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MUSANJE Khamisi is a graduate of makerere University in uganda. His dissertation is titled 'brand image, self concept, and consumer purchasing behaviours in the ugandan petroleum industry' he dedicates this piece of work with love to his mother Namitala Grace for everything she has done for me in life.
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Originaltitel
Brand Image, Self Concept, And Consumer Purchasing Behaviours in the Ugandan Petroleum Industry
MUSANJE Khamisi is a graduate of makerere University in uganda. His dissertation is titled 'brand image, self concept, and consumer purchasing behaviours in the ugandan petroleum industry' he dedicates this piece of work with love to his mother Namitala Grace for everything she has done for me in life.
MUSANJE Khamisi is a graduate of makerere University in uganda. His dissertation is titled 'brand image, self concept, and consumer purchasing behaviours in the ugandan petroleum industry' he dedicates this piece of work with love to his mother Namitala Grace for everything she has done for me in life.
BRAND IMAGE, SELF CONCEPT, AND CONSUMER PURCHASING
BEHAVIORS IN THE UGANDAN PETROLEUM INDUSTRY
BY KHAMISI MUSANJE 2009/HD10/17138U
A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF MAKERERE UNIVERSITY
JANUARY, 2012
2 DECLARATION I Musanje Khamisi solemnly declare to the best of my knowledge that this compilation is my original piece work except where otherwise acknowledged and it has never been presented anywhere or to any University. Submitted by Musanje Khamisi
Signature
Date
3 APPROVAL This dissertation has been reviewed and approved by;
. 1. Dr. Moses Kamya Supervisor
............................................................................................................... 2. Mr. Sam Musigire Supervisor
4 DEDICATION I dedicate this piece of work with love to my dear mother Namitala Grace for everything she has done for me in life. Mom you are the reason as to why I exist.
5 ACKNOWLEDGMENT I extend my heartfelt appreciation to my dear parents Mrs. Namitala Grace and Mr. Kato Ndawula Mustapha for their constant love, financial and social support which have seen me through this research project. My lovely parents, words are not enough to explain what I feel for you. Special thanks also go to my University Supervisors, Dr. Moses Kamya and Mr. Sam Musigire for their invaluable supervision they have accorded me throughout this research project. Am so grateful for your time, resources and guidance you have invested in me, without which this piece of work would have been impossible. I also feel obliged to thanks my dear brothers, Siraje and Ibrahim, Sisters Hadija and Aisha, friends like Viola Birungi, Ibra Katusi, Perez Kiirya, Fred Kizire, Yusuf Kigozi and Paul Wangonya for your constant support and encouragement you have always given to me throughout my research project. I will always be grateful. Finally but definitely most important, the Lord Almighty, your continuous favours, answered prayers and blessings have taken me where I had never expected to reach. I truly thank you lord.
6 TABLE OF CONTENTS Declaration.......2 Approval......3 Dedication........4 Acknowledgement.......5 Table of contents.....6 List of tables....9 List of figures......9 List of appendices...9 Abbreviations.....10 Abstract..11 Chapter one 1.0 Introduction.....12 1.1 Background..12 1.2 Problemstatement14 1.3 Purpose of the study.14 1.4 Objectives of the study.14 1.5 Research Questions..15 1.6 Scope of the study/...15 1.7 Significance of the study..15 1.8Conceptual frame work.16
7 2.5.0 Competitive platformin Uganda..............................27 2.5.1 Retail outlets in Uganda.......................27 Chapter three Methodology................29 3.0 Introduction .................................................................................................................................29 3.1 Research design...........................29 3.2 Study population and sample size.......................29 3.3 Data collection instruments..............................31 3.4 Measurement.................................31 3.5 Data sources..........................31 3.6 Reliability and validity....32 3.7 Data processing and analysis.......32 3.8 Limitations to the study.......32 Chapter four 4.0 Results & findings of the study........34 4.1 Introduction...................34 4.2.0 Background information..............................................34 4.2.1Age of the respondents......35 4.2.2 Gender of respondents.................................................................................................................35 4.2.3 ANOVA results for gender by variable ......................................................................................36 4.2.4 Marital status of respondents.......................................................................................................36 4.2.5 ANOVA results for marital status by variable ............................................................................37 4.2.6 Level of education of respondents ..............................................................................................37 4.2.7 ANOVA results for level of education by variable .................................................................38 4.3.0 How to build a successful brand image in the Petroleumindustry .........................................39 4.3.1 Factor analysis for brand image ..............................................................................................39 4.3.2 Factor analysis for self concept ...............................................................................................40 4.3.3 Factor analysis for brand attachment ...........................................................................................41 4.4.0 Relationship between variables ...............................................................................................42 4.4.1 Relationship between brand image and customer purchase behaviour ...................................42
8 4.4.2 Relationship between brand image and brand attachment ......................................................42 4.4.3 Relationship between self concept and customer purchase behaviour.....................................43 4.4.4 Relationship between self concept and brand attachment .......................................................43 4.4.5 How brand attachment influence customer purchase behaviours ............................................43 4.5 Regression analysis .....................................................................................................................44 Chapter five 5.0 Discussion, Recommendations and Conclusion .........................................................................45 5.1 Introduction .................................................................................................................................45 5.2 Discussion of research results .....................................................................................................45 5.2.1 How to build a successful brand image ...................................................................................45 5.2.2 Relationship between brand image and customer purchase behaviours ..................................48 5.2.3 Relationship between brand image and brand attachment .......................................................48 5.2.4 Relationship between self concept and customer purchase behaviour ....................................49 5.2.5 Relationship between self concept and brand attachment .......................................................50 5.2.6 How brand attachment can influence customer purchase behaviour........................................51 5.3 Conclusion ..................................................................................................................................51 5.4 Recommendations .......................................................................................................................52 5.5 Areas for further research ...........................................................................................................53 6.0 References ...................................................................................................................................54 Appendix ...........................................................................................................................................59
9
LIST OF TABLES
TABLE DESCRIPTION PAGE Table 3.1 Sampling frame 30 Table 3.2 Reliability & Validity results 32 Table 4.1 Age of respondents 34 Table 4.2 Gender results 34 Table 4.3 ANOVA for gender 35 Table 4.4 Marital status results 36 Table 4.5 ANOVA for marital status 36 Table 4.6 Level of education results 37 Table 4.7 ANOVA for education level 38 Table 4.8 Factor analysis results for brand image 39 Table 4.9 Factor analysis results for self concept 40 Table 4.10 Factor analysis results for brand attachment 41 Table 4.11 Correlation results 42 Table 4.12 Regression results 44
LIST OF FIGURES Figure 1 Conceptual frame work 16
LIST OF APPENDICES Appendix 1 Data collection instrument 63
10
ABBREVIATIONS UNBSUganda National Beaural of Standards PSSPetroleum Service Stations CSSCustomer Sample Size SPSS..Statistical Package for Social Scientists
11
ABSTRACT The study looked at brand image, self concept, brand attachment and customer purchase behaviours in the Ugandan petroleum industry. It was conducted within the five divisions that make up Kampala district which included Kampala central, Nakawa division, Makindye division, Rubaga division and Kawempe division. A sample of 450 respondents was used. The target population was all those customers who fuel or service their cars at the selected fuel outlets and a self administered questionnaire was used. Stratified random sampling was used to purposively select six petrol stations from each division, creating a sampling size of 30 petrol stations, from which 15 respondents were selected from each Petrol station in each division so as to come up with a 450 respondents sample. Data was analysed using SPSS, generating frequencies for the bio-data information, then factor loadings in ascertaining factors necessary to establish a successful brand image, then Pearsons (r) correlations in analysing relationships, then ANOVA to analyse factors for any significant differences and finally regression analysis to examine the predictive potential of the independent variables on the dependent variables. Findings revealed that brand image accompanied with understanding the customers self concept are key components in influencing a customers purchase decision. Furthermore, findings also showed that a well built brand image will create customer brand attachment which is very important in influencing a purchase decision. Finally, findings also showed that focusing on the product benefits, is the most important element in building a successful brand image. Basing on the research findings, recommendations like recruiting people who are skilled, trained and experienced in brand management, focusing a lot of attention on promoting product benefits, setting up performance evaluation checklists at service stations and also setting up incentive schemes for the employees who work at the forecourts with direct contact with the customers were made.
