“THE IMPORTANCE OF THE BRAND NAME ON CONSUMER PURCHASE DECISION” Dissertation Submitted in partial fulfillment of the requirement for Post Graduate Program in Business Management. ISB&M Logo 2006-2008 Guide By – Banasree Paul Sovan Nandi Roll No. -p/mn/c/06/043 This is to certify that the present study, “THE IMPORTANCE OF THE BRAND NAME ON CONSUMER PURCHASE BEHAVIOUR “ has been carried out by BANASREE PAUL, under my direct supervision.
I am glad to forward this for the partial fulfilment for PGPBM. ( ) PROF. SOVAN NANDI ACKNOWLEDGEMENT A research always helps in understanding more than the main topic of the research. I realized it even better during the Dissertation Project. The completion of the project would not have been possible without help, guidance, support and inspiration of certain people who acted as guides, friends and torchbearers along the way. I express my deepest and most sincere thanks to my faculty guide Prof.
Sovan Nandi, I S B & M, Kolkata for his able support and guidance. Thanking him is a small gesture for the generosity shown. I would also like to express gratitude to my family, friends and all the other people who have directly or indirectly helped me to keep myself focused and to attain my goals during these times and helped me in the completion of this project. Their enthusiasm and constant support kept me going throughout the completion of this project. TABLE OF CONTENTS Introduction 5 Role of Brand name in purchase decision 8 Influence of branding on
Consumer & commercial market 9 Methodology 15 Analysis 16 Conclusion 22 References 24 Questionnaire …………………………………….. 25 INTRODUCTION The American Marketing Association defines the brand “as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller of group of sellers and to differentiate them from those of competitors”.
One word, one symbol summarizes an idea, a sentence, and a long list of attributes, values and principles infused into the product or service. Consumer evaluations for with brand identified products are divided into two dimensions: functional dimensions (product attributes – tangible or physical attributes and symbolic dimension (brand name – intangible attributes, or images added to the product due to its brand name. Why brand name has big importance is that it is closely related to brand equity and brand identity.
The name is among the most powerful sources of identity. A brand encapsulates identity, origin, specificity, and difference. It evokes this information concentrate in a word or a sign. This is why brands are vital for business exchange: when faced with, say, hundreds of personal computers, a buyer can use brands to structure this selection, to segment it, helping him to decide what he wants, looking toward the products whose brands indicate that they will satisfy his expectations, needs, or wishes.
It has been shown that when subjects are presented with a given set of information including brand name, under certain situations the brand name will be used as a predictive cue. Whether considering what to have for lunch or which car to buy, consumers typically undergo a linear, multi-phased process when making a purchase decision. While varying in duration and intensity, this five-step approach typically includes problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.
The degree to which a consumer fully explores one phase before commencing a subsequent phase, however, is dependent on the level of intensity afforded each step as a result of the familiarity with the decision, and the perceived risk as may be affected by cost, visibility, and the degree of all or nothingness. Each of these phases is arguably internalized as the consumer proceeds from one step to another.
Noteworthy among these phases, however, is the “information search phase”, which is the critical stage within this continuum that may present the best opportunity for brands to insert themselves for “influence” during the purchase decision process. This can be achieved either directly through its communication to consumers or indirectly through influencers familiar with the brand. The Functional Role of Brand Name Every consumer is skeptic about their purchase decisions because all purchase decisions are “choice”.
Every choice involves a range of alternatives and in every brand name choice there is the risk of loosing the potential benefits of other brands. This is the key economic notion of opportunity costs, the benefit forfeited by not choosing the next best alternative. To reduce this risk consumers seek information in a rational and practical manner. So, the functional role of brand name is related to the “economics of information” theory.
There are two attribute types put forth for consideration: one is search attributes that are ones which can be verified prior to the purchase through direct inspection or readily available sources and the other one experience attributes are ones that can be verified only after use of the product. Credence attributes are ones that are difficult to verify even after use. In the case of search attribute (such as color or ingredient content), consumers are able to get information about the product before actually purchasing it.
