Gilaninia and Mousavian

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customer and also helps in customer retention whichimproves brand image too. Innovation in a certain productor company helps building stronger customer base thathelps in getting more market shares leading to betterbrand image. For a product, a comparison was made onrefrigerator and television brands of both companies to

see the effects of independent variables on dependantvariable. This kind of research has previously not beenconducted in Iran, and as such the research is broader interms of selection of products and can be beneficial forthe Samsung and LG in Iran. The two refrigerator brandsfor comparison are side by side which is of Samsungand side by side which is of LG and the two televisionbrands are plasma which is of LG and plasma which isthe product of Samsung.

The American Customer Service Index (ACSI) is thefirst U.S. economic indicator to measure customersatisfaction. Fornell (1992) acknowledges this growth andimportance by rating customer satisfaction with the goodsand services of 200 companies. Brand perceptions areimportant because they are said to influenceconsideration and evaluation, and purchase (Nedungadi,1990; Keller, 1993). Marketing activities are undertakenwith the aim of changing or reinforcing the consumersmindset in some way. This includes; thoughts, feelings,experiences, images, perceptions, beliefs and attitudestowards a brand (Keller and Lehmann, 2003) .Brandperceptions are attributes in consumers memory that arelinked to the brand name (Keller, 1993). Conveying abrand image to a target market is a fundamentalmarketing activity. Communicating a brand image to atarget segment has long been regarded as an importantmarketing activity (Gardner and Levy, 1955). A well

communicated image should help establish a brand'sposition, insulate the brand from competition (Oxenfeldtand Swarm, 1964) and therefore enhance the brand'smarket performance (Shocker and Srinivasan, 1979;Wind, 1973). Positioning/repositioning strategies, thoughincorporating the notion of image (and indirectly sales),do not typically indicate how the image can be managedover time. Instead, short-term, market-driven factors suchas current consumer needs and competitors are used asa basis for managing the brand's image/position (Aakerand Shansby, 1982). Brand, with a symbolic concept isone designed to associate the individual with a desiredgroup, role, or self-image. Brand management has

become increasingly important, given the rapid change ofthe global market and elevation of competition (Nan-Hong, 2007). Brand image is established whenconsumers develop ideas, feelings and expectationstowards certain brands as they learn, memorize andbecome accustomed to them (Keller, 1993).

The brand becomes a strategic platform that providesthe framework for the satisfaction of customers wantsand needs (Urde, 1999). In an increasingly competitivemarketplace, greater emphasis is placed on brand imagedevelopment as the basis for consumer discrimination

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(Meenaghan, 1995). It is important for firms to becomemore aware of customer perceptions and how customersassociate brands within a total service networkexperience or process. Customers do not evaluatebrands in isolation (Morgan et al., 2004).

LITERATURE REVIEW

Brand image

The concept of brands emerged from the domain ofconsumer products and was originally considered moreor less synonymous with that category. Over the yearshowever, marketing scholars have reappraised thetraditional brand concept and widened its meaning toinclude corporate as well as, product brands, andrecognition of the fundamental differences between theselevels (Balmer and Gray, 2003). Keller (1998) definedbrand elements as those trademark able devices thahelp to identify and differentiate the brand. Brand imageincludes the totality of consumers' opinions aboutexperiences with, and attitudes toward a company oorganization and their brand as compared with that ocompetitors. Brand image is pivotal in apparel purchasebehavior because it impacts consumers preferences andpurchase intentions as well as their willingness to pay apremium price and recommend the brand to othersMarket street research often measures a company'sbrand image by asking consumers, decision-makers, okey markets to rate the company and its competitors onfactors they consider important, (Gayathari, 2007)Communicating a brand image to a target segment haslong been regarded as an important marketing activity