12 CHAPTER ONE INTRODUCTION
1.1 Background The liberalization of the petroleum industry in Uganda has led to stiff competition in the once oligopolistic market structure. The country now boosts of over 90 licensed players and more still picking interest in the market (Alexander 2008). The increased level of competition has prompted fuel dealers to start building on all those fundamentals that can give them a competitive edge in this growing Ugandan market. Companies have embarked on engaging in price wars and building brand images as way of influencing customers purchase behaviours (Alexander 2008). Brand image is the current view of the customers about a brand. Its a unique bundle of associations within the minds of target customers and signifies what the brand presently stands for (Dwayne 2005). It is a set of beliefs held about a specific brand, that is to say, it is nothing but the consumers perception about the product. It is the manner in which a specific brand is positioned in the market, which does not only convey mental images, but also emotional value. According to Grewal, Krishnan, Baker, and Borin (1998), the better a brand image is, the more recognition consumers give to its product quality.
According to Dixon (2005), People engaged in consumption do not merely buy certain products to satisfy basic needs. In fact, consumer buying habits are at a much deeper level. Owning a certain brand can help consumers to express and build their own self-concept. Specifically, consumers will only purchase certain trademarks when they find a match between the brand image (communicated through advertisement, design of retail shop, or even package design) and his/her own self-concept. The value of a brand therefore also depends on its ability to help consumer to build and create self-concept. According to Pervin and John (2001), self-concept is often viewed as a component of personality. A number of researchers have suggested that there is a positive association between self-concept and brand image.
13 Aaker (1991) believes brand establishment and management should not only be one of the operating focuses for major industries but viewed as a source of competitiveness. For consumers, a brand provides a certain degree of product guarantee. Shopping around can be time- and energy-consuming, and consumers do not always possess enough product knowledge to ensure the best buy. Under such circumstances, consumers usually go by Well-known brands, which may result in higher costs but requires less research efforts, thus, brand image not only affects how consumers view a product but also has the benefit of lowering purchase risks (Loudon and Bitta, 1998).
A poor or affected brand image can hinder the companys overall performance. A case in point is, BP (British petroleum) with their recent spill in the Gulf that has affected their brand image. Since BPs petrol first went on sale in Britain in the 1920s, the brand grew to become recognized worldwide for quality gasoline, transport fuels, chemicals and alternative sources of energy such as wind, solar and bio fuels. The company helped the world meet its growing need for heat, light and mobility. However, the companys image came to suffer following the 2010 spill in the Gulf. BPs response to the accident diminished consumer confidence in the brand to the extent that the stigma is still attached to the brand up to now.
Consumer purchasing behavior according to Lars Perner (2009), is the study of when, why, how, and where people do or do not buy a product. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Thus, the marketer must devise means of how to influence a customer buy his product through influencing his purchase decision. Purchase intention means a subjective inclination consumers have towards a certain product, and has been proven to be a key factor in predicting consumer behaviour (Fishbein and Ajzen, 1995). According to Kotler (2000), consumer behaviour occurs when consumers are stimulated by external Factors and come to a purchase decision based on their personal characteristics and
14 decision making Process. Through brand image, consumers are able to recognize a product, evaluate the quality, lower Purchase risks, and obtain certain experience and satisfaction out of product differentiation. When it comes to experiential product evaluation, a positive brand image may make up for an inferior image of the origin country and raise the possibility of the product being selected (Thakor and Katsanis, 1997).
1.2 Problem Statement
The liberalization of the once protected petroleum industry in Uganda has increased competition and worsened the fight for customers making survival difficult. Many small players have joined the market, worsening the already competitive market structure. However, despite this influx and the continuous efforts by the small petroleum companies to engage in all activities that make them look more favourable and economical in the eyes of the customers, market share statistics have continuously showed that big names like Shell and Total are still preferred by customers. Thus the failure by many petroleum companies to understand the relevance of building a strong brand image has made their survival difficult.
1.3 Purpose of the study
The study aimed at establishing the relationship between brand image, self concept, brand attachment and consumer purchase behaviours in the Ugandan petroleum industry.
1.4 Objectives of the study The study addressed the following objectives; 1. Establish how to build a successful brand image in the petroleum industry 2. Examine the relationship between brand image and customers purchase behaviours 3. Examine the relationship between brand image and brand attachment 4. Analyse the relationship between self concept and customer purchase behaviours 5. Analyse the relationship between self concept and brand attachment 6. Analyse how brand attachment can influence customers purchase behaviours
15 1.5 Research Questions 1. How can a company build a successful brand image in the Petroleum industry of Uganda? 2. Does brand image influence a customers purchase behaviour? 3. Is building a brand image relevant in creating Customer-brand attachment? 4. Does a customers self concept influence his purchase behaviours? 5. Is self concept relevant in Creating Customer-brand attachment? 6. Does brand attachment influence customers purchase decision?
1.6 Scope of the study Geographically, the study was limited to Kampala city. Much as the researcher intended to study five selected Petroleum companies, all the retail outlets (stations) that were included in the study, were selected randomly from Kampala city. Content wise, the researcher investigated on brand image, its connection with the customers self, their impact on brand attachment and how this affects a customers purchase behaviours.
1.7 Significance of the study The study benefited the researcher by enabling him add on his body of knowledge and also in accomplishing his academic objectives. Furthermore, results of this study are beneficial to all petroleum companies through gaining a clear understanding of how important brand image is, how to build and maintain a successful brand image and how to use brand image to influence customers to buy their products. The study has also added more knowledge to the existing literature on brand image specifically in the petroleum industry where not much has been so far done. This will help to provide more reference to all the future researchers who may pick interest in this field.
16 1.8 Conceptual framework Figure 1
Source; (Sprott, Sandor Czellar, Eric Spangenberg 2006, and Shaver 2007)
BRAND IMAGE Attributes Benefits personality SELF CONCEPT Actual self Ideal self Social self BRAND ATTACHMENT Brand self connection Brand prominence
CUSTOMER PURCHASE BEHAVIOR Habitual Dissonance
17 CHAPTER TWO LITERATURE REVIEW
2.0 Introduction This chapter contains literature on the study variables with specific respect to brand image, self concept, brand attachment and customer purchase behaviours. 2.1 Brand image According to Vineath (2007), brand image is a unique set of associations in the mind of the customer concerning what a brand stands for and the implied promises the brand makes. It is a sum of all tangible and intangible traits, it represents all internal and external characteristics and its anything that influences how a brand or a company is perceived by its target constituencies. For a brand to be successful, its images and symbols must relate to, and indeed, exploit, the needs, values and life-styles of consumers in such a way that the meanings involved give added values, and differentiate the brand from other brands (Broadbent & Cooper, 1997). Consumers may likely use brand and products in line with their own personalities. In other words, all marketing activities should be aimed at having consumers believe and recognise a brand (Groovers 2005) Since it was first introduced formally into the marketing discipline by (Gardner and Levy 1955), communication of a brand image to a target segment has been regarded as an important marketing activity. Particularly, it became common place in consumer behavior research from the 1980s ((Dobni and Zinkhan, 1990). The trend has never faded ever since. Nevertheless, brand image has been assigned different meanings from the day it was introduced into the marketing discipline. Researchers tend to use brand image and other brand related constructs interchangeably, for example, brand identity. Aaker (1996) cautioned against a brand image trap in brand identity and brand management literature and illustrated that brand image and brand identities are different concepts, although both of them are drawn from associative network theory. According to Kumar et al (2006) the crucial element in constructing brand image is to have a clear differentiation with other products. When trying to change the way a brand image is conveyed, the original brand personality and
18 value should first be strengthened in order to reduce to the minimum customers feelings of chaos and inconsistence (Long 2010). One of the fundamental tenets of marketing is that brand images are an important determinant of buying behavior (Burmann 2008). The construct of brand image can be understood as the associations external target groups have in their minds about brands. These associations can be further divided into those concerning the functional attributes of a brand and those concerning the symbolic attributes of a brand (Burmann 2008). Due to the importance of brand images for the behavior of various target groups, considerable attention has been paid to factors that possibly influence brand images. These influencing factors can be divided into three groups: (1) determinants that originate directly from the internal brand identity and can thus be directly influenced by brand management, (2) personal/individual determinants, for example, the motives and experiences of those who perceive the brand, and (3) external factors, that is determinants that affect the brand image from outside and which cannot be directly influenced by brand management, for example industry image (Schaefer 2008). How do you create a positive brand image? Cavelle (2010) suggested that the first step in creating a positive brand image is finding out specifically how members currently perceive the association. This includes aspects like; 1) Are members satisfied with the products and services offered by their association? Do they meet, exceed or fall below members' expectations? 2) Do members think that they can get the same or better service elsewhere? 3) Exactly what does their association provide that members feel they would not get from another association? What is unique about this association? 4) How important is it to belong to this particular association? 5) Does the association have a strong, clear image? What is it? Is the association following through on its mission statement? In a marketplace cluttered by clones and homogeneous products and services, it is important to create a brand image that differentiates itself from competitors and suggests integrity, dependability, and high quality with an emphasis on excellent service. This is the key to ensuring customer satisfaction and loyalty, which in turn translates into a larger market share for the company concerned (Philip 2008). According to Delong et al (2004), customers appear to rely on the brand image as long as they have little or no knowledge about the product, so managing brand image is of utmost
