ABSTRACT
The study examined the effect of branding on consumer preference (A study of 7up bottling company in Aba, Abia State). The specific objectives were to examine the effect of socioeconomic characteristics on consumer choice of preference; effect of brand image on consumer preference of products; effect of product brand on consumer behaviour and evaluate how confidence in product brand affects consumer preference. The study adopted descriptive survey research design and simple random sampling technique. A population of 2,833979 consumers/customers of 7up bottling company in Aba, Abia State were used for the study. Taro yamme formula were used determine a sample of 400 from the population. However, 365 questionnaires were recouped form the respondents which form the sample size of the study. Primary data sourced from distribution of questionnaire to staff and consumers of 7up bottling company in Aba, Abia State. A test-re-test were conducted to ensure validity and reliability of the data. The data were presented using 5 point Likert scale and tested using regression model (SPSS). The descriptive result shows that, most of the respondents 57.5% and 55.6% strongly agreed that brand reputation and brand value creation affects consumer preference in 7up bottling company products. The empirical result revealed that brand image has positive and significant effect on consumer preference of products. Product brand has significant effect on consumer behaviour. And confidence in product brand has positive and significant effect on consumer. The study recommended that there need for the management of 7up Company to segment their market offerings. This will help the organization to create an outstanding image to the organization which will enable all class of the target market to prefer the product more than that of the competitors.
Key Words: Branding, Brand image, product brand on consumer preference.
TABLE OF CONTENTS
Title page i
Dedication ii
Acknowledgement iii
Declaration iv
Certification v
Table of Content vi
List of Tables viii
Abstract ix
CHAPTER ONE: INTRODUCTION
1.1 Background
of the study 1
1.2 Statement
of the Problem 4
1.3 Objectives
of the Study 5
1.4 Research
Questions 6
1.5 Research
Hypotheses 6
1.6 Significance
of the Study 6
1.7
Scope of the Study 7
1.8
Limitation of the Study 7
1.9 Definition
of Operational Term 7
CHAPTER TWO: REVIEW OF
RELATED LITERATURE
2.1 Conceptual
Framework 9
2.1.1 Concept
of Brand Image 9
2.1.2 The important Roles of Brand Image on
Consumer Preference 16
2.1.3 The characteristics of Successful Brands on
Consumer Satisfaction 16
2.1.4 Concept
of Consumer Preference 17
2.1.5 Consumer Behaviour 19
2.1.6 Customer
Satisfaction 21
2.1.7
Consumer Buying Decision Process 21
2.2 Theoretical
Background 22
2.3 Empirical
Review 23
CHAPTER THREE: RESEARCH
METHODOLOGY
3.1
Research Design 26
3.2 Area of
the study 26
3.3
Population of the study 26
3.4
Determination of Sample Size 27
3.5
Method of Data Collection 27
3.6 Validity
of the Instrument 27
3.7 Reliability
of the Instrument 28
3.8 Method
of Data Analysis 28
3.9
Model Specification 28
CHAPTER
FOUR: DATA PRESENTATION/RESULTS AND DISCUSSION
4.1. Rate of
Return Questionnaire 30
4.2
Socio-economic characteristics of
the Respondents in Aba, Abia State. 31
4.2 Data
Presentation 34
4.3 Test
of Hypotheses 37
4.3.1 Test of Hypothesis 1 37
4.3.2 Test of Hypothesis 2 40
4.3.3. Test of Hypothesis 3 41
4.3.4
Test of Hypotheses 4 42
CHAPTER
FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings 44
5.2 Conclusion 45
5.3. Recommendations 46
5.4 Areas
of Further Studies 46
References
Appendix
LIST OF TABLES
4.1 Return of distributed questionnaire from the
Respondents. 30
4.2 Socio-economic characteristics of the Respondents in Aba,
Abia State. 31
4.3: On the basis of brand image on
consumer preference. 34
4.4: On the basis of product brand
and consumer behaviour 35
4.5: On the basis of confidence in
product brand and consumer preference. 36
4.6. Socioeconomic characteristics of
consumers has no significant effect on
consumers’ choice of preference of product 37
4.7 Simple Regression Coefficients of effect of brand image on consumer
preference of products. 40
4.8 Simple Regression Coefficients of effect of product brand on consumer behaviour. 41
4.9 Simple Regression Coefficients of effect of confidence in
product brand on
consumer preference. 42
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Consumer
perception towards brand is an important aspect of marketing mix (Gabor & Contiu,
2012). Jin and Weber (2013) proposed that, brands served primarily as a way for
customers to identify and recognize goods and their manufacturer. The focus of
brand value creation was on individual goods whereby firms used brands to show
ownership and take responsibility for their goods. This in turn helped
customers identify and recognize a firm’s goods on sight. From the 1930s
onwards, brands were viewed as images that firms create to enable customers to
both differentiate a brand from its competitors and identify the needs a brand
promises to satisfy (Jin & Weber, 2013).