(Gardner and Levy, 1955; Grubb and Grathwhol, 1967Moran, 1973; Reynolds and Gutman, 1984; White, 1959)The brand is viewed as a resource or more specificallya relational market based asset that creates value oequity (Srivastava et al., 1998). In their classic paperGardner and Levy (1955) wrote that, the long-termsuccess of a brand depends on marketers' abilities toselect a brand meaning prior to market entryoperationalize the meaning in the form of an image, andmaintain the image over time. A brand concept should beviewed as a long-term investment developed andnurtured to achieve long run competitive advantage(Whan et al., 2006). Thakor and Katsanis (1997) believed

that, brand image is one of the cues in product qualityevaluation, particularly when it comes to experientiabrand concept-image. Brand image is often used as anextrinsic cue to make a purchase decision (Richardson eal., 1994). Monroe (1988) says that a brand with a morepositive image does have the effect of loweringconsumers product perception risks and increasingpositive feedback from consumers. The marketing mixperforms two interrelated tasks that affect the brand'simage/position (and hence sales at the introductorystage).


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The role brands play in the value-adding processes thatleads to creation of the customers experiences (Berry,2000; de Chernatony and Segal-Horn, 2003; Ballantyneand Aitken, 2007). Within this perspective, the brandplays a broader role where it interfaces not just with endcustomers but the company, its employees and a network

of stakeholders. This perspective of branding is beingreferred to as the service brand (Kasper et al., 2006).Thefirst is communication of the brand image. Each elementof the mix can affect the inferences consumers developabout the brand (Frey, 1961; Lindquist, 1974, 1975;Olson, 1977; Sacharow, 1982). When a particular brandimage is introduced, elaborated, and fortified, the costsassociated with introducing other products become lowerand the time required to move from introduction toelaboration for the new products is reduced (Park et al.,2006).

Customer satisfaction

Customer satisfaction is a key component of competitivestrategies and keeping customers happy is critical tolong-term business success (Stank et al., 1997).Customer satisfaction is the customers after purchase

judgment or evaluation of a specific product or service(Oliver, 1980). Customer satisfaction includes servicequality, expectations, disconfirmation, performance,desires, affect and equity (Churchill and Suprenant, 1982;Glenn et al., 1998; Levesque and McDougall, 1996;Oliver, 1993; Patterson et al., 1997; Spreng et al., 1996;Szymanski and Henard, 2001). Customer satisfaction isgenerally defined in the marketing literature as the

discrepancy between a customers expectations andperceptions (Oliver, 1997). Satisfaction is generallyviewed as an encounter-specific construct (Bitner, 1990).Consumers usually go through confirmation of need,research prior to purchase, and product evaluation tomake a purchase decision, and the last is a particularlyimportant factor. Due to the fact that, there are alwaysrisks within any purchase decision, consumers rely onproduct information or cues to lower the risks.Consumers generally believe they can make a satisfyingpurchase by choosing well-known brands and also lowerany purchase risks by doing so (Nan-Hong, 2007).Customer satisfaction is an important theoretical and

practical issue for most marketers and consumerresearchers (Westbrook, 1980; Dabholkar et al., 1996;Goode and Moutinho, 1996; Patterson, 1993; Spreng etal., 1996; Fournier and Mick, 1999; Meuter et al., 2000).When a service failure occurs, the organizationsresponse has the potential to either restore customersatisfaction or reinforce loyalty (Smith et al., 1999).Satisfaction with a purchased product and/or a service isa fundamental goal for consumers. Rogelberg andCreamer (1994) have suggested that customer servicesatisfaction significantly impacts subsequent purchase

behavior. Consumers seek to allocate monetaryresources among available products and services tomaximize their satisfaction. For marketers, consumesatisfaction is also a desired outcome of marketingactivities. Satisfaction reinforces consumers brand andstore loyalty and/or resolution to buy the produc

frequently (Chen-Yu and Hong, 2002). Producinvolvement has also been found to have a direct effecton the level of satisfaction (Richins and Bloch, 1991), aswell as a mediator between mood and shoppingintentions (Swinyard, 1993). Rogelberg and Creame(1994) have suggested that customer service satisfactionsignificantly impacts subsequent purchase behavior.

