Is dacia–logan Car Brand on the First Place of Romanian ... · of study, specialization ... FMCG Healthcare Industry & Services Media ... The Nielsen Company New Release 2009 Global

Procedia - Social and Behavioral Sciences 58 ( 2012 ) 1344 – 1352

1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 8th International Strategic Management Conferencedoi: 10.1016/j.sbspro.2012.09.1118

8th International Strategic Management Conference

Is Dacia Logan car brand on the first place of Romanian youth preferences? Testing the influence of advertising campaigns with

nonparametric statistics Manuela Rozalia Gabora* b

a,b Pet

Abstract

TV advertising is regarded as one of the most persuasive forms of influencing consumer preferences, encompassing the largest budget amount compared to other forms of promotion. TV advertising used to promote world-known car brands has major strategic management implications for manufacturers, distributors, etc. the rule on this market is the ultimate goal of any of the automotive brands. Romanian car market has many features, the massive purchase of second-hand cars (mostly German brands) to the positive response to the government program - vouchers to purchase a new car. Based on literature and researches it is proved that young consumers are more receptive to TV advertising. To test whether there are statistically significant differences among young people (depending on faculty attended, year of study, specialization, gender, etc.) regarding the preferences for TV advertisements promoting Dacia Logan car brand compared to other car brands, we used non parametric statistical methods such as the Friedman test, Spearman and Kendall correlations, Mann-Whitney U test, Kolomogorov-Smirnov test, Kruskal-Wallis test, as well as chi square test.

Keywords: advertising, car brand, preferences, non parametric statistics, Romanian youth

2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of The 8th International Strategic Management Conference

1. Introduction

with major implications in designing policies and strategies of communication and promotion and repercussions on brand marketing budget and ultimately on the car selling price.

Global auto market is disputed by historical brands or new ones (Asian, for example) that develops policies and marketing strategies supported by innovation - technical, economic, technological, etc. by strong promotional marketing campaigns using the most expensive media, from participation in the famous auto shows, to articles or TV shows dedicated to this market.

Car market in Romania is characterized by several features: a massive import of used cars backed by intensive used cars withdrawal program supported by government designed to halt the entry of used cars in Romania. The main goal of the programme was to boost industry as almost half of the new cars bought under the scheme were actually locally

* Manuela Rozalia Gabor Tel.: +4-074-276-0430, Lia Codrina Contiu Tel.: +4-074-009-4636;;

E-mail address: [email protected], [email protected];

Available online at www.sciencedirect.com

© 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 8th International Strategic Management Conference Open access under CC BY-NC-ND license.

Open access under CC BY-NC-ND license.

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1345 Manuela Rozalia Gabor and Lia Codrina Con iu / Procedia - Social and Behavioral Sciences 58 ( 2012 ) 1344 – 1352

produced Dacias. Reducing pollution was another major goal of the programme. The old cars that were replaced were actually heavy polluters.

It resulted also, based on statistics of Automotive Importers and Manufacturers Association of Romania (http://apia.softnet.ro), that: out of 335,232 units produced in 2011 (decreased by 4.5% since 2010) 91% of them are exported. In the top car brands sold in 2011 in Romania the first place is owned by local brand Dacia with 28,337 units sold, followed by Volkswagen with 10,043 units, Skoda 8260 units, Renault 7229 units, Ford 5547 units, etc. The most sold models of Dacia brand is Logan (15,808) and Duster (7249) Table 1.

Table 1 Top car brands and models sold in Romania in 2011

Top Brands Units sold Top Models Units sold Dacia 28337 Dacia Logan 15808 Volkswagen 10043 Dacia Duster 7249 Skoda 8260 Skoda Octavia 4318 Renault 7229 Renault Clio 3920 Ford 5547 Volkswagen golf 2922 Opel 4872 Dacia Logan MCV 2761 Hyundai 3405 Dacia Sandero 2519 Chevrolet 3027 Opel Astra 2222 Toyota 2902 Volkswagen Polo 1957 Peugeot 2425 Volkswagen Passat 1750 Suzuki 2111 Opel Corsa 1655

(Source: APIA (2012), Press release 23 January 2012 available at http://apia.softnet.ro/uploads/date/Conferinta%20presa%20APIA%20-%20media_site.pdf, p. 5)

Dacia brand ranks eighth in the top chart of 2011 conducted by JD Power and L'Automobile Magazine [38], in the

as Toyota, Volkswagen, Citroen, Peugeot, Kia, Ford, Fiat and Chevrolet, just one point away from Nissan. Instead, Dacia Logan moved up to the first place in the small car category, compared to last year, when it ranked second.

following the electronics (18 brands), fast moving consumer goods and alcohol (ten brands each) holding eight brands in 2011.

