ABSTRACT
Brands are very important to the brands owner in order to build a strong foothold in the marketplace. This study was carried out to analyze the effect of brand equity and marketing performance of toothpaste products in Umuahia north metropolis. The problem envisaged was the inability on the part of the companies in Nigeria to measure up their brand value which affected their market performance and most companies have wind up as a result of this challenge. The overall objective of this study was to examine the effect of brand equity on marketing performance, specifically, determine the influence of brand loyalty on customer satisfaction, examine the effect of perceived quality of Toothpaste brands on customer retention, ascertain the influence of brand awareness on customer satisfaction and determine the influence of brand association of Toothpaste brand on customer retention. This study adopted a descriptive survey design. The study therefore involved a sample size of 150 respondents. The study collected primary data from the respondents. The data collected quantitative data. Qualitative data is a categorical measurement expressed not in terms of numbers, but rather by means of a natural language description. Analysis was done using Statistical Package for Social Sciences 20.0 (SPSS), allowing the researcher to present the information in form of tables and figures. The study concluded that strong brand equity influences marketing performance in FMCG industry through positive relationship with customer satisfaction and customer retention which in turn impact positively to sales growth, market share and profit in a long-run. It was recommended that Toothpaste industries should integrate into their promotional strategy, a marketing communication tool that will aid reaching out their customers about benefits attached to their different brands, FMCG firms should take cognizance of the impact of each of the dimensions of brand equity as they influence non-financial elements of marketing performance and allocate resources in order to stand out or match the competition in the dynamic service industry and so on. Suggestions of areas for further study was given therein.
TABLE OF CONTENTS
Title - - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgements - - - - - - - - - v
Table
of content - - - - - - - - - vi
List
of tables - - - - - - - - - - viii
List
of Figures - - - - - - - - - - ix
Abstract - - - - - -- - - - - x
CHAPTER 1
1.0
INTRODUCTION
- - - - - - - - 1
1.1
Background of the Study - - - - - - - 1
1.2
Statement of the Problem - - - - - - - 4
1.3
Objective of the Study - - - - - - - 5
1.4
Research Questions - - - - - - - 5
1.5
Research Hypotheses - - - - - - - 5
1.6
Significance of the Study
- - - - - - - 6
1.7
Scope of the Study - - - - - - - 6
CHAPTER 2
2.0 REVIEW OF RELATED LITERATURE - - - - 7
2.1 Conceptual
Framework - - - - - - - 7
2.2 Brand
Equity - - - - - - - 8
2.2.1 Brand Awareness - - - - - - - - 11
2.2.2 Brand Loyalty - - - - - - - 12
2.2.3 Brand Association - - - - - - - 12
2.2.4 Perceived Quality - - - - - - - 13
2.3 Concept
of Marketing Performance - - - - - - 14
2.3.1 Measure
of Marketing Performance - - - - - - 15
2.3.2 Customer
Loyalty - - - - - - - 15
2.3.3 Customer
Retention - - - - - - - 16
2.3.4 Customer
Satisfaction - - - - - - 17
2.4 Theoretical
Review - - - - - - - - 17
2.4.1 Theory
of Reasoned Action - - - - - - 18
2.4.2 Behavioral
Brand Loyalty Theory - - - - - - 19
2.4.3 Big
Brand Theory - - - - - - 20
2.4.4 The
Resource-Based Theory of Competitive Advantage - - - 20
2.4.5 Brand
Equity Theory - - - - - 21
2.5 Review
of Empirical Literature - - - - - 22
2.5 Gap in
Literature - - - - - - 23
2.6 Brief
History of Unilever Nigeria Plc - - - - - 23
2.7 Summary
of Literature - - - - - - 24
CHAPTER 3
3.0 RESEARCH METHODOLOGY - - - - - - 25
3.1 Research
Design - - - - - - 25
3.2 Area of
Study - - - - - - - 25
3.3 Population
of the Study - - - - - - - 25
3.4.1 Sampling
Technique - - - - - - - 26
3.4.2 Sample Size Determination - - - - - - - 26
3.5 Validity
of Instrument - - - - - - - 26
3.5.1 Reliability
of the Instrument - - - - - - - 26
3.6 Sources
of Data Collection - - - - - - - 26
3.6 Method
of Data Analysis - - - - - - - 27
3.6.1 Model
Specification - - - - - - - 27
3.6.2 Decision
Rule - - - - - - - 27
CHAPTER 4
4.0 RESULTS AND DISCUSION - - - - - - 28
4.1 Response rate and demographic outcomes - - - - - 28
4.2 Analysis of Research Questions - - - - - 28
4.3. Frequencies on Brand Equity and Marketing
Performance - - - 30
4.3 Test of Hypotheses - - - - - 34
4.3.1 Test of Hypothesis - - - - - - 35
4.3.2 Test of Hypothesis - - - - - - 36
4.4 Discussion of Findings - - - - - - 36
4.4.1 The Degree of Relationship between Brand
Loyalty and Customer Satisfaction - 36
4.4.2 The Extent of relationship between Perceived
Quality of Close-up toothpaste and
Customer Retention - 37
CHAPTER 5
5.0 SUMMARY, CONCLUSION AND
RECOMMENDATION - - 38
5.1 Summary of Finding - - - - - - - 38
5.2 Conclusion - - - - - - - - 39
5.3 Recommendations - - - - - - - - 39
5.4 Suggestions for Further Studies - - - - - - 40
5.4.1 Marketing implications of the Study - - - - - - 41