Advertising

It is the paid, non-personal communication of informationabout products or ideas by an identified sponsor throughthe mass media in an effort to persuade or influencebehavior (Courtland, 1987). Advertising is intended toachieve higher order communication effects in audiencesopposed to the advocated position (Nelson et al., 1985)Factors such as high advertising costs and the increasingcompetition for shelf space, has become more difficult tosucceed with new products (Aaker, 1991, 1996). One ofthe ultimate aims of advertising is to persuade consumersto buy certain brands over others. A classical conditioningexplanation provided the theoretical rationale for thetransference of effect from the ad to the brand (Shimp1981). To achieve this goal, many advertisers utilizeadvertisements with a clear conclusion (Beardi, 2001Halliday, 2001). Advertising would continue to be

influential, if advertising were also provided for the nonfocal brands (Sirdeshmukh, 1992). Kamins et al. (1991found that subjects viewing a happy commercial brandevaluated it more positively on various measures ofadvertising effectiveness in the context of programcontent designed and observed to induce a happy moodPositive advertising effects are found if the message styleof the ads is in contrast with the nature of the contex(Meyers et al., 1997). When companies form partnershipswith a celebrity through an endorser association, theymust be prepared to deal with the risks. In some casesthe decision is clear from the nature of the negative event(Louie and Carl, 2002). Involvement represents the

amount of arousal or interest evoked by a particulaadvertisement (Mitchell, 1979). The amount of arousal orinterest determines the degree of attention devoted to anadvertisement and also influences the processingstrategy. One processing strategy used by receivers is toactively process advertising information so as to form anoverall evaluation of the advertised brand (Mitchell et al.1980). There has been considerable debate regardingthe most appropriate measures for predicting advertisingeffectiveness (Blair and Rosenberg, 1994; Haley, 1994Haley and Baldinger, 1991; Harvey, 1997; Rossiter and


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Eagleson, 1994; Walker and Dubitsky, 1994). As anindication of the increasing popularity of Internetadvertising, overall Web advertising revenue in theUnited States has grown consecutively for the pasteighteen quarters with revenues for the first half of 2000reaching $ 4.1 billion U.S. (Cyber, 2000). The function of

generating attention in advertising is to increaseexposure and then allow the message to influence brandawareness and ultimately consumer decision-making(Rossiter and Percy, 1997). Attracting attention alone isusually insufficient to stimulate consumer action, as muchthat is noted, is subsequently discarded by consumersbefore further processing can occur. Advertising can beviewed as a variable field created by the merged interestsof communication and marketing. Variable fields grow orfade based on changing interests and concerns insociety. A variable field begins when a group of scholarsdevelop a common interest in a phenomenon and beginto systematically investigate it (Paisley, 1972).

A firm can influence the perception of an extension byproviding information cues through advertising and othermarketing mix activities (Aaker and Keller, 1990).Advertising conditions, that is, affective reactions to an adare likely to influence evaluations of the sponsoring brandand was significantly related to both attitude toward thebrand and attitude toward purchasing the brand inadvertising (Darrel, 1987).

Innovation

Innovativeness is a personality trait related to anindividuals receptivity to new ideas and willingness to trynew practices and brands. The importance ofinnovativeness has been examined extensively in theliterature on diffusion of innovation (Rogers, 1983) andconsumer behavior (Engel et al., 1990). The resultsindicate that these groups of firms significantly differs withrespect to both subjective and objective measures of newproduct performance, and with product innovationstrategies and activities pertaining to timing of marketentry, product quality, marketing synergy, proficiency ofmarket launch, and management support for innovation(Atuahene-Gima and Ko, 2001). The market opportunitiesof firms and the development opportunities of regionsdepend increasingly on their capacity to continuously

generate innovative products and processes (Rolf andArndt, 2001). A common observation is that individualshigh in innovativeness are more venturesome and morewilling to try new brands (Stenkamp and Baumgartner,1992). In the services sample (telecom brand), there is apositive relationship between the extent to whichconsumers are innovative and the extent to whichservices brand extensions are favorably evaluated (Hemand de Chernatony, 2001). The private value ofinnovation can be quite different from the private value ofthe intellectual property associated with that of