Experience and credence claims, in contrast, cannot be verified readily prior to trial. If consumers were to evaluate the product before trying it, they would have to rely on other cues such as brand name to draw inferences about its quality. Consumers cannot evaluate credence attributes fully even after consumption. Hence, in the absence of any other cues, consumers are likely to base inferences about credence attribute performance on the brand name. A brand is essentially a seller’s promise to deliver a specific set of features, benefits, and services consistently to the buyers. The best brands convey a warranty of quality. ” Also according to the definitions made by Keller, brand names help to communicate quality and evoke specific knowledge structures associated with the brand. So, by these extrinsic cues “strong brand names can reduce consumer anxiety and simplify the shopping process. ” The Symbolic Role of Brand Name
The definition of brand by the American Marketing Association is not enough to explain the symbolic structure of the brand. Many research has shown that brands are the symbolic and expressive component of products; functional benefits are mostly related to product attributes whereas symbolic benefits are mostly related to brand name attributes in consumers’ mind as Kapferer stated: “Products cannot speak for themselves: the brand is what gives them meaning and speaks for them. It creates a resonance with them that builds nd reinforces brand identity”. Based on this perspective, Rio, Vazquez and Iglesias proposed four dimensions for analyzing the consumers’ evaluation of brand: functional dimension associated with the product, symbolic dimension associated with the product, functional dimension associated with the brand name and symbolic dimension associated with the brand name. In their study they noted greater differences between the brands in the brand name related benefits than in the product related benefits.
But another finding of their study that must been taken into consideration is that the brand name benefits perceived by the consumer are highly correlated to product-based benefits. An explanatory statement in their study about the symbolic importance of the brand name was that “only when the differences in the perceptions of the product are associated to different evaluations of the brand name attributes (guarantee, social identification, status, personal identification), does differentiation become an efficient comparative advantage. The reason of the importance of brand name is that it reduces social risk as financial risk. This social risk is related to reference group influences. Reference groups may determine the use of certain products (e. g. owning a computer) or they may have specific effects on brand name decisions within a product category (e. g. wearing Levi’s jeans versus Calvin Klein jeans). Reference group effects are more robust for purchases that are luxuries and socially conspicuous or visible to others. Consumer Buying Behaviour
The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. When purchasing a product there are several processes, which consumers go through. These will be discussed below. 1. Problem/Need Recognition How do you decide you want to buy a particular product or service? It could be that your DVD player stops working and you now have to look for a new one, all those DVD films you purchased you can no longer play! So you have a problem or a new need. 2. Information search
Consumers often go on some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbours who may have the product you have in mind, alternatively you may ask the sales people, or dealers, or read specialist magazines to help with their purchase decision. You may even actually examine the product before you decide to purchase it. 3. Evaluation of different purchase options. Consumers allocate attribute factors to certain products, almost like a point scoring system, which they work out in their mind over which brand to purchase.
This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. For example sound maybe better on the Sony product and picture on the Toshiba, but picture clarity is more important to you then sound. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the Sony DVD or Toshiba then which one shall it be?
It could be that the review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. 4. Purchase decision Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e. g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase of the product can either be through the store, the web, or over the phone. Post Purchase Behavior
Customers usually have doubts about the product after they purchased it. This simply is post purchase behaviour and research shows that it is a common trait amongst purchasers of products. Manufacturers of products clearly want recent consumers to feel proud of their purchase, it is therefore just as important for manufacturers to advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organisation. This limits post purchase behaviour. i. e. You feel reassured that you own the latest advertised product. Types of buying behaviour.
There are four typical types of buying behaviour based on the type of products that intends to be purchased. Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying behaviour is where the individual buys a product out of habit e. g. a daily newspaper, sugar or salt. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings!
Dissonance reducing buying behaviour is when buyer are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers. Role of Brand Name in Purchase Decision Process Regarding Brand Communication Perspective Though general decision process for consumers are told to be a five-step (problem recognition, information search, alternative evaluation, purchase decision and post-purchase evaluation) complex process.
It is suggested two main approaches to consumer decision making from understanding of general decision-making processes, perceived risk and involvement theories: High-involvement decision-making and low-involvement decision-making. “High involvement occurs when a consumer perceives an anticipated purchase which is not only of high personal relevance but also represents a high level of perceived risk…The risk described is financial, but risk can take other forms. ” so purchase decisions dominated by social risk also represent high involvement.
Customer satisfaction is an important component of most consumer decision making, and a consumer who makes a poor decision –that is, fails to effectively differentiate among competing product alternatives- faces the problems of dissatisfaction, cognitive dissonance, and/or a variety of associated risks (i. e. financial, safety, social, psychological). In such a consumer decision process especially for high involvement representing products, brand decision is one of the five purchase subdecisions consumers may make up .