QUESTIONNAIRE
REFERENCES
LIST OF TABLES
Table 4.1: Reliability Analysis of the Variables - - - - 29
Table 4.2: Descriptive Analysis of the Variables - - - - 29
Table 4.3: Brand loyalty, items and scores - - - 30
Table 4.4: Perceived Quality, items and scores - - - - 31
Table 4.5: Brand Association, items and scores - - - - 32
Table 4.6: Customer Satisfaction, items and scores - - - 33
Table 4.7: Customer Retention, items and scores - - 34
Table 4.8: Correlation Analysis of
the Relationship between Brand loyalty and
Customer Satisfaction - - 35
Table 4.9: Correlation Analysis of the Relationship
between Perceived quality and
Customer retention - - - 36
LIST
OF FIGURES
Fig. 2.1: Conceptual
framework for Brand Equity and Marketing Performance - 7
Fig. 2.2: Marketing
Performance Measures - - - 15
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
In
our contemporary society, competition in the business environment are becoming
fierce and as such managers increasingly find themselves assigned the role of
the rope in a very real tug of war—pulled one way by customers’ mounting
demands and the opposite way by the company’s need for growth and
profitability. Many have discovered that they can keep the rope from snapping
and, in fact, achieve profitable growth by treating brand equity as a strategic
variable since it enhances marketing performance.
Brands
are very important to the brands owner in order to build a strong foothold in
the marketplace. A successful brand is one of the most valuable terms which has
been extensively discussed by both academicians and practitioners over the past
decade and usually referred to the term of ‘brand equity’ (Riezebos and Kist,
2003). Brand equity can be discussed in various perspectives since the meaning
of brand equity have been debated in several different approaches. Brand equity
is a difficult marketing term because it is hard to determine in the market by
the different measurement methods of performance (Atilgan et al, 2005).
However, there is one of the well-known conceptual brand equity model which was
developed by Aaker (1991). Aaker built his model of brand equity on five
dimensions, which are brand awareness, brand loyalty, brand association,
perceived quality, and other proprietary brand assets. In the practical aspect,
this study is important in the marketing perspective. Every company especially
the brand manager must understand what the dimensions of brand equity are and
how to develop a better understanding of the appropriate relationship between
these dimensions. Brand equity is important in improving the efficiency of the
marketing process (Motameni and Shahrokhi, 1998). Therefore, in order to build
and strengthen a brand in the minds and the hearts of consumers, they should
spend a huge sum of money to define how this might be achieved by brand communication
activities.
Branding
has been around for centuries as a means to distinguish the goods of one
producer from those of another (Keller, 2013). According to the American
Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design,
or a combination of them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of
competition.” Technically speaking, then, whenever a marketer creates a new
name, logo, or symbol for a new product, he or she has created a brand.
Marketers clearly face a number of competitive challenges, and some critics
feel the response of many has been ineffective or, worse, has further
aggravated the problem and over the year, building a sustainable brand equity
have been view as the way forward. Since brand equity explains why different
outcomes result from the marketing of a branded product or service than if it
were not branded (Keller, 2013).
Brand
equity is an important part of brand building and has always been identified as
central in brand management (Krishnan et al, 2003). Aaker (1991) definition and
conceptualization of brand equity had received great attention and agreement.
Aaker (1991) illustrated five major consumer-related bases for brand equity:
(1) brand loyalty, (2) brand awareness, (3) perceived quality, (4) brand
association, and (5) other proprietary brand assets. Brand equity is also
defined as “a set of brand assets and liabilities linked to a brand, its name
and symbol that add to or subtract from the value provided by a product or
service to a firm and/or to that firm’s customers” (Aaker, 1991). Brand equity
is the marketing effects or outcomes that accrue to a product or services given
its brand name compared with those that would accrue if the same product does
not have the brand name. Brand equity provides the leverage option for the
organizations which helps in the overall marketing performance. It reflects
certain customer’s attitudes and associations with a branded product that in
aggregate, yield specific result such as incremental volume, price premiums and
profit. This value may be reflected in how customers think, act and feel with
respect to the brand as well as the prices, market share and profitability that
the brand commands to the firm which in turn, enhances marketing performance
(Kotler, 2007).