Worldwide, according to INTERBRANDS, in the top ten global brands chart there are no car brands ranked, the only car brand ranked (eighth) in the top ten brands in 2009 is Toyota, and in 2007 it was ranked the sixth, on the last place being ranked Mercedes. The only car brand that has been present in the top ten charts worldwide is Ford, in 2001, being ranked the eighth.

Also, according to Nielsen research firm, in 2009 compared to 2008 changes on the advertising market are major; practically the sector with the biggest drop is the automotive sector with a rate of 15.1% (figure 1).

-15,1

-11,6

4,2

-4,5

-3,9

-11,4

10,6

6,1

-7,5

-3,5

-3,2

-20 -15 -10 -5 0 5 10 15

Automotive

Clothing&Accessories

Distribution channels

Durables

Entertainment

Financial

FMCG

Healthcare

Industry & Services

Media

Telecommunications


Figure 1 Sectors (% change year to date) (Source: The Nielsen Company New Release 2009 Global Advertising underlines different behaviours with regions and sectors, available at

www.nielsen.com, p. 4) Based on these considerations, we wanted to test with non parametric statistics Romanian youth preferences

regarding video ads that have the subject cars belonging to the following brands: Dacia Logan, BMW, Fiat, Renault, Ford, Hyundai, Mercedes, Skoda, Volkswagen, and Toyota, using advertising clips from the specialized site www.IQads.ro

eight video ads of Dacia Logan brand, namely: Dacia coffee machine, Dacia Logan, Dacia prog, Dacia Logan chase, Dacia Logan bad boy, Dacia Logan break-basket, Dacia Pick Up Tough guys;

ten video ads that have as subjects vehicles of various brands, such as: Dacia Logan, BMW, Fiat, Renault, Ford, Hyundai, Mercedes, Skoda, Volkswagen, Toyota.

2. Non parametric statistics

Non parametric statistics provides many tools or statistical tests for marketing data, the Friedman test, along with other tests often used in market studies Wilcoxon, Kolmogorov - Smirnov, Mann Whitney, etc. - being less discussed and applied to ordinal marketing data.

In Romanian literature we meet it as Friedman test (see A. Novak) along with U Mann Whitney test or Kruskal Wallis and median test to compare multiple samples (distribution) and in the foreign literature it was first

mentioned by W.J. Popham and K.A. Sirotnik in 1973 in his Educational statistics use and interpretation. Other foreign authors who have referred to and exemplified this test are chronologically -: in 1982, L. Lebart, A.

Morin and J. - P. Fenelon in in 1988 GR Loftus and EF , in 1990 D.S. Tull and D.I. Hawkins in Marketing research. Measurement & method,

in 1998 G. Pupion and P.C. Pupion in Test non- in 2003 Evrard, Y., Pras, B., Roux, E. - Market etudes et recherche en marketing 3e edition, 2005 L. Moutinho, M. Goode and F. Davies in Quantitative analysis of marketing management, in 2006 by A. Jolibert and P. Jourdan in Marketing research

The test is used when the samples are linked (Tull & Hawkins, 1990: 585), the steps followed in this test being those described by these authors, the formula used for statistical 2

r is:

r2= 12

nk ( k+1) j= 1

k

( R j )2 3n( k+1 ) (1)

where n = sample size (number of subjects / group counted) k = number of columns Rj = sum of ranks by columns

Kolmogorov Smirnov Test is found in the literature as the adjustment test on a specified law [Pupion and Pupion,

between the observed and theoretical frequencies derived from H0 and has a feature (Lambin, 1990, p 246), respectively it is adapted to ordinal data, practically instead of frequencies by unordered classes; we have a frequency distribution of ordered or hierarchical classes.

Mann Whitney test is found in the literature as the two-dimensional analysis of a couple of nominal ordinal

p 580). It is applied when in the study there are ordinal variables on a variable from two independent samples and it is intended to verify the hypothesis of a difference between these two groups (Lambin, 1990, p 250).

