Brand Thesis

Draft Thesis By Jamal Panhwar

BRAND FACTORS EFFECTING CONSUMER BEHAVIORA STUDY IN PAKISTANI MARKET

A ThesisPresented to

NUST (National University of Science & Technology)ISLAMABAD, PAKISTAN

In Partial Fulfillmentof the Requirements for the Degree of

Master of Business Administration


By

JAMAL PANHWAR

January 2012

DEED OF DECLARATION

I, Sarah Rehman, hereby submit my research paper for, entitled “Brand Factors Effecting Consumer Behavior” and truthfully,hereby declare that this research thesis is my own original work and that

all sources have been accurately reported and acknowledged, andthat this document has not been previously, in its entirety or in part, submitted at any university in order to obtain academic qualifications.

JAMAL PANHWARMBA Candidate

NUST (National University of Science & Technology)


Islamabad : 20th January 2012


APPROVAL SHEET

This Management Research Paper titled “Effects of Consumer Behavior” is prepared and submitted by (Miss Sarah Rehman) in partial fulfillment of requirements for the degree of Master ofBusiness Administration – (Marketing) has been examined and recommended for acceptance and approval for ORAL EXAMINATION,

Adviser

Approved by the Committee on Oral Examination with a grade ofPASSED on (date)



A Word About me

I began my MBS studies here at the NUST university in….............................


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ACKNOWLEDGMENT

I would like to thank the following, in preparation of thiswork and would like to thank them and appreciate their help atall stages during my MBA studies and till this final stage of

writing the thesis.

Ms......................... My Teacher

Mr. …................My Brother

Ms...............


The whole Staff of NUST Islamabad campus my teachers, mysupervisors and fellow students

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ABSTRACT

This thesis discusses the “Brand Factors EffectingConsumer Behavior in Pakistani Market”. Four factors of Brandwere taken as core factors to test their effect on consumer


behavior. A Questionaire was designed and 100 people were askedto fill in the answers. The results were than put in Excel andcharts were built.

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TABLE OF CONTENTS

Page


BIOGRAPHICAL DATA . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . iii

ACKNOWLEDGMENT . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . iv

ABSTRACT. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . v

LIST OF TABLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . .. . . . vi

1.1 Brand

1.2 History of Brand

1.3 Developing Brand Image1.4 What is Brand Image1.5 From identity to image1.6 Brand image and brand equity

1.7 Brand awareness1.8 Perceived quality1.9 Brand loyalty1.10 Brand association1.11 Factors behind building brand image

Chapter 2 Factors behind building brand image 2.1 Brand Building2.2 Quality2.3 Positioning2.4 Repositioning


2.5 Communications2.6 First-mover advantage2.7 Long-term perspective2.8 Internal marketing

Chapter 3 Why brands are important

3.1 Importance of Brand

Chapter 4 Consumer behavior

4.1 Consumer Behavior

4.2 Culture4.3 Social Factors or Social Class4.4 Personal factors4.5 Age and stage in family life cycle4.6 Personality4.7 Social Factors4.7.1 Reference groups

4.7.2 Member Groups 4.7.3 Opinion Leader

5. Chapter 5 RESULTS AND DISCUSSIONS

5.1. HYPOTHESIS TESTING TABLES AND DISCUSSIONS

6. CHAPTER 6 CONCLUSION

7. BIBLIOGRAPHY


Chapter 1 Introduction

1.1 Brand

We keep hearing brand in our daily life. Some of us are so addicted to the brand that we seek brand rather than the the good or service we need. Brand is also into our daily life but we do not realize it. For example every one of us is also a brand in itself. Each of us are a product and we try to sell our self at all events of life. For example we sell to our parents to love us more than others, we try to please our spouses and we give love to our kids to make them obedient and respectful. Similarly we smile at passer by to be friendly. There are countless events where we try to sell ourselves and we all carry a brand that is “our name”

The products manufacturers or services provided by different firms also have brands and we identify each product by its brand name or its image or its colors. The American Marketing Association defines brand in a simple single life definition.

“Brand is a Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers”

1.2 History of Brand

Historically the word Brand comes from Old Norse “brandr”


meaning "to burn." Basically it was called so because the company name or logo was burned on the product itself or packaging.