19 importance. A well-communicated brand image should help to establish a brand's position, insulate the brand from competition, enhance the brand's market performance, and therefore plays an integral role in building long-term brand equity (Keller, 2006). The product attributes, the benefits/consequences of using a brand, and brand personality are the three key components of the brand image (Plummer, 2000). Brand personality The brand personality factor enables a consumer to express his/her own self (Hem and Iverson, 2002) or specific dimensions of the self (Kleine 1993). It serves as a symbolic function and helps consumers differ from or integrate themselves with others (Keller 2006). It also projects the brand's values and creates an image of the brand's typical user which might be the ideal image of the consumer. This brand information may actually encourage the use of a given brand as a self-expressive device by consumers who hold a similar position and want to present a similar image or ideal self. Previous research suggests that favorable brand personalities are a central driver of consumer preference and usage (e.g. Freling and Forbes, 2005), as consumers are more likely to associate them with a desired group, or ideal self- image (Aaker, 1997). Perceived product attributes Product attributes can be categorized in a variety of ways. Keller's (2006) broad view of product attribute notion suggests that attributes are those descriptive features that characterize a product. Stockmans' (1999) narrow view indicates that a product can be viewed as a bundle of intrinsic and extrinsic attributes, or as a bundle of perceived attributes. The intrinsic attributes of the product are information cues directly linked to the product, and the extrinsic attributes are information cues, which are indirectly connected to the product. The consumer uses perceived attributes in the decision-making process (Puth 1999). A positive relationship between linkage of the brand and perceived product attributes and brand choice/preference has been found by many researchers (e.g. Nedungadi 1999) whose research indicates that the more positive the consumers' perceptions of the product attributes of a specific brand are, the more chance there is of the branded product being purchased. This research therefore proposes that Consumers' perceptions of product attributes have a positive
20 influence on the purchase intention. Customers usually form associations towards the brand which contributes to a specific brand image (Yasin et al 2007). Another important attribute of brand image is perceived quality. It is defined as the customers perception of the overall quality or superiority of a product or service (Yasin 2007). Perceived quality could generate value by providing a pivotal reason to buy (Delong 2004). Perceived benefits Perceived benefit is what consumers think the product can do for them (Keller, 2006); it is associated with perception of product attributes and brand personality. Benefits are what consumers seek when purchasing a product/brand (Kotler, 1999). These benefits lead to certain end states or values that consumers wish to achieve (Kotler, 1999). Numerous previous studies have demonstrated a positive relationship between perceived benefit and consumer decision making (e.g. Cho, 2002; Bove and Johnson, 2000) 2.2 Self Concept Self concept can be viewed as a set of self-schemas representing stable knowledge structures about the self that organize incoming self related information and help people make sense of themselves in their environment (Markus 1997). People vary in their tendency to possess particular self schemas and this variation leads to differential attitude and behaviours towards objects relevant to those schemas. For example, Sentis and Markus show that consumers with a strong masculine self schema described fragrance brands in more accentuated gendered terms and held sharply different brand preferences than those with weaker masculine self schema. Customers usually select brands having their ideal self concept or the social self concept in play (Kotler & Keller 2005). Thus brand personality should serve a function of demonstrating and expressing a customers personality at the same time. A study conducted by Govers (2005), showed that customers preference would be influenced when their self concept is in conformity with product personality. Brand personality can only have influence on customer brand preference, affection, loyalty and purchasing intentions only if its in line with a customers self (Mengxia 2007).
21 Each individual has a perceived self-image as a certain kind of person with certain traits, habits, possessions, relationships and ways of behaving. This self-concept or self-image can be defined as the individual as perceived by that individual in a socially determined frame of reference (Kumar et al 2006). Preferences may actually develop for certain brands because the consumer perceives them as reflecting his/her own self-image. Or some brands may be desired because the consumer views them as projecting an image that the individual presently does not possess but aspires to have (Schoormans 2005). So it is possible to claim that consumers self-perception can have a strong influence on their behaviour in the marketplace. Self-concept is composed of multidimensional characteristics and includes physical as well as psychological attributes and interacts with the various roles a person must take on (Mehta, 1999). This leads to a multiple component perspective of the self. Loudon and Bitta (1988) brought together several approaches, mainly based on Sirgys (1982, 1985) work. Single component perspective depends on actual-self, the perception of oneself, as one believes he/she actually is. According to the authors the ideal-self may be defined as the perception of oneself as one would ideally like to be. Social-self (the perception of oneself as one believes others actually perceive him to be), ideal-social-self (the perception of oneself as she/he would like others to perceive him/her) and the expressive-self (the ideal-self or the social-self depending on situational and social factors) were added to the single component perspective to extend the viewpoint Rogers (2010) proposed that individual behaviour is regulated by each persons perceived similarities (or dissimilarities) of environmental conditions to the self image. Products and brands have images that are perceived by individuals as having various symbolic meanings. Therefore, products and brands are part of the environment. Accordingly, only those products or brands symbolized as similar to the self concept and reject brands with images dissimilar to the self concept. Consumers tend to compare their self-image with the product images in the pre-purchase stage of the decision-making process. This kind of comparison is known as self- image/product image congruence process. Self-image congruence models predict that products will be chosen when their attributes match some aspect of the self (Mengxia 2007 ). The simplest form of this model can be seen in Figure 2. Many findings support the
22 argument that consumers prefer, intend to purchase, or actually use brands with images they see as being congruent with their actual self-concept (Malhotra, 1988). Other studies also report that consumers are more likely to prefer, intend to purchase or use brands with images that they see as being congruent with their ideal self-concept (Malhotra, 2001). Brand/social- self-image relationship is not strongly supported by studies in the literature (Sirgy, 1982). However, the relationship with brand/ideal-social-self-image is supported by empirical evidence. The discussion of self concept and product image congruity was initiated by Gardner and levy 1957. By this time, the main attention was focused upon the images projected by various products. Consumers were thought to prefer products with images which are congruent with their self concept (Alvarez 2005). Self image / product image congruity specifically to the match or mismatch of one or more actual self image, or ideal self image, social self image or ideal social self image with the corresponding personality images of the designated product. The match between actual self image and product image has been referred to as self congruity. Self concepts represent knowledge structures that consist of beliefs about the self, including ones attributes, social roles and goals (Cassielles 2005). The individual, relational and collective self concepts refers to whether the self is viewed as separate from others, linked to others through relationships or included in large groups, respectively (Bremer & Chen 2007). Consumers appear to hold images of various products, and these images can be viewed as symbols that communicate meaning about those who purchase them (Rama 2010). Therefore, an area of considerable practical interest is the degree to which a consumer might actually prefer certain products or brands because she perceives their images as consistent with her view of herself, what she would like to be or some other aspect of self concept. An explanation of this behavior can only be understood following these steps (Rama 2010) Consumers form their self concepts through psychological development and social interaction. Because the individuals self concept has value to him, he will act to define, protect and further it. Secondly, Products and brands are perceived by consumers as having images or symbolic meaning. Thirdly, Because of their symbolic role, selective possession, display and use of these good symbols assists an individual in defining and enhancing his self concept for himself and for others. Therefore, the behavior of individuals will be motivated
23 toward furthering and enhancing their self concept through the consumption of goods as symbols. And lastly, the brands that will e preferred are those that the consumer perceives as having images which are most consistent with his self concept (Rama 2010) 2.3 Brand attachment Brand attachment refers to the strength of the bond connecting the brand with the self (Shaver 2007). This bond is exemplified by a rich and accessible memory network (mental representation) that involves thoughts and feelings about the brand and the brands relationship to the self. According to Mikulincer (2007), two critical factors reflect the conceptual properties of brand attachment, thats brand self connection and brand prominence. 2.3.1 Brand self connection; This refers to the cognitive and emotional connection between the brand and the self. By categorising the brand as part of the self, a consumer develops a sense of oneness with the brand, establishing cognitive links that connects the brand with the self (Chaplin & John, 2005). Though cognitive in its representation, this brand-self image is inherently emotional (Thomson, Shaver, & Park, 2005), involving myriad and potentially complex feelings about the brand, including sadness and anxiety from brand self separation, happiness and comfort from brand-self proximity, and pride from brand-self display. Consumers can be connected to the brand because it represents who they are or because it is meaningful in light of goals, personal concerns and life projects (Mittal 2006). According to the study conducted by Chaplin (2005), Consumers can form such a strong emotional connection with a brand that when that brand is replaced by a competitors product, they can suffer separation anxiety. The bond can be strong enough, to the extent that consumers are willing to sacrifice time, money, energy, and reputation to maintain their attachment to a certain brand. As a result, competing brands are less likely to be regarded as substitutes. 2.3.2 Brand prominence In addition to brand self connection, previous researchers suggest that the extent to which positive feelings and memories about the attachment object are perceived as top of mind, also
24 serves as an indicator of attachment. According to Mikulincer (1998) and Collins (1996), positive memories about the attachment object are more prominent for people who are highly attached to an attachment object than for people who show weak attachment. The notion that brand self connection develops over time and through experience, suggests that brand related thoughts and feelings become part of a persons memory and vary in the perceived fluency or the ease with which they are brought to mind. Prominence reflects the salience of the cognitive and affective bond that connects the brand to the self. This salience is reflected by the perceived ease and frequency with which brand related thoughts and feelings are brought to mind. Thus consumers attachment in relation to two brands with the same degree of brand self connection is greater for the brand that they perceived as more prominent (Thomson, 2006).
