DETERMINENTS OF BRAND EQUITY

RESEARCH METHOD REPORT

SUBMITTED BY: SAJID ALI 4759 MADIHA ZAIB 4849 M.Qsim Javed 5792

BRAND EQUITY DETERMINENTS

SUBMITTED TO: SIR TEHSEEN JAWAID

Syed Salman Qadri 5266 Syed Umair Hussain 4612

Abstract
Purpose: This study examines the effects of return on brand equity of costumers; cross sectional data is
collected from the sample size of 60 observations.

Methodology: A quantitative methodology was adopted based on the cross sectional data from 2010.
OLS technique and spss is used while making analysis.

Findings: Recommendation:

Key Words: Brand reliability, brand intentions, brand loyalty, brand satisfaction, brand equity. Paper type: research paper

1: Introduction (theory)

2. Literature Review 2.1Theoretical Background (theory)

2.2 Empirical studies: Delgado-Ballester and Munuera-Aleman investigated that Does brand trust matter to brand equity? by using primary data through survey conducted in a region in the southeastern part of Spain, resulting in 271 surveys. Brand trust, Brand Loyalty, Brand equity & Overall satisfaction variables are considered. Confirmatory factor analysis and scale reliability techniques have been used. Results shows that brand trust does not play a full mediating role as suggested by Morgan and Hunt (1994), it contributes to a better explanation of brand equity. These results have significant implications for both scholarship and practice.

Buil and et al investigated the influence of brand equity on consumer responses by using the primary data through survey of two European countries. Brand awareness, Perceived quality, Brand loyalty, Brand associations, overall brand equity, Price premium, Brand extension, Brand preference & Purchase intention variables are considered. Factor analysis techniques have been used. Result shows that brand equity dimensions interrelate. Brand awareness positively impacts perceived quality and brand associations. Brand loyalty is mainly influenced by brand associations.

Delassus & Descotes investigated that Brand name substitution and brand equity transfer by using primary data through survey data from a sample of 300 consumers served for the test of the research propositions. Brand image, Perceived quality & Loyalty variables are considered. Regression analysis techniques have been used. Result shows that five key influence factors that marketing managers can use to transfer brand equity in the case of brand name substitution, based on consumers knowledge of the brand change, attitude toward brand change, perceived similarity between the old and new brands, degree of attachment to the initial brand, and recognition of the presence of an umbrella brand. It is recommend marketing managers to pay attention to these five key determinants of brand equity transfer when brand names change.

Tim Ambler investigated that how much of brand equity is explained by trust by using primary data

Rios & Riquelme investigated that traditional approach to measuring brand equity applies to online companies by using primary data. Band equity, loyality, value, trust & awareness variables are considered. Discriminant validity, Convergent validity, Structural model estimation techniques are used. The results support the view that a consumers perceived sense of value resulting from a transaction with an online business develops loyalty. Also, brand-trust association and brand awareness indirectly contribute to creating brand equity through their influence on loyalty. Loyalty is by far the most important source of brand equity because of its direct influence and mediating role in creating brand equity.

Pappu, Quester & Cooksey research aims to improve the measurement of consumerbased brand equity by using primary data. Brand awareness, brand association, perceived quality, brand loyalty variables are considered. Evaluating the goodness-of-fit criteria,

Reliability, Discriminant validity, Factor comparison techniques are used. The present study contributes to the understanding of consumer-based brand equity measurement by examining the dimensionality of this construct. This study has several limitations that must be addressed in future research. First, the use of a single measure for brand awareness is limiting. Future researchers should aim to develop multiple measures for brand awareness. Furthermore, confirmatory factor analysis would require indicator variables to be continuous scaled. Second, only items related to brand personality and organizational associations were used in the present study for measuring brand associations. Future researchers should incorporate items related to the above-mentioned types of associations in their measurement. Finally, the use of a mall-intercept sample, albeit more cross sectional than student sample, limits our ability to fully generalize the findings to other samples. Future researchers endeavor to use probability samples in any further study of brand equity.

Pappu, Quester & Cooksey examine the impact of the country of origin of a brand on its consumer-based equity. By using primary data. brand awareness, brand association, perceived quality, brand loyalty, country origin & brand equity variables are considered. Confirmatory factor analysis, Discriminant validity, normality, linearity and absence of multicollinearity This finding confirms the predictions of previous researchers that country of origin impacts brand equity. Further, our results suggested that this impact occurred where consumers perceived substantive differences between the countries in terms of their product category-country associations. That is, the consumer-based equity of a brand made in a country with stronger product category-country associations (e.g. Japan), was significantly higher than that of the same brand made in a country with weaker product category-country associations.

IOANNOU & RUSU investigated that that brand equity is context-specific and investigates its conceptualization from a cross-cultural perspective, with the use of a standardized questionnaire administered in four distinct cultures. by using primary data. Equity brand, brand awareness, brand association, perceived quality, brand loyalty & other proprietary brand assets variables are used. The findings suggest a sevendimensional construct. Inherent differences exist, however, between the respondents of the different cultures as to the strength and composition of each dimension. Further, the paper establishes the positive effect of brand equity on purchase decisions.

Castro, Foxall, James, Pohl, Dias & Chang investigated relation between consumer-based brand equity and brand performance was investigated across 15 product categories in Brazil and the UK. By using primary data.Linear multiple regression analysis is used. Results showed that the relation between consumer-based brand equity and brand performance varies across product categories, indicating that products differ with respect to their level of brandability and suggesting ways to measure it.