According to wikipedia Italians were among the first to use brands, in the form of watermarks on paper in the 12th & 13th century

Although connected with the history of trademarks and includingearlier examples which could be deemed "protobrands" (such as the marketing puns of the "Vesuvinum" wine jars found at Pompeii), brands in the field of mass-marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items,such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of trademark.

Bass & Company, the British brewery, claims their red triangle brand was the world's first trademark. Lyle’s Golden Syrup makes a similar claim, having been named as Britain's oldest brand, with its green and gold packaging having remained almostunchanged since 1885. Another example comes from Antiche Fornaci Giorgi in Italy, whose bricks are stamped or carved with the same proto-logo since 1731, as found in Saint Peter's Basilica in Vatican City.

Cattle were branded long before this. The term "maverick,"


originally meaning an unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following the American Civil War,decided that since all other cattle were branded, his would be identified by having no markings at all. Even the signatures onpaintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool.

Factories established during the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market, to customers previously familiar only with locally-produced goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were among the first products to be 'branded', in an effort to increase the consumer's familiarity with their products. Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of the problem.

1.3 Developing Brand Image

Images created in the minds of the customers through intense marketing have taken importance in recent times. Marketers and big corporations have become obsessed about their perception inthe mind of the customers. It is through brand image development that now a days instead of functional benefits and


physical aspects symbolic associations and brand expressivenessis more important.

Due to increased importance of Brand image objective reality isdecreasing and customers are more into the realms of perceptionand image. Brand image and brand perception are the most important tenants of human understanding. Reasons for this increased importance of brand image can be:

Marketing’s increasing cognizance of the behavioral aspects of consumer decision making. (Tony Meenaghan, 1995)

Affluent society’s predilection with symbolic rather than purely functional aspects of products. (Tony Meenaghan, 1995)

An increasing variety of relatively homogeneous products often involving high product complexity and confusing messages which increase consumer reliance on the image aspects of products. (Tony Meenaghan, 1995)

the fact that technological innovation, increasingly susceptible to rapid imitation, may no longer offer previous levels of sustainable competitive advantage. (King, 1991)

1.4 What is Brand Image

Brand image can be defined as “SET OF BELIEFS HELD ABOUT A PARTICULAR BRAND” (Kotler, 1988) . Term BRAND was initially associated with a simple product level but now it is used for all kind of products and services. Now brand management can be


applied to all levels of marketing imagery. So now it is quite common to use the word branding for both corporate and retail level companies activity and for the product (Grier, 1991).

Brand Image is related to some set of associations which consumer has for the brand organized in some meaningful way. Now brand and its image is completely a different thing from its functional aspect. Through marketing and advertisement brand is being transformed from a functional product to immortal brand (Kim 1990). According to Kim “a product is a physical thing…a brand has no tangible, physical, or functionalproperties…Yet it is just as real as the product. Disembodied, abstract, ephemeral…it exists like a myth in the imagination ofthe consumer” (Kim 1990)

1.5 From identity to image

Usually these two terms brand image and brand identity are confused. Essentially “identity means the sum of all the ways acompany chooses to identify itself to all its publics…image on the other hand, is the perception of the company by these publics” (Marguiles, 1977). At the corporate level these two terms are used interchangeably. To manage the image of a brand or corporation, corporation will focus on its identity because identity is something which is controllable at the corporationsend whereas, brand image is in the mind of the customers. It’s the marketer’s job to align brand image and brand identity. If brand identity is not made according to customers need and requirements it will be wrongly perceived by the customers and


there will a large gap between identity and image.

1.6 Brand image and brand equity

Brand equity actually refers to the assets and liabilities thatare attached with the brand. Brand equity is positive when brand image in the mind of the consumers is very positive. Actually it’s then the brand image for which consumers are willing to pay more for the same level of quality. Customers pay more because they find the name attached to the product very attractive and that is called brand equity (Bello and Holbrook, 1995). Brand equity can also decrease and effect brand image if it is not properly managed. If quality of the brand is decreased or customer services can affect brand image which will cause lower sales and decreased brand equity.

