Abstract:
Innovations enable organizations to introduce novel products and services to its customers. However,
within the Modern Trade Industry in Sri Lanka, firms deploy innovations, yet if that is influencing firms
establish greater relationships with its customer’s, remains unclear. Similarly, firms focus greatly upon
consumer-based brand equity within the modern trade industry but there are no sufficient empirical
studies to confirm the contribution of innovation for enhancing consumer based brand equity in modern
trade environment. Therefore, the purpose of this study is to investigate the innovation on consumer
based brand equity in modern trade sector in Sri Lanka. Literature suggests that concept of innovation
is formed using innovative outcomes and innovative planning. Hence authors used these two
dimensions that form innovation as independent variables to determine the consumer-based brand
equity. The research was designed as quantitative research based on positivist paradigm and data were
collected through a survey. Accordingly, 280 self-administered questionnaires, were obtained from
respondents who are modern trade consumers in Colombo, Sri Lanka. The collected data were analyzed
by using both descriptive and inferential statistics tools. PLS-SEM was employed as the main
measurement model for testing hypothesis by using Smart-PLS 3 as the main analytical software. The
findings revealed that innovation as an outcome and innovative planning, both can significantly
influence upon consumer-based brand equity. Hence, authors suggest management of modern trade
retailers to develop innovative technology driven retail platform to provide pleasant shopping
experience to the customers with the purpose of improving consumer-based brand equity. Authors
suggests future researches to investigate the impact of leadership on the implementation of innovations
within the modern trade retailers in Sri Lankan context