innovation (Sherry and Teece, 2003). Innovators differ intheir ability to commercialize their innovations, and thevalue that the innovator can obtain fromcommercialization depends not only on the appropriabilityregime but also on the commercialization strategy thathe innovator chooses (Teece, 1986). This aligns with the

arguments of Keller and Aaker (1997) that an innovativecorporate image leads to positive brand extensionevaluations. The historic district offers competitiveadvantages to its constituent firms by providing a uniqueset of skills and resources that can constitute a distinctivelocal capability within a "global marketplace( Maskell andMalmberg, 1999) and by enabling the rapid circulation ofinformation on market trends and new design innovationsthat are demanded by a cultural economy (Jameson1990; Scott, 2001). Relative product advantage is themost important product innovation characteristic. A majoproduct advantage typically generates major markeshare rewards, whereas a moderate advantagegenerates moderate rewards (Robinson, 1990). Highlyinnovation-supportive cultures are credited with fosteringteamwork and promoting risk-taking and creative actionsthat seem directly linked to effective new producdevelopment (Jassawalla and Sashittal, 2002). The needfor organizational innovation and renewal has beenrecognized, not only to withstand the gales of creativedestruction,' but also to create them (Schumpeter's1942). Product innovation have been recognized as aprimary means of corporate renewal (Dougherty, 1992)and as an 'engine of renewal' (Bowen et al., 1994).

DATA COLLECTION METHODS

The data was collected from the consumers of Tehran, GuilanIsfahan, Tabriz, Mashhad and Kish. It took a couple of months togather up the entire questionnaire back although, they were 250 innumbers. The respondents should have gotten enough time to filup the questionnaire such that they only provide the absoluteinformation which can be very fruitful for the research. Thequestionnaire was made by having questions relating toindependent variables which were advertising, customesatisfaction and innovation and their effect has been seen on thedependant variable that is brand image. Likert scale was beingused in the questionnaire.

There were generally 250 respondents, out of which 57% werefemales and 43% were male respondents, data was almoscollected from all the age groups but the most respondents were othe age between 20 to 30 years, were 67%, the respondents from

the age 30 to 40 years were 21% and from 40 to 60 years were12%. The respondents were mostly educated; there were 20% whowere post graduates respondents, 44% were bachelors, 20%respondents has their education till high schools. The respondentswhich were having jobs were 56%, out of which 98 were having jobtenures in between 1 to 10 years as seen in Table 1.

Theoretical framework

In this research, dependant variable is brand image andindependent variables are advertising, customer satisfaction andinnovation (Figure 1). Brand image can be directly affected by


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Table 1. Frequency distribution.

Variable Category Frequency Percent Cumulative Percent

Gender

Male 108 43 43

Female 142 57 100

Total 150 100 -

Age

20-30 168 67 67

30-40 52 21 88

Above 30 12 100

Total 250 100 -

Qualification

Matriculation - - -

High school 50 20 20

Bachelor 110 44 64

Master 90 36 100

P.H.D - - -

Total 250 100 -

Tenure

1-10 245 98 98

10-20 5 2 100

Above - - -

Total 250 100 -

Independent variables Dependent variabl

Advertising

Customer

Satisfaction

Innovation

Brand Image

Figure 1. Relationship between independent variables and dependent variable.

advertising as it positions the brand in the mind of the consumers,so brand image is dependent on advertising, since the initialproduct image has always been made by advertising. Brand imageis also dependent on customer satisfaction; in other words, themore the customer would be satisfied with the product, the morepositive would the words of his mouth be. It also maintains thebrand image in its right position and also helps in improving brandimage. Brand image is also dependent on the innovation product,as the consumer gets tired of seeing the old product, unlesssomething new is added to the packaging of the brands shape. Soinnovation makes the customer more attracted towards the

products, polishes the brand image and increase customerssatisfaction as well.