Because “brand name” has the ability to reduce perceived risk and this is its strength to effect the purchase decision process. Not all consumer decisions are based on trying a product, “before trying a product, consumers must evaluate it primarily on the basis of their perception of the brand name. ” So brand communication strategies gained very big importance as a part of marketing communication strategies. Corporations try to make a differentiating brand identity to gain competitive advantages. The Influence of Branding and Packaging on Consumer vs. Commercial Markets
Branding and packaging certainly influence consumer product sales, although they have little influence on the sale of products to industrial customers. This is because product performance and service are the only critical variables in industrial purchases. The best brands convey a sense of quality, creating a long-term relationship with the customer. A brand may also serve to identify the seller or maker of a product. In addition to these qualities of a brand, brand names may also convey other levels of meaning, including attributes, benefits, values, and personality.
Private Consumers There are two basic types of consumers: private consumers, and commercial consumers. The private consumer market is the world’s largest. Not only does the private consumer buy for himself, but he also buys products as gifts for others. The buying behavior of the private consumer can be characterized by using a five-part model . This model starts with the buying-decision process. The buying-decision process is driven by information about products and service, and has a great influence on final purchase. The second part is the information-gathering process.
In this step, the buyer researches information about products by reading, talking with friends, or talking with store employees. The third step, social and group forces, plays an important role in the private consumer buying process. It is in this step that the values and expectations of family, friends, and co-workers have an effect on the consumer’s buying decision. The fourth step is the influence of psychological forces. This refers to the way in which the consumer interprets the world around him. The fifth step in the model is the consumer’s situational factors.
This includes his personal condition, as well as when, where, how, and why he buys. The private consumer generally has an emotional response to products, and this is where branding has its greatest effect . In many cases, a brand creates a feeling about a product, or helps a consumer to create an attitude about a particular product or service. The product or service may remain the same, but the branding of the product can make the customer hold a different opinion of the product. Branding has an influence on four of the five stages of the buyer behavior model — every step except for his personal psychological forces.
This is why branding is so powerful in the consumer market. Commercial Consumers The second type of consumer is the commercial consumer. In quantitative terms, the commercial consumer makes up a smaller part of the market, although the commercial consumer spends more money per transaction when compared to the private consumer . The buying decision process of the commercial consumer involves up to five stages, depending on the particular buying situation . The first stage is need recognition. It is in this stage that the company realizes a need for the purchase of a particular product.
The need may be realized as a result of internal or external stimuli. For example, the company may need new equipment so that it may manufacture different products, or a machine currently in use may require repair or replacement. A manager may be unhappy with a current supplier’s service or quality, or a new idea for a product or service may be introduced to management. . The second stage is the identification of the alternatives. These alternatives include the company’s manufacturing of the needed product on its own, the selection of other, similar, products, or the decision to not buy any new product.
In general, companies are buying product more often than they are producing products. The third stage, the evaluation of the alternatives, attempts to weigh the pros and cons of each alternative so that a logical decision can be made. The fourth stage is the decision to purchase. In the business environment, these decisions are usually well-informed, and are made jointly among several people. The time taken to make a decision is often quite long. The final stage is post-purchase behavior. In this stage, the company evaluates the choice it has made, eciding if the purchase was adequate to solve the problem. Branding and packaging have little involvement in the stages of the commercial consumer’s buying-decision process. The commercial consumer’s buying decision process is based solely on facts — cost of product, reliability, ability of the supplier to deliver goods on time, and so forth. Branding and packaging have no effect on these variables. Differences Between the Private and Commercial Consumers These five stages of the buying-decision process of the commercial consumer compares to that of ultimate, or private, consumers.
The major differences between the private and commercial consumers are fairly simple to pinpoint. First, the private consumer usually makes decisions for himself, whereas the commercial buyer’s decision is usually made buy a group of individuals who take the roles of users, influencers, deciders, gatekeepers, and buyers. In the case of the private consumer, these decisions may be based on emotions. In the commercial environment, the emotions of any single person are invalidated simply as a result of the large number of people involved in the decision process.
Even though there may be strongly opinionated members, these opinions may be outweighed by other opinions within the group. The commercial consumer makes a buying decision using a set method, while the private consumer frequently makes impulse buys. This is unheard of in the commercial market. All commercial purchases are planned, and the alternatives weighed, before a decision to buy is made. Generally, the negotiation period is a long one. The mass media play an important role in the buying decision of the private consumer.