Kruskal Wallis Test, considered as an extension of the Mann Whitney test for more than two samples, called also Kruskal and Wallis rank test (Jolibert -1) degrees of freedom when the size of each sample is greater than five. Multivariate statistics provides marketing research with statistical tests that address issues regarding the study of k samples, being related or not. Thus, KWN Kruskal Wallis statistics and J Jonkheere Terpstra statistics are used to test, under certain conditions, the hypothesis that the distribution of given data features is the same on k sub-populations (G. Pupion and P. C. Pupion 1998, p 83).


3. Methodology

Non parametric statistical methods were used as follows: Spearman and Kendall non parametric correlations to study correlations between advertising clips

preferences among students in the sample; Bivariate 2 test to test if there are statistically significant differences between the study subjects according

to socio-demographic variables; Kolmogorov-Smirnov test (for two independent samples) to test whether there are differences between the

rankings provided by subjects, grouping students according to socio-demographic variables; U Mann Whitney non parametric test (for unrelated variables) to test if there are differences between the

rankings provided by subjects; Kruskal Wallis test (for more independent samples) to test whether there are differences between the

rankings provided by subjects, grouping students according to socio-demographic variables; Friedman test to test if the groups of students belong to the same population.

For data processing we used SPSS 16.0 program and, in addition to non parametric methods, we used descriptive statistics.

4. Sample description

The sample used in this study consists of 46 students from two universities and various specializations (table 2), the sample selection being made using convenience sampling, sample structure depending on the socio demographic data is shown in table 1, subjects are between 18 and 24 years of age, the average age being 20 years of age: Table 2 Sample structure according to socio-demographic characteristics

Socio-demographic characteristics Structure (%) University

74 26

Specialization Commerce, tourism and services economy Management Theatre Scenography Music pedagogy

41 33 15 7 4

Year of study 1st year 2nd year 3rd year

46 13 41

Budgeted/tuition Budgeted Tuition

55 45

Gender Male Female

41 59

5. Results

To test the impact of advertising through radio commercials promoting Dacia Logan car brand, we used eight clips from the professional site www.iqads.ro having as subject this brand, namely: Dacia coffee machine, Dacia Logan, Dacia prog, Dacia Logan chasing, Dacia Logan bad boy, Dacia Logan break-basket, Dacia Pick Up tough guys, Dacia Sandero. After calculating the scores obtained using the weighted arithmetic mean (1 1st, 10 10th), it resulted in the following hierarchy of the eight video ads (table 3):


Table 3 Rank and scores of video ads promoting Dacia Logan Video ads - Dacia brand

Score Rank Video ads - different car brands

Score Rank Rank based on Friedman test

Dacia Logan Dacia Pick Up tough guys Dacia Logan chasing Dacia Sandero Dacia prog Dacia Logan bad boy Dacia Logan break-basket Dacia coffee machine

4.00 5.13 5.28 5.69 6.26 7.57 8.83 9.46

1st place 2nd place 3rd place 4th place 5th place 6th place 7th place 8th place

Renault Dacia Logan Skoda Volkswagen Ford Fiesta BMW Toyota Honda Hyundai Fiat Mercedes

3.59 5.54 5.78 6.00 6.74 7.22 7.65 8.65 8.80 12.28 12.67

1st place 2nd place 3rd place 4th place 5th place 6th place 7th place 8th place 9th place 10th place 11th place

3.21 4.89 5.14 4.76 5.71 5.82 6.79 5.63 7.33 9.52 7.21

Because Dacia Logan advertising clip was ranked first in the preferences of young people / students in the sample, we used this clip to test the impact of advertising through radio commercials promoting other car brands on the Romanian market and thus positioning Dacia brand among world renowned car brands. We used then the following advertising ads: Dacia Logan, BMW, Fiat, Renault, Ford Fiesta, Hyundai, Mercedes, Skoda, Volkswagen, Toyota, and Honda. To test whether there are correlations between the preferences regarding the 11 video ads, we used Spearman and Kendall non parametric statistics. The results are as follow:

There are low to medium positive correlations, but statistically significant between the following brands: Toyota and BMW, Honda and Fiat, Honda and Volkswagen;

There are low to medium negative correlations, but statistically significant between the following brands: Dacia Logan and BMW, Skoda and Hyundai, Toyota and Fiat.

As the number of radio commercials tested is large (11) and the number of subjects in the sample is quite small (46), the conditions of bivariate 2 test application can not be fully fulfilled (cells with frequencies less than 0 or 5). We applied this test only to test differences between the ranks of the first three clips ranked, respectively, Renault, Dacia Logan and Skoda, the results and hypotheses tested being shown in Table 4. Also, in 2007, JATO Dynamics reports (M. Bursa, 2007) countries in the first three quarters of 2007, albeit with the sales down by 5.1% on the same period of 2006 and Skoda took second and the third place with Fabia and Octavia.

