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RIJM Volume 2, Issue 2(February 2013) ISSN: 22503986

Journal of Radix International Educational and Research Consortium

1 |P a g e www.rierc.org

BRAND AWARENESS, BRAND LOYALTY AND BRAND PREFERENCE

AMONG PEOPLE OF PUNJAB

DR. AMIT MOHINDROO

Assistant Professor

G. G. D. S. D. College

Sector 32, Chandigarh

MR. SUREET SINGH

Assistant Professor

G. G. D. S. D. College

Sector 32, Chandigarh.

ABSTRACT

Consumers are unique creatures with distinctive characteristics. Each one differs from every

other in the universe. Each one behaves differently from time to time and place to place.

Fast developing technology and newer innovations coupled with heightened competition,

rising income levels and rapidly increasing consumer awareness has led high expectations

on the part of consumer. Managers in todays fast paced global markets are faced with a

variety of challenges. The attractiveness of a brand changes over time with entry and exit of

new brands and with changes in attribute and price levels. The changing marketing

A Journal of Radix International Educational and

Research Consortium

RIJM

RADIX INTERNATIONAL JOURNAL OF

RESEARCH IN MARKETING
http://www.rierc.org/http://www.rierc.org/http://www.rierc.org/

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dynamics and heightened competition of global economy has amplified the role of brands to

an unsurpassed level. Such being the case, it is worth making a study of brand loyalty &

brand awareness in a particular situation.

INTRODUCTION

Brands have become increasingly important components of culture and the economy, now

being described as "cultural accessories and personal philosophies". Well known brands

have the power to command price premium. Today, brands like Mercedes, IBM, Sony,

Canon and others enjoy a huge brand-loyal market. Consumers are no longer buying

products but choosing brands in the market.

Product features can be easily copied; therefore brands are considered a marketers tool

for creating product differentiation. Consumers observe the differences in the package,

logo, color, even the shape of fonts used by different brands. Brands differentiate products

and represent a promise of value. People buy products, but which products they buy and

how they make a buying decision have a lot to do with how they feel about the brand. In

today's market, products must meet or exceed customers' needs while being competitively

priced and developed in the shortest time possible. Brands work by facilitating and making

more effective the consumers choice process.

BRAND AWARENESS

Brand awareness refers to the strength of a brands presence in the consumers mind

(Aaker, 1996). Different brands vary in the power and value they command in the market

place. Many brands are largely unknown to consumers and for some others there is very
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high level of awareness in terms of name, recall and recognition. According to Aaker, 1996,

brand awareness can provide a host of competitive advantages for the marketer. These are:

Brand awareness renders the brand with a sense of familiarity. Name awareness can be a sign of presence, commitment and substance. The salience of a brand will decide if it is recalled at a key time in the purchasing

process.

Brand awareness is an asset that can be inordinately durable and thus sustainable. Itmay be extremely difficult to dislodge a brand that had achieved a dominant

awareness level.

BRAND LOYALTY

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or

otherwise continue using the brand and can be demonstrated by repeated buying of a

product or service or other positive behaviors such as word of mouth advocacy. Loyalty is

the ultimate goal a company sets for a branded product. Brand loyalty is a consumers

preference to buy a particular brand in a product category. It occurs because consumers

perceive that the brand offers the right product features, images, or level of quality at the

right price. This perception becomes the foundation for a new buying habit.

Basically, consumers initially will make a trial purchase of the brand and, after satisfaction,

tend to form habits and continue purchasing the same brand because the product is safe

and familiar. The satisfaction of the customer depends on the quality of the service

obtained. A greater satisfaction may create the customers loyalty, which is expressed by

accepting the brand and becoming loyal to it. A consumers loyalty to a brand may stem

from four possible reasons:

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Switching costs; Homogeneity in offerings of products by different brands; Emotional attachment to a brand; Incomplete information about product attributes.

Favorable brand attitudes are the determinants of brand loyalty consumers must like the

product in order to develop loyalty to it. In order to convert occasional purchasers into

brand loyalists, habits must be reinforced. Consumers must be reminded of the value of

their purchase and encouraged to continue purchasing the product in the future. To

encourage repeat purchases, advertisement before and after the sale is critical. In addition

to creating awareness and promoting initial purchases, advertising shapes and reinforces

consumer attitudes so these attitudes mature into beliefs, which need to be reinforced

until they develop into loyalty.

There is an important inter-relationship between brand awareness and brand loyalty. Brand

awareness affects brand loyalty and decision-making, by influencing the formation and

strength of brand associations in human memory, through brand image created by various

methods.

REVIEW OF LITERATURE

Darden W R and Raynolds F D (1971) conducted a study to explain the shopping attitudes

and shopping behaviour of housewives. The major shopping types that were identified

were- economic shoppers, personalizing shoppers, apathetic shopper. The study also

explained the reasons why different shoppers have different buying preferences and habits.