The constant repetition of commercial advertisements serves to drive a product’s brand attributes into a customer’s mind. Greater presence in the media equals greater presence in the minds of customers, and that usually translates to greater sales. The mass media have little influence on the purchasing habits of the commercial consumer; again, this is because emotions and the forces of social groups are generally not involved. Studies have shown that advertising on mass media has little or no effect on commercial buyers. Branding and packaging have an effect on consumer sales, but not on industrial sales.
This is due to two main reasons. First, there is a difference in buying patterns of commercial versus private consumers. Second, private and commercial consumers have different needs. Private consumers often shop to fulfill wants, while commercial consumers make purchases to fulfill needs. In the case of private consumers, purchases are often reactive, responding to advertisements, which create a perceived need (which is actually a want, not a need). Commercial purchasing is often proactive, initiated by a problem, but then actively researched to make a purchase, which will result in the solution of that problem.
The Purchase Decision Process and the Key Role of the Information Search Phase The first step in the five-phase purchase decision process that the consumer undergoes is need or problem determination. This can be as basic to the human condition as what Abraham Maslow defined as “physiological needs”, such as needing nourishment in the form of a cup of coffee, or as elevated as “esteem needs”, such as desiring a new luxury automobile. During a period of basic or “physiological” necessity, for instance, the consumer determines that he/she needs sustenance and promptly seeks to satisfy this need with food or drink.
This need-satisfaction process is replicated along each elevation of the hierarchy of needs from the most basic to the most elevated. This initial phase of problem recognition forms the contextual framework within which the subsequent search for information is conducted to satisfy deficits up and down the hierarchy of needs. Relying on previous experience and using the contextual framework of the need determination phase, the consumer will begin the critical second step of searching for information that will form the basis for evaluating the different alternatives available for satisfying the deficit.
For it is at this pivotal juncture that the information that forms the basis for the alternatives used in the purchase decision is harvested. This singular step of searching for information, however, may encompass an assortment of alternatives. These can range from remembering past personal experiences and reading advertisements to querying friends, relatives and retail clerks whom the consumer views as potentially valid contributors of information in the evaluation of alternatives that will ultimately guide the purchase decision. The Correlation between Familiarity, Risk and Influencers
The decision to seek influencers, and the choice of which influencers to seek, is not an automatic event that occurs every time a consumer makes a decision, but rather is the product of two fundamental components that are present in every purchase decision. Comprised of familiarity and risk, the levels of these interlocking components interact together to provide the level of motivation to seek influencers. Familiarity plays a key role in how a consumer approaches a purchase decision, with the levels of familiarity modulating the drive to seek influencers.
For instance, as the level of familiarity towards a purchase decision increases, the more comfortable the consumer is in the decision and with limiting the role of influencers. Conversely, as the level of familiarity decreases the more uncomfortable the consumer is in the decision and the more important the role of the influencer becomes in the decision. For example, if a person is considering buying a color copier, and has never purchased a color copier or a similar product before, the lack of familiarity with the process, manufacturers, costs, etc. ill motivate the decision maker to consult various influencers to help him gather the information necessary to make (what he hopes is) an informed and correct decision. The level of familiarity does not motivate the drive for influencers in isolation, however, and must be examined within the context of perceived risk. While familiarity in and of itself is a contributing factor to the role of the influencer, its contribution is always framed within the degree of perceived risk.
Generally, there are three factors which compound the level of perceived risk: the financial cost of the purchase decision, the visibility quotient of the purchase decision, and the degree of “all or nothing” of the purchase decision. When these risk factors are perceived to be relatively low, the apparent requirement of consulting an influencer is reduced and the consumer may instead rely on his own previous experience and/or other tertiary clues (such as advertising and consumer observations) to make a “quick” decision.
For instance, a consumer who recognizes the need for nourishment may view the perceived risk of an incorrect choice between two different fast food restaurants to be relatively trivial given the minimal cost of meals from both restaurants, the negligible visibility of the decision among others, and the low degree all or nothing of the experiment which permits the consumer to subsequently explore other eating establishments even if this experiment goes astray. In his case, the consumer may feel comfortable in making a quick decision based solely on previous experience, electing “not to bother “other available influencers beyond a “lunch special” recommendation from the server. Even if the consumer elects to “take a chance” on the unknown and decides to dine at an unfamiliar restaurant, the perceived risk of making a wrong decision is mitigated if the unfamiliar restaurant is in close proximity to familiar restaurants (such as a restaurant row that the consumer frequents) and may not involve many other influencers.
