KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI

INSTITUTE OF DISTANCE LEARNING

SCHOOL OF BUSINESS

TOPIC:
ASSESSING THE EFFECT OF BRANDING ON CONSUMER PURCHASING
DECISIONS AT NESTLE GHANA LIMITED.

NAME OF STUDENT INDEX NUMBERS

OWUSU FRANCISCA TWUMWAA 5060420

AMEDZRO ROLAND 4957320

ISSA RAHMAT GNEGNE 5649520

IKE NANA ANTWI 4967620

JUNE, 2022
1.0 INTRODUCTION

The survival or success of companies is now dependent on the relevance and significance of

information that is carefully collected by the organization with respect to the purchasing habits

displayed by consumers and customer in relation to a particular product or service within a keen

competitive environment. In order to survive in such a competitive market, most organizations

are keenly interested in developing strong brands that leads to long term and customer

relationships (Hess, Story and Danes, 2011).

The current dispensation of marketing activities represents key changes in the marketing

strategies and techniques employed by organizations and companies in order to assist in

remaining in competition and be sustainable in the turbulent market that they find themselves.

(Kotler and Keller 2006; Keller).

Currently most companies inject heavy resources and time into the study of behavioral and

sociological factors in order to gain much insight and to understand consumer purchasing

patterns.in order to achieve these results, there is the need for an organization to take keen notice

to its brands and how it can relate to the purchase decision of its customers. Branding has

emerged as part and parcel of modern day marketing strategies and now considered a key

organizational asset (Kotler, 2000).

Most organizations are currently shifting from a product or market point of view to consumer or

customer focus and this reflect the evolution of marketing. As an implication to this paradigm

shift, most companies are relentlessly injecting huge resources into understanding their

consumers in relation to the various marketing strategies which are applicable in both product

and service industry (Kotler ,1999).

Most organizations further resort to underpinning the relationship that exist between consumers

spending and the key variables involved in consumer preferences in terms of attitudes, cognition,

perception and learning. (Von Moos, 2005). As means of this, the organization uses these

variables to outline and understand what their customers perceive about the products offered

onto the market space for attention and satisfaction purposes. Also since the organization

operates within a keen competitive environment, the essence of these also gives more

information to the organization with regards to which brand in doing well on the market, Malik

et al. (2013).

A well to do brand on the market increases the success of the product on the market, since most

consumers becomes aware of such brand. According to Abideen and Saleem (2011), it is

therefore necessary for every organization to develop a strong brand which speaks about the

uniqueness of the product or service within a keen competition. Branding plays a significant role

in how consumer makes decision to the purchase of an organization’s product or services, as a

result of this it is therefore important for the development of a strong brand which can influence

the a purchase decision. (Kotler and Keller 2006; Keller).

In today’s competitive market place where consumers have an enormous amount of information

with regards to products and services at their disposal, yelling louder is not a solution to making

you heard or recognized in the market place. Instead, creating an outstanding brand that appeal to

consumers (Ahuvia, 2005).

According to Chakrabortty, et al. (2013), the unique place in the minds of customer attracts and

sometimes it retains the customer on your goods and services. As the consumer buying behavior
has the second step of information search in this step customer got attracted towards your

product by advertisement. This advertisement creates the perception in your customer mind.

Customer expect many things from your product before using it only by the brand image and

brand association. Brand image can be positive and creates many customers and build strong

customer relationship with them and maintain loyalty, but if the brand image is negative it will

be a harmful as no customer repetition and retention (Ahuvia, 2005). So firms pay a huge

investment on advertisement to maintain the brand image and brand equity management

programs. As brand image create perception in customer mind so after post purchase if cognitive

dissonance occurred due to customer unhappy then customer buying behavior changed Crawford

and Molnar (2008). Marketers use brands as to get the competitive advantage on other

competitors playing an imperative role in the success of companies, brands hold a great

importance in consumer’s life Malik et al. (2013). Consumer’s choose brands and trust them the

way they trust their friends and family members to avoid uncertainty and quality related issues,

Bashir and Malik (2009).

