Beruflich Dokumente
Kultur Dokumente
SUBMITTED BY:
Zulfiqar Ali Sajwani (03205)
Muhammad Omar Arif (00945)
Michelle Pinto (12186)
Final Research
Ramsha Arif (03222)
Hassan Abbasi (13429)
Paper
SUBMITTED TO: Dr. Wajid Rizvi
2
MA Research Paper- Sunridge
category.
3
MA Research Paper- Sunridge
turn affect brand loyalty. In concurrence perceived is higher when the unit price is
with this Fishbein and Ajzen (1975), higher, or the effects of an unfavorable
Konecnik and Gartner (2007) and Buil, selection are more pronounced dominated
(2013) use the theory of reasoned action to by the distributor's brands. In this case, the
describe the link among attitudes, intents opportunity cost of the next best choice is
and behaviour. In the world today, a brand considered in the mind of the consumer.
has become one of the basic motives for the Also, as an outcome of the affordability and
consumers’ choice of a food product. The growing need, a new perception that
consumers link quality to brands. packaging is healthy and of high quality
(Vraneševic´, 2003) says that they will first results in a rapid increase in sales of branded
consider the brand as a symbol of quality. and packed food.
Moreover, quality of the product adds to the
Christodoulides and Chernatony (2010) and
overall product experience and hence links
Romaniuk (2017) argue that brand
to brand loyalty and subsequent purchase.
awareness comes prior to brand associations,
Although the method followed in the field of
as buyers can be informed without recalling
food sciences, technology inclusive, is based
an important group of brand associations,
on the concept of objective quality, Martínez
but they cannot have one without having
‐ Carrasco et al.(2012) says the focus on
awareness of the brand first. Pike et al.
consumer behaviour is based on the model
(2010), Keller and Lehmann (2003), Pike et
of perceived quality. When there is no
al. (2010), Keller (1993) Pitta and Katsanis
difference in the physical characteristics of
(1995) add to this by saying that the
products the consumer will evaluate the
development and robustness of brand
brand of the consumer. Therefore, the
associations, including perceived quality
consumer’s main interest does not lie in the
depends on brand awareness.
objective features of the product. Rather, the
subjectively perceived product attributes However, as Aaker (1996) said it is
play an important role as portrayed by important to understand that brand
Becker (2000) and Vraneševic´(2003) goes awareness has multiple levels such as recall,
on to say that the perceived brand , top-of-mind, brand opinion, recognition
strengthened through awareness , helps in brand knowledge, and brand dominance.
determining characteristics of a product These are different for well-established and
especially product quality. In contrast upcoming brands. Brand recognition is
Kapferer, (1997) and Mohan Kathuria important for new brands, but for older
(2013) say that for rice , sugar , wheat , brands, recall and top-of –the mind is
flour and other commodity food products significantly higher.
brands exist due to risk perceived. If the risk
Implications and Hypothesis:
that the buyer perceives, is eliminated, the
The connection between the brand equity
brand has no benefit anymore. It then only
factors studied reveal and we also infer that
acts as a guide or a means of added value.
brand awareness positively affects perceived
Kapferer (1997) states that when the risk
quality and brand associations, which leads
4
MA Research Paper- Sunridge
5
MA Research Paper- Sunridge
6
MA Research Paper- Sunridge
increases or decreases from the worth of existing available models to draw out one.
service or product provided by the company Quality, reputation and benefit were the
(Yousefi Darestani and Najafi, 2014). Brand three outlines of customer’s expectation in
equity can further be referred as their model. Following suit (Nath Sanyal
representation of brand’s existing market and Datt, 2011) looked for direct
position and anticipated unrealized relationship between quality of the product
prospective of its products or service (Nath and brand equity. Before going on for
Sanyal and Datt, 2011). Emphasizing its research, Like Yousefi and Najafi, they also
importance (French & Smith, 2013) brand pointed out the scarcity of intellectual work
equity helps customers to resist competitor done on this subject, to their category of
strategies as a function of value obtained by product (medicine drugs in India). When
the firm from the brand as well as helps referred to perceived quality, as an important
customers in understanding the information marketing function of brand equity, they
associated with the product through the worked upon evaluating outward and
brand leading to repurchases. This provides underlying benefits associated with the
opportunity for brand managers to take product and determining which has more
prudent management decisions, for weightage. (He and Li, 2010) also
assessing sustainable marketing decisions researched on determining implication on
(Tong & Hawley, 2009). brand equity through distinctive attitudes of
perceived quality.