The situation changes, however, when the decision is expensive, is highly visible, and is an all or nothing purchase, as when buying a new luxury vehicle. In this example, the perceived risk associated with the purchase of a new car can be magnified by the financial risk of making a wrong decision, the inability of being able to hide the purchase from others, and the all or nothing of the decision of being stuck with the car once it is driven off the lot.
Given the perceived jeopardy of this experiment, the consumer is very likely to consult a large array of influencers, compared to more trivial decisions, to mitigate perceived risks and increase the probability of a correct decision. These influencers can range from friends, family and the dealer salesperson. The influencers can also be in-depth magazine reviews and the brand’s web site, as well as the number of times the consumer observes the same vehicle in parking lots and on the street during his search for pre-purchase knowledge. This process is likely to continue after the decision as the consumer seeks post purchase affirmation to reduce dissonance proportionate to the perceived risk) The Brand as Influencer The brand has essentially two opportunities to be included in the critical information search phase as an influencer of the purchase decision.
The first opportunity arises when the consumer is made directly aware of the brand, while the second opportunity occurs when other individuals sought by the consumer for their advice have awareness of the brand. While the first opportunity is familiar, straightforward and purposefully sought by brands, the second is relatively unfamiliar, more intricate and usually fortuitously accomplished by brands. Whereas each opportunity individually provides a nique channel of influence on the purchase decision, together they combine to exert reinforcing pressure (either positively or negatively) on the choice among alternatives by the consumer. The probability of a brand’s message being relied upon as an influencer during the information search phase of minor purchase decisions is relatively high because the perceived risks associated with a wrong decision is relatively low, and the overall duration and intensity of the information search is minimal and straightforward.
In some cases the low perceived risk minimizes the requirement for familiarity. For instance, the significance of a decision involving the purchase of a cup of coffee when traveling in an unfamiliar town may be made primarily with input from personal observations of the signage and retail physicality of local coffee shops.
In this example, the coffee shops insert themselves in the role as the sole influencers as the consumer is searching for information to evaluate the different alternatives. To make consumers directly aware, brands typically employ a strategy that attempts to create awareness, craft positive perceptions and generate response through one or more elements of a marketing mix that will lead to purchase intent, trial and brand-championing post-purchase behavior.
Measured by reach and frequency, the intent is to create top-of-mind awareness during the information search phase of a relevant deficit. In contrast to the low perceived risk of insignificant decisions, such as buying a cup of coffee, the level of influence that a brand may be able to exert during the information search phase of a purchase decision that involves a high degree of perceived risk is less assured.
To begin with, the consumer may have access to, and demand, multiple sources of influence to gather the required amount of information to adequately populate the alternatives for evaluation, suggesting that the brand’s message must be capable of competing with the potential clutter of other influencers, both interpersonal and competitive brands, for the consumer’s mindshare.
This intimates that sustained frequency of the brand’s communication is necessary to maintain a top of mind presence sufficient for the consumer to be aware of the brand during the search for information timeframe one month or one year from now. Moreover, the brand must also deliver a message that is perceived as clear, relevant and believable by the consumer to leverage available mindshare for maximum influence during a purchase decision that involves a high perceived risk. This will increase the probability that the brand’s message will be included as a trusted source of influence in the purchase decision.
Central to this concept is increasing the brand’s familiarity quotient by crafting its message within a contextual familiarity that resonates with the consumer. This can mean imparting more content rather than less, and electing to speak to the consumer using the familiar language of the consumer’s lexicon as a substitute for relying on obscure industry or “homegrown” vocabulary. In addition to reaching consumers directly, brands have a second opportunity to influence the purchase decision by reaching the influencers to the consumer.
The importance of reaching the influencers to a decision maker is paramount not only because of the influencer’s positive persuasion in the consumer’s decision making process, which can serve to reinforce the consumer’s perceptions, but also because of the negative control that an influencer can command on the consumer’s decision making process. For instance, when presented with positive word of mouth about a brand from an influencer, a consumer with little brand awareness of his own will likely include the brand for consideration in the evaluation phase.
Conversely, when presented with negative word of mouth about a brand from an influencer, a consumer with little brand awareness (and therefore limited perceptions) will likely rely on the word of the influencer and bring to a halt any further consideration of the brand. This would imply that brand’s that enjoy high consumer awareness and positive perceptions are more apt to weather the occasional negative referral by an influencer than brands with limited awareness.
To reach and influence the influencers requires that the preferences of the influencers and the channels of communication necessary to reach them be understood. This is necessary to ensure that the influencer is equipped to provide information about the brand precisely when queried by the consumer looking for information. It should be noted that, while seemingly the same as the consumer, the influencer can often represent a disparate set of preferences, attitudes and behavior than those of the actual consumer.