Bonfied E H (1974) conducted a study to measure the interactions among the four

independent variables- social influence, attitude, intention and personnel norms - as

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related to brand purchase behaviour among 301 active members of a daily panel. The

results of the study showed the importance of social and psychological influences in

relation to consumer behaviour vary according to the situation.

Rajeev Kaushal, Raghubanshi C S and Sinha B K (1976), conducted a study on the buying

behaviour pattern of consumers and their brand preferences for washing soaps among 150

consumers in Simla, Himachal Pradesh. The study revealed that the education level of the

consumers of washing soaps significantly influences the formation of brand loyalty. Highly

educated consumers form brand loyalty on the basis of easy lather formation, convenience

in handling, and mildness & skin friendliness of the soap, whereas less educated people

form brand loyalty on the basis of price, attractive packaging and easy availability in market.

Gudagni, Peter M and Little John DC (1983), conducted a studywhich implies that

consumers who switch to a brand have a higher probability of repurchasing the brand if

they switched voluntarily than if they did so in response to a promotion.

Mukesh Dhuna (1984) conducted a study among 100 respondents in Rohtak, Haryana, to

study the patterns and attributes of consumers towards soft drinks. The study focused on

how different consumer groups, based on age, profession, sex and income, differ in their

attitudes towards soft drinks. Campa Cola had the highest awareness among the

respondents. Most of the consumers were found to be changing their brands quite often.

The taste of soft drinks was found to be the most important factor. The study revealed that

consumers in the age group of 20-30 years were very interested in advertisements.

Bhatta Rajeswari G and Jaiswal M C (1986) conducted a study to study consumers reaction

towards washing powder advertising and the purchase behaviour of consumers in

Vadodara, Gujarat. The study revealed that females are major decision makers regarding

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the purchase of a particular brand of washing powder considering important factors like

good quantity, less consumption, advertisement and low cost.

Trijp, Hans C M Van, Wayne D Hoyer, and J. Jeffery Inman (1996), reported in a study that

variety seeking behavior is more likely to occur than repeat purchasing when smaller

differences are perceived among choice alternatives. This explains why variety seeking

behavior is more commonly found in case of FMCGs rather than consumer goods.

Kumar R. Renjith, (2007) conducted a research to evaluate the effectiveness of television

advertisement of a selected product. The study explored the viewers rec all ability of

various brands, of advertisements of the product, brand awareness and factors influencing

the purchase decision. A sample of 189 households was selected from those who watch

regional television channels. The analysis showed no relation between recall ability and

age, gender, channels, programmes watched and time of viewership. It concluded that a

majority of the viewers have medium level of recall ability and it has influenced their

purchase.

Anandan Dr.C., M.Prasanna, Mohan Raj and Madhu S. (2007) conducted a study which

aimed at finding the various important factors influencing the rural customers to prefer a

particular brand in detergent soaps. The study also suggests a strategic framework for

marketers to win over the hearts of the rural customers.

RESEARCH DESIGN

OBJECTIVES OF THE STUDY

To study the level of brand awareness among the respondents. To assess the brand loyalty of the people towards different brands. To make a study of brand preferences among the respondents.

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DESIGN & DATA COLLECTION

The study regarding Brand awareness among individuals was carried out in various cities of

Punjab. The required data was collected through a well designed questionnaire

administered on a combination of simple random and convenient sample of 200 educated

persons. Since the study is exploratory in nature, no hypothesis has been taken. The

population is being divided on the basis of age group, occupation and marital status wise.

The demographic profile is shown as below:

Characteristic Categories Number Percentage

Age Up to 20

20-40

40-60

60 & above

42

104

36

18

21

52

18

9

Marital status Married

Unmarried

74

126

37

63

Occupation Service

Professional

Business

Student

Others

32

50

24

80

14

16

25

12

40

7

Total 200 100%

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ANALYSIS & FINDINGS

1. People mostly use branded products in different forms during their daily routine. The

percentage suggests that, out of 200 respondents, that much percent use branded products

for the said category. Respondents were asked to give their opinion and the following is

their response:

TABLE: 1USE OF BRANDS IN DIFFERENT FORMS

According to table 1 most of the respondents like to use branded products for their clothes

and Fast Moving Consumer Goods. FMCG topped the choice with 24.08%. 22.52% of the

respondents opted that they use branded products for their clothing. Branded foods &

beverages emerged as the third most preferred option after FMCG & clothing. And 16.75%

of respondents use branded products for footwear. Relatively lesser number of people use

branded kitchenware products with 12.05%. Lastly, using branded furniture emerged as the

least preferred option among people with only 3.14% using branded products for furniture.