Research hypotheses

H1: The more the customer gets satisfied; the better would be thebrand image.H2: Advertising and brand image has a positive relationship.H3: The more there would be product innovation; the better wouldbe the brand Image.


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Table 2.The results of multiple regression analysis (MRA) between independent variables and dependent variable for LG Product.

Model summary

Model R R2

Adjusted R2

Std. error of the estimate F-statistic Durbin-Watson stat

1 0.473a

0.223 0.212 2.96997 11.79 1.671

Coefficientsb

ModelUnstandardized coefficients Standardized coefficients

t Sig. Std. Error

1

(Constant) 6.733 1.724 3.905 0.000

Advertising 0.206 0.053 0.273 3.908 0.000

innovation 0.109 0.052 0.144 2.091 0.038

Customer satisfaction 0.183 0.054 0.220 3.415 0.001

a. Predictors: (Constant), advertising, customer satisfaction, innovation; b. Dependentvariable: brand image.

Table 3.The results of multiple regression analysis (MRA) between independent variables and dependent variable forSAMSUNG products.

Model summary

Model R R2

Adjusted R2

Std. Error of the estimate F-statistic Durbin-Watson stat

1 0.402a 0.172 0.261 2.2387 11.23 1.821

Coefficientsb

ModelUnstandardized coefficients Standardized coefficients

t Sig. Std. Error

1

(Constant) 5.871 1.132 3.243 0.000

Advertising 0.187 0.045 0.221 3.247 0.002

innovation 0.165 0.043 0.195 2.987 0.005

Customer satisfaction 0.121 0.040 0.131 2.327 0.024

a. Predictors: (Constant), advertising, customer satisfaction, innovation; b. Dependent variable: brand image.

DATA ANALYSIS

The data has been analyzed with the help of correlationand regression analysis by SPSS software. It has beenfound that, there were more consumers of LG Productsthan of Samsung. Then the two products of Samsungand LG were compared to see the different factorsdetermining brand image of which the correlation andregression analysis has been done between thedependent variable Brand image and independent

variables advertising, customer satisfaction andinnovation.

Analysis for LG products

The result of multiple regression analysis (MRA) betweenindependent variables and dependent variable for LG isshowed in Table 2. Using enter method, a significantmodel was obtained in which R = 0.473, Durbin-watsonstat=1.671 and R

2= 0.223 meaning that, three inde-

pendent variables explain 22% of dependent variables.

According to sig column, it is observed that all of thevariables are significant and the model is as shown thus:

73.6183.0109.0206.0321+++= XXXY

According to beta column it can be said that, respectivelyadvertising has more impact or influence on brand imagevariables and customer satisfaction and innovation areplaced in subsequent grades.

Analysis for Samsung products

The result of multiple regression analysis (MRA) betweenindependent variables and dependent variable foSAMSUNG products is showed in Table 3. Using entermethod, a significant model was obtained in which R =0.402, Durbin-watson stat=1.821 and R square = 0.402meaning that three independent variables explain 22percent of dependent variables. According to sig columnit is observed that all of the variables are significant and


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the model is as thus:

87.5121.0165.0187.0321+++= XXXY

According to beta column it can be said that, respectively,advertising has most impact or influence at brand image

and variables innovation and customer satisfaction areplaced in subsequent grades.

Conclusion

This study attempts to incorporate brand image effectand competition into the framework and examination ofthe effects of brand image on advertising, customersatisfaction and innovation. Moreover, strong links existbetween consumer attitudes to an advertisement andtheir attitude towards the brand featured in theadvertisement customer satisfaction and innovation;consumer attitude towards an advertisement andperceptions of a brand directly influence their attitudetowards that brand image; perception of anadvertisement indirectly influences attitude towards abrand through the consumer's attitude towards thatadvertisement; and attitude towards an advertisementcan influence consumer attitude to a brand through theconsumer's knowledge or perception of that brand image.