Good brand equity enhances brand image which help customers during the purchase process. Past experience of the brand and brand familiarity also contributes to the perception generationfrom the customers (Aaker, 1991). Brand equity of the brand which is caused due to positive brand image is the great sourcefor the firm for positive cash flows. Brand equity is subdivided into further 4 categories brand awareness, brand loyalty, perceived quality and brand associations. (Aaker, 1991; Keller, 1998).

1.7 Brand awareness

It is the ability of the consumer to recall and recognize the


brand, with refrence with its corresponding product category (Aaker, 1991). It is very important for the brand that its consumers remember and recall their brand while making purchasing choices. If the brand has weak brand image then chances are very less for the consumers to recall it while making purchasing decision. Immense amount of advertising done is to create more brand awareness. Advertisements actually influence consumers intention to purchase (Mackenzie et al., 1986; Tsai et al, 2007)

1.8 Perceived quality

Perceived quality is also an important category of brand equity. It is basically consumer perception about quality of the product (Aaker, 1991; Keller, 1998; Yasin, 2007).) it is based on perception of the consumer so it cant be measured in tangible terms. Perceived quality can be a reason to buy a brand. It can differentiate a brand so that consumer can pay premium for that brand and it can also motivate a corporation for brand extensions (Aaker, 1991).

1.9 Brand loyalty

Brand loyalty directly and positively affect brand equity (Atilgan et al., 2005). It is the brand loyalty that influencesconsumers to buy a brand once and to repeat the purchase. Brandloyalty makes the customer base less vulnerable (Aaker, 1991). Consumers continue buying the brand in spite of superior competitor’s features.


1.10 Brand association

Different brands have different associations to their prospective customers. Such kind of associations can provide bases for them to make purchase decisions and even become loyalto the brand (Aaker, 1991)Associations towards a brand can create value for the firm and so its customers in a number of ways. First of all, they help the customers to process or retrieve information ( (Keller, 1998). Customers are sometimes forgetful and associations towards a brand serve as a brief summary for the customers to make their purchasing decision. Associations can also be used to trigger the customers to recall their past experiences, making the customers remember the brand by heart. Second, brand associations can differentiate one brand from another. It is about brand positioning that a well-positioned brand will find it hard to be attacked by its competitors due to its uniqueness. This can make the brand unbeatable but it is quite difficult to achieve since consumer taste changes quite rapidly.

Chapter 2 Factors behind building brand image

2.1 Brand Building

Brand building is the most important rescission of an organization After the brand has been selected the company mustsee to it that the new brand actually builds up to the mark andexpectation of the organization as well as the customers.


One of the key elements of Brand building is how much vale a brand can add to the customer's life. Is it some thing that customers find and wants to keep or is it some thing customer buys and gets rid of it sooner or later.

Professor David Jobber of Bradford University School of Management has identified seven main factors in building successful brands. These factors are agreed upon by the most ofthe business leaders and academics.

Quality Positioning

Repositioning

Well Balanced Communication Brand

Long termPerpective

Credibility

Internal Marketing


2.2 Quality

Quality is the most important factor of a good brand. Quality is the “core benefits” that customers expect and assume to get value fro. Quality must be the first factors to look at when building a brand. No mater how good is your advertising promotion, delivery channels or sales team if the quality of the product is poor the brand is damaged instantly.

Apple Ipad and iphone was pricy but their Quality was just un-matched hence even though it was pricy it became the top brand,similarly Surf & Brite or Arial emphasis on quality of the detergent. For example if a washing machine leaks, or the fridge's outer color fades away or the biscuit pack has broken or substandard biscuits in it, they will never develop brand equity.

Numerous researches have been conducted and it is confirmed that, statistically, higher quality brands achieve a higher market share and higher profitability that their inferior competitors.

The concept of quality, or shall we say the perception of quality, varies depending on a range of factors such as the available alternatives, consumer's actual need, moment at whichthe consumer makes the purchase or consumes a product, and the place where the product is being consumed. Hence Quality is defined in terms of the above and other factors as well as the material, mechanical and moment at which the consumer receives


information or cues about the characteristics of the product while shopping for or consuming it (Becker, 2000).