1.1 STATEMENT OF THE PROBLEM

Though many companies are able to have better products and yet are sometimes unable to

compete in the market due to poor branding activities. The role of branding in influencing

consumer purchase decisions has been undermined by many firms in Ghana over the years.

Some firms spend huge amounts of money developing strong brands for their products with

Nestle Ghana not been an exception and still complain about low sales volume and product

patronage, since adverts may not necessarily bring about huge volume of sales in the short-run,

but will certainly increase sales and profits in the long run if done properly. Developing of strong

brands that could influence the purchase decision of consumer has become the gateway to
survival and the acquisition of market share for most organizations with Nestle products not been

an exception (Hawkins, Best et al. 2010). Now market has become too much competitive due to

hyper competition in the (Assael 2005, Malhotra 2008). The best way to compete among these

environments is to develop strong branding strategies which can affect the decisions of the

customers of the organization.

By easily remembering brand, quality production increased which will impel consumers to make

the right decisions and this will lead to sales increases and makes more profits which leads to

gain high goodwill and market share. It is the way which leads towards maximizing market share

and to sustain competitive advantage and strong position in the market (Rindell, 2008).

This indicates that strong brands have the potential to generate long term and loyal customers,

which would eventually lead to an increase in sales in the future. (Hess, Story and Danes, 2011).

As a result of the challenges in managing brands and its benefits, the research will bring into

focus a critical evaluation of branding and its role or impact in the purchase decision making

process of consumers (Kotler, 1999).

Brand is a very important factor or strategic tool to an organization such as Nestle Ghana

Limited. As the consumer is more aware of the brand of Nestle Ghana Limited this will impel the

customer to make a selective decision within a keen competition on the market (Kotler, 1999).

For every strong brand the customer acquire much knowledge about its price, quality etc., and

becomes more attracted towards that brand. As a result of this, if an organization wants to

improve upon its brand as a unique tool for differentiation among other competitors on the

market, how brand as a tool will affect or influence the buying behavior of the consumer (Kotler

and Keller 2006; Keller).

In view of this, there is the need for an in-depth research into the development of a unique brand

by Nestle Ghana and how consumers make decision to purchase a particular brand among other

substitute brands to satisfy a need or wants. The best way to mitigate these conditions has to do

with the development of strong brand image that can easily be remembered by potential and

target consumers of Nestle Ghana. By easily remembrance of the organization’s brand, quality

production increased which leads to sales increases and the organization makes more profits

which leads to gaining of high goodwill, market share enhancement and leading towards more

brand equity. By view of these Nestle Ghana Limited will enjoy maximizing of its market share

and sustain competitive advantage and strong position in the market. Based on the problems

identified, the research is focus mostly on how brands affect or influences consumer purchase

behavior within the consumer market of Nestle Ghana Limited. For the past five (5) years, Nestle

Ghana has deployed various brand strategies in order to improve sales level, these strategies

projected the organization’s sales volume from 45% to 55%. However there are other unattended

to strategies that could be applicable which will help increase the sales volume from 55% to 70%

as projected for the next coming years, and this will assist in mitigating the revenue volume of

the organization to 85%.

1.2 OBJECTIVES OF THE STUDY

The main objective of this research is to assess branding and how it affects consumer purchase

decision.

The specific objectives are to:

i. To assess brand elements existent at Nestle Ghana Limited.

ii. To examine the effects of branding on purchasing decisions at Nestle Ghana Limited.
 iii. To examine the prospects and challenges of branding on the purchasing behaviour at

Nestle Ghana Limited.

1.3 RESEARCH QUESTIONS

In order to attain the above set objectives of the study the following research questions are

outlined:

i. What are the brand elements existent at Nestle Ghana Limited?

ii. What are effects of branding on the purchasing decision of customers at Nestle Ghana

Limited?

iii. What are the prospects and challenges of branding on the purchasing behaviour at

Nestle Ghana Limited?

1.4 SIGNIFICANCE OF THE STUDY

The significance of the study is enormous. It is anticipated that the outcome of this study will

serve as a document indicating the impact of branding on consumer purchase decision. This

research seeks to gather adequate information on the various branding strategies that could be

adopted by Nestle Ghana Limited and how it could stimulate demand and purchase behavior of

target markets.

