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Sohaib Zulfiqar

L17-4997
Introduction:
The purpose is to examine the impact of branding and discounts on
influencing consumers to purchase a product. The goal of the research is
to stress the fact that the brand and the discounts have an impact on
customer decision making process.
Branding is important at different levels, they serves as a focus for
customers loyalties. They introduce stability into businesses. Brands are
business Assets. Branding ultimately works as a signal. It allows
consumers to quickly recognize a product as one they are familiar with
or one they like. It acts as a memory cue, allowing consumers to retrieve
relevant information from memory. This information may be about past
experience of the brand, brand perceptions or brand associations.
Secondly, offering discounts on purchases is a way to quickly draw
people into your store. Anytime you tell a customer that he can save
money, you’re likely to get his attention. Discounts don’t only help your
shoppers; they also help your business. From increased sales to
improved reputation, discounts may be that one ingredient that can bring
business success. A price discount is a very common marketing strategy
to attract consumers by providing an extra value or incentive, which
encourages consumers to purchase the promoted products immediately
(Yin and Huang 2014).

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Significance:
By keeping in mind these factors discussed in the research how can we
attain the customer’s loyalty by having a good brand image and giving
discounts to consumers & what is their impact on the customers
satisfaction. . Moreover what are the other factors through which we can
change the behavior of consumers so that their attitude must be kept
optimistic towards the brand.

Research Objective :
The objective is to:
Explore the positive and negative impact of branding and discounts on
the attitude of consumer buying behavior.

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Theoretical Framework:

BRANDING

ATTITUDE Consumer buying


behavior

PROMOTION

Branding and Promotion are directly affecting the attitude of consumer


buying behavior.

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Literature Review :
Aaker (1991) and Murphy (1998). the emergence of brand equity
underlies the importance of brand in marketing tactics and hence
provides useful insights for managers and further research, Keller
(2003). A brand can be an everlasting and lucrative asset as long as it is
maintained in a good manner that can continue satisfying consumers’
needs,Batchelor(1998) and Murphy(1998). Although successful brands
can be totally different in nature, they share something in common, for
instances well-priced products and consistent quality, Murphy(1998). As
mentioned by Levitt (1983), there are four elements for building a
successful brand, namely tangible product, basic brand, augmented
brand and potential brand. Tangible product refers to the commodity
which meets the basic needs of the customers. Basic brand, on the other
hand, considers the packaging of the tangible product so as to attract the
attention from the potential customers. The brand can be further
augmented with the provision of credibility, effective after sales services
and the like.
Sales promotions have become increasingly important element of
commercial marketing space (Paettie, 2002). The main objective of the
sales promotion is to increase the short-term sales volume, maintaining
customer loyalty, emphasizing originality and to complement other
promotion tools. One of the main reasons for using sales promotion is
because of the competition. According to institution of sales promotion
(2004), “Sales promotion is defined as a planned and implemented
marketing activity that both enhances the product or service appeal and
changes customer behavior positively in return for an additional benefit
for purchase or participation.” (Tony, 2006). Chris (1993) defines the
sales promotion as the practice of offering temporary addition value to a
brand in order to reach specific market objectives. Sales promotion

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consists of short-term incentives to encourage purchase or sale of a
product or service (Kotler & Armstrong, 2007).

It is worth noting that consumer buying behavior is studied as a part of


the marketing and its main objective it to learn the way how the
individuals, groups or organizations choose, buy use and dispose the
goods and the factors such as their previous experience, taste, price and
branding on which the consumers base their purchasing decisions
(Kotler and Keller, 2012). Importance of the marketing mix can be
explained in a way that “successful marketing depends on customers
being aware of the products or services on offer, finding them available
in favorably judging that practitioners of the offering in terms of both
price and performance” (Meldrum and McDonald, 2007, p.4)

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Research Questions:
Our research is based on the question that “Does branding and discounts
affects the consumer buying behavior keeping in consideration the
attitude as mediator”, if yes then what are the facts which leads to this
question .If no then what other conclusion do we reach.

Hypothesis:

H1 : Branding affects the attitude of consumer buying behavior


Ho : Branding does not affects consumer buying behavior.

H1: Discounts affects the attitude of consumer’s buying behavior.


Ho : Discounts does not affect the consumer buying behavior.

PROBLEM STATEMENT:
“To investigate the positive and negative impact of branding and
discounts/promotions on the buying behavior of customers with attitude
as mediator, targeting the age group between 18 to 35.”

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VARIABLES:
There are 3 variables:

1) Consumer buying behavior

Consumer buying behavior is a dependent variable. It depends on the


independent variables and they do affect the buying behavior. Customer
buying attitude is the purchasing decision.

2) Branding

Branding is an independent variable. It differentiates the product value


from its competitors and how branding affect the customers perception.

3) Discounts

Discounts are an independent variable. Offering discounts on purchases


is a way to quickly draw people into your store and make their buying
decision fast.

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METHODOLOGY:

An initial sample of 150 volunteers (students and staff members of


FAST university, 55% women and 45% males, average age= 18-35)
tested the research questionnaire and enabled testing measurement scales
for reliability and validity. The second stage consisted of a large-scale,
Internet-based survey. Data was collected through different articles and
researches.

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Questionnaire
 For Branding:
1) Does a strong brand affect your buying behavior?
Yes?No
2) Can a brand turn customer’s decision in the favor of product?
SA A N DA
3) Do basic brands need to know consumer's need?
SA A N DA
4) Do you think a famous brand will have definitely good quality?
Yes?No

5) How does branding have edge over local products?

Open ended.

 For Consumer’s buying behavior:


1) Do you think consumer's lifestyle affects the consumer's buying
behavior?
SA A N DA
2) How much the economic situation of consumers affects their
buying behavior?
Open ended.
3) Does the factor of age affects consumer behavior?
Yes?No

4) What do you think why the personality affects the consumer's


buying behavior?
Open ended.

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 For Discount:
1) How does discount effect consumer behavior?
Open ended
2) How the sales can be increased by giving discounts?
Open ended

3) What are the negative impacts of sales?


Open ended

Bibliography

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(n.d.). Retrieved from https://www.google.com/search?
q=consumumer+buying+behvaior&rlz=1C1CHZL_enPK779PK779&oq=consumumer+buying+behvaior&a
qs=chrome..69i57j0l7.6084j0j9&sourceid=chrome&ie=UTF-8

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