2. Respondents were asked to give preference to various people whom they consult while

purchasing the branded products. Weighted average is calculated for the purpose.

Following is their response:

Kitchenware Clothing Footwear Furniture Foods F M C G

92 172 128 24 164 184

12.05% 22.52% 16.75% 3.14% 21.46% 24.08%

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TABLE: 2 RANKING OF PEOPLE INFLUENCING PURCHASE DECISION

*Preference Scale: 1Most Preferred & 7Least Preferred

Table 2 depicts that themselves, family members & friends are the most important factors

which motivate the respondents to purchase a particular brand as they stand at 1st

, 2nd

and

3rd

rank respectively. Colleagues and salespersons are also consulted while purchasing

branded products but to a lesser extent coming in at 4th

and 5th

rank respectively.

Surprisingly, children ranked 6th

among the seven factors considering the increasing

importance being given to childrens opinions, both by parents as well as marketers.

3. There are the factors which influence the people to buy a particular brand while these

factors can be given preference ranking from 1 to 7. Weighted average has been calculated

for the purpose. The analysis in figures of these factors can be seen as follows:

Factors Weighted Average of

Preferences*

Rank

Myself 15 1

Family members 16.423 2

Friends 19.423 3

Colleagues 30 4

Salesperson 37.286 5

Children 39.423 6

Neighbours 42.423 7

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TABLE: 3 RANKING OF FACTORS TO BUY A PRODUCT

Preference Scale: 1Most Preferred & 7Least Preferred

From the above figures it is visible that the reliability of a particular brand influences the

consumers much more than other factors. Good service quality offered by the brand comes

after reliability, ranking 2nd

. The looks & style of a particular brand also attracts people to

purchase it. It is important to note that reasonable price of a branded product ranks lower

than reliability, service quality and looks & style of the brand. This indicates a willingness on

the part of consumers to pay a premium for reliable and stylish branded products which

offer good service quality. Status symbol and store environment are ranked 5th

and 6th

respectively. Another important point which the marketers will find interesting is that

brand ambassador has the least influence on consumers while purchasing branded

products.

4. Ten punch lines related to names of brands of ten products were given to the

respondents. The respondents were asked to name the brand associated with these punch

lines. On the basis of the response the respondents were divided into three categories;

Factors Weighted Average of

Preferences*

Rank

Reliability 14.143 1

Service quality 19.286 2

Looks and style 20.571 3

Reasonable price 30 4

Status Symbol 32.143 5

Store environment 38.857 6

Brand ambassador 45.286 7

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those who recognized up to three punch lines were categorized as less brand conscious;

those who recognized four to seven punch lines were categorized as average brand

conscious; those who recognized more than seven punch lines were categorized as highly

brand conscious.

TABLE: 4 CHECKING KNOWLEDGE OF RESPONDENTS

Category Number of people Percentage

Less Brand Conscious 8 4%

Average Brand Conscious 104 52%

Highly Brand Conscious 88 44%

Total 200 100%

Table 4 depicts that most of the people have the knowledge of brands through punch lines

as almost all of the respondents were able to recognize the brand name of more than 4

products related to that punch line. A majority of the respondents (52%) are placed in the

average category of 4-7 while 44% of the respondents have an excellent knowledge (above

7) of brand punch lines. It is to be noted that only 4% of the respondents had very little

knowledge (below 3) of brand punch lines.

5. There are variations relating to the usage of branded products. Some people use only

one brand of a particular product and do not change the brand under any circumstances.

Others also use branded products but they never stick to a single brand and keep on

changing brands frequently. The respondents were provided these options and they were

asked to tick the option which best suits them. The response given by our respondents is as

follows:

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TABLE: 5 BRAND LOYALTY AMONG PEOPLE

Options Number of Respondents Percentage

Usage of Single Brand 24 12%

Using More than one Brand 96 48%

Changing the Brands 80 40%

Total 200 100%

Table 5 depicts that maximum respondents (48%) like to use more than one brand of a

same product and keep on switching between these brands depending upon the features

provided by it, may be due to the price or any other reason. 40% of our respondents never

stick to a single brand and keep on changing brands frequently. Only 12% respondents

admit to being extremely brand loyal by using only one branded product and not changing

it under any circumstances.

6. Today advertisements play an important role in providing necessary information about

the existing brand as well as the launch of a new brand in the market. These

advertisements have influence on the minds of the people so as to decide their preferences

in different brands. So respondents were asked the extent to which they get influenced

from advertisements of branded products. For this purpose they were provided with five

options and their response was as follows:

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TABLE: 6 IMPACT OF ADVERTISEMENT

Options No of respondents Percentage

Highly influenced 12 6%

Influenced 68 34%

Neutral 76 38%

Less influenced 28 14%

Not at all influenced 16 8%

Total 200 100%

Table 6 depicts that while maximum numbers of respondents (38%) remain neutral about

the influence of advertisements while purchasing branded products, 34% of respondents

are influenced by advertisements. 14% of respondents say that they are less influenced by

advertisements while purchasing branded products. A small number of respondents (8%)

are not at all influenced by advertisements while 6% say that they are highly influenced by

advertisements.

