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Submitted by,

HIRA ASRAR BBA162049

The effect of branding on consumer purchase decision


1.0 Introduction
This paper consist of a research proposal that is designed for analyzing the effects of branding on
consumer purchase decision. The research would be carried in Karachi, Pakistan. The objective
of conducting this research is to investigate whether there is a direct relation between the effects
of branding on purchase decision made by a consumer. This paper will discuss on the areas i.e.
the literature, the importance of branding and consumer purchase decision, the approach to be
used, sample, population, data analysis method and procedure of conducting the research. This
paper will also discuss the limitations along with the significance of research and scope of the
research.
The brand image is made due to the perceptions of consumers and these perceptions are based on
the consumer’s previous experiences with the particular brand and also due to the knowledge the
consumer has about the particular brand. Therefore, many people mostly prefer to buy the brand
to which they are well aware of, and had a favorable experience with. Thus the product having
more brand awareness will succeed in the market and will attain more market share. A satisfied
consumers not only remain loyal with the brand but they will also advertise those brands through
their word-of-mouth. Therefore, we can say that brand awareness can lead to an increase number
of customers and hence will lead to increase in profits and market share. (Shahid, Tehmeena
Hussain, & Dr. Fareeha Azafar', 2017). So, the main goal of this research is to focus on the
effects of branding on consumers purchase decisions.
According to M. Delong (2004), the purchase decision is commenced by the brand awareness
and customer lean on the image of the brand and make purchase accordingly. Brand image is
being created through advertising, word-of-mouth, celebrities, reference groups, and media etc.
therefore it is a major goal of marketers to build a good image of a brand to attain well-being by
alluring the customers towards purchasing the peculiar brand.
According to J. Rayport and B. Jaworski (2003) purchase process is divided into three sections;
pre-purchase, purchase, and post-purchase. When a purchase decision is to be made customer
starts the process by collecting data about the product and the location where the purchase is to
be made. Customer then decide to purchase the product on the basis of this gathered information,
the product then comes in the use of the consumer and a satisfied consumer will express the
loyalty of the product by showing his inclination to again purchase the same product from the
same company and also by providing beneficial opinions to the social group using word-of
mouth approach. It is habitual to say that a customers purchasing decision is transformed by
many different factors among which brand name is the basic one. Although the market is full of
same products giving the same benefits i.e. equally satisfying products, the customer satisfied
with a particular brand does not want to go for other substitutes. When a customer is contented
with a particular brand he/she wants to stay with it unless or until a sharp increase in the price is
observed or a better quality product appears into the market and comes in the knowledge of
customer and the customer is provoked to switch to the substitute brand. Thus, product brand
itself plays a major role in purchase decision making of a customer as well.
1.1 Problem Statement
It has been noted that many companies although have better quality products but are lacking in
brand awareness are therefore unable to compete in the market due to their lacking in the brand
awareness activities. Thus, in order to have more loyal customer it is very necessary for a
company to increase its brand awareness, which will in turn lead to increase in sales profit for
that company.
This research will highlight the importance of branding in associating the customers towards a
brand.
1.2 Research Objectives
This research will have the following objectives:
. To investigate and analyze the impact of brand name on purchase decision-making process of a
consumer.
. To analyze that brand awareness and consumer purchase decision have a direct relationship
. To investigate the necessity of brand awareness in attracting more and more customers towards
purchasing a particular brand.
. To investigate the buying behavior of consumers with respect to branding.
. To study the emotions of consumers regarding brand.
. As people grow older, they become more brand loyal.
1.3 Research Rationale
As marketing situations are changing as well as the customer needs and preferences. It therefore
became necessary to conduct a research on the concept of branding. This research will be
focusing on the role of branding on the purchase decision of a consumer. A broad number of
respondents will be asked to fill the questionnaires provided to them in order to collect data for
understanding the relation between branding and consumer purchase decision. In addition the
objective of this research is to make apparent that a consumer who feels positive towards a
particular brand will be more likely to make a purchase. With the help of questionnaires this
research will access the consumer’s feeling of positivity towards a brand.
1.4 Research Questions
The research questions for this study are:
1. Is there a significant relationship between brand awareness and purchase decision of
consumers?
2. Does brand affect the purchase decision of consumers?
3. Is brand awareness necessary for attracting customers towards purchasing a brand?
4. Old people are more brand loyal?