The null hypothesis tested H0 Video ads 2

calculated df 2

theoretical

Asymp. Sig (2-sided)

Conclusions

1. No statistically significant differences in terms of video ads preference by faculty attended

Renault Dacia Skoda

6.02 8.82 12.78

9 11 13

- - -

Insignificant Insignificant Insignificant

- - -

2. No statistically significant differences in terms of video ads preference by specialization

Renault Dacia Skoda

27.99 61.22 66.43

45 55 65

- - -


- - -

3. No statistically significant differences in terms of video ads preference by gender

Renault Dacia Skoda

9.26 11.59 10.35

9 11 13

- - -


- - -

4. No statistically significant differences in terms of video ads preference by year of study

Renault Dacia Skoda

14.04 20.89 29.94

18 22 26

- - -


- - -

5. No statistically significant differences in terms of video ads preference by type of study (budgeted/tuition)

Renault Dacia Skoda

12.60 21.82 14.59

9 11 13

12.24 19.68 -

0.20 0.05

Insignificant

H0 is rejected H0 is rejected -


It is therefore apparent that there are significant differences between the young people advertising preferences and the type of study (budgeted/tuition) but only for the video ads promoting No. 1 brand, Renault, and No. 2 brand (from the same auto-maker) Dacia Logan. The advertising preferences based on other socio-demographic characteristics are insignificant. In applying the non parametric Friedman test we elaborated the null hypothesis H0 = there are no significant differences between the column rank sum depending on treatments or those k samples belong to the same population. The ranks obtained by transposing the methodology of the test are presented in the last column of table 3. For ten degrees of freedom and statistical significance level = 0.0001, Friedman 2

r statistic has the value of 116.37, the theoretical value is 29.59, so the calculated value is greater than the theoretical one. So, the null hypothesis H0 is rejected, and there are statistically significant differences between groups of students regarding their preferences for a particular video ad promoting car brands. The statistically significant results by applying the U Mann Whitney test for unrelated variables, two sample Kolmogorov Smirnov test and Kruskal Wallis test for k independent samples are presented in table 5

Table 5 Results for U Mann Whitney tests for unrelated variables, two-sample Kolmogorov Smirnov test and Kruskal Wallis for k independent samples Dacia

