Govt.

postgraduate college for women, Samanabad Lahore

Subject:
Research Methods for Business

Submitted to:
Ms. Nida

Submitted by:
Aleeza Fatima (061631001)
Amna Zahid (061631003)
Mehak Tariq (061631027)
Ayma (061631008)
Farah Ashraf (061631010)
Ayesha Farooq (061631006)
 A Study on the Effect of Brand Image on
Consumer Preference with Reference to Youth in
Lahore

Abstract:

Brand image is the key factor in consumer purchase of a product. Because

branded products provide them satisfaction to their mind, status, specified
quality and long lasting. The present study analysis the Effect of Brand Image
on Consumer Preference with Reference to Youth in Lahore. Simple random
sampling method was used to collect data from a sample size of 53 consumers
belonging to different categories. A well-structured questionnaire, developed in
Likert scale was administered among the selected consumers. Statistical Package
for the Social Science (SPSS) was used for conducting various parametric tests
such as Frequency analysis, Cross Table analysis and One way Anova test for
data analysis and interpretation.Secondary data was collected from books,
journals, and website.

With regard to the frequency of buying the branded products, 52.8% of the
respondents buy the branded product only when quality is important as against
21.8% who always buys the branded products. With regard to the use of
branded and unbranded products, 35.8% of the respondents have an equal
proportion of 50:50.

Key words: Brand Image, Consumer Preference, Quality, Status

3
Introduction:

Brand image is the key driver of brand equity, which refers to consumer’s
general perception and feeling about a brand and has an influence on consumer
behavior. For marketers, whatever their companies’ marketing strategies are, the
main purpose of their marketing activities is to influence consumers’ perception
and attitude toward a brand, establish the brand image in consumers’ mind, and
stimulate consumers’ actual purchasing behavior of the brand, therefore
increasing sales, maximizing the market share and developing brand equity. A
strong brand image is a powerful asset. Therefore, it was aimed in this study to
investigate the relative influence of the brand image on consumer preferences
and the formation of strong consumer preferences-brand relationships. Often,
consumers will tend to choose a brand that they consider congruent with their
self-image. Brand preference is regarded as a key step in consumer decision
making, involving elements of choice.

This paper is interested to find out the effect of brand image on consumer
preferences in Lahore. And the study was all about the effect of brand image on
consumer preference. This study will help to know the new

4
technology has resulted in a greater demand for branded items. The reason for
the preferences are, Brands creates differences, Brand provide peace of mind,
Brands add value, Brands express who we are, brands provide better quality and
status Because of these reasons consumers prefer to have branded products and
to be loyal to the branded products.

Statement of the Problem

Consumer behavior make. changes like yesterday’s luxuries are today’s

necessaries. The market survival depends on consumer satisfaction. The
satisfaction search for innovation and new technology, which will reduce their
work into simple or convenience to their situation. In the entire process of
buying consumers are driven by influences such as feelings, motivation,
income, lifestyle, opinion, culture, personality etc.

Review of the literature

Ching and Ying (2008) dealt the topic Airline brand equity, brand preference
and purchase intentions. They concluded their research it has a positive
relationship between brand equity, brand preference and purchase intentions
with moderation effect of switching cost affecting the relationship between
brand equity and purchase intentions.

Whan and Bernard (1986), made research on strategic brand concept, image
management. They say that conveying a brand image to a target market is a
fundamental marketing activity. The method for maintaining this concept image
linkage depends on whether the brand concept is functional symbolic or
experiential. Maintaining this linkage should significantly enhance brands
market performance.

Benedict and Rajeev (2002) did a study on how perceived brand globalness

5
creates branch value. In today’s multinational market place it is increasingly
important to understand why some consumers prefer global brands to local
brands. It is based in the quality. And the purchase is based on the perceived
brand globalness.

Ulrich and Keven (2008) made a research on holistic package design and
consumer brand impression. Sincere brand should have natural package design,
exciting brands – contrasting design, competent should have delicate design and
sophisticated brand have natural or delicate design. And they discussed the
potential trade off among the impressions created by holistic design types and
illustrate their findings with numerous real package.

6
Katherine and Darren (2008), on the influence of dissociate reference group on
consumer preference. This study explores males have more negative evaluation
of and were less inclined to choose, a product associated with dissociative that is
female, reference group than a neutral product. We suggest the mechanism
underlying our effects is a desire to present to positive self-image to others.