Therefore the development of unique marketing strategies to communicate successfully with each discrete audience, both consumer and influencer, is compulsory. The search-for-information phase that a consumer undergoes as part of the decision making process presents a brand with a unique opportunity to act as an influencer by providing relevant, informative and reassuring communication that may be used by the consumer when evaluating alternatives. Significantly, the probability of a brand being included during the information search phase is contingent on the consumer’s brand awareness during the search phase.
Creating irresolute levels of brand awareness over time guarantees that some consumers will not include the brand among the alternatives to be evaluated during their specific buying cycle. Moreover, converting awareness into positive evaluation among the alternatives requires an understanding of consumer preferences and the translation of default brand communication into a consumer-familiar language for the purpose of addressing the consumer’s need within the context of consumer preferences.
Importantly, it also offers an opportunity to create awareness and positive perceptions of the brand’s message among other sources of influence relied upon by the consumer. This requires that members of the consumer’s influencer network also need to be made aware of, and have positive perceptions toward, the brand to communicate positive feedback to the consumer when asked. Methodology Scale Development The scale used in this study intends to measure the attitudes of individuals towards brand name and how these attitudes affect their purchase intentions.
Items for the scale were derived from The Brand Dependence Scale. The questionnaire based upon The Brand Dependence Scale has been developed and instead of using six-point likert like scale as in the original Brand Dependence Scale, a five point likert like scale, anchored by 1=totally disagree and 5= totally agree, has been decided to be applied for attitude questions. To understand the importance of the brand name in purchasing process ,we divide products into different categories through their consumption style (privately / publicly).
In the scale all attitude items are applied to two different product categories one is desktop computer, which is consumed more privately, and mobile phones,which is consumed publicly. Data Collection The data has been collected by survey method. The questionnaires has been applied by face to- face method. Data collection was done in Kolkata with 100 students. The responding students has been chosen by random sampling. Measures and Hypothesis In the questionnaire, questions 1 and 2 intend to measure the first mobile phone brand name recalled and brand name of the owned mobile phone.
Questions 3 and 4 intend to measure the first personal computer brand name recalled and the brand name of the owned desktop computer. Questions 5 and 6 intend to measure the importance of brand name in alternative evaluation and purchasing processes for mobile phones. Questions 7 and 8 intend to measure the importance of the mobile phone brand name among the competitors. Questions 9,10 and 11 intend to measure the importance of the mobile phone brand name related to other peoples’ opinions. Questions 12 and 13 intend to measure the importance of brand name in alternative evaluation and purchasing processes for personal computers.
Questions 14 and 15 intend to measure the importance of the personal computer brand name among the competitors. Questions 16 and 17 intend to measure the importance of the personal computer brand name related to other peoples’ opinions. Question 18 intends to measure the intention of buying a product with brand name or with no brand name. Questions 19, 20 and 21 are about the demographics (sex, age and monthly expenditures) Some hypothesis based upon these questions that has been tested are as follows:
H1: There is statistically significant relation between first recalled brand and owned brand H2: People depend on brand name on purchase decisions more for publicly consumed goods like mobile phones than private consumed goods like desktop computers H3: People depend on brand name on evaluation between competitors more for publicly consumed goods like mobile phones than private consumed goods like desktop computers H4: People depend on other peoples’ opinions about brand name for publicly consumed goods like mobile phones than private consumed goods like desktop computers.
Analysis Table 1. Frequency Table of the first Table 2. Frequency Table of the owned recalled mobile phone brand name BrandFrequency Nokia80 Motorola10 Sony Ericson8 Samsung1 LG1 Total100 BrandFrequency Nokia57 Sony Ericson18 Motorola17 Samsung5 LG3 Total100 Most recalled mobile phone brand name is Nokia with 80 responds , and most owned mobile phone brand name is Nokia with 57 responds.
Motorola follows Nokia with 10 responds as second most recalled brand name and Sony Ericson with 18 responds as second most owned brand name, then comes the other brand names with smaller ratios. A chi-square test has been applied to test the statistical significant dependence of recalled brand name and owned brand name (Ho: There is no statistical dependence between recalled brand name and owned brand name for mobile phones. Ha: There is statistical dependence between recalled brand name and owned brand name for mobile phones. ) As the test result, no statistical significance dependence has been found (p: 0,00