This study also seeks to provide useful insights on branding strategies on customers’ purchase

decision with regards to the customers of Nestle Ghana Ltd. The study will explore the
relationship between the types of branding strategies that customers prefer most and its impact

on their purchase decision level with regards to the usage of different services and products

provided within the industry.

It also serves as a source of information that brings to the fore the application of various

branding strategies and its impact on the various decisions customer make during purchase. It

will further provide empirical support for management strategic decisions in several critical areas

of operations. Above all, it will provide a justifiably valid and reliable guide to designing

workable branding strategies that could assist in creating and delivering customer value,

achieving customer satisfaction and loyalty, building long-term mutually beneficial relationship

with profitable customers and achieve sustainable business growth within a keen competition

among the industry players.

1.5 RESEARCH METHODOLOGY

The study has adopted both qualitative and quantitative methods coupled with case study

strategies to assess branding on consumer purchase decisions. The study adopted an exploratory

design sort to investigate branding strategies and its impact on consumer purchase decisions, this

will enable the researcher to get in-depth understanding of subject matter. Exploratory research is

used to investigate a problem which is not clearly defined and help the researcher to have a better

understanding of the existing problem. The sources of materials for the study will take the form

of and secondary data collection methods. Secondary data materials were extracted from relevant

textbooks, newspapers, reports/articles, journals, bulletins and documents. Due to the nature of

the topic under study and the nature of the respondents, a non – probability sampling technique

will be used (convenience sampling).

1.6 SCOPE OF THE STUDY

The study will be conducted within the framework of assessing and analyzing the application of

branding strategies and its impact on consumer purchase decision in relation to the customer of

Nestle Ghana Limited.

The time approved to complete the research is limited. Nestle Ghana Limited has most branches

spread all over the country. The scope of the research will be limited to the customers and staff

of the organization at a selected branch in the Greater Accra Region who will assist in providing

important information that could be used in attaining the right results.

Hence the result will not be generalized but its findings will be placed in the relevant context of

the organization under studied.

1.7 ORGANIZATION OF THE STUDY

The study will be made up of five (5) chapters. The first chapter which is the introduction

comprises the background of the study, problem statement, objectives, significance of the study,

methodology and organization of the study. The second chapter is the literature review, it

basically gives an in-depth and relevant review on the subject under study thus the assessment of

branding strategies on consumer purchase decisions; the concept of branding and other strategies

adopted and the concept of consumer purchase decisions. Chapter three is the methodology. The

fourth chapter presents the data analysis and findings. The final chapter which is chapter five

touches on the summary, conclusion and recommendations

REFERENCE

Abideen, Z. U., & Saleem, S. (2011). Effective advertising and its influence on consumer buying

behavior. European Journal of Business and Management

Ahuvia, A.C. (2005), “Beyond the extended self: loved objects and consumers' identity

narratives”, Journal of Consumer Research, Vol. 32 No. 1

Assael, H. (2005). Consumer Behavior A Strategic Approach (2005 Indian, Dreamtech Press.

Bashir, A., & Malik, N. I. (2009). Effects of advertisement on consumer behavior of

Chakrabortty, R. K., Hossain, M., Farhad, M., Azad, H., & Islam, M. J. (2013). Analysing the

Effects of Sales Promotion and Advertising on Consumer’s Purchase Behaviour.

Hess, J., Story, J. & Danes, J. (2011). A three-stage model of consumer relationship investment.

Journal of Product. & Brand Management

Keller, K. L. and D. R. Lehmann (2006). "Brands and branding: Research findings and future

priorities." Marketing science 25(6): 740-759.

Kotler and Andreason, (1999), Principles of marketing, Prentice Hall Inc, New Jersey, U.S.A.

Kotler, P and Keller, K.l. (2000), marketing management, 13th Ed. New Jersey: Pearson Prentice

Hall.

Malik, M. E., Ghafoor, M. M., Iqbal, H. K., Ali, Q., Hunbal, H., Noman, M., & Ahmed, B.

(2013). Impact of brand image and advertisement on consumer buying behavior.