3. MODELING FRAMEWORK:

4: ESTIMATIONS AND RESULTS:

In our research we are analyzed the 60 observation primary cross sectional data, in order to make inference regarding brand equity of consumers. Different tests are applied on data by using spss software.

4.1 Reliability: Table 4.1 Reliability Statistics Variable Customer Satisfaction Customer Loyalty Commitment Price Consciousness Brand Trust Brand Image Overall 4.2 Factor Analysis: No. Of Items 5 3 3 3 3 3 20 Cronbach's Alpha 0.888 0.823 0.689 0.890 0.887 0.857 0.942

5.CONCLUSION AND IMPLICATIONS:

APPENDIX:

Reliability

N Cases Valid Excluded Total

a

% 51 9 60 85.0 15.0 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's Alpha .868 N of Items 19

Item-Total Statistics Corrected ItemScale Mean if Item Deleted gender salary Nokia Brand name guarantees satisfaction 59.1176 57.8431 56.8235 Scale Variance if Item Deleted 169.346 175.495 145.468 Total Correlation -.061 -.273 .603 Cronbach's Alpha if Item Deleted .872 .885 .856

Nokia Is a brand name that meets my expectations? Nokia Is a brand name that never disappoints me? I feel confidence in Nokia brand name Nokia Brand name would be honest and sincere in addressing my concerns Nokia Brand name would compensate me in some way for the problem with the [product] Nokia Brand name would make any effort to satisfy me in case of a problem I could rely on Nokia brand name to solve any problem with the product I consider myself to be loyal to Nokia Only under extreme circumstances would I consider purchasing a brand of this product different from Nokia If the store was out of Nokia I would go somewhere else to buy some even when another brand is on sale, i would prefer the brand nokia it makes sense to buy Nokia instead of any other brand, even if they are the same even if another brand has same features as Nokia, i would prefer to buy Nokia

56.9020

145.970

.759

.851

56.7451

150.114

.619

.856

56.5882

147.367

.707

.853

56.4706

151.854

.532

.859

56.9216

152.794

.545

.859

56.8431

151.975

.502

.860

57.0196

151.740

.514

.860

57.1176

146.826

.640

.855

57.3137

148.620

.546

.859

57.3137

150.860

.463

.862

56.8627

155.361

.414

.864

57.0196

145.380

.616

.855

56.9216

147.674

.634

.855

if there is another brand as good as Nokia, i prefer to buy Nokia if another brand is not different from Nokia in any way, it seems smarter to purchase Nokia considering all my consumption experience with Nokia i am

57.4118

145.287

.578

.857

57.1176

146.146

.672

.853

58.3529

171.993

-.138

.887

Factor Analysis

Correlatio n Matrix
a

a. Determina nt = 2.41E005

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .797 473.272 136 .000

Communalities Initial Nokia Brand name guarantees satisfaction Nokia Is a brand name that meets my expectations? Nokia Is a brand name that never disappoints me? I feel confidence in Nokia brand name Nokia Brand name would be honest and sincere in addressing my concerns Nokia Brand name would compensate me in some way for the problem with the [product] Nokia Brand name would make any effort to satisfy me in case of a problem I could rely on Nokia brand name to solve any problem with the product I consider myself to be loyal to Nokia Only under extreme circumstances would I consider purchasing a brand of this product different from Nokia If the store was out of Nokia I would go somewhere else to buy some even when another brand is on sale, i would prefer the brand nokia it makes sense to buy Nokia instead of any other brand, even if they are the same 1.000 .516 1.000 .348 1.000 .681 1.000 .722 1.000 .722 1.000 .605 1.000 .857 1.000 .635 1.000 .635 1.000 .701 1.000 .624 1.000 .866 1.000 Extraction .755

even if another brand has same features as Nokia, i would prefer to buy Nokia if there is another brand as good as Nokia, i prefer to buy Nokia if another brand is not different from Nokia in any way, it seems smarter to purchase Nokia considering all my consumption experience with Nokia i am

1.000

.740

1.000

.534

1.000

.714

1.000

.515

Extraction Method: Principal Component Analysis.

Research Questionnaire BRAND EQUITY.

1. 2. 3. 4.

Brand reliability Nokia Brand name guarantees satisfaction Nokia Is a brand name that meets my expectations? Nokia Is a brand name that never disappoints me? I feel confidence in Nokia brand name

Brand intentions 1. Nokia Brand name would be honest and sincere in addressing my concerns 2. Nokia Brand name would compensate me in some way for the problem with the [product] 3. Nokia Brand name would make any effort to satisfy me in case of a problem 4. I could rely on Nokia brand name to solve any problem with the product

 Brand loyalty 1. I consider myself to be loyal to Nokia 2. Only under extreme circumstances would I consider purchasing a brand of this product different from Nokia 3. If the store was out of Nokia, I would go somewhere else to buy some 4. Even when another brand is on sale, I would prefer the brand Nokia 1. 2. 3. 4. Brand equity It makes sense to buy Nokia instead of any other brand, even if they are the same Even if another brand has the same features as Nokia, I would prefer to buy Nokia If there is another brand as good as Nokia, I prefer to buy Nokia If another brand is not different from Nokia in any way, it seems smarter to purchase Nokia

Overall satisfaction with the brand 1. Considering all my consumption experience with Nokia I am a. . . . Very satisfied b. . . . Pleased c. . . . Not very disappointed