Factors Affecting the Brand Recognition; an Exploratory Study

Group members: Kiran Jafri, Maham Rehan, Faiza Suri, Muhammad Mussa

Abstract – The following research aims to identify why Pakistani brands are not being
recognized internationally. Three determinants were taken, Brand Perception, Product Quality
and Product Innovation. 129 questionnaires were used for data analysis.

Introduction- Brand plays a vital role in brand portfolio. Angelmar, Angelmar and Kane, (2007)
When a consumer knows a brand and sees it he quickly recognizes it and creates a perception.
Azdem, Ghaderi and Fazli, (2007) That perception varies directly with quality of the product.
Pakistan is doing production for international brands, however even when the products are up to
international standards no industry is using its own brand for export goods. The research aims to
change this.

II. Literature Review

Brand Recognition
It is how consumers recognize a brand over its various attributes and those help them make fast
decisions whether to buy that product or not. Brand recognition is measured through consumer
knowledge level, current market share, or penetration level Kim etal, (1997)

Brand Perception
A brand is important but portraying the right perception to customers about the brand is even
more important. Brand association is significant because consumers observe the features of the
product Randall et al, (1998). Not just this but consumer buying behavior changes with market
place behavior. Bass, Givon, Kalwani, Reibstein and Wright (1984) found that brand switching
take place due to change in brand preference or change in consumer perception.
H1: Brand perception will be positively associated with brand recognition.

Product Innovation
According to Vadim Kotelnikor it is bringing to life a new way to solve the customer's problem.
Mason, (1990) found that modification leads to excitement and market growth.
H2: product innovation will be positively associated with brand recognition.

Product Quality
Quality is the value that consumer believes that the product provides. Price and quality are two
factors that determine whether the product would succeed in market, Smith, (1986). Customer’s
think that competitive advantage can make a product export worthy as stated by Shy, (2000). To
take advantage of competitive success it is important to have knowledge about the export
products.
H3: Product Quality will be positively associated Brand Recognition.

The theoretical framework is a model of logical relationships amongst the factors, Brand
Recognition, Brand Perception, Product Innovation and Product Quality which discusses the
relationship among the determinants that are important to the aim of the study.
Participant’s measure and methodology

It was an exploratory study the questionnaire was conducted which contains five sections
biographical characteristics, brand recognition, brand perception, product quality and brand
innovation. The target audience was the Local community of Pakistan. More than 200
questionnaire were distributed out of which 129 were received back, making respondent rate as
65%.

The sample was based on 3 criteria

 Area
 Gender
 Brand used

There are four local brands' name chosen 1) haleeb 2) olpers 3) goodmilk 4) tarang Haleeb got
the strongest brand name which was 38.49%.which was significant among the others because
tarang was the lowest of them all at 7.6% .There was a correlation test taken which indicated a
strong and significant relationship between Brand Recognition and Brand Perception (0.442).
But, Product Quality and Brand Recognition have not strong but significant relationship (0.395)
whereas Product Innovation and Brand Recognition have strong and significant relationship
(0.437). Pakistan has its own culture; thinking of people varies according to their classes or
prosperity they hold. The study is mainly focused on middle class, reason behind selecting
middle class was that they are educated and they are well aware of the concept of brand and its
importance. The research included three variables; the first one is “Brand Perception” the
relationship between Recognition and Perception is strong rather than other determinants. This
relation can be enhanced through appropriate advertisement but the problem is that most of the
foreign users are media oriented and Pakistani channels are not viewed internationally, therefore,
adequate advertisement is not possible. Secondly Pakistani products have short history and lack
of consistency, which hinders enhancement of product perception. Pakistan is entangled in issue
like child labor, quota system and mistrust in business relation to spoil the product perception
internationally. Uncertainly, in economic activities of Pakistan creates fears in supply of demand
in the minds of foreign consumers. This inconsistency in availability of the product in the market
creates negative sentiment about the product.

Second independent variable is "Product Quality". Respondents gave comparatively less

weighted to quality the entire four products selected are of equally good quality and therefore,
quality is not a strong factor in brand recognition as they are some certain reasons:
 Pakistani entrepreneurs prefer export of raw material and not the value added products.
These raw materials processed by foreigners and sold under their own trade names;
therefore, Pakistani brands do not get recognition inspire of good quality
 People of Pakistan are quality conscious and they prefer to buy international brand rather
than to buy their own local brand, which de-motivate our local industries and they cannot
grow more for this reason.
Third independent variable is Product Innovation. The relationship between recognition and
innovation is almost equally strong as perception.
The whole article revolved around the fact that Pakistan’s profit earning ability is less than the
other countries and the biggest hurdle in the export of value added goods is lack of brand. This
research will promote ideas of producers in developing a realistic understanding of the
implications of cultural factors in brand recognition. Collected data can serve as guideline in
understanding comparative importance of the selected variables considered among a middle class
of society. It will help in launching target oriented companies by manufacturers, selection of
logos for advertisement and assessment of response by customers.
Now after conducting all the research it is important to know that how can we improve it so In
order to do that the current situation firstly the Government, producers/manufacturers and
advertisers have to synergize their efforts. Government has to make user friendly policies
through which due protection should be provided to local brands Secondly Manufacturers
should not compromise quality and product innovation due to government protection, otherwise
products will not grow with the passage of time. Thirdly Selective products should be subsidized
in various ways, like declaration of tax free zones, low tariff rates, provision of electricity on low
rates and less duty on import of raw material. And lastly Continues media campaign can play
unimaginable dividends especially in the case of those countries/nations, who are media oriented.
If all this is done Pakistani brands could be recognized on a much bigger scale.