In this manner brand equity assists in
obtaining customers willingness to opt for a Relationship between Brand Association
brand, though their loyalty and willingness and Brand Equity:
(Sasmita and Mohd Suki, 2015). In simpler
Researchers (Tong & Hawley, 2009),
understanding brand equity is the
(Sasmita and Mohd Suki, 2015) and (French
approximated price of the product or service
& Smith, 2013), realized the significance of
which consumer is willing to pay for a
the two important marketing constructs, i.e.
brand, with comfort and trust. Importance of
Brand Association and Brand Equity.
brand equity is of utmost significance for
(French & Smith, 2013) Agreeing with
brand managers and therefore, make all
majority researchers agreed that brand
possible efforts to establish the management
association is completely intangible and is in
decided brand equity for the products they
the minds of the consumers. They used the
offer.
brand mapping technique to measure brand
Relationship between Perceived Quality association. Utilizing Aker’s model of brand
and Brand Equity: equity Structural equation model technique
was used by (Tong & Hawley, 2009), to
Realizing that there is no specific
determine significance of Brand Association
measurement scale developed from the
of sportswear industry in China. Which
perspective of customers as stake holder of
became the first of its kind research.
brand equity (Yousefi Darestani and Najafi,
Through quantitative data analysis (Sasmita
2014), developed methodologies from
7
MA Research Paper- Sunridge
and Mohd Suki, 2015) also studies effects of brand loyalty is viewed on a perceptual
brand association on brand equity. Agreeing level, which is being defined as a cognitive
with previous researchers they began evaluation during the purchase process
research with a mindset that affiliation [ CITATION Paula2016 \l 1033 ]. Another
between brand equity and association is view is that brand loyalty has a positive
clear and powerful. correlation with perceived quality and thus it
the consumer perception which is being
H5: Perceived Quality has a positive effect
defined as the factor for loyalty [ CITATION
on Brand equity.
Ped15 \l 1033 ]. Another perspective is that
H6: Brand Association has a positive effect brand loyalty is the sustainability of the
on Brand equity. company volumes and revenues in the
longer run[ CITATION Joh14 \l 1033 ].
Impact of Brand Loyalty on Brand
Equity Relationship between Brand Loyalty and
Upon review, many past researches have Brand Equity:
defined brand equity in their own In our search for linkages which are present
terminology. Brand equity can be viewed as in our model we analyse how scholars have
multi-dimensional construct which has a previously linked them in their own
positive impact on which increase the capital researches. Brand equity and awareness has
value of a brand and in turn can lead to been surprisingly been seen as forming a
positive correlation with Brand Loyal and negative correlation [ CITATION Paula2016
allow companies to charge a price premium \l 1033 ] and it has been suggested that
[ CITATION Paula2016 \l 1033 ]. Another brand loyalty is the driving factor towards
explanation of brand equity is that it can be forming higher brand equity [ CITATION
analysed in two parts, first on a firm-based Ped15 \l 1033 ] .
brand equity and on a consumer-based brand
Relationship between Brand Equity and
equity [CITATION Ped15 \l 1033 ]
Price Premium:
Brand equity is the determination of the Premium pricing has is being positively
worth of the brand [ CITATION Neb15 \l correlated towards differentiation
1033 ]. particularly technological and market-based
innovation [ CITATION Neb15 \l 1033 ]. A
Price premium has somewhat similar and
different view is seen price premium can be
generally accepted definition which is that
seen as result of perceived quality of a brand
the price premium is linked to value of the
and that the most effective tools for those
brand [ CITATION Neb15 \l 1033 ] and
are social image , uniqueness , home country
consumer will be willing to pay unreal
origin and the most important driving factors
prices because of its value[CITATION Joh14
are corporate social responsibility and brand
\l 1033 ].
awareness[ CITATION Joh14 \l 1033 ].
Brand Loyalty has been described in
One key finding was the that brand loyalty
multiple ways, one such perspective is that
and perceived quality have a very strong
8
MA Research Paper- Sunridge
linkage and suggest that is a by-product of So, the stronger the brand equity, the more
brand awareness and perceived quality predictable becomes the customers’
which directly leads to higher brand equity behaviour and translates into actual action.
and in turn higher brand loyalty This behaviour further translates into
[ CITATION Ped15 \l 1033 ]. improvised Financial results for the
organization [ CITATION Flo12 \l 1033 ].