1.5 Significance
This research will be very helpful for the marketing students as well as for marketers. It
hopefully will give a long lasting insight into whether branding affect the consumers decisions
while making a purchase. After gathering data through questionnaire and after analyzing it by
using statistical tools I would be able to conclude the market behavior of consumers based on
purchasing of products from different brands. It is very obvious that at this very time mostly
people buy products according to their social status and they are brand conscious.
1.6 Scope
This research will provide deep understanding to many organizations in understanding the
purchasing behavior of consumers, and will help them to show that how they will properly
advertise their products in order to gain more market share and capture more consumers. With
the help of this study many marketers will attain advantage of gaining knowledge that with the
enhancing modernization more people are moving towards branded and quality products.
1.7 Hypothesis
The hypothesis which is going to be tested are as follows;
H1: There is a positive relation between branding and consumer purchase decision.
H2: Positive effects towards branding will lead to a purchase decision.
1.8 Limitations
As this is an academic research it has many limitations, firstly, due to limited budget this
research is conducted in a university and not in the vast area. Second limitation is the online
surveys, while conducting online survey researcher is not able to observe the attitude of
respondents while filling the questionnaire and is unable to interpret which questionnaire is valid
and which is not. Another limitation is that this research is only using quantitative method, a
better model can be made by using both quantitative and qualitative methods for the study.
Another limitation is the sample size use in this research is very small as this research is
conducted in only one university (a specific area), by increasing sample size this research can
also take place in a vast area.
1.8 Ethical Consideration
Ethical guidelines will be followed in an appropriate manner. Respondents will be given full information
about the questionnaire, they will be informed that it is an academic research and is being conducted as
a part of a University course. They will be given approximate time to fill the questionnaire. They will be
given surety that data will not be used for any other purpose and it will remain confidential.
Respondents will be requested to fill the questionnaire, no one is forced to fill questionnaire. If anyone
requests for the anonymity, his/her request will be honored. After the study is approved o be conducted
important measure will be taken to make sure that no harm was done to any respondent.

2.0 Literature Review


In this chapter, this study will be discussing the previous research findings by many researchers
on this topic. We will see how they researched on this area, what techniques they have used and
what results they have obtained.
In order to start this research and for gaining a proper understanding there is a need to know what
a brand according to academic point of view is:
BRAND: “A brand is a name, term, symbol, design or combination of them which is intended to
signify the goods and services of a seller or a group of sellers and to differentiate them from
those of competitors.”
John Stewart, a former CEO of Quaker Oats once gave an example: “If this business were split
up, I would give you the land and mortar, and I would keep the brands and trademarks, and I
would be far better than you.”
According to (Park, et al., 1986), the construction and maintenance of a brand image is very
essential in management of the brand. Brand image is established through the functional,
symbolic, or experimental elements. Many scholars up till now haven’t come to an agreement on
definition of the brand image. Prior literature consists of four perspectives in explaining the
brand image; blanket definitions, meaning and messages, personification, psychological
elements.
This clearly identifies that a brand is a very valuable asset to a company and is needed to be
properly managed.

2.1 Brand Knowledge


Brand knowledge refers to brand awareness, it means the image of a brand in the mind of
consumers (Keller, et al., 2011). Brand image means how consumer perceives a brand.
(Chandon, 2003). Brand awareness effects the decision making of a consumer while purchasing
a product. It is therefore likely to say that when a consumer goes to buy a product he will
consider a brand. Therefore the most important goal of a brand management team is to construct
a brand which has a long lasting prosperity and can also add more products. (Kapferer, 2001)
2.2 Consumer’s Purchase Intentions
Purchase intention means to plan to buy a good in order to fulfill the need or requirement. it is
based on the customers desire to buy a particular product. A most recognized model of purchase
intention was constructed by Engel, Blackwell and Miniard, 1995. The model consist of 5 stages:
1. Problem recognition.
2. Searching information search.
3. Evaluating the alternatives.
4. Making purchase decision.
5. Post-purchase behavior.
For achieving customer satisfaction actual performance of a product must be equal to the
expected outcome. According to KOTLER (13th ed., 179) “The larger the gap between
expectations and performance, the more the customer’s dissatisfaction.”
(Engel, et al., 1995) divides the purchase intentions into 3 sections “unplanned buying, partially-
planned buying, and fully planned buying”. Consumer sometimes go to a store and make a
purchase based on their perceptions and feeling, this is known as unplanned buying. Partially
buying occurs when consumer decide the product category but choose the brand when the reach
the store. Fully planned buying means to decide about the brand and product before going to the
store.
2.3 Influences on Consumer’s Purchase Decisions
There are many external as well as internal factors that influence consumers purchase decision.
1. Trigger: it means things like packaging or TTV, or any other attribute that appeal the
consumer to buy a product.
2. Outcome experience: it refers to the consumer expectations from a particular product
3. Recommendation: recommendations through family, friends, social group etc. can also
influence consumers purchasing decision.
4. Personal association: consumer can also be emotionally or personally associated to a
brand.
While making a purchase a consumer goes through several steps and it is very helpful for a
marketer if he properly understands the purchasing behavior of a consumer.
(Judith, H.W., RICHARD, & E.P., 2002) have analyzed that purchase decision is effected by
brand quality and brand faithfulness. Another important factor that also affect the purchase
decision is the price factor i.e. the perceived cost to be paid for the product. Price conscious
people will show high preference towards buying cheap products regardless of the quality.
Whereas, the non-price conscious consumers buy expensive products because they think that
expensive products have high quality.
According to (Doostar, M., Akhlagh, E.M., & abdali, 2012) the brand is considered as
essential tool that helps the corporations in gaining competitive advantage. They also
mentioned that brand fairness is affecting positively to the buying behaviors of consumers.
They prefer to buy those brand about which they have slightly awareness.
3.0 Methodology
Information for conducting this research is collected by reviewing the previous articles from
previous studies. References of some basic theories describing brand awareness are also given.
Reviewing the previous articles helped a lot in conducting this research based on the model that
brand awareness plays a vital role in purchase decision of a consumer.