The brands to which consumers are highly attached capture consumers mind and heart. Therefore, attached consumers would be less likely to rely on alternatives, even in other categories. The greater the attachment, the more difficult the behaviour the consumer is willing to enact in order to maintain the brand relationship (Shaver, 2007). Self congruity theory Self-congruity theory asserts that consumer behaviour is partially determined by the congruence resulting from a psychological comparison involving the product-user image or brand image and the consumers self-concept (i.e. actual self-image, ideal self-image, social self-image). This psychological comparison can lead to high self-congruity when the consumer perceives the product user image or brand image to match that of his or her self- image. The opposite generates low self-congruity. The underlying rationale is consumers cognitive consistency needs. Specifically, consumers have psychological needs for self- consistency and self-esteem (Sirgy, 1986).
Product that is perceived to have consistent image with ones self image satisfies his or her needs. In turn, high self-congruity enhances the consumers positive attitude toward the product (Johar & Sirgy, 1991). Conversely, product that is seen as inconsistent with ones
25 self image arouses cognitive dissonance, which the consumer will attempt to resolve by bringing these inconsistencies into balance (Markin, 1974). Theoretically, therefore, self- congruity theory is embedded in consumer psychology and is well-grounded. 2.4 Customer purchase behaviour According to Richards (2009), customer purchase behavior is what influences consumers to purchase products or services. Customer purchasing behaviors further refers to the activities in which people acquire, consume and dispose products and services (Blackwell et al 2001). Kanuk (2000) defines customer behavior as a way in which people make their decisions on products with the use of their available resources such as time, money and efforts. Arnoud (2004) proposed the circle of consumption that recognize the purchasing process as a loop comprising of acquisition of goods and services, consumption as well as disposal. There are four typical types of buying behaviors based on the type of products that intends to be purchased. Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying behavior is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. Variety seeking buying behavior is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! Dissonance reducing buying behavior is when buyer is highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers (Shaver 2007). A consumers purchase behavior is influenced by a number of factors, many of which are uncontrollable factors. Just think, what influences you before you buy a product or service? Your friends, your upbringing, your culture, the media, a role model or influences from certain groups? Culture is one factor that influences behavior. Simply culture is defined as our attitudes and beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a child is influenced by their parents, brothers, sister and other family member who may teach them what is wrong or right (Edward & Harrison 2009). They learn about their religion and
26 culture, which helps them develop these opinions, attitudes and beliefs. These factors will influence their purchase behavior however other factors like groups of friends, or people they look up to may influence their choices of purchasing a particular product or service. Reference groups are particular groups of people some people may look up to that have an impact on consumer behavior (Patterson 2005). So they can be simply a band like the Spice Girls or your immediate family members. Opinion leaders are those people that you look up to because your respect their views and judgments and these views may influence consumer decisions. So it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. The economical environment also has an impact on consumer behavior; do consumers have a secure job and a regular income to spend on goods? Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service (BTEC national marketing UK 2008). According to Mehta, (1999), when purchasing a product there several processes which consumers go through and these include; Problem recognition; How do you decide you want to buy a particular product or service? It could be that your car has run out of gasoline and you need to refill or you have just bought a new car and you need to service it. Secondly, they do Information search; Consumers often do some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbors who may have the product you have in mind, and alternatively you may ask the sales people, or dealers, or read specialist magazines (Mehta 1999).After searching for information, they evaluation the different purchase options; Consumers allocate attribute factors to certain products, almost like a point scoring system which they work out in their mind over which brand to purchase. This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one (Williams2006). Finally, they make a purchase decision; Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e.g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product(William 2006). The final stage in the entire process is the post purchase behavior; ever have doubts
27 about the product after you purchased it? This simply is post purchase behavior and research shows that it is a common trait amongst purchasers of products. Sellers of products clearly want recent consumers to feel proud of their purchase; it is therefore just as important for sellers to advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organization Mehta (1999). From the customers perspective, brand image is a guarantor of reliability and quality (Roman 2005). Thus customers would like to buy and use brand names with a view to highlight their personality in different situational context (Fennis & Pruyn 2006). Therefore, advertising efforts should focus on influencing brand attitude which affects a customers intention to purchase (Tsai et al 2007). Customers are always well equipped with comparative elements to judge which products or services to purchase (Alvarez & Cassielles 2005). 2.5 Competitive platform in Uganda The demand for petroleum products has been steadily growing over the past two decades in Uganda. The demand for gas oil has doubled since 2003 largely as a result of licensing generation plants using diesel and also as a result of more vehicles being imported into the country (Alexander 2008). The large oil companies dominate the market, taking over 80% market share. Shell is still the market leader with 31% market share, then Total in the second place at 24% with its acquisition of Chevron as of 2008 (Kisaka 2008). These large companies have scale advantages in purchasing bulk products, thus are in a position to negotiate large discounts and make efficient use of expensive brand strategies compared to smaller oil companies. 2.5.1 Retail Outlets The retail outlets in Uganda are either Company owned and managed, company owned but dealer run, dealer owned or company run or dealer owned and run. These retail outlets are spread throughout the country, and they range from big retail sites that are owned by multinational companies, to single pump filling stations owned by the locals. The marketing strategies usually employed by these sites, range from price under cuttings, offering under canopy discounts to brand image management especially with big recognized names.
28 However, no matter the intensity of competition that exist between these retail stations, most of the petroleum companies cooperate to the extent that some are offering hospitality and through put arrangements to those without their own storage facilities at an agreed fee. Shell and Total are always the price makers in this market and then others follow.
29 CHAPTER THREE METHODOLOGY
3.0 Introduction This section presents the methodological aspects that were used in attaining the research objectives. It highlights the research design, target population, sampling design, research procedure, data collection instruments and mode of data analysis. 3.1 Research design The study was quantitative and descriptive in nature. That is to say, it involved understanding what petroleum consumers always consider in selecting where to refill from, it also analyzed the impacts of various in built brand images on different customers. These enabled the researcher gauge and measure the existence and strength of the relationship between variables. 3.2 Study population and sample size The study looked at Petroleum companies in Uganda and the specific unit of analysis was service stations. The study population consisted of 32 registered Petroleum companies in Uganda (PC), according to Ministry of energy and mineral development report of February 2010 and the sampling frame was made up 159 Petrol service stations (PSS) found in Kampala city, thats according to the UNBS (2010). The target customers were those who were refueling or servicing their vehicles at these stations at the time of the survey. PSS refers to those stations that sell fuel and its other related products like lubricants. The sample elements / participating petroleum companies (PC) were randomly selected and a total of 6 petroleum companies were considered. The sample size for the PSS was based on the five (5) divisions of Kampala city, namely, Kampala central division, Kawempe, Makindye, Rubaga and Nakawa. This stratified random sampling led to purposively select 6 stations from each division making a sample size of 30 stations. Only one PSS belonging to Total, Shell, Engen, Kobil, Petrocity and Super oil were selected in each division.
30 Table 3.1 Sampling frame DIVISIONS PC PSS Sample Customer sample size (CSS) Total 1 15 Shell 1 15 Kampala central Engen 1 15 Kobil 1 15 Petrocity 1 15 Super oil 1 15 Total 1 15 Shell 1 15 Nakawa Division Engen 1 15 Kobil 1 15 Petrol city 1 15 Super oil 1 15 Total 1 15 Shell 1 15 Makindye Division Engen 1 15 Kobil 1 15 Petrocity 1 15 Super oil 1 15 Total 1 15 Shell 1 15 Rubaga Division Engen 1 15 Kobil 1 15 Petrocity 1 15 Super oil 1 15 Total 1 15 Shell 1 15 Kawempe Division Engen 1 15 Kobil 1 15 Petrocity 1 15 Super oil 1 15 TOTAL 30 450
A sample size of 450 customers was considered manageable and a representative of the study. This sample size took into consideration the lack of a sample frame and scholars such as Roscoe (1975) who proposed a sample size of 30 to 500 as appropriate for studies with large samples and Barley (1994) who proposed a minimum of 100 respondents for large populations. 15 customers from each PSS were purposively selected to participate in the survey. Only those customers who were servicing their vehicles at the time of the survey were requested to fill in the questionnaire since they had sometime to self-administer the questionnaire.
