumption trends of millennials. They could also evaluate strategic alliances with other local brands to offer complementary products or limited editions that generate interest and trial. In addition, the inclusion of additional services, such as free WiFi, mobile phone chargers, or board games, could enhance the in-store experience and prolong consumers’ stay.

In addition, the findings suggest that brand preference is a relevant factor for loyalty, even in the absence of direct brand experience. Therefore, marketers should work on building a strong and consistent brand identity that generates long-term preference and loyalty. This involves clearly defining the brand’s personality, values, and purpose, and communicating them consistently across all consumer touch points. In addition, it is recommended to constantly monitor customer perception and satisfaction, and use this feedback to implement continuous improvements in the product, service, and brand experience.

In terms of the limitations of this research, it is recognized that there is a need to extend this study to other regions of the country, to determine whether there are differences in attitudes and preferences towards local fast-food brands according to geographical and cultural context. It would also be valuable to replicate this study in other age segments, to assess whether the dimensions of brand equity that influence the purchase intention of millennials are perceived in the same way in other groups. In addition, it is suggested to complement the analysis with qualitative techniques, such as in-depth interviews or focus groups, to obtain more detailed insights on the factors that influence purchase intention and consumer perceptions of local brands.

Finally, it is important to note that brand value management involves not only marketing strategies, but also a comprehensive organizational commitment to quality, innovation and customer satisfaction. In this sense, it is recommended that managers foster a customer-centric organizational culture that promotes excellence in all processes and continuous improvement. It is also suggested to establish key performance indicators (KPIs) related to brand value, such as recall, preference, and loyalty, and monitor them periodically to assess the impact of the strategies implemented and make the necessary adjustments.