2.3 Positioning

Positioning is defined as the way by which the marketers creates impression in the customers mind, in other words it is the impression management of a Brand. Positioning is all about the position a brand occupies in the minds of consumers. Strong brands have a clear, often unique position in their target market. Positioning can be achieved through several means, including an attractive brand name, image, service standards, product guarantees, packaging and the way in which it is delivered to the customer. In fact, successful positioning usually requires a combination of these things.

Position is the aggregate perception the market of the brand inrelation to their perceptions of the competitors in the industry or product line. Positioning is not necessarily tailored by the company in fact positioning is built up even ifthe company doe not do any thing about it, however the best strategy is that company should find ways to influence the positive positioning of its brands.

2.4 Repositioning

Repositioning occurs when a brand tries to change its market position to reflect a change in consumer’s tastes. This is


often required when a brand has become tired, perhaps because its original market has matured or has gone into decline. The repositioning of the Lucozade brand from a sweet drink for children to a leading sports drink is one example.

Another would be the changing styles of entertainers with aboveaverage longevity such as Kylie Minogue and Cliff Richard.

2.5 Communications

How a company communicates with its customers or consumers is avital factor for how a brand is valued by the customers. Communications plays a key role in building a successful brand.While brand positioning is essentially about customer perceptions, the communication is the tool which must be used with the objective to build a clearly defined position in the minds of the target audience. All elements of the promotional mix need to be used to develop and sustain customer perceptions. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception.

2.6 First-mover advantage

Business strategists often talk about first-mover advantage. Interms of brand development, by “first-mover” they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers


before the competition enters the market.

There is plenty of evidence to support this. Think of some leading consumer product brands like Gillette, Coca Cola and Sellotape that, in many ways, defined the markets they operate in and continue to lead. However, being first into a market does not necessarily guarantee long-term success.

Competitors – drawn to the high growth and profit potential demonstrated by the “market-mover” – will enter the market and copy the best elements of the leader’s brand (a good example isthe way that Body Shop developed the “ethical” personal care market but were soon facing stiff competition from the major high street cosmetics retailers.

2.7 Long-term perspective

This leads onto another important factor in brand-building: theneed to invest in the brand over the long-term. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time.

This means that management must “invest” in a brand, perhaps atthe expense of short-term profitability.

2.8 Internal marketing

Finally, management should ensure that the brand is marketed


“internally” as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. Think of the brands that you value in the restaurant, hotel andretail sectors.It is likely that your favourite brands invest heavily in stafftraining so that the face-to-face contact that you have with the brand helps secure your loyalty.


Chapter 3 Why brands are important

3.1 Importance of Brand

Branding is one of the most important tenets of marketing and and building the right brand image is also important. Research have shown that at the age of 6 consumer starts to recognize and identify brand images (Belk et al., 1982). As the market is becoming more and more crowded by different brands and products consumers are more relying on the brand images than onthe physical characteristics. This is typically more important for those products that are in the mature stage of their life cycle.

For companies brand name is a major rescission of their productbecause this is the name that people will remember their product it. Can be good or it may become bad. So form an organization's point of view brand is a very important and basic decision that they must make before they can produce the product.

For customers Branding is also very important. With emergence of good communication and faster travel of goods the market is not full of numerous similar products and customer can get confused if he/she does not know the brand of the product. Brand makes shopping easier and less time consuming. As are theproducts and people increasing in number the time is becoming even shorter, hence cutomers value brand to save them time.


For society Brand also plays an important role. Brand help society to have choices and ability to chose the one that is right for it. People in the society where Brand is practiced (This is now true for all the word, it was not during the communism) has better living due to the fact that people chose from among the products they need. Rather in the past in community society where brads did not exist people just had to get what was offered to them hence they some times didn’t get any thing and some times got some thing they did not have a need for.


Chapter 4 Consumer behavior

4.1 Consumer Behavior

Consumer Behavior is the study of how a consumer, group or organization Searches, Select, Bargain, use and dispose the goods or services to satisfy their need.