Another
aspect of brand is that, it is strongly believed by academics and practitioners
that brand reputation is becoming increasingly important. Brands should have a
positive reputation to be successful and therefore profitable, (Veloutsou &
Moutinho, 2009). On the other hand, Schmitt (2012) describes a comprehensive
model of five brand-related processes: identifying, experiencing, integrating,
signaling and connecting with the brand.
A
product is something that is made in a factory, a brand is something that is
bought by a customer. A product can be copied by a competitor, a brand is
unique. A product can be quickly outdated, a successful brand is timeless”
(Quiston, 2008).
Brand
is a combination of name, symbol and design. Brands represent the customer’s
perceptions and opinion about performance of the product. The powerful brand is
which resides in the mind of the consumer. Brands differ in the amount of power
and worth they have in the market place. Some brands are usually unknown to the
customers in the marketplace while on the other hand some brands show very high
degree of awareness.
The
brands with high awareness have a high level of acceptability and customers do
not refuse to buy such brands as they enjoy the brand performance. Some brands
commend high level of brand loyalty. Brands also have a symbolic value which
helps the people to choose the best product according to their need and
satisfaction. Usually, people do not buy certain brands just for design and
requirement, but also in an attempt to enhance their self-esteem in the society
(Leslie and Malcolm, 2012).
Brand
names present many things about a product and give number of information about
it to the customers and also tell the customer or potential buyer what the
product means to them. Furthermore, it represents the customers’ convenient
summary like their feelings, knowledge and experiences with the brand. Moreover
customer do not spend much time to do find out about the product. When customer
considers about the purchase they evaluate the product immediately by
reconstructed product from memory and cued by the brand name (Hansen and
Christensen, 2013). A brand has a value; this depends on the quality of its
products in the market and the satisfaction or content of the customer in its
products and services. This provides the trust of the customers in the brand.
If customers trust a brand quality it makes a positive connection to the brand
and customers will have a reason to become a loyal to the brand. Loyalty and
trust of the customers is very important for a company because it reduces the
chance of attack from competitors (Aaker, 2009).
Brands
play a very important role in the consumer choice of preference. It is really
important for companies to find out customer’s decision making process and
identify the conditions, which customers apply while making decision (Cravens
and Piercy, 2013).
Marketers
are highly concerned to know how brand names influence the customer purchase
decision. Why customers purchase a particular brand also implies how customers
decide what to buy. Customers follow the sequence of steps in decision process
to purchase a specific product. They start realizing a requirement of product,
get information, identify & evaluate alternative products and finally
decide to purchase a product from a specific brand. When customers purchase particular
brand frequently, he or she uses his or her past experience about that brand
product regarding performance, quality and aesthetic appeal (Keller, 2008).
Branding
is an important aspect of every firms marketing activity that cannot be over
looked. Branding has been said to be as important as a child`s naming ceremony
and also as old as man/creation (Okpara, 2012). Mccarthy and Perreaut (2009) defined
branding as the use of a name, term, symbol or design or a combination of these
to identify a product. This statement in tells that branding identifies the
product for the consumer and relates it to branding and product design.
Obisie
(2013) captured the very essence of branding when he describe it as an integral
and intimate part of a product strategy. This suggest that a product is not
comprehend until it is given a name, mark or symbol. He went further to
describe branding as a name, term, sign, symbols or design in a combination of
these which is intended to identify the goods or services of the seller or
group of sellers and distinguish them from those of their competitors. From the
foregoing it is obvious that the essence of branding is to create a destination
and unique product whose name rings a bell and commands the influence of
consumer’s positivity in terms of their purchase behavior this is against the
background that for a bigger and more resonating name for a better perceived
name, certain consumes will be willing to pay a little more Often, consumers will
intend to choose a brand that they consider congruent with their self-image. In
this particular way each consumer as an individual will try to reflect his or
her own identity through choice when as part of a larger social group, consumer
choice tend to converge to a certain pattern thus terming the basics of an
individual social identity (Andreed 2014).
Brand
preference is as regarded as a key step in consumer decision making involving
elements of choice in establishing brand preference consumers compare and rank
different brands by focusing on their uniqueness. Jin and Weber(2013) defined
brand preference as the extent to which the customers favors the design service
provided by his or her present company in comparison to the designated service
provided by other companies in his or her consideration set; with a consideration set referring to brands that
a consumer would consider buying in the near future.
Also,
consumer’s advisory has a positive
effect in brand and consumer preference (Gungo r& Bilgin, 2011) Consumer
perception towards brand is an important aspect of marketing mix
(Gabur&Contiu,2012) Jin & Weber (2013) proposed that brand served
primarily as way for customers to identify and recognize goods and their
manufacturer’s. Okpara (2012) believed that branding is the imaginative process
of creating a unique relevant and harmonious name, term, sign, symbol or its
combination in order to identify a company’s product and to differentiate it
from their competitors.
