This paper explores the effects of selected marketing mix elements on service brand equity. Research hypotheses about the relationship between marketing mix elements, brand equity dimensions and brand equity itself, in the context of service brands, are defined on the basis of the literature review. A survey was conducted in order to collect relevant empirical data. Structural equation modeling is used to test research hypotheses. The findings of the research indicate that some marketing mix elements may have a negative effect on service brand equity. Also, the findings suggest that advertising, employees, interior appearance, price level and service operation have a positive effect on service brand equity. The results indicate the importance of a strategic approach to building service brands, with establishing the equity of service brands being the long-term goal. The main contribution of this paper comes from the findings about the effects of different marketing mix elements on service brand equity, and the importance of a strategic approach to building and managing service brands.