For the purpose this study and based on
For [ CITATION Sha14 \l 1033 ], customers
above findings we will be testing the
need to have some additional value while
following hypothesis:
doing cost benefit analysis of the brand and
H7: Brand equity has a positive correlation making buying decision and this additional
on increasing Brand Loyalty value is conveyed to customers via strong
Brand Image and Brand Equity.
H8: Brand equity has a positive impact on
the ability to charge premium pricing H9: Increase in Brand equity leads to
improvised Purchase Decision.
Purchase Intention:
[CITATION Moh131 \l 1033 ] highlights the III. RESEARCH
significant difference of concepts between
METHODOLOGY:
purchase intention which is thinking to
3.1 Instrument Development:
purchase anything and actual behaviour, in
which actual purchase is been made.
In this study, we have used the
Purchase intention is the positive attitude of
triangulation technique in which we
customer towards a brand [ CITATION
have employed both Exploratory
Flo12 \l 1033 ] and [ CITATION Sha14 \l
research (Qualitative Research) and
1033 ] referred intention to purchase in
Conclusive Research (Quantitative
future as repeating the purchase behaviour.
Research). As part of exploratory
For [ CITATION Ram18 \l 1033 ],
research, we initially conducted
customers’ belief to purchase again is a
Secondary research which included
positive sign for an organization. We define
analysing various literature (Research
‘Purchase Intention’ as customers’
papers, etc.) from renowned Journals.
inclination towards purchasing a Brand.
For primary research, we have
Relationship between Brand Equity and conducted two focus groups; one focus
Purchase Intention: group was conducted by users of flour
Even though [CITATION Moh131 \l 1033 ] who purchased their flour from their
attributed various demographic factors such neighbourhood Chakki and the other
as upgraded life styles, increase income, etc. group was conducted on the users of
to improving responses of customers branded flour who did their purchasing
towards Brand, [CITATION Isa13 \l 1033 ] from retail stores. Table 1 presents
believes that it is the strong Brand Equity research variables with number of items
that positively motivates customer and their sources.
willingness to buy and pay premium as well.
9
MA Research Paper- Sunridge
that all factors are reliable and can be used In table 5, the relationship between Brand
Awareness and Purchase Intention was
investigated using Pearson product-moment
correlation coefficient. There was a
statistically significant and strong, positive
correlation between the two variables
[r=0.555, n=256, p<0.05], with high levels
of Purchase Intention associated with high
level of Brand Awareness.
In table 6, the relationship between Brand
for further tests. Loyalty and Perceived Quality was
investigated using Pearson product-moment
The Hypotheses from H1 to H9 were tested
correlation coefficient. There was a
using below mentioned analyses:
statistically significant and strong, positive
correlation between the two variables
[r=0.652, n=256, p<0.05], with high levels
of Perceived Quality associated with high
Correlation Analysis level of Brand Loyalty.
Table 4 Table 7:
In table 4, the relationship between Brand
Awareness and Purchase Intention was
investigated using Pearson product-moment
correlation coefficient. There was a
statistically significant and strong, positive
correlation between the two variables
[r=0.555, n=256, p<0.05], with high levels
of Purchase Intention associated with high
level of Brand Awareness.
In table 7, the relationship between Price
Premium and Purchase Intention was
investigated using Pearson product-moment
correlation coefficient. There was a
statistically significant and strong, positive
correlation between the two variables
[r=0.803, n=256, p<0.05], with high levels
of customer’s willingness to pay associated
with high level of Purchase Intention.
Table 5:
Regression Analysis
11
MA Research Paper- Sunridge
12
MA Research Paper- Sunridge
13
MA Research Paper- Sunridge
the constructs and correlation, regression, Association and perceived quality on Brand
Chi Square tests and One-Way ANOVA Loyalty.
were conducted to determine the link
In terms of identifying the associations
between general aspects and the specific
between family size, monthly expenditure
constructs on purchase intentions of the
and frequency of Atta purchase, it was found
product in context.
out that there is a statistically significant
VI. CONCLUSION AND association between family size and monthly
MANAGERIAL IMPLICATIONS purchase of Atta, also between family size
Understanding the factors contributing to and monthly frequency of purchase of Atta.