1.2 Statement of the
Problem
In
a world where every product is bigger or better compared to its competitors,
consumers have begun to face an important problem: the increased uncertainty
about various products attributes. This arises from various asymmetric
information consumers have access to, regarding a specific product. Consumers
tend to assess certain product attributes in a holistical manner rather than a
case by case basis (Ainslie & Rossi, 1998). Therefore both extrinsic and
intrinsic factors must be accounted when trying to differentiate a product from
its competitors. In these circumstances, brands can potentially play many
different roles in the consumer decision process.
Romani
(2012) shows that consumers' psychological, sociological and economic processes
are simultaneously involved in choice behavior. In these days, a product or a
service is almost irrelevant without the brand. It cannot be identified or
associated with what influences in fact our purchasing process (Mindrut 2015).
The study of consumer's behavior and the attempt to model the decision-making
process of consumers is a longstanding interest for marketing and decision
theory scientists (Matsatsinis & Samaras, 2010). Consumer–brand
relationships (CBR) are important for the profitability of companies and
enhancing the understanding of CBR is of great interest to researchers.
An
organization’s brand image can be as important as the goods or services it
produces. A strong brand image is a powerful asset. A recognized and trusted
brand identity makes people confident that the organization is dependable.
Developing a corporate brand is important because a positive brand image will
give consumers, and other interested stakeholders, confidence about the full
range of products and activities associated with a particular company. Despite
that numerous studies in the past have contributed to the theoretical and
practical knowledge on branding demonstrated that products branding play
sufficient role in marketing goods and services from all sectors of productive
economy, yet quite a number of small and large scale manufacturers have shown
less concern to branding their products effectively and there is little or no
research to determine brand attributes that may positively influence consumer
perception, hence a gap. It is against this backdrop that this study is
fashioned to examine how a product brand image can influence changed consumer
preference.
1.3 Objectives of the
Study
The
broad objective of this study is to examine the effects of brand image on
consumer preference. The specific objectives are to;
1.
determine the effect of socio-economic
characteristics on consumers’ choice of products.
2.
determine the effect of brand image on
consumer’s preference of products.
3.
Examine the effect of product brand on
consumer behaviour.
4.
evaluate how confidence on product brand
affect consumer preference.
1.4 Research
Questions
The
following research questions are formulated for the following study;
1.
What are the effect of socio-economic
characteristics on consumers’ choice of products in 7up Bottling Company Aba,
Abia State?
2.
Does brand image affects consumer’s
preference of products?
3.
Does product brand affect consumer behaviour?
4.
Does confidence in product brand affect
consumer preference?
1.5 Research Hypotheses
H01: Age, sex, educational qualification, years of
experience, household size, level of income have no significant effect on consumers’
choice of products.
H02: Brand image has no significant effect on consumers’
preference of products.
H03: Product brand has no significant effect on consumer
behavior.
H04: Confidence in product brand has no positive
effect on consumer preference.
1.6 Significance of the
Study
It
has been prove that effective brand image of firms enhance the market ability
of their product, this study is relevant in that it will enlighten manufactures
in the measure to be adopted to sustain the effect branding has on consumer
buying preference process and in building loyal customers. This study will also
be of academic value since the contents could be used as a basis for other
studies on firms brand image, the findings of the study is expected to
contribute to the body of existing knowledge in area of firms brand image and
it’s influenced.
1.7 Scope of the Study
This
study is on the effect of brand image on consumer preference; a study of
Nigerian Bottling Company. The findings will be obtained through use of
questionnaire, defined alternative responses and oral interviews. The scope of
this study will be limited to Nigerian Bottling Company plc. Aba, Abia State.
1.8 Limitation of the Study
The
limitations of this study include some of unavoidable constraints and problems
encountered in the process. They are as follows:
Finance:
The problem of finance is not left out in the course of research to this study.
This type of study required adequate money and time to enable the researcher
visit the necessary places for collection of data. Insufficient fund hinder an
in-depth study of this research since it is finance from pocket money of the
researcher. Although the researcher, as a student, is not financially
dependent, he is poised to making the best use of the available monetary
resources to get the job properly done.
Non-availability of
records: This is one of the most important
limiting factors in the course of the study. This includes the problems of
easily getting the appropriate data due to bureaucracy which hinders the
information flow in the country.
Time:
Since this study is one of the many courses offered by the researcher, the
researcher was constrained by time to carry out an indent research on the
study.
1.9 Definition of
Operational Term
v Brand mark:
is simply recognized by sight and there may be some difficulties in attempting
to vocalize it.it could be in the form of a symbol or colors.
v Trade Mark: is
the brand name and brand mark, which have received legal protection for a
particular firm. In the words of Brassington and Pettit (1997), a trade mark is
the legal name of an organization and this could easily relate to the branding
of the firm’s products.
v Brand Extension Strategy:
this is a branding strategy that comes handy when a new product is to be
launched into the market, especially a highly competitive one. It is an effort
to use a successful brand name to launch new or modified products or line.
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