31 3.3 Data collection instruments The researcher used self-administered questionnaires, which were given to the selected customers at each service station. Questions on brand image were based on literature by David (2005), then self concept on literature by Linda (2009), brand attachment on literature by Lesley (2010) and customer purchase behavior on literature by Mehta (1999). 3.4 Measurement Measurement of concepts was based on constructs identified in previous research. Brand image was measured using attributes, benefits and personality as identified in the previous research by David (2005), then the self concept measured basing on research by Linda, and focus was on the actual self, ideal self and the social self, then brand attachment was measured focusing on brand self connection and brand prominence as identified by Lesley (2010) and lastly customer purchase behaviors was measured basing on previous research conducted by Mehta (1999). 3.5 Data sources Data for the study was obtained from both sources, that is to say, primary and secondary sources. Primary data was collected using self administered questionnaires that were physically given to the selected customers at the chosen service stations within Kampala. Reliability and validity of this instrument was ascertained by conducting a pilot study prior to data collection. Secondary data was obtained from documentaries, magazines, statistics and books at the ministry of Energy, independent research organizations like Kisaka, Uganda national beaural of statistics, oil company records, and from previously conducted research studies.
32 3.6 Reliability and Validity Table 3.2 Reliability and Validity Results table Cronbach Alpha was used to measure the reliability and the Content Validity Index values Variable Number Of Items Cronbach Alpha Content Validity Index Brand Image 11 .763 .727 Self Concept 16 .710 .813 Brand Attachment 12 .761 .833 Customer Purchase Behaviour 11 .590 .750
The questionnaire items used to measure the variables were both valid and reliable as indicated by the Cronbach Alpha and the Content Validity Index values which were above 0.550 for all the variables 3.7 Data processing and analysis Primary quantitative data obtained from the study, was properly coded, edited, entered into the computer and analyzed using (SPSS 12). Percentages, frequencies and Pearsons correlations, factor analysis and analysis of variance (ANOVA), were used to analyze variables. 3.8 Limitations to the study The researcher was faced with the following limitations to this study which made it slightly difficult than anticipated; Unwillingness to fill questionnaires by the selected respondents; Being a type of study that was conducted at service stations where people would wish to spend less time, some of the respondent hesitated filling these questionnaires, claiming not have time. The researcher therefore had to conduct the study in the evenings when respondents were a bit relaxed, coming from work, as opposed to conducting them in the morning when they were rushing to offices.
33 The second limitation was unwillingness by some of the station managers to grant the researcher permission to collect data from customers at their stations. Since some of the stations were company run, most of the posted station managers thought it was an attempt by management to spy on them, while at other stations, dealers thought this was information being gathered to be published in news papers. The researcher had a lot of explanations to do in order to be allowed, and at certain moments, had to move with permission letters from different head offices. The third limitation was time. Since the study was conducted in Kampala, which is a very busy district, yet the researcher had to administer questionnaires to 450 respondents, time was not enough to enable him administer all the questionnaire alone. Thus the researcher had to use research assistants to help him in administering questionnaires at certain points.
34 CHAPTER FOUR RESULTS AND FINDINGS OF THE STUDY
4.0 Introduction This chapter presents the research results. It explores the presentation, analysis and interpretation of results from the data collected. The chapter comprises of four sections, where Section one presents the sample characteristics showing age, gender, marital status and level of education. The second section is for loading factors necessary in establishing how to build a successful brand image in the petroleum industry. The third section examines the relationships between variables using Pearsons correlations (r) then the fourth section deals with the analysis of variance (ANOVA) and the final section looks at regression analysis showing the predictive potential of the study variables. The study addressed the following objectives; 1. Establish how to build a successful brand image in the petroleum industry 2. Examine the relationship between brand image and customers purchase behaviours 3. Examine the relationship between brand image and brand attachment 4. Analyse the relationship between self concept and customer purchase behaviours 5. Analyse the relationship between self concept and brand attachment 6. Analyse how brand attachment can influence customers purchase behaviours
4.1 Background Information Data was analyzed to establish variations in age, sex, marital status and level of education of the respondents. ANOVA analysis was also done to analyze the factors for any significant differences between the means of the study variables in relation to these demographic variables respondents. Results of the findings are displayed in the figures below.
35 4.2.1 Age Group of Respondent The results in the table below indicate the nature of the respondents who participated in the study. Table 4.1 age of the respondents
Results indicated that the majority of the respondents were in the 30 40 year age bracket (40.7%), followed by the 18-29 year age bracket (33.6%), while the least represented of the age groups was the above 50 year age bracket (8.2%). Finally, the respondents in the 41-50 year age bracket constituted 17.6%. This means that the biggest percentage of the driving class in Uganda is within this age bracket. 4.2.2 Gender of respondent The results below indicate the gender of respondents who participated in the study; Table 4.2 gender
Frequency Valid Percent
Male 296 65.8 Female 154 34.2 Total 450 100.0
From the results above, majority of the respondents who participated in the study were males (65.8%), while the females constituted only (34.2%). This indicates that both males and females were covered in the study.
36 4.2.3 ANOVA results for Gender by Variable The analysis of variance results for gender categories of the customers against the variables were as indicated below. Table 4.3 ANOVA for gender
N Mean Std. Deviation Std. Error F Sig. Brand Image Male 296 2.688 .720 .114 5.174 .027 Female 154 2.296 .492 .105 Self Concept Male 296 3.282 .759 .122 1.839 .180 Female 154 3.000 .817 .174 Brand Attachment Male 296 2.976 .707 .110 2.050 .157 Female 154 2.705 .735 .157 Customer Purchase Behaviour Male 296 2.790 .741 .120 13.967 .000 Female 154 2.071 .638 .139
Results indicated that there are some differences among the gender categories on Brand Image and Customer Purchase Behaviour. On the contrary, with Self Concept and Brand Attachment, these customers dont differ significantly when it comes to their dealings with the Petroleum Service Stations.
4.2.4 Marital status of respondent The results in the table below indicate the marital status of all respondents that participated in the study. Table 4.4 marital status
Frequency Valid Percent
Single 218 48.4 Married 232 51.6 Total 450 100.0
Results from the study indicated that majority of the respondents involved were married (51.6%), while the singles comprised of (48.4%). This showed that the biggest percentage of
37 people within the 30-40 age bracket are married and also form the biggest percentage of the driving class. 4.2.5 ANOVA results for marital status by Variable Table 4.5 ANOVA for marital status
N Mean Std. Deviation Std. Error F Sig. Brand Image Single 218 2.625 .725 .137 .662 .419 Married 232 2.485 .627 .108 Self Concept Single 218 3.259 .789 .152 .485 .489 Married 232 3.118 .789 .135 Brand Attachment Single 218 2.966 .550 .102 .733 .395 Married 232 2.809 .844 .145 Customer Purchase Behaviour Single 218 2.539 .836 .164 .002 .969 Married 232 2.530 .749 .130
There were no significant differences among the customers on all the variables when examined in light of their marital status (sig. >.05). 4.2.6 Level of education of respondent Results in the table below shows the highest levels of education acquired by the respondents who participated in the study Table 4.6 Level of education
Frequency Valid Percent
Primary 6 1.3 Secondary 72 16.0 Diploma 117 26.0 Degree 195 43.3 Post graduate 60 13.3 Total 450 100.0
Basing on the above findings, the biggest percentage of respondents were degree holders (43.3%), followed by the diploma holders (26.0%), then secondary school level (16.0%), postgraduates (13.3) and the least represented were the primary level at (1.3%). Since the
38 questionnaires were self administered, all the respondents were educated enough to understand the questionnaire. 4.2.7 ANOVA results for highest level of education by Variable Table 4.7 ANOVA for education level N Mean Std. Deviation Std. Error F Sig. Brand Image Primary 6 2.500 .354 .250 .684 .606 Secondary 72 2.750 .418 .171 Diploma 117 2.706 .532 .129 Degree 195 2.491 .719 .138 Post graduate 60 2.325 .898 .284 Self Concept Primary 6 2.000 .000 .000 1.311 .277 Secondary 72 3.417 .665 .271 Diploma 117 3.219 .515 .129 Degree 195 3.204 .812 .156 Post graduate 60 3.150 1.081 .342 Brand Attachment Primary 6 1.750 .354 .250 1.889 .124 Secondary 72 3.250 .689 .281 Diploma 117 3.000 .586 .142 Degree 195 2.839 .695 .131 Post graduate 60 2.800 .919 .291 Customer Purchase Behaviour Primary 6 3.000 .707 .500 1.021 .405 Secondary 72 2.750 .822 .335 Diploma 117 2.750 .658 .165 Degree 195 2.404 .872 .171 Post graduate 60 2.278 .667 .222
There were no significant differences among the customers on all the variables when examined in light of their levels of education (sig. >.05), measuring that they understood the questionnaire.
