BRAND EQUITY AND CONSUMER’S BUYING DECISION IN THE NIGERIA FAST FOOD INDUSTRY - Project Topics & Materials - Gross Archive
BRAND EQUITY AND CONSUMER’S BUYING DECISION IN THE NIGERIA FAST FOOD INDUSTRY
ABSTRACTThe study examined the effect of brand equity components on consumer’s buying decision, based on Aaker (1991) well-known four major determinants of brand equity components which include brand awareness, brand association, perceived quality and brand loyalty in the fast food restaurants.
The population of the study consists of all consumers of both fast food restaurants (Mr. Biggs and MAT-ICE) in Benin City metropolis. Three hundred and fifty questionnaires, which formed the sample of the study, were given out; only three hundred and seventeen were retrieved. Data obtained was analyzed using descriptive statistics such as frequency tables, percentage analyses, means and standard deviation, while the inferential statistics include, spearman rank correlation, ordered regression analysis and the z test. All tests were carried through the use of SPSS Version (17.0) and E-View (7.0).
The findings from the study revealed among other things that, brand awareness has no significant influence on consumer’s buying decision, brand association has significant influence on consumer’s buying decision, perceived quality has no significant influence on consumer’s buying decision, and brand loyalty has significant influence on consumer’s buying decision. Based on the findings, we therefore recommend that fast restaurant should increase their brand awareness activities e.g. advertising, be consistent with their brand among others.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Research Problems
1.3 Objectives of the Study
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Consumer Decision -
2.2.1 Consumer Buying Behavior
2.2.3 Factors Influencing Consumers Buying Decisions of a Brand
2.3 Branding
2.3.1 Brand
2.3.2 Corporate Brand Communication
2.3.3 Brand Equity
2.3.4 Brand Equity in Service Industry
2.3.5 Measuring Brand Equity
2.3.6 Theoretical Framework and Hypotheses of the Study
2.3.7 The Research Hypotheses
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 The Population and Sampling
3.4 Operationalization & Measurement of Variables
3.5 The Research Instrument
3.6 Sources of Data
3.7 Method of Data Analysis
3.8 Problems Encountered During the Study
CHAPTER FOUR: DATA ANALYSES AND PRESENTATION
4.1 Introduction
4.2 Data Analyses and Interpretation ---
4.2.1 Descriptive Statistic of the Sample
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
5.1 Introduction
5.2 Summary of Findings
5.3 Contributions to Knowledge
5.4 Conclusions
5.5 Recommendations
- Policy Recommendations
- Further Studies
BIBLIOGRAPHY:
Appendices:
Appendix II: Operationalization and measurement of variables
Appendix II: Questionnaires
Appendix IV: Analysis for Descriptive Statistics
List of Tables:
Table 1: Functions of brand for the consumer
Table 4.1: Demographic characteristic of the respondents
Table 4.2: Brand awareness in Mr. Biggs and MAT-ICE
Table 4.3: Brand association in Mr. Biggs and MAT-ICE fast food restaurants
Table 4.4: Perceived quality in Mr. Biggs and MAT-ICE fast food restaurants
Table 4.5: Brand loyalty in Mr. Biggs and MAT-ICE fast food restaurants
Table 4.6: Consumer buying decision in Mr. Biggs and MAT-ICE fast food restaurants
Table 4.7: Intercorrelations between the components of brand equity and consumer’s buying decision in Mr. Biggs fast food restaurant
Table 4.8: Intercorrelations between the components of brand equity and consumer’s buying decision in MAT-ICE fast food restaurant
Table 4.9: Pooled Correlations of components of brand equity and consumer’s buying decision
Table 4.9: Pooled Correlations of components of Brand Equity and Consumer’s Buying decision
Table 4.10: Determinants of Consumers’ Buying Decision in Mr. Biggs
Table 4. 11 Determinants of Consumers’ Buying Decision in MAT-ICE
Table 4.12 Determinants of Consumers’ Buying Decision (Pooled) -------------------
Table 4.13: Z-Test for brand awareness and consumer buying decision ---------------
Table 4.14: Z-Test for brand association and consumer buying decision -------------
Table 4.15: Z-Test for perceived quality and consumer buying decision --------------
Table 4.16: Z-Test for brand loyalty and consumer buying decision ------------------ List of Figures:
Figure1: Stages of Consumer Buying Behavior
Figure 2: Consumer Buying Behavior Model
Figure 3: Corporate Branding Framework
Figure 4: Conventions of Corporate Brand Building
Figure 5: Brand Identity Prism
Figure 6: Relationship between Identity and Image
Figure 7: Brand Equity Classification
Figure 8: Components of Brand Equity Model
Figure 9: Customer-Based Equity Pyramid ------
Figure 10: The Research Model
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In a highly intense market place, brands are regarded as an important source of capital and they are the key drivers of competiveness for most businesses. Brands are the basis of customer’s buying decision and they are becoming the most valuable assets that a business can possess. The study of brand equity is increasingly becoming popular. Some researchers have concluded that brands are one of the key components of marketing strategies. High brand equity levels are known to lead to higher consumer’s preference and buying decision as well as higher stock returns (Cobb-Walgren, Ruble and Donthun, 1995). Besides, high brand equity also brings an opportunity for successful brand extensions, resilience against competitors’ promotional pressures and creation of barriers to competitive entry (Farquhar, 1989).
Aaker (1991) is of the view that establishing and managing brand should be taken to be the core operating target for organization and should be seen as a source of competiveness. In other words, value should be added in order for it to be able to compete successfully with other brands. Many researchers (Aaker, 1991, Keller, 1993, Lassar, Mittal and Sharma, 1995, Yoo and Donthun, 2001 and Prasad & Dev, 2000 etc.) have been interested in the concept and measurement of brand equity because of the necessity in today’s market place to develop, maintain and use product branding to acquire a certain level of competitive advantage. According to Aaker, (1991) this has led to various points of view of brand equity dimensions, the factors that affect it and the perspective from which it should be studied as well as how to measure it.