Frank and Joseph (2006), direct and indirect effects of self-image congruence on
brand loyalty. The study integrated the emerging construct of brand relationship
quality into self-congruity theory. The model posits that self-image congruence
positively affects brand loyalty directly and indirectly through functional
congruity, product involvement and brand relationship quality.

Dongdae and Ganesh (1999), on effects on partitioned country image in the

context of brand image and familiarity. The study found out overall image and
product specific image and three different types of familiarity product
familiarity, brand familiarity and country familiarity. The study states that
product specific image plays a mediating role between overall country image
and consumer evaluation with product and brand familiarity moderate
familiarity consumers utilize country of origin information less than low or high
familiarity consumers.

Myers Chris (2003) managing brand equity, based on its attributes. Brand equity
continues to be one of the critical areas for marketing management. And this
study explores some of the consequences attributes may have on brand equity
such as the basis on consumer preferences. Attributes are examined from a
tangible and intangible perspective and both are found to be important
contributors to brand equity and brand choice.

Rvi, Pascale and Ray (2005), consumer based brand equity. The study found
that brand awareness and brand associations were found to be two distinct
dimensions of brand equity ass conceptualized in the market literature

7
Pamela and Robert (1999), strategies for building consumer brand preference.
The study found that, the principles of market is typically to build a relationship
with buyer. The relationship should be based on strong bond between the buyer
and the brand. The choice of an individual strategy or combination depends
mainly on the nature of the branded product or service. The success of the
strategy depends heavily on the marketers understanding of the preference
building and bonding process.

8
Aaker Janniefer (2006), brands personality traits, personality psychology. He
found that an understanding of the symbolic use of brands have been limited in
the consumer behaviour literature. He identified five big dimensions of
personality. And to measure it, a reliable, valid and generalizable measurement
scale is created.

Cheng and Zhen (2004), consumer ethnocentrism and willingness to buy

domestic products in developing country setting. The results support the
hypothesis that the impact of ethnocentrism on consumer willingness to buy
domestic products trends to be weaker when consumers judge them as being of
lower quality or when consumers hold higher values.

Atilgan, Satak and Serkan (2001), determinants of the brand equity. The study
concludes that brand loyalty is the most influential dimension of brand equity.
Weak support is found for the brand awareness and perceived quality
dimensions.

Xuemei and Luiz (2011), role of brand image, product involvement and
knowledge in explaining consumer purchase behavior. This research is the first
literature on counterfeits to establish that perceived brand personality plays a
more dominant role in explaining consumer purchase intention based on profit
and product attribute. Involvement and knowledge has no significant influence.

Ravi, Pascale and Ray (2007), country image and consumer brand equity and
relationship. The relationship between these two sets of constructs was found to
be positive as well as product category. While the contribution of both country
image dimensions was also product category specific.

Objectives
 To study the importance of consumer preference for branded products based on
income.
 To find out how brand influences in consumer decision making.
 To find out the impact of price on purchase decision.
9
Hypothesis:

Null: There is no significant difference between consumer preference for branded

products according to income.

Alternative: There is significant difference between consumer preference for

branded products according to income.

Methodology

Type of research:
Descriptive, applied and conclusive research analysis based on correlation
research approach and cross-sectional research analysis will be used for
analyzing and interpreting the data.
Sources of data
This study will be based on both primary and secondary data. Primary data will
be collected from the field through survey and secondary data will be collected
from books, journals, and website.
Data collection
This includes a cross-section survey to collect data from customers.
Instrument
Well-structured and designed questionnaire was prepared by the researcher to
collect data from the selected samples.
Sampling Method
Simple random sampling method was used to collect
the data. Sample size
Data was collected from a sample size of 53 peoples from different age group
for the purpose of study and analysis.

10
Plan of the analysis

Statistical Package for the Social Science (SPSS) was used for conducting
various tests such as Frequency analysis, cross Table analysis, parametric test
One way Anova for data analysis and interpretation.

11
Scope of the study:

This project helps in finding out the effect of brand image on consumer
preference. The study focuses on various factors such as price, packaging of the
product, customer satisfaction, and good will of the company, quality, customer
service and brand name which affect the customer preference for the branded
product and their purchasing decision.