39 4.3.0 Establish how to build a Successful Brand Image in the petroleum industry Factor analysis was employed to establish whether the items were measuring the same constructs and also establish whether the variables have contributions that are significant. Factor loading of 0.50 and above were considered significant for this study (Steven 1992) Table 4.8 Factor analysis results for brand image
Factor Analysis Results for Brand Image
B e n e f i t s
P e r s o n a l i t y
A t t r i b u t e s
This company is always my first choice when it comes to car servicing. .672 Amsatisfied with the services offered here. .805 I always read magazines and papers to find out whats new about this company. .640 I can only trust my car with products provided by this company .903 This Petroleumcompany stands for good quality. .820 I can recommend a friend to this particular company .744 This companys brand name is so appealing. .566 The company logo symbolizes quality .606 I can mention a number of products provided by this company .885 This petroleumcompany is obviously different fromothers. .840 I agree with the decision to change the name of this petroleum company. .704 Eigen Value 4.883 1.568 1.307 Variance % 41.472 14.253 11.880 Cumulative % 41.472 55.725 67.605
Brand image construct was examined by 11 scale items which accounted for 67.6% of the variance of the overall brand image scale. Four items were loaded on benefits, more four loaded for personality and three items loaded for attributes and their significant contributions were, Benefits 41.5%, Personality 14.2% and attributes 11.9%. Eigen values were greater than unity (1.0).
40 4.3.1 Factor analysis for Self Concept
Table 4.9 factor analysis results for self concept
Factor Analysis Results for Self Concept
I d e a l
A c t u a l
S o c i a l
All I care about is getting the car serviced no matter where I do it from. .525 I think associating with this company says a lot about me. .740 Purchasing fromthis company symbolizes a bond with friends and family. .629 People always associate this brand with special people. .808 Being part of this company, symbolizes what I stand for. .794 This brand stands for a particular way of life. .766 I like to be considered outstanding in whatever I do .736 Ammore careful with my car than my friends are with their cars. .868 I think its fun trying out something new. .838 I go to this station because its where all my friends go. .553 I always consult my friends before servicing my car. .765 I always try to behave like my friend so that I feel ampart of the group. .761 Eigen Values 3.086 1.6025 1.091 Variance % 38.572 20.032 13.641 Cumulative % 38.572 58.604 72.245
Self concept construct was examined by 12 scale items which accounted for 72.2% of the variance of the overall self concept scale. Six items were loaded on the ideal self, three items loaded on the actual self and more three loaded on the social self. Their contributions were Ideal self 38.5%, Actual self 20% and Social self 13.6%. Eigen values were greater than unity (1.0).
41 4.3.2 Factor analysis for brand attachment Table 4.10 factor analysis results for brand attachment
Factor Analysis Results for Brand Attachment
B r a n d
S e l f
C o n n e c t i o n
B r a n d
P r o m i n e n c e
To a large extent, this brand is part of me. .723 I feel personally connected to this company. .660 Amemotionally bonded to this company. .783 My thoughts and feelings about products offered are often automatic. .680 J ust a mention of this brand evokes many thoughts about the past, present and future. .735 I can't imagine life without products of this company. .668 Associating with this company reminds me of who I am. .782 I would rather drive to find another branch other than going to a different company. .805 This Petroleumcompany means a lot to me. .835 If I were to describe myself, this petroleumcompany would be something I can mention. .584 If someone ridiculed this company, I would feel bad. .676 Eigen Values 2.378 1.339 Variance % 39.629 22.311 Cumulative % 39.629 61.940
Brand attachment was examined by 11 scale items which accounted for 62% of the variance of the overall brand attachment scale. Seven items were loaded on brand self connection, while four items were loaded on brand prominence and their contributions were, brand self connection 40%, brand prominence 22.3%. The Eigen values were greater than unity (1.0).
42 4.4.0 Relationships between variables The researcher used the Pearson (r) order correlations to establish the relationships between the variables.
4.4.1 Examine the relationship between brand image and customer purchase behaviour Results indicated that brand image is positively related to customer purchase behaviour (r=.596**, p<0.01). When a company builds a sound brand image, it will always come as a first priority when a customer is making a purchase decision. Usually many fuel consumers go to buy from outlets with sound names because this is what comes to their minds first when they think of buying.
4.4.2 Examine the relationship between brand image and brand attachment Findings from the study indicated that brand image is positively related to brand attachment (r=.599**, p<0.01). Every customer will at one time in his / her buying process wish to associate with a certain product or company. Thus when a brands image is well established, customers will also want to associate with it and thus creating a customer-brand attachment.
43 4.4.3 Analyse the relationship between self concept and customer purchase behaviour Results indicated that there is a positive relationship between self concept and customer purchase behaviour (r=.355**, p<0.01). Customers will always want to make a purchase decision that fits their self. For example, to a customer who is over shadowed by the social self, will always make a purchase decision of buying from a petroleum company where his friend, relative or in-laws buy from so as to that social feel
4.4.4 Analyze the relationship between self concept and brand attachment Research findings revealed that there is a positive relationship between a customers self and brand attachment (r=.428**, p<0.01). When a customer defines who he is and what he stands for, he will try to associate with brands that portray that desire character and hence developing an attachment to that brand since it easily communicates who he is.
4.4.5 Analyse how brand attachment can influence a customers purchase behaviours. Results indicated that Brand attachment is positively related to customer purchase behaviour (r=.446**, p<0.01). Since a customer in his daily life is always faced with many and similar petroleum products and service providers, the possibility of getting confused while making a choice on where to buy is always high. However, when a petroleum company through building a brand image manages to create an attachment with its customers, it will help in guiding a customer on where to buy petroleum products from. When customers build an emotional attachment with a certain brand, they will keep coming back to purchase, they will always endeavour to find out whats new about that brand, they will keep referring friends and relatives to the same brand, they will become loyal and satisfied with the brand, and finally they will become less price sensitive, creating a scenario that even when prices are slightly lower elsewhere, they will not be moved.
44 4.5 Regression Analysis The regression model below shows the predictive potential of Brand Image, Self Concept and Brand Attachment on Customer Purchase Behaviour
Table 4.12 Regression results for the study variables Unstandardized Coefficients Standardized Coefficients t Sig. Model B Std. Error Beta (Constant) .036 .401 .089 .930 Brand Image .750 .138 .622 5.424 .000 Self Concept .138 .105 .136 1.313 .031 Brand Attachment .062 .131 .055 .473 .053 Dependent Variable: Customer Purchase Behaviour R Square .505
Adjusted R Square .478 F Statistic 18.737 Sig. .000
It is evident from the results that Brand Image, Self Concept and Brand Attachment have the potential to explain 50.5% of the variance in the Customer Purchase Behaviour. The model further tells us that it is very essential for the Oil Industry firms to deal with Brand Image (Beta =.622, Sig. <.01) before they address any other issue.
45 CHAPTER FIVE 5.0 DISCUSSION, RECOMMENDATIONS AND CONCLUSION 5.1 Introduction This chapter presents the discussion, conclusion and recommendations arising out of the research findings and research objectives in chapter four and suggested areas for further study. The study has generated several findings most of which are in line with existing literature and previous research findings . The discussion is about the following research objectives: 1. Establish how to build a successful brand image in the petroleum industry 2. Examine the relationship between brand image and customers purchase behaviours 3. Examine the relationship between brand image and brand attachment 4. Analyse the relationship between self concept and customer purchase behaviours 5. Analyse the relationship between self concept and brand attachment 6. Analyse how brand attachment can influence customers purchase behaviours
5.2 Discussion of the research results The study revealed the following findings, most of which are in line with the precious scholarly findings from other researchers work. 5.2.1 Establish how to build a Successful brand image in the petroleum industry Results in the previous chapter indicated that for any Petroleum Company to be able to build and profit from a successful brand image, three cardinal issues need to be addressed. First of all, emphasis should be put on portraying the product benefits (with a significant contribution of 41.5% on overall brand image), then put focus on promoting both product and company personality and then show the product benefits.