Logan

BMW FIAT

Renault Ford

Fiesta

Hyundai Mercedes Skoda

VW Toyota Honda

1. Subjects grouped on gender

Mann-Whitney U 184.000 161.000 SI SI SI SI SI SI 203.500 SI SI

Wilcoxon W 562.000 351.000 581.500

Z -1.629 -2.140 -1.189

Asymp. Sig. (2-tailed) .103 .032 .234

Most

Extreme

Differences

Absolute

SI

.398 SI SI SI SI SI SI SI SI SI

Positive .053

Negative -.398

Kolmogorov-Smirnov Z 1.328

Asymp. Sig. (2-tailed) .059

2. Subjects grouped on type of study (budgeted/tuition)

Mann-Whitney U 110.000 201.500 SI SI SI SI 174.000 SI 113.500 SI SI

Wilcoxon W 435.000 411.500 499.000 323.500

Z -3.220 -1.113 -1.740 -3.137

Asymp. Sig. (2-tailed) .001 .266 .082 .002

Most

Extreme

Differences

Absolute .460 SI SI SI SI SI .360 SI .500 SI SI

Positive .460 .360 .000

Negative .000 -.080 -.500

Kolmogorov-Smirnov Z 1.533 1.200 1.667

Asymp. Sig. (2-tailed) .018 .112 .008

3. Subjects grouped on faculty

Mann-Whitney U 138.500 SI 81.500 SI SI SI 133.500 SI SI 125.000 97.000

Wilcoxon W 216.500 159.500 211.500 720.000 175.000

Z -1.650 -3.105 -1.769 -1.985 -2.694

Asymp. Sig. (2-tailed) .099 .002 .077 .047 .007

Most

Extreme

Differences

Absolute SI SI .441 SI SI SI .412 SI SI .422 .529

Positive .000 .054 .422 .000

Negative -.441 -.412 -.147 -.529

Kolmogorov-Smirnov Z 1.314 1.226 1.256 1.577

Asymp. Sig. (2-tailed) .063 .099 .085 .014

4. Subjects grouped on year of study

Chi-Square SI 4.400 15.483 SI SI 4.508 6.364 SI 10.742 3.388 31.220


df 2 2 2 2 2 2 2

Asymp. Sig. .111 .000 .105 .042 .005 .184 .000

5. Subjects grouped on specialization

Chi-Square 8.960 SI 17.976 SI SI 9.411 SI SI 10.564 SI 31.483

df 5 5 5 5 5

Asymp. Sig. .111 .003 .094 .061 .000

(Note: SI = statistically insignificant,

The data in Table 5 shows that, separating the sample members on gender, the only video ads for which the U Mann Whitney test results indicated rejection of the null hypothesis and thus the existence of statistically significant differences according to gender, are Dacia Logan (2nd), BMW (6th) and Volkswagen (4th), the Kolmogorov - Smirnov test results being significant only for BMW video ad. Separating the sample of subjects on the type of study budgeted / tuition, in addition to the video ads above mentioned there were also statistically significant results for the video ad ranked last in youth preferences, respectively Mercedes. If subjects are separated based on the faculty attended, we notice that the video ad Fiat has statistically significantly

Since the separation of the sample according to year of study and specialization has more than two ways, we chose Kruskal Wallis test to verify whether there are statistically significant differences between the rankings given by students. Thus, regarding the separation based on the year of study, the results for the first four ranked video ads are not statistically significant. The only video ads which have significant differences based on year of study are those in the second half of the rank. For BMW and Hyundai video ads the null hypothesis is accepted and therefore there are no significant differences based on year of study. In case of separating students based on specialization, significant results of Kruskal Wallis test were obtained for the following video ads: Dacia Logan (2nd), Fiat, (10th), Hyundai (9th), Volkswagen (4th) and Honda (8th). Thus, for Dacia Logan, Fiat, and Volkswagen video ads the null hypothesis is accepted (the calculated value is less than the tabulated one) and so there are no significant differences depending on specialization regarding the preference for this video ad. The null hypothesis is rejected (the calculated value exceeds the tabulated one) for Hyundai and Honda brands video ads.

6. Conclusions

through understanding the subject as a management process. TV advertising is seen as one of the main components of

(Masterman & Wood, 2005, p. 134). Compared to other forms of promotion, advertising has so far been a one-way flow of message content, and its effects have been difficult to measure. The major advantage is the low cost per contact and the creative power of advertising means that it can be very cost-effective, especially in consumer markets

architecture (Copley, 2004, p. 105). In addition, the fragmentation of media means that television advertising is more widely affordable with highly specialized and targeted digital channels (Masterman & Wood, 2005, p. 133).

socio-demographic characteristics are important varimay differ on various reasons ranging from subjective perceptions of the holder of that brand to economic-social restrictions (income, household size, employment status, education, gender, age, etc.). Diversity of models and range of car products (and services) confirm this. For example, BMW have been a huge success, especially in the UK.

was adjudged to have added value and to have helped project exclusivity into a context that is not exclusive. The results of this research have shown, using non parametric inferential statistical tools, a number of statistically significant differences between subjects included in this research, respectively students from two totally different universities in terms of profile and professional education, respectively economics (Commerce, tourism and services economy, Management) and arts (Theatre, Scenography, and Music pedagogy). We consider the results of this research as being important because, in the current global car market, the primary role of advertising is to help build brands (Copley, 2004, p 110). Producers and distributors have to adapt their offer to the


particularities of the Romanian market (for example, 41% of cars sold in Romania in 2011 were actually sold through http://apia.softnet.ro/uploads/date/Comunicat_piata_Dec_2011-

text.pdf). One of the statistics tools, the Friedman test was used for the first time in testing the TV advertising preferences, as it is more often applied in medical domain and learning machine. Considering the results of this research, in the future, using conjoint analysis method, we intend to investigate which characteristics technical, economic, marketing, etc. influence more the purchase of local car brand Dacia Logan compared to other world famous brands in the study. Acknowledgements

Communicating Sciences. Institutional building (postdoctoral school) and fell - POSDRU/89/1.5/S/63663, financed under the Sectoral Operational Programme Human Resources Development 2007-2013

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Is dacia–logan Car Brand on the First Place of Romanian ... · of study, specialization ... FMCG Healthcare Industry & Services Media ... The Nielsen Company New Release 2009 Global