purchase intention for any product is key to However, the strength of associations was
ensure sustainability of sales growth in the moderate and weak respectively. The
long term. For a brand like Sun ridge which research also identified that the income
aims to become a household brand for Atta, segment of Rs.100, 000 and above reflected
this research serves as a key indicator on high preference for branded Chakki atta.
where the brand stands on the various Lastly, it was identified that that purchase
marketing constructs and the action plan that intentions were highest for those with an
needs to be devised to stimulate the sales income bracket of Rs.90, 000-99,999, and
growth, which seems stagnated for now. lowest for those with an income bracket of
Whereas the purchase behaviour of Atta Rs.70, 000 - 79,999.
seems to be a simple decision, there are
multiple complex factors that come into play Research Limitations:
which further trickle down to the decision Both qualitative and quantitative data
making of the product in general and brand. collection processes were subject to certain
As per the results achieved from the limitations. In the quantitative study
proposed model in the context of Sunridge’s convenience sampling was used. The use of
purchase behaviour suggest that brand this sampling technique limits the
awareness, brand loyalty, and customer’s generalizability of the study. Likewise, data
willingness to pay have positive influence was collected only from Karachi in the
on purchase intentions. This study also qualitative study). This also limits the
probes further through quantitative analysis factors contributing to brand awareness.
to identify the relationship between Furthermore, the research assumed of
perceived quality and brand loyalty, where Sunridge having substantial brand equity
there was a strong influence of perceived despite being in the market for only 3 years.
quality on brand loyalty. Results based on The research can be further refined by far
multiple regression analysis reflected that reaching data collection across Pakistan and
predicting influences of Brand Equity, Brand conducting further exploratory research on
Loyalty and Purchase Premium on Purchase factors contributing to brand awareness.
Intention was evident, along with predicting
influences Brand Awareness, Brand
14
MA Research Paper- Sunridge
REFERENCES:
Ali, M. (2018). Planning Commission Provides Technical Assistance For Fortification 950,000 Metric
Tons Of Flour. Retrieved from https://www.urdupoint.com/en/pakistan/planning-commission-provides-
technical-assist-437017.html
Buil, I., Martínez, E., & Chernatony, L. d. (2013). The influence of brand equity on consumer responses.
Journal of Consumer Marketing, Vol. 30 Issue: 1, pp.62-74.
Erdoğmuş, İ., & Büdeyri‐Turan, I. (2012). The role of personality congruence, perceived quality and
prestige on ready‐to‐wear brand loyalty. Journal Of Fashion Marketing And Management: An
International Journal, 16(4), 399-417.
Esmaeilpour, F. (2015). The role of functional and symbolic brand associations on brand loyalty. Journal
Of Fashion Marketing And Management: An International Journal, 19(4), 467-484.
Government urged to exclude flour from Ramazan package. (2018). Retrieved from
https://tribune.com.pk/story/1685730/1-government-urged-exclude-flour-ramazan-package/
Ha, H., & John, J. (2010). Role of customer orientation in an integrative model of brand loyalty in
services. The Service Industries Journal, 30(7), 1025-1046.
Johan Anselmsson, Niklas Vestman Bondesson, Ulf Johansson. (2014). Brand image and customers'
willingness to pay a price premium for food brands. Journal of Product & Brand Management.
Lu, J., & Xu, Y. (2015). Chinese young consumers’ brand loyalty toward sportswear products: a
perspective of self-congruity. Journal Of Product & Brand Management, 24(4), 365-376.
Major increase in wheat flour price. (2018). Retrieved from The News:
https://www.thenews.com.pk/print/369217-major-increase-in-wheat-flour-price
Nebojsa S. Davcik, Piyush Sharma. (2015). Impact of product differentiation, marketing investments and
brand equity on pricing strategies: A brand level investigation. European Journal of Marketing.
Nguyen, T., Barrett, N., & Miller, K. (2011). Brand loyalty in emerging markets. Marketing Intelligence
& Planning, 29(3), 222-232.
Paula Rodrigues, F. V. (2016). Perceptual and behavioural dimensions:. Journal of Fashion Marketing
and Management: An International.
Pedro Marcelo Torres, Mário Gomes Augusto, João Veríssimo Lisboa. (2015). Determining the causal
relationships that affect consumer-based brand equity. Marketing Intelligence & Planning.
15
MA Research Paper- Sunridge
Romaniuk, J., & Nenycz-Thiel, M. (2013). Behavioral brand loyalty and consumer brand
associations. Journal Of Business Research, 66(1), 67-72.
16