7. Respondents were provided with a question regarding value for money provided by the

two different kinds of products; branded & non-branded. Respondents were asked to givetheir opinion about what they think about value for their rupee as provided by branded and

non-branded products. Three options were given to them and their response was as

follows:

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TABLE: 7 VALUE OF MONEY SPENT ON PRODUCT

Value of money provided by: Number of Respondents Percentage

A Branded Product 68 34%

A Non Branded Product 8 4%

Both Branded & Non Branded

Products

124 62%

Total 200 100%

From the above table it is clear that majority of the respondents (62%) believe that both

branded and non-branded products give them value for money. 34% of respondents feel

that only branded products provide them value for money. It is to be noted that

respondents feel that non-branded products do not provide them value for money as only4% are in favour of this option.

8. Sometimes users prefer non-branded products in place of branded products for various

reasons. Respondents were provided various reasons as to why they do not use branded

products. They were asked to specify the reason from the following situations in case they

are using non-branded products in place of branded products.

Following is the response:

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TABLE: 8 USAGE OF NON BRANDED PRODUCTS

Reasons for using non-branded

products

Number of Respondents Percentage

Branded products are expensive 88 26.19%

Lack of awareness about brands24 7.14%

Similar features are provided by non-

branded products

120 35.71%

Quality of branded products does not

support price charged

64 19.05%

Non branded products have more

variety

40 11.91%

Just never use branded products 0 0%

Total 200 100%

The above table shows that most of our respondents (35.71%) use non-branded in place of

branded products due to the reason that similar features are provided by non-branded

products as well. 26.19% of respondents feel that branded products are too expensive and

sometimes out of reach, while 19.05% respondents cite poor quality of branded products in

relation to price charged as the reason. 11.91% feel that non-branded products provide

more variety as compared to branded products; while 7.14% respondents say that they are

not aware about different brands hence they use non-branded products.

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9. Following are some situations provided to respondents as to whether they shift to

another brand or not in some situations. Following was their response to each of these

situations.

TABLE: 9 RESPONSE TO VARIOUS SITUATIONS

Situations No of respondents

who shift

No of respondents

who dont shift

a.If the price of the brand which you are

using has been increased as compared

to the other brands you will

88 (44%) 112 (56%)

b. If the quality of the brand which you

are using has been deteriorated, you will

192 (96%) 8 (4%)

c. If the other similar brand is providing

more features, which are not provided

by your brand ,you will

160 (80 %) 40 (20%)

d. If your brand is not providing after

sale service properly, you will

176 (88%) 24 (12%)

e. If the other similar brand is providing

more variety of products , which are not

provided by your brand, you will

156 (78%) 44 (22%)

f. If your children insist you to change a

particular brand, you will

80 (40%) 120 (60%)

g. If your neighbours , colleagues,

relatives are using other products, you

will

20 (10%) 180 (90%)

Majority of the buyers are in habit of shifting to another brand when the quality of the

branded product being used by them deteriorates (96% will shift) and when the brand does

not provide satisfactory after sale service (88% will shift). Buyers will also shift when

another brand provides additional features (80% will shift) and when another brand

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provides more variety of products (78% will shift). Marketers should note that majority of

the respondents (56%) will not shift to another brand if the price of the brand being used

by them is increased, indicating the decreasing importance of price as compared to other

factors like quality, after sale service etc. Respondents also imply that their children, their

neighbours, colleagues and relatives do not exert much influence with regard to changing

to a particular product.

10. The respondents were provided with the names of the some brands. And they were

asked to mention the products associated with those Brands like Nike shoes and clothing.

This was done to check the knowledge of respondents regarding the brand names and the

products associated with them. On the basis of the response the respondents were divided

into three categories; those who correctly associated up to three brand names were

categorized as having less brand association; those who correctly associated four to seven

brand names were categorized as having average brand association; those who correctly

associated above seven brand names were categorized as having high brand association.

TABLE: 10 BRAND ASSOCIATIONS

Category Number of respondents Percentage

Less Brand Association 4 2%

Average Brand Association 28 14%

High Brand Association 168 84%

Total200 100%

The above table depicts that an overwhelming majority of people (84%) have an excellent

knowledge of brand names and products associated with them while 14% respondents

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have average knowledge of brand names and products. Very few respondents (2%) have

almost no knowledge of brand names and the products associated with them.

SUGGESTIONS & CONCLUSIONS

Branded products in conventional categories like apparels and footwear are stillbeing used by a majority of