46 Secondly, after successfully going through the first step, attention should now be shifted to linking the above components to the customers ideal, actual and social self. Once this link is created, the customers will start to develop attachments to the product and thus the company will have succeeded in creating a customer-brand attachment. To expound more on the observations made, Petroleum companies need to clearly show the benefits the customer obtains from using the products that they market and sell, so as to enhance the customers ability to recall the products they offer and also develop confidence that the quality is the best that they could ever acquire on the market. These findings can further be expounded with regard to the work of Plummer (2000) and Burman (2008) who contends that, product attributes, the benefits/consequences of using a brand, and brand personality are the three key components of the brand image. Hence in order to build a brand image, petroleum companies should majorly focus on the major attributes of their products (both functional and symbolic) as earlier proposed Cavelle (2010), portray the product benefits and try to create a product personality that fits its target customers. Further empirical and theoretical foundations were expounded in the work of Stockmans (2000) who examined the relevance of product attributes in building brand image, Aaker (1997) who analyzed the importance of product personality and Kotler (1999), Bove & Johnson (2000) who examined product benefit in relation to brand image. Furthermore, findings showed that benefits account for 41.472% of the Brand Image. Thus it is really critical for the Petroleum Company to ensure that the customer rates them as number one when it comes to car servicing (.672). Furthermore, its the duty of the company to make sure the customer is satisfied with its services (.805). This is because the satisfied customer will always return for more of the services. Other important issues with benefits offered by the company had to do with the desire of the customer to continually read magazines and papers to find out whats new about the company (.640) and fostering trust for the company products among the various customers (.903). These results are supported by the previous work done by Kotler (1999), where he asserts that benefits lead to certain end states or values that consumers wish to achieve. Another study done by Bove and Johnson in (2000) came up with similar findings demonstrating a positive relationship between perceived benefits and consumer decision making.
47 Besides product benefits, the personality of the company and its products is also paramount as it contributes 14.253% of overall brand image. Findings showed that its also very important for a petroleum company to build a personality that can easily be matched with its customers. When customers realise that a given petroleum company stands for quality as its distinguishing characteristic (.820), they will always want to associate with it. These customers, who get contented with quality products offered by these companies, are more likely to recommend friends to buy from the same company (.744).furthermore, when customers start associating quality with the company, whenever they see its logo, it will be seen as a sign of quality (.606) and same will apply to its name (.566). These results are supported by the previous work of Freling and Forbes who noted that favourable brand personalities are a central driver of customer preference and usage. Further findings by Keller 2006 also support the results by emphasising that Personality projects the brands values and create an image of the brands typical user which might be the ideal image of the customer
Then product attributes were also found to be useful with its significant contribution 11.880% of brand image. It is the responsibility of the Petroleum Company, to expose those descriptive features that characterize their products. This will automatically distinguish a particular companys products from the others and this will in turn put a customer in a position where he / she can mention a number of products provided by the company (.885). Customers of that nature will always know what to buy when need arise. Once customers are in position to distinguish between companies basing on the perceived attributes, they will obviously see that their particular company is different from others much as they are all dealing in petroleum products (.840). Another important attribute in building brand image, relates to the company name. Once customers build an association with a given brand name, they will prefer to always keep it rather than voting for change of that name since it will require development of a totally new mental picture (.704). Previous work done by Puth (1999) confirms the findings. He observed that consumers use perceived product attributes in the decision making process. Stockman (1999) also noted that products are usually viewed as a bundle of intrinsic and extrinsic attributes in the eyes of a customer.
Once these elements are embraced, they should then be linked to the customers self (ideal, social or actual) so as to create a customer-product connection that further results into brand
48 attachment. These findings are further supported by the work of Chaplin & John (2005), who contend that by categorising the brand as part of the self, a customer develops a sense of oneness with the brand, establishing cognitive links that connects the brand with the self.
5.2.2 Examine the relationship between brand image and customers purchase behaviours Correlation analysis showed a significant positive relationship between brand image and customer purchase behaviour. This means that customers while in their purchase decision making process will always try to look for well established product names so as to shorten the entire process. Petroleum companies with well established brands will become the number one priority when a customer is bound to make a purchase decision. Thus, while building a strong brand image, Petroleum companies should first look at the various reasons why customers make a purchase so as to customise the brand image elements to the different types of buying behaviours. For example, if a customers buying intention is influence by the dissonance reducing buying behaviour, where a buyer is highly involved with the purchase of a product; the Personality aspect of a brand should be given utmost importance. Then when customers are influenced by habitual buying behaviours, benefits and attributes as aspects of brand image should be emphasized most. These results are supported by Yasin et al (2007) who noted that brand image is important for product development in that it can be instilled in customers minds and hence it could have a beneficial or detrimental effect on customers buying decision. Previous findings by Williams (2006) also support the results, by asserting that consumers usually have some sort of brand preferences with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one. 5.2.3 Examine the relationship between brand image and brand attachment According to the results of the study, a positive significant relationship between brand image and brand attachment was observed. This means that, well established brand image aspects like benefits, personality and attributes, will prompt customers to try and link them with their personalities and once a fit is established, product-customer attachment will developed.
49 Basing on the brands attributes, benefits or personality, the customer will develop a deep liking for that particular brand, he will start to develop cognitive and emotional connections between the brand and the self (brand self connection) and hence brand attachment will develop. Furthermore, this connection will start to evoke positive feelings and memories about a brand (brand prominence). These findings are in line with previous work done by Kumar (2006) who noted that its very vital to build a strong brand image so as to create a customer brand attachment, and the crucial elements are to have a clear differentiation with other products, to the extent that even when trying to change the way a brand image is conveyed, the original brand personality and value should first be strengthened in order to reduce to the minimum customers feelings of chaos and inconsistence. 5.2.4 Analyse the relationship between self concept and customer purchase behaviours According to the results of the study, a positive and significant relationship was observed between self concept and customer purchase behaviour. This means that, before making a purchase decision, customers are influenced by their ideal, social and actual self. Customers will always want to buy products that portray their personalities. Individuals have perceived self-images as certain kinds of people with certain traits, habits and relationships. These preferences will dictate their purchase behaviours. For example an individuals ideal self with a certain habit in mind, will always make a habitual purchase decision on a product that brings out the habit. Previous research done by Kotler & Keller (2005), confirm the results by showing that customers usually select brands having their ideal and social self concepts in play. Goovers (2005) also noted that customers preference would be influenced when their self concept is in conformity with product personality. Mengxia (2007) also asserted that consumers tend to compare their self image with the product image in the pre-purchase stage of the decision making process and thus products will be chosen when their attributes match some aspects of the self.
50 5.2.5 Analyse the relationship between self concept and brand attachment Correlation results from the study indicated that there is a strong positive relationship between self concept and brand attachment. When customers fall in love with certain brands, they will try to find a link between those brands and how they perceive themselves pr how they would like to be perceived by others. Once this link is established, the will start to develop cognitive and emotional connections with that particular brand and hence resulting into customer brand attachment. Thus Petroleum companies should try to create a match between their product offerings and their customer self. These findings are in line with previous research conducted by (Chaplin 2005), where he identified that consumers can form strong emotional connections with certain brands that match their ideal, social and actual selves, to the extent that when that brand is replaced by a competitors product, they can suffer separation anxiety. 5.2.6 Analyse how brand attachment can influence customers purchase behaviours According to the results of the study, a positive and significant relationship was observed between brand attachment and customers purchase behaviours. The implication of this finding is that, when customers become attached to a certain brand, it will always become their number one choice when it comes to making a real purchase. When customers develop cognitive and emotional connections with the brand (brand self connection), this will result into a dissonance reducing buying behaviour since the buyer will be always highly involved with the purchase of the product. Secondly, when a customer develops positive feelings and memories about the attachment object (brand prominence), he will now make it a habit to purchase such a product and thus resulting into habitual purchase behaviours. Regression results showed that a combination of brand attachment, self concept and brand image have a 50.5% predictive potential of customer purchase behaviour, thus supporting the correlation results. These findings are supported by the earlier work done by (Chaplin 2005), where he noted that once the attachment is created, the bond will be strong enough to the extent that consumers will be willing to sacrifice time, money, energy and reputation to maintain their attachment and thus competing brands are less likely to be regarded as substitutes.