For example when you need a pen you go to the market look for apen that you feel is good enough for you you may bargain for the right price and purchase it. You will use the pen and when it is run down you either dispose it give it to some one else and if it was car or some thing bigger than a pen you might as well sell it to some one as a used item.

So to sum up you go thru several steps which are all different for different consumers. Some consumers do not search they simply visit a shop and buy any pen some will look for a particular brand or quality in the pen. Some will bargain for the price some will buy it straight away. Some will dispose of quickly some will retain it for a long time and so on. Thus this process of Consumer Buying Behavior is a complex process.

Consumer Buying behavior is different for different people

Moreover the steps in the process of CBB are physical and some are merely mental factors. In a nutshell there are 5 processes in the consumer behavior.

Cultural FactorsSocial FactorsPersonal FactorsPsychological factorsSituational factors

4.2 Culture


Culture is the way of living and values which are passed onto aperson from generation to generation. Different societies countries and places have their own culture or social norms andvalues. If we look at the culture it is acquired by a human from 4 things.

Family or parents :- The initial values and way of life is taught to a child by his or her mother and other members of family. Children develop several habits style of talking and likings because of their family.

Religion:- A Muslim will demand Halal meat while for a non Muslim that doesn’t mater, likewise there are numerous behaviors which are influenced on us by religion.

Political system:- People learn to govern themselves and their way of life from their political system. Many of the rules of government are adapted by humans as rules and norms of behaviors. People act the way they have learned from the society.

Education:- A very important factor that shapes our culture is the schools. We learn about different linkings and dislikes by studying the materials in our education from childhood to adulthood we are bombarded with information that eventually becomes part of our culture.

Each dominant culture has sub cultures based on religions, races, youth & old even on administrative divisions. It is important to be aware of each culture and its subculture as allthe subgroups of cultures make up a target market.

4.3 Social Factors or Social Class

In addition of culture factors mentioned above target markets are also segmented into social classes. Social Class is a groupof people created within a society based on income, education, occupation type of residence and status. Social classes are


divided into 3 major groups, Upper Social Class, Middle Social Class, and Working social class (Some times refered to as poor class or low class a notion not recommended to say as it hurts the feelings of the human beings in general)

Here is a chart showing an interesting division of population percentage of social calasses.

Class More Developed Countries

Less Developed Countries

Upper Social Class 15% 2%Middle Class 70% 28%Lower Class 15% 70% Source (Internet)

Here it must be noted that a person may move from one class to an other during his/her life time.

Each social class has its pecular needs and behavior for buying. For example upper class likes to buy expanssive high quality goods at lrger high value stores while middle class buys good from larger markets and purchase medium quality goods, working class buys mainly just the necesties and never or very little luxury goods.

On the other hand these classes also have different bargaining power and different way of selecting the good or services for their needs. Not just tha each class has many unique needs too.

For marketers, they must make separate segments for each class,develop a separate marketing Mix.

4.4 Personal factors

Personal demographic play an important role in consumer buying behavior. Perople purchase goods and services that match their personality and liking. Personal demographics can be classified


as under.

1. Age and stage in family life cycle2. Occupation3. Income4. Life style5. Personality6. Self Image

4.5 Age and stage in family life cycle

Depending on age and a persons stage in his family life cycle. The family life cycle of the common human is divided into 4 distinct stages.

Bachelor Stage : when a person is dependent on parents or livesalone with very little responsibility of others in the family.

Newly married stage: As people grow they marry and start a new family with a spouse now the person has responsibility of the newly acquired family status and lives differently which affects his/her buying behavior.

Newly married couple with young children: As time passes peoplehave children and now their buying behavior again changes different needs for goods and services arise which are fulfilled differently. The Consumer buying behavior changes forthe old goods and services people enjoyed.

Couples with grown up children : As the children grow, people start changing behaviors different needs become more importantpeople become more health conscious and let children make discussions. According to research grown up children play a huge role in buying behavior of families.

Old couples : Old age brings people new ways to live again newer needs and different requirements of goods & services. People chose the products differently, some start new


bargaining behaviors and other stop bargaining.

Old Single: When one of the partner is demise elderly people live a quite life they still need goods and services to supporttheir living and satisfy needs however again the behaviors change at this stage too.

