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Hypotheses Determining

Activity
Monday, December 11, 2017
A Battle Between Branded & Me
Too Brands (Unbranded) Products
Published 2012
In probability theory and statistics,
To Measure covariance is a measure of how
Co-variation much two random variables change
together .
between branded
In the opposite case, when the
& me-too greater values of one variable mainly
(unbranded) correspond to the lesser values of
products the other, i.e., the variables tend to
show opposite behavior,
the covariance is negative
Understand variation
between branded & me
too (unbranded) product
variations in buying &
consumption

Factors that cause


variations in consumption
of the brand & me too
(unbranded) products
Constructs

Branded Products: Distinguished name &/or symbol


identifying a good or service

Me too Brands: No identity or recognition in market

Co-Movement: Same directional pattern

Consumption Pattern: What measures; Influencers;


benefits; value
HYPOTHESES
There is a co-movement between consumption of branded &
me too (unbranded) products when consumers income
increases.

There is a co-movement between consumption of branded &


me too (unbranded) products when product quality increases.

There is a co-movement between consumption of branded &


me too (unbranded) products when their respective prices
increase
Variables

Branded Products Me too Brands Income levels

Consumer Shift or change in


Price movements temptation to attitude in
Purchase purchase habits

Regular spending Lifestyle spending


& consumption & consumption Brand switching
habits habits
Findings
Increase in consumers income level urges consumers to
1 increase consumption of branded products.

Consumers opt to purchase branded products as there is a


2 strong perception that branded items have good quality.

If there is a price increase of branded & unbranded products,


then none of the products clearly win the battle & they have the
3 same pattern for being consumed which is the co-movement of
their consumption pattern
Result
Reject hypotheses of co-movement
is not seen on purchase of both wrt
increase in income & quality

But accept hypotheses that co-


movement is seen on purchase of
both wrt increase in price

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