After having the analysis, it has been found that thebrand image has a positive correlation with all of thethree independent variables. Brand Image is strongly andpositively correlated with advertising, and some personsdistinguish the psychological aspect of a brand from theexperiential aspect. The psychological aspect, sometimes

referred to as the brand image, is a symbolic constructcreated within the minds of people and consists of all theinformation and expectations associated with a product orservice that is through advertising. Brand image andadvertising, both have a positive and strong relationshipwith each other. There are two main reasons for thispositive relation. Firstly, through advertising, thepublic/customers would come to know about the productand brand, while advising and encouraging the public tobuy or use such brand would attract people to it andwould make the brands image to become high. If youwant to cater more target, attract more customers, tryadvertising in the local paper and then let more people

know about whats going on, what is going to happen,what new things are coming, what new creating,innovation is happening. Secondly, advertising willincrease the sales of any brand also increase the brandimage. The aim of this article is to aware thepublic/customer regarding brand image and advertisingand also important of these two factor on each other, howthey influence each other, how advertising motivate thepeople to increase the brand image.

People engaged in branding, seek to develop or alignthe expectations behind the brand experience, creating

the impression that a brand associated with a product orservice has certain qualities or characteristics that makeit special or unique. A brand is therefore, one of the mosvaluable elements in an advertising theme, as idemonstrates what the brand owner is able to offer in themarketplace. A cleverly crafted advertising campaign can

be highly successful in convincing consumers to payremarkably high prices for products which are inherentlyextremely cheap to make. It has been noticed thatwhenever a company goes to launch a product, it startsto make the brand image of a product, position theproduct in the consumers mind and the product is alwaysbeing aggressively advertised. So, it shows thaadvertising has direct and strong impact on brand imageIt has also been found that brand image is positivelycorrelated with customer satisfaction. In a competitivemarketplace where businesses compete for customerscustomer satisfaction is seen as a key differentiator andincreasingly has become a key element of businessstrategy. It is correlated in such a way that whencustomer gets satisfied, there would be positive words ofmouth from the customers and then there would be morecustomers attracted towards the product. It has beenseen that the customers of side by side refrigerator andplasma which are the brands of LG are more satisfiedrather than Samsung and plasma which are the brands oSamsung.

However, it has also been seen that due to lesssatisfaction, LG products have more customers thanSamsung products. The state of satisfaction depends ona number of both psychological and physical variableswhich correlate with satisfaction behaviors such as returnand recommendation rate. The level of satisfaction can

also vary, depending on other options the customer mayhave and other products against which the customer cancompare the organization's products (Bart Allen, 1990)However, existing information processing suggests thaconsumer satisfaction process attribute informationindependently for brand image and compare the valuesNumerous studies have stated that an customesatisfaction can influence the brand image. It has alsobeen seen that brand image is positively and stronglycorrelated with innovation. The term innovation means anew way of doing something. It may refer to incrementalradical, and revolutionary changes in thinking, productsprocesses, or organizations. A distinction is typically

made between invention, an idea made manifest, andinnovation, ideas applied successfully (Mckeown, 2008)Innovation has strong impact in building a brand imagethe LG products are more innovated than Samsung inIran, the advertisements has some innovation that wereinnovation packaging, so, it attracted the customers andincreased customer base.

Amabile et al. (1996) says that All innovation beginswith creative ideas. We define innovation as thesuccessful implementation of creative ideas within anorganization. In this view, creativity by individuals and


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teams is a starting point for innovation; the first isnecessary but not sufficient condition for the second. Ithas also been seen through the results that innovationhas positive and strong correlation with brand image in allthe products. The study is focused on brand imageimpact on innovativeness. The relationship between

innovativeness with brand image is very strong and thefuture innovation enhances competitiveness, informationand brand image. Behind every great brand, lies avaluable social benefit delivered through innovation,value, choice effectiveness, taste, functionality andconvenience to prosper. Businesses have to offerconsumers these benefits and when they do, peopleslives improve. Without brands, there would be no point forthe business to compete, invest and innovate.

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Gilaninia and Mousavian