Each of the above family life cycle is a segment for marketers.Marketers must make strategies to adapt to changing needs of consumers and their family based behavior of buying.

4.6 Personality

Individuals in society posses unique personalities, which play a role in the goods and services they acquire to satisfy their needs. Thus the consumer buying behavior is influenced by the personality of individuals.

Personalty of a person is sum of the 4 characteristics these characteristics make up the whole of the personality of an Individual

These features are:-

Physical Attributes: The outer look of a person, height, weight, clothing and other such features.

Mental Attributes: Knowledge, education, thinking and learningof a person defines the whay he/she behaves towards things

Social Attributes: A persons behavior towards others e.g. honesty helpful personality, friendliness and joyful etc.

Emotional Attributes: These are the inner feelings of a person towards different behaviors of other they may be things like calmness, emotional, aggressiveness etc.

People buy things that fit their personality hence the


marketers must design their marketing Mix according to the personality of their target market.

4.7 Social Factors

Social factors such has reference groups, family size, and social roles also plan a role in consumer buying behavior.

4.7.1 Reference groups

Reference groups are the those groups which have direct or indirect influence on a person's attitudes, behaviors, interests and values. These groups are mainly divided into two types.

4.7.2 Member Groups

The groups that have direct interaction with the individual they are also divided into two types, one are the primary groups which are the groups with whom individuals have direct face to face communication on daily basis. These communicationsare usually informal and highly influence people's attitude andbehaviors. For example a person's family members, members in a office group, or a group of students in a class who sit together and also enjoy time out in cafeteria together.

The second of Member group's type is secondary member groups these are the groups who meet up not very often but do have face to face interaction occasionally but in a rather formal way. This type of groups also have influence on an individual'sbuying behavior. For example members of a social group like rotary club or teachers association etc.

Family is a primary reference group that has high influence on individual's behavior. Family group is generated by 3 ways first by birth than by marriage and in some cases by adaption.


4.7.3 Opinion Leader

A person who influences they buying behavior of those because of his knowledge, social status etc. The opinion leaders are also an important area which marketers must look at. For example there is a group of doctors who believe one particular doctor is best and they all take his advise. Now if a marketer can sell his idea or product to this opinion leader it will be easier for him to sell to all other followers of this opinion leader.


Chapter 5 Conceptual Framework

Based on the literature reviewed, a simple conceptual frameworkwas developed to understand the brand effects on consumer behavior. Three hypotheses were taken as the guidelines and a questionnaire was prepared.

A group of representatives from among the housewives who do their home shopping were taken as sample. Te questions were putforward to them and answers were recorded in a spread sheet.

5.1 Hypotheses & Conceptual Framework

When a set of hypotheses are grouped together they become a type of conceptual framework. When a conceptual framework is complex and incorporates causality or explanation it is generally referred to as a theory. According to noted philosopher of science Carl Gustav Hempel "An adequate empirical interpretation turns a theoretical system into a testable theory: The hypothesis whose constituent terms have been interpreted become capable of test by reference to observable phenomena. Frequently the interpreted hypothesis will be derivative hypotheses of the theory; but their confirmation or disconfirmation by empirical data will then immediately strengthen or weaken also the primitive hypotheses from which they were derived."

Hempel provides a useful metaphor that describes the relationship between a conceptual framework and the framework as it is observed and perhaps tested (interpreted framework). "The whole system floats, as it were, above the plane of observation and is anchored to it by rules of interpretation. These might be viewed as strings which are not part of the network but link certain points of the latter with specific places in the plane of observation. By virtue of those interpretative connections, the network can function as a scientific theory"


Hypotheses with concepts anchored in the plane of observation are ready to be tested. In "actual scientific practice the process of framing a theoretical structure and of interpreting it are not always sharply separated, since the intended interpretation usually guides the construction of the theoretician."

It is, however, "possible and indeed desirable, for the purposes of logical clarification, to separate the two steps conceptually

Hempel, C. G. (1952). Fundamentals of concept formation in empirical science. Chicago, Illinois: The University of Chicago Press, p. 36

This research based its hypothesis on the causal effects of branding on the consumer behavior hence. Consumer behavior is complex as it is so the research was based on the assumption that the answers which were given would be positively correct hypothetically and the results will be some hat correct howeverthis turns out that this research is a “working hypothesis”. There is still a lot of room for work to be done.