Brand Awareness Purchase Decision

3.1 Research Approach


Deductive approach will be used for this study. Firstly, deductive approach is preferred mostly
due to its highly scientific and quantitative nature, and this research is based on quantitative
analysis and, secondly, deductive approach is less risky than inductive approach. The risk in
inductive approach occurs because mostly data will not yield any specific results whereas risks in
deductive approach occurs if enough number of respondents are not found for survey. Attempts
would be made to minimize this risk. Respondents will be questioned whether they have a
positive attitude towards branding. They will be asked whether they will prefer to purchase items
from those brand to which they are having a positive feelings. After getting the answers this
research will analyze and investigate the relation between the positive relations felt towards a
brand and the purchase decisions made by the consumers.
3.2 Population
Population is the total set of individuals from which a sample is taken. So, in case of this
research the target population would be the business students of DHA SUFFA UNIVERSITY
Karachi, Pakistan. And the sample size for this research is 50 respondents.
Before the actual study a pilot study was conducted with 10 respondents, in order to check
reliability and excellence of questionnaire. The questionnaires which were filled improperly were
discarded and the remaining ones are used and further tests are applied to obtain the results.
3.3 Sampling Technique
The sample chosen for this research will consist of the university students and professors of
DHA SUFFA UNIVERSITY in Karachi, Sindh. Respondents are between the age groups of 20
to 45. Due to nature of the respondents a random sampling technique is being used.
3.4 Sample size
Sample size that I have taken for conducting this research is 50 respondents from DHA SUFFA
UNIVERSITY, this will include students and professors from the university.
3.5 Data Collection Method
For conducting a research data is required, which is to be collected from a source and reliability
of data is necessary for attaining the accuracy of the end results. Data collected for this research
is primary data and Questionnaire method is used to collect the data for analyzing the results.
Primary Data: Primary data is that data which is collected by the first time and researcher
himself collect the data to further carry out his/her desired research. as compared to secondary
data , primary data consumes more time and is more expensive because it comprises of
conducting interviews or conducting surveys either online or offline based on the choice of
researcher, primary data can also be collected through observations as well. So for conducting
this research I have decided to collect data through questionnaires.
3.6 Data Analysis Method
The statistical package SPSS will be used to analyze the results of the survey. Results from the
questionnaires will be displayed in tables and graphs.

References
Doostar, M., Akhlagh, E.M., & abdali. (2012). Analysis of the impact of brand asset on buying decision of
final consumers. journal of basic and applied scientific research, 8824-8832.

Engel, J.F., Blackwell, R.D. , Miniard, & P.W. (1995). What do you want your brand to be when it grows
up? big or strong? Journal of advertising research, 37(6), 23-36.

Judith, H.W., RICHARD, & E.P. (2002). measuring brand equity. 46-63.

Kapferer. (2001). (Re) inventing the brand: can top brands survive the new market realities? Kogan Page
Publishers.

Keller, K.L., Parameswaran, M.G. , Jacob, & I. (2011). Strategic brand management. Pearson Education
India.

Park, C.W., Jaworski, B.J. , Maclnnis, & D.J. (1986). Strategic Brand Concept-Image Management . journal
of marketing, 50.

Shahid, Z., Tehmeena Hussain, & Dr. Fareeha Azafar'. (2017). The impact of brand awareness on
consumers' purchase intentions. journal of marketing and consumer research, 34-38.

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