Limitations:
 The sample size is limited to 53 members; hence the result of the study
cannot be taken as universal.
 Findings of the survey are based on the assumption that the respondents
have given correct information.
 Since the respondents had to fill the questionnaire while busy with their
hectic schedule, many people were reluctant to answer.
 The study was conducted only in K Narayanapura area and therefore,
several other potential samples outside the city were neglected.

Data Analysis and interpretation:

This study was undertaken to analyst the effect of brand image on consumer
preference on purchase branded products. The data was collected using
questionnaire and analyzed. SPSS tools like Frequency test, Cross tabulation
and One way Anova were used to evaluate the preference of the consumer on
the branded products in their purchase decisions.

12
 Table 1 Reasons for the Brand Preferernce

Reas Freque Perc

ons ncy ent
Product range 6 11.3
Product design 8 15.1
Product quality 25 47.2
Price range 12 22.6
Customer service 2 3.8
Total 53 100.0
Source: Primary data

13
Interpretation:
The Table 1 points out product quality as the main reason for the brand
preference of the consumers, (47.2%), followed by price range (22.6%), product
design (15.1%), and product range (11.3%). Only a small umer (3.8%) indicate
customer service as the reason for their brand preference.

Inference:
Customers prefer products with high quality and reasonable price range over
and above product design and and product range.

Table 2. Attributes that affect the purchase decision

Attributes Frequency Percent

Brand name 14 26.4
Design 11 20.8
Easy availability 16 30.2
Price 6 11.3
Desire to purchase 6 11.3
Total 53 100.0
Source: Primary data

Interpretation:
The Table 2 indicate that easy availability of the product as the attribute that
affect the purchase decision most (30.2%). Respondents also identify brand
name (26.4%), and design (20.8%) as the attributes which affect their purchase
decision. Only 11.3% find price and desire to purchase as the attributes which
affect their purchase decision.

Inference:
Customers prefer to buy branded products because of their easy availability, brand
name and product design.

14
 Table 3. Impact of price with income group
Income Group
Lower Middle Upper Upper High
Price impact
class class middle- class income Total
class group
Strongly 1 0 2 2 0 5
disagree (20.0) (0.0) (40.0) (40.0) (0.0) (100.0)
0 0 2 1 0 3
Disagree
(0.0) (0.0) (66.7) (33.3) (0.0) (100.0)
3 9 3 2 0 17
Neutral
(17.6) (52.9) (17.6) (11.8) (0.0) (100.0)
1 10 6 2 4 23
Agree
(4.3) (43.5) (26.1) (8.7) (17.4) (100.0)
Strongly 0 2 2 1 0 5
agree (0.0) (40.0) (40.0) (20.0) (0.0) (100.0)
5 21 15 8 4 53
Total
(9.4) (39.6) (28.3) (15.1) (7.5) (100.0)
Source: Primary Data
Note: Figures in brackets are percentages to total

Interpretation:
The result of the cross tabulation of impact of price with income group shows
that 40% each of the upper middle class as well as upper class strongly disagree
that price impact their buying decision. As against this, 20% of the lower class
strongly disagree that price influence their buying decision.

The data further indicate that 66.7% of the upper middle class and 33.3% of the
upper class disagree that price has a significant impact on their buying decision.

Nearly 43.5% of the middle class, 26.1% of the upper middle class, 17.4% of
high income group, and 8.7% of the upper class agree that price of the product
impact their buying decision.

An equal number of middle and upper middle class (40% each) strongly agree
that price impact their buying decision. Whereas, only 20% of the upper class
strongly agree that price has an impact on their buying decision.
15
Inference:
Price of the product is an important factor influencing the buying decision of the
middle class, upper middle class, and the upper class. They look for the quality
of the product in return for the amount they spent for the product.

Table 4. Attributes that affect the purchase decision

Attributes Frequency Percent

Brand name 14 26.4
Design 11 20.8
Easy availability 16 30.2
Price 6 11.3
Desire to purchase 6 11.3
Total 53 100.0
Source: Primary data

Interpretation:

The Table 4 indicate that easy availability of the product as the attribute that
affect the purchase decision most (30.2%). Respondents also identify brand
name (26.4%), and design (20.8%) as the attributes which affect their purchase
decision. Only 11.3% find price and desire to purchase as the attributes which
affect their purchase decision.

