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Name :SYED TARIQ PERVEZ

ID : 8472

PROGRAM MBA WEEKEND

CLASS BUSINESS RESEARCH


METHODOLOGY

PROJECT:PHILOSPHY OF
RESEARCH

KASBIT , HYDERI CAMPUS

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ABSTRACT

The research has been conducted to find the factors which are influencing the consumers
brand switching in Karachi through sales promotion and advertisement and the sample size is
60 respondents including of both male and female. The techniques used for the analysis are
reliability, confirmatory factor analysis, one-sample t-test, independent sample t-test and
have been applied throughout the research. Result shows that sales promotion has
insignificant impact while advertisement has significant impact over the consumers brand
switching. Therefore it is recommended for the researchers to find more determinants of
brand switching which can be useful for the companies and marketing professionals to attract
the customers towards the product or company.
Keywords: Brand Switching, Sales Promotion, Advertisement

1. Introduction
One of the most important problems that the companies are facing worldwide these days is
caused due to brand switching, as a result of which they lose half of their customers after
every five years.1 Still the managers are not paying enough attention to find out what are the
factors that causes this problem. A continuous increasing switching rate of brand shows that
there is some problem with the brand and the customers are changing to other substitute
product. It can be several factors which are causing brand switching of the customer. By
finding out the factors and analyzing the causes that leads to brand switching, makes manager
able to control the switching rate and make the business stable and profitable. The companies
who are able to find out the root causes that causes customer brand switching will definitely
have the determination and potential to find out certain business strategies which can bring
those customers back and can reestablish the relationship between the customers and
company.2

According to (Kasper, 1988) it is true that brand switching is a way to express dissatisfaction
towards a brand. Only dissatisfaction is not the factor but there are some other factors like
sales promotion, advertisements, market and industry trend, quality of the product, etc which
are causing the brand switching. Researchers are trying to find the impact of advertisement
on brand switching while another researcher tells that advertisement plays a significant role
on the customer satisfaction.3

1 Patrington (2004)

2 Reichheld (1996)

3 Ehrenberg (2000)

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Another researcher suggests that sales promotion should be done in order to capture the
customer satisfaction and it helps to retain the old and as well as new customers.4
The purpose of our research is to find out the impact of sales promotion and ads on
customer brand switching which will give benefit for the marketing professionals to stable
their businesses.

2. Reviews of Literature
Customer brand switching is actually shifting of a customer from specific brand to another
rival brand due to any reason. It is a biggest fear of an organization and they keep trying to
keep their customers loyal through different factors like sales promotion, ads, value additions,
etc. There are several more factors which have impact on the customer brand switching but
the focus of our study is to find the impact of advertisements and sales promotion on the
customer brand switching.
Advertisement is a marketing tool through which company sends their message to the
customers about their product. It helps to retain the name of the product on the mind of the
customer.
Sales promotion is done from the organizations to attract the customers and retain them
towards their goods and products. It is nowadays being very popular and different
organizations are using this marketing technique to attract the customers.
Our focus is either both the factors have positive impact on the brand switching or negative
impact.

Deighton, Henderson and Neslin, (1994) examined the impact of advertising on consumer
switching and repeat purchase behavior for the frequently purchased products. Several
consumer behavior theories were framed and used in order to create a model which could
actually be used to measure these effects and used a single source scanner data for this
purpose. According to their data advertising does affect the switching behavior of the
consumer but does not create any affect on the repeat purchase behavior. Result shows that
repetition of purchases is rare where as the switching behavior of consumers were observed
on a large scale.
3. Methodology
In order to know the impact of consumer brand switching as a dependent variable, we put
advertisements and sales promotion as independent variables. It is expected that both have
negative relationship with consumer brand switching while keeping other things constant. It
means that if advertisements and sales promotion are done consumer will not switch to other
brands. The model is as follows:
Where BS is brand switching, AD is advertisements while SP means sales promotion in the
model. The data is collected from the 60 respondents through questionnaires to analyze our
research.
4. Findings and Estimations
4 For further study see Tybout and Sternthal (1978)

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The objective of the study is to find out the effects of sales promotion and advertisement on
consumer brand switching of other customers to the product whose advertisement or sales
promotion has occurred. It will be helpful for the industries accordingly thats why different
analysis have used during the study.