5.2 Research Question

Questionnaire was designed according to the guidelines of the book “Marketing Research n Applied Approach By Thomas C. Kinnear and James R. Tayler”

Since there was a constrain of the time and the respondents could be reluctant to answer open ended questions the questionnaire was designed with multiple choice type questions.

Wording of the questions were kept very simple and


understandable. While Interviewing Urdu was used as the medium of communications.

Implicit alternatives were avoided and the choices were well rehearsed with co-students before going to the consumers.

No estimates or conclusion were given in the choices

Frame reference was given due weight-age while designing the questions.

None of the question gives the respondent an idea of what answer is expected them hence “Leading Questions” are absolutely avoided.

Following Structure was followed for the questionnaire.

7. General Questions8. Questions about bands and their awarenedd9. Opinion about brands10. Why the brand they like is liked by them


CHAPTER 6 RESEARCH METHODOLOGY

Since the purpose of the research was to measure the effects ofbrand variable variables and verifying of existing theories or hypotheses the Quantitative method of research was used. Data was collected and used to to verify the different hypothesis.

Most of reliance was on the secondary data due to time constraints and limitations of resources. Following diagram illustrates the exact method used for this researcher

Overview of Literature

Select the hypothesis to test

Select the samples

Design Questionnaire

Collect data

Compile data

Produce results

Evaluate


6.3 Data Collection

As per the litrature it is always recommended to use the secondary day first hence I have used the secondary data available on the web site of “Bransenario” which is in public domain and was rightly available.

To further supplement this data a small primary data was collected to further prove the hypothesis.

6.3 Sampling Design

One of the most important factor of a good research is to find the right sample size and design. Sample plan was designed to reflect the exact consumer buying behavior.

It was learned from the secondary data that most of the advertising is focused on the housewife as she is the one that does the major shopping and specially that of branded goods.

A representative from different household of different sises were take to interview. The table below shows the sample

Sample Criteria Sample SizeHousewives from families in Islamabad

10

Housewives from Rawalpindi older ares

10

Housewives from Rawalpindi New ares

10

Housewives Doing their shoppingin bulk

10

Housewives from suburbs of Islamabad Rawalpindi

10


Housewives from affluent class 10Housewives from middle class 10Housewives from working class 10Housewives who themselves work 10Housewives who raise kids 10

Due to time & resources constraints all the samples were approached by phone and the questionnaires were filled in on the phone.


Chapter 7 Results & Discussions

To understand the literature in this thesis secondary data was evaluated first which mainly Includes the advertising share ofdifferent industries. Te data was carefully evaluated for the purpose of effect of advertising on the purchases.

Telecom Sector

Brands / Clients Spend Size # of Insertions

Rs. % Space % Count %

Zong 11,246,020

12% 2,556

15% 23 18%

Mobilink 19,751,000

20% 2,604

15% 26 21%

Telenor 51,458,820

53% 9,900

57% 43 34%

U-fone 11,056,560

11% 1,212

7% 11 9%

Warid 3,438,960

4% 1,010

6% 22 18%

[Total 96,951,360

100% 17,282

100% 125

100%



Survey 01 Result Showing the percentage of users

The above research prves that moe you advertise more you gain the market share and thus brand equity. This suggests that advertise is affects the buying behavior of consumers in Pakistan

Zong Mobilink Telenor U-fone Warid0

20

40

60

80

100

120

Column C


Quality & Celebrity Factor

Three questions were asked from 100 People the results were as expected per the theory above.

The following chart is the first part of the questionnaire.

What what is the most important aspect in your brand

Why do you use your brand of soap

For a new brand what will you look for most

0% 20% 40% 60% 80% 100%

QualityAdvertisementCelebrity


In the second part the questions were asked questions related to advertisements and here are the results.

What advertisements attract you

Head & Shoulder Ad is famous for

In an ad what made you buy the product

0 20 40 60 80 100

With JingleCelebrityBrand Image

Documents

Brand Thesis