51 5.3 Conclusions The study found that brand image is a very important aspect in influencing a customers purchase decision in the Petroleum industry. Most of the customers give it a number one priority in deciding where to fuel from. Thus Petroleum companies should treat building a brand image with outmost importance in order to succeed. Furthermore, the study also revealed that when a Petroleum company wants to build a long lasting successful brand image, three major components should be given the number one priority. These components are product benefits, attributes and personality. Exposing your product benefits to your target customers puts them in a position where they are much a ware of what they are buying. In regards to attributes, It is of a great significance for a company to have a unique position such that the customer perceives them as unique on a desirable characteristic for example customer care. Focus should be put on the perceptual components of brand image and how they relate to customer preferences. Advertising can make positive brand evaluations and attitudes readily accessible in memory. This is crucial to the development of brand image because favourable brand attitudes will only guide perceptions and behaviour if those attitudes can be instantly evoked. In relation to Personality of a Petroleum company, focus should be on a set of unique characteristics that distinguish a certain Petroleum company from others. Thus a well moulded Personality will create a long lasting impression in the mind of the customer when it gets to decision making in the buying process. From the observations made in the study, the different components of brand image (benefits, attributes and personality), can shape the type of purchase behaviour the customer is likely to exhibit. For example if emphasis is put on product personality, and the customer develops an attachment, dissonance reducing purchase behaviours are more likely to be exhibited and so is habitual purchase behaviours when benefits and attributes are given greater attention. From the study, we can also conclude that brand image alone without relating it to the customers self, may not have a long lasting impact on the customers purchase behaviours. Thus, when promoting brands, we also need to understand the different customer selves and relate them to the brands so that we can create a customer brand attachment which is very influential in the purchase decision making process.
52 Finally, basing on findings from the study, we can conclusively say that brand attachment components (brand self connection and brand prominence) have the capacity to influence the nature of purchase behaviour the customer is more likely to exhibit. Customers who have developed a brand self connection will start to make it a habit to purchase that product and thus will portray a habitual purchase behaviour, and so is dissonance reducing behaviour in relation to brand prominence.
5.4 Recommendations Basing on the findings from the study, the discussion that followed and the conclusions drawn in line with the study objectives, the following recommendations can be made. Brand image was found to be a major tool that can be used to remain competitive in the Petroleum industry. It is thus imperative that Petroleum companies employ people who are skilled, trained and experienced at brand management. Focus should shift from employing people who have simply excelled in other fields like sales management to experience brand managers. Secondly, building a strong brand image requires focusing attention on benefits, attributes and personality of the product. Once this is achieved, a number of benefits will accrue to the company such as customer loyalty and less vulnerability to competitive marketing actions. Thus Petroleum companies should make sure that customers identify with their brands and are able to form associations of their brands. These companies should strive to establish brand meaning in the mind of the customer by strategically linking tangible and intangible brand associations. Sponsoring of events, programmes and other activities that benefit the community are issues that should not be overlooked since these efforts consequently lead to improved brand image. Marketers of various Petroleum companies should know that brand image can be activated either by external aids present in the market like package displays, labels or poster displays or can be activated from memory by means of cues that associate the brand with the situation. Complaints that the customers raise about the brand should be quickly addressed rather than denied. A denial and dismissal of these complaints by management would make customers develop negative attitudes towards the brand.
53 While promoting a certain petroleum brand, companies need to first understand the different purchase behaviours the customers are more likely to exhibit and then work backwards to see how they can relate them to the various components of brand image. This can only be done by conducting market research in the petroleum industry. The stations managers for the different Petrol stations should ensure that they have performance evaluations for their staff. These evaluations / checklists should take into consideration issues such as the manner in which an employee deals with the customer, whether there are complaints about a particular employee. Petroleum companies should also setup incentive schemes for all their staff that work at the forecourt. It is important to note that the employees at the forecourt have more interactions with the customers than anyone else in the company. Thus the brand image can be either made or destroyed at the forecourt. Therefore, since these people act as the company ambassadors, they need to be motivated so as to keep up with the desirable image. 5.5 Areas for further research This particular study explored brand image, self concept, brand attachment and customer purchase behaviours in the Petroleum industry, however, future researchers can still look at different aspects surrounding this area like customer loyalty and brand equity to give it a more broader body of knowledge. Since this study was conducted in Kampala, another study needs to be done outside Kampala so as to assess whether geographical location has any impact on the findings. This will help in drawing final conclusions that can either be generalized or attributed to situations. A study needs to be done to examine the various dimensions / components of brand image that is, Personality, benefits and attributes to identify what determines the profitability of the brand more than the other. This study will be very interesting since most of the Petroleum companies are profit motivated and would be interested in assessing the various aspects of generating more revenue for the firm.
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59 APPENDICES 4.3 QUESTIONNAIRE ON BRAND IMAGE, SELF CONCEPT, AND CONSUMER PURCHASING BEHAVIORS IN THE UGANDAN PETROLEUM INDUSTRY Dear respondent, this questionnaire is for academic purposes only; kindly fill it honestly as at most confidentiality will be kept. Thank you a lot for your time. Name of petrol station where you usually fuel or service your car fromDivision where its found Bio-data information 1. Age of the respondent A. 18-29 years B. 30-40 years C. 41-50 years D. Above 50 years 2. Gender A. Male B. Female 3. Marital status A. Single B. Married 4. Level of education A. Primary B. Secondary C. Diploma D. Degree E. Post graduate Brand image Use the scale below and circle what you feel is appropriate in relation to this particular petroleum company. A- Totally agree B- Agree C- Neutral D- Disagree E- Totally disagree 1. I can mention a number of products provided by this company A B C D E 2. This petroleum company is obviously different from others. A B C D E 3. This company is always my first choice when it comes to car servicing. A B C D E 4. This Petroleum company stands for good quality.
60 A B C D E 5. I can recommend a friend to this particular company A B C D E 6. This companys brand name is so appealing. A B C D E 7. I agree with the decision to change the name of this petroleum company. A B C D E 8. Am satisfied with the services offered here. A B C D E 9. The company logo symbolizes quality A B C D E 10. I always read magazines and papers to find out whats new about this company. A B C D E 11. I can only trust my car with products provided by this company A B C D E Self concept Kindly circle on the response that match your description using the scale below A- Totally agree B- Agree C- Neutral D- Disagree E- Totally disagree 1. I like to be considered outstanding in whatever I do? A B C D E 2. Am more careful with my car than my friends are with their cars. A B C D E 3. I only take my car to Petrol stations with well known brands. A B C D E 4. I think its fun trying out something new. A B C D E 5. I go to this station because its where all my friends go.
61 A B C D E 6. I always consult my friends before servicing my car. A B C D E 7. I feel so proud associating with this petroleum company. A B C D E 8. I always try to behave like my friend so that I feel am part of the group. A B C D E 9. I always plan on where to service my car from before I take it there. A B C D E 10. All I care about is getting the car serviced no matter where I do it from. A B C D E 11. I think associating with this company says a lot about me. A B C D E 12. Probably people, who know me, might think of this product when they think of me. A B C D E 13. purchasing from this company symbolizes a bond with friends and family. A B C D E 14. People always associate this brand with special people. A B C D E 15. Being part of this company, symbolizes what I stand for. A B C D E 16. This brand stands for a particular way of life. A B C D E Brand attachment Kindly circle on the response that match your description using the scale below A- Totally agree B- Agree C- Neutral D- Disagree E- Totally disagree 1. To a large extent, this brand is part of me A B C D E
62 2. I feel personally connected to this company A B C D E 3. Am emotionally bonded to this company A B C D E 4. My thoughts and feelings about products offered Here are often automatic A B C D E 5. Just a mention of this brand evokes many thoughts About the past, present and future A B C D E 6. I cant imagine life without products of this company A B C D E 7. I would rather drive to find another branch other Than going to a different company A B C D E 8. This Petroleum company means a lot to me A B C D E 9. Even a completely similar product cannot replace Products offered here A B C D E 10. Associating with this company reminds me of who I am A B C D E 11. If I were to describe my self, this petroleum company Would be something I can mention A B C D E 12. If someone ridiculed this company, I would feel bad A B C D E Customer purchasing behaviour Please circle on the appropriate response basing on the scale below A- Totally agree B- Agree C- Neutral D- Disagree E- Totally disagree 1. Even if prices are slightly higher, I can still buy from here A B C D E 2. I always look at value for money before buying A B C D E 3. Am extremely loyal to this product A B C D E 4. I get fully satisfied when I use this companys products A B C D E 5. I can pay an extra cost simply to get what I want A B C D E 6. I can only buy from where I save a lot A B C D E 7. Since all companies have similar products, I dont Care buying from any where A B C D E
63 8. I always think about quality before buying A B C D E 9. Pricing will always be my number one concern A B C D E 10. If am offered a better scheme, I can shift to Another company A B C D E 11. My status always influences the decisions I make A B C D E THANK YOU VERY MUCH FOR YOUR PARTICIPATION