4.1 Reliability Analysis


After applying reliability analysis on the data it is found that our model is 82.7 percent
consistent and reliable. The results of chronbach are excellent which means that the results
can be useful for the long term. Furthermore the values of Chronbach alpha of brand
switching, advertisement and sales promotion are 76.3, 70.4 and 80.8 percent respectively
which shows excellent reliability of every variables consisted in the research. The results are
shown in table 4.1.
Table 4.1
Reliability Analysis

Variables No. Of Items Alpha


Brand Switching 6 .763
Advertisement 7 .704
Sales Promotion 3 .808
Overall 16 .827
Source: Authors Estimation
4.2 Factor Analysis
Since there were 17 items in the study thats why those items were supposed to be included in
the factors through Confirmatory Factor Analysis which made 3 factors as specified. The
result of KMO is 72.6 percent which says factor analysis is fitted on the data while the
Bartletts result is also supporting the decision of KMO as shown in table 4.2.

Table 4.2
KOLMOGOROV and CHI AQUARE Test

KOLMOGOROV Measure of Sampling Adequacy .726


Bartletts Test of Sphericity Approx. Chi Square 404.674
Df 136
Sig .000
Source: Authors Estimation
Three factors have made through confirmatory factor analysis and their items have mentioned
in table 4.3. Factor 1 have 6 items, factor 2 have 7 items while factor have 3 items.
Table 4.3
Rotated Component Matrix

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Items 1 2 3

Brand Consciousness .880


Dissatisfaction .812
Brand Loyalty .766
Print Ads .475
Bored .455
Brand Liking .433

Regular Ad .755
TV Ads .691
New Ads .676
Special Gifts .651
Promotions .638
Ad Quality .484
Buy1 Get1 .455

Brand Availability .841


Sales Promotional items .654
Point Of Purchase .541
Source: Authors Estimation
4.4 One Sample KOLMOGOROV TEST
One sample t-test has been applied on the data to find the claim whether the average income
is 10,000 or not. After applying one sample t-test, it is found that average income is not
equals to 10,000 because the sig value is rejected as shown in table 4.6.
Table 4.5
One Sample T-Test

Test value = 10,000 Mean Sig t-stats


Income 28,297.87 .000 8.398

Source: Authors Estimation


4.5 Independent Sample CHI SQUARE -Test
Independent sample t-test has been applied on the data to find the average income of male
and female. The value of Levenes test for equality of variances is .584 which means that the
equal variances will be assumed. It means that income of male and female are same because
of acceptance of sig value as shown in table 4.6.
Table 4.6
Independent Sample CHI SQUARE -Test
Comparison of mean of Gender with Income

Test for Equality of Variances CHI -Test for Equality of Means


Equal Variances Equal Variances not

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Assumed assumed
.584
t stats .509 -
df 45 -
Sig .614 -

5. Conclusion and Recommendation


The result of the study was somehow different because the sales promotion has found as an
insignificant impact over the consumers brand switching. It means that sales promotion
cannot help the companies and products attract the customers while alternatively result of
shows that advertisement has significant impact on the brand switching of consumers. The
model is predicting 31.3 percent of brand switching which means that there are more
determinants which can influence the dependent variable and it needs finding out by the
researchers as a future direction.
References
Deighton, J., Henderson, C. M., & Neslin, S. A. (1994). The Effects of Advertising on Brand
Switching and Repeat Purchasing Journal of Marketing Research
Erdem, T., Keane, M. P., & Sun, B. (2007). The impact of advertising on consumer price
sensitivity Journal of Advertising Research
Ehrenberg, A., Scriven, J., & Barnard, N. (1997). Advertising and Price Journal of
Advertising Research
Jedidi, K., Mela, C. F., & Gupta, S. (1999). Managing Advertising and Promotion for Long-
Run Profitability Journal of Marketing Research
Vakratsas, D., & Ambler, T. (1999) How Advertising Works: What Do We Really Know?
Journal of Marketing

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