Wheelen
and Hunger (2001) opined that performance is the end result of activity.
Marketing performance is a measure of contributions of marketing functions to
its corporate goals and objectives (Kotler and Armstrong, 2010). Given that
performance is an essential concept in the marketing environment today,
marketers are increasingly being asked to be accountable to senior management
boards and shareholders over their impact. Traditionally, marketers have been
encouraged, and have tended to emphasize on short-term measures, such as
profitability, current sales and market share. However, these measures do not
always reflect the real success of marketing which is to secure the long-term
customer’s preferences, maximize returns for shareholders and generate steady
cash flow (Doyle, 2000).
Hence
the importance of assessing the marketing performance of product brands in Abia
state in relation to their brand equity has gained a wider recognition and such
relevance cannot be overemphasized especially context of selected Fast Moving
consumer goods (FMCG) in Umuahia North metropolis. FMCG marketing in the study
area is very competitive and as such marketers strive to determine what
influences customer patronage and loyalty which form bases for long-term
marketing performance. The fast moving consumer goods that will be used in this
study is Close-up toothpaste which is produced by Unilever Nigeria Plc. Their middlemen
who are also consumers of such brands will be studied in Umuahia North
metropolis of Abia state.
1.2 Statement of the problem
In
our contemporary competitive business environment, marketers are under intense
pressure to account for their activities based on financial measures which
include return on marketing investment (ROMI), return on sales (ROS), return on
assets (ROA), and return on equity (ROE). These elements are always tied to
short-term measures which replicate more current profitability than future
customer preference of the organizations.
Hence,
these measures do not always reflect the real success of marketing which is to
gain long-term preference of customers, generate steady cash flow and maximize
returns for shareholder. Measures that focus solely on financial performance
are seen as less appropriate to deal with the issues which confront
organizations now. The long-term (non-financial) measures reflect much of what
marketers’ do that may not have an immediate impact on cash flow in the current
accounting period, but will pay-off in the future. And the inability on the
part of the companies in Nigeria to measure up their brand value has affected
their market performance and most companies have wind up as a result of this
challenge.
Few
studies have been done in measuring marketing performance in Abia state. There
is therefore, scanty empirical works that had studied long-term (non-financial)
measures of marketing performance and its relationship to brand equity. Given
this, this study will evaluate the linkage or otherwise between these variables
with a view to filling any identified gap in knowledge.
1.3 Objective of the study
The
overall objective of this study was to examine the effect of brand equity on
marketing performance. Specifically, the objectives were to;
i.
determine the influence
of brand loyalty on customer satisfaction
ii.
examine the effect of
perceived quality of Toothpaste brands on customer retention
iii.
ascertain the influence
of brand awareness on customer satisfaction.
iv.
determine the influence
of brand association of Toothpaste brand on customer retention.
1.4 Research questions
The
following research questions were explored in order to provide answers to the
issue raised in the study.
i.
To what extent does brand
loyalty influence customer satisfaction?
ii.
To what extent does
perceived quality of Toothpaste brands affect customer retention?
iii.
To what extent does brand
awareness influence customer satisfaction?
iv.
To what extent does brand
association of Toothpaste brand influence customer retention?
1.5 Research
Hypotheses
The
following null hypotheses were tested in this study;
a) Ho1:
There is no significant relationship between brand loyalty and customer
satisfaction.
b) Ho2:
There is no significant relationship between perceived quality and customer retention.
1.6 Significance of the study
The
Toothpaste industry which is a sub-sector of the manufacturing industry most
especially GlaxoSmithKline Consumer Nigeria Plc and Unilever Nigeria Plc used
as the case in this work will find the recommendations made in this study as a
guiding strategy. The applicability of the recommendations will yield optimum
result to the industry under study and to others.
The
middlemen capacity will be enhanced by the finding and recommendations of this
study as they will be better equipped to build sustainable brand equity for the
product they offer.
The
larger society would be equally benefit from the recommendations and findings
of this work. They would learn that the economic and social justification of an
organization existence is centered on delivering value and satisfaction to the
customer at a profit.
Marketing
students will also benefit from the reviews, findings and recommendations which
will aid their understanding of the rudiments of the influence of brand equity
on marketing performance.
Researchers
would also benefit from the study, as it will enrich the theoretical knowledge
of the researchers in the brand equity and marketing performance field. With
this study, another source of secondary data will be added to the existing ones
for those interested in carrying out further study on the subject matter.
1.7 Scope of the study
This
research work focused on brand equity and marketing performance of selected
FMGC in Umuahia North metropolis, Abia state. And as such, data was generated
from middlemen of the FMCG within the study area.
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