Inference:
Customers prefer to buy branded products because of their easy availability, brand
name and product design.
One-way ANOVA
Hypothesis:
H0: There is no significant difference between consumer preference for branded
products according to income.
H1: There is significant difference between consumer preference for branded
products according to income.
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 Table 3. One-way Anova

Sum of D Mean F Sig

Squares f Square .
Between 6.140 4 1.535 1.34 .266
Groups 9
Within Groups 54.615 48 1.138
Total 60.755 52

Level of significance = 5%(0.05)

One way Anova test was conducted to find out if there is any significant difference
between consumer preferences for branded products according to income.

The test result shows that

F = 1.349, P value = 0.266
Since P value is > 0.05, the result is not
significant. Therefore, Ho: is accepted.

Therefore, there is no significant difference between consumer preferences for

branded products according to income.

Findings of the study:

 The survey was conducted to study the effect of brand image on

consumer preference. A questionnaire consisting of 20 questions were
sent to 43 male and 10 female respondents and the data collected from all
of them were analyzed using different techniques.

 The respondents are comparatively young with 41.5% (22) of them

belonging to the age group between 23-26, and 22.6% (12) between 18 to
22 years. Majority of the respondents (43.4%) are either post-graduate or
graduates (39.6%). Majority of the respondents belongs either to middle
class (39.6%), upper middle class (28.3%), or upper class 15.1%.
17
 With regard to the frequency of buying the branded products, 52.8% of the
respondents buy the branded product only when quality is important as
against 21.8% who always

18
 buys the branded products. Whereas, 18.9% rarely buys branded products
as opposed to 7.5% who never buys branded products.
 With regard to the use of branded and unbranded products, 35.8% of the
respondents have an equal proportion of 50:50.

 The findings of the study show product quality (47.2%), price range
(22.6%), product design (15.1%), and product range (11.3%) as the
reasons for the brand preference of the consumers. Customer service does
not emerge the reason for their brand preference.

 Respondents receive information about the brands through TV ads, peers,

point of sales and websites.
 Easy availability of the product (30.2%), brand name (26.4%), design
(20.8%), and price and desire to purchase (11.3%) as the attributes which
affect the purchase decision.
 The data indicate quality of the product as the main reason for the choice
of the branded product (30.2%), followed by value added services
(22.6%), status (20.8%), loyalty (15.1%), and luxury (11.3%).
 Customers’ choice of the branded products depends mainly on the quality
of the product and the value added services.
 The data indicate quality of the product as the main reason for the choice
of the branded product (30.2%), followed by value added services
(22.6%), status (20.8%), loyalty (15.1%), and luxury (11.3%).

 The good will of the company does not seem to influence the purchasing
decision of the respondents from different education backgrounds as they
have mixed response to the impact of the good will of the company on
their purchasing decision.

 There is no significant difference between consumer preferences for

branded products according to income.
 There is no significant influence of advertisements on purchasing decision.

19
Conclusions:

 The middle class and the upper middle class customers have a
preferential option for the branded products may be due to their higher
purchasing power as compared to the lower class.
 The economic and social status of the high income group may also
influence their purchasing decisions.
 Quality is an important factor that influences customers’ preference for
branded products and the frequency of buying.
 Consumers prefer to use branded and unbranded products in the equal
proportion for factors such as price, quality and durability of the products.
 Customers prefer products with high quality and reasonable price range
over and above product design and and product range.
 Customers’ choice of the branded products depends mainly on the quality
of the product and the value added services.
 Satisfaction seems to be the ultimate thing leading towards repeated purchase.
 Television advertisements play an important role in providing
information about branded products more than peer, point of sales and
website.
 There is no significant difference between consumer preferences for
branded products according to income.
 There is no significant influence of advertisements on purchasing decision.

Suggestions:

 More creative ways of advertising to create better awareness among

the various segments of the society regarding the branded products.
 To focus more on the quality of the product and the brand image to
enhances the sale of branded products.
 To ensure that the customers received true value for the amount they
spent for their preferred item through various value added services and

20
 additional benefits.
 To maintain a reasonable price range for the branded products to
promote and enhance the sale of the products among the various
income and age group.
 To ensure the easy availability of the branded products for the
promotion of the sales.

21
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