A powerful brand will enhance a customer’s attitude strength of the product association of a brand. Attitude strength is developed by experience with the product. According to Keller (1993) customer awareness and association influences inferred attributes, perceived quality and finally result in brand loyalty. He went further to say that the advantage of this dimensionality of customer based-brand equity is that it allows marketing managers to study how marketing programs enhance their brand values in the minds of customers.
The traditional framework for analysis of the buyer decision process is a five-step model. The model progresses firstly from a state of felt deprivation (problem recognition) to the search for information on problems solutions. The information gathered provides the basis for the evaluation of alternatives. The development and comparison of purchase evaluation criteria result in the actual decision to buy. Finally, post- purchase is critical in the marketing perspective, as it eventually affects consumers’ perception and satisfaction/dissatisfaction with the product/service (Kotler and Armstrong, 2010). Marketing activities of any organization revolve or should revolve around the needs of the consumer or user. In other words, the notion of consumer kingship underlines the supreme power of the consumer or user determining indirectly the survival or demise of a business. He wields the power through his/her decision to buy or not to buy the product of any enterprise, (Agbonifoh, Ogwo, Nnolim and Nkamnebe, 2007). Brand name and what a brand stands for are the core values for most fast food restaurant. If properly managed, it will increase competitive advantages of the fast food restaurants. The basic attribute of a fast food restaurant are also important for a fast food restaurant to excel, because the strength of a brand commonly provides the fundamental steps for differentiating between several competitors. Majority of fast food restaurants have distinguishable brand identifiers.
In summary, strong brand equity means that customers have high brand name awareness, maintain a favorable brand association, perceive that the brand is of high quality and are loyal to the brand.
1.2 STATEMENT OF THE RESEARCH PROBLEMS
It can be rightly said that a sale can only take place if the consumer or client has a want or could be made to appreciate the need for the products or services (Prasad & Dev, 2000). Therefore, marketing activities are aimed at bringing the right products/services into contact with the consumers/clients for the purpose of effecting transfer of title and ownership. Selling is an aspect of marketing that is concerned with the conversion of an organization’s products or services to money or other relevant resources. Selling essentially focuses on the company’s interest, while marketing focuses on the customers’/clients’ interest.
Building of strong brand equity is the top most priority of many fast food restaurants, but attaining this objective is not always an easy task due to the fact that many fast food restaurants in the Nigeria business environment are producing similar brands of products. In so doing, they confuse consumers on how to differentiate among them. This situation has indeed not created the necessary brand awareness in consumers.
Brand equity has advanced as a field in marketing (Keller, 1993). It therefore creates decision for organizations to develop effective and efficient strategies that will create the required brand association about their product from other competing products, which indeed is a problem. It is on this note that this study bridges the knowledge gap of fast food restaurants between brand association and consumer’s buying decision.
The inability of fast food restaurants to formulate measures for perceived quality in order to capture a strong market share and growth rate is a major issue for survival in the vastly dynamic and competitive business environment of Nigeria.
Lastly, the introduction of fast food restaurants by individuals and organizations without the knowledge of consumer’s buying behavior has led to lack of product acceptability which indeed has not created brand loyalty.
1.3 OBJECTIVES OF THE STUDY
The broad objective was to examine the impact of brand equity on Consumer’s buying decision.
The specific objectives were to:
1. examine the relationship between brand awareness and consumer’s buying decision;
2. determine the relationship between brand association and consumer’s buying decision;
3ascertain the relationship between perceived quality and consumer’s buying decision; and
investigate the relationship between brand loyalty and consumer’s buying decision.
1.4 RESEARCH QUESTIONS
What is the relationship between brand awareness and consumer’s buying decision?
What is the relationship between brand association and consumer’s buying decision?
What is the relationship between perceived quality and consumer’s buying decision?
What is the relationship between brand loyalty and consumer’s buying decision?
1.5 SIGNIFICANCE OF THE STUDY
The findings of this research are of importance to the fast food industry, customers, suppliers, government agencies, the owners of the companies, general stakeholders as well as researchers and students of marketing and allied courses. Also, the research helps to generate the roles brand equity plays in influencing the customer’s buying decision, which is the issue under discussion.
This study highlights the influence of brand equity on the buying habit of consumers, who patronize fast food restaurants in Benin City. It further identifies other factors that are responsible for the buying habits and decisions of consumers.
The findings of this study serve as a repository of information and base for subsequent research work on brand strategies and how it can influence buying decisions. It will assist fast food restaurants management in knowing how effectively and efficiently their strategies are making, on the impact on their customers and how they really feel about their products. This will help them improve on those products features, they are lacking. Equally, this study will help organizations to reduce uncertainties in decisions making and also assist them to be informed and responsible to their customers’ needs.
There may be need to replicate the study with or without modification of the problem, others may wish to validate the result of this study.
1.6 SCOPE OF THE STUDY
Geographically, this study is limited to the three Local Government Areas in Benin metropolitan city (Oredo, Ikpoba- Okha and Egor Local Government Areas) of Edo State in Nigeria. The aim of this study is to conduct a comprehensive research on consumer’s buying decision in two fast foods restaurants, Mr. Biggs and MAT-ICE. I
1.7 LIMITATIONS OF THE STUDY
Some of the constraints encountered in carrying out this study include:
Factor of time: If there had been enough available time, more fast food restaurants would have been surveyed to gather more primary data.
Sample size is small: It may be considered small in relation to actual consumers’ of fast food.
Financial constraints: Cost of collecting data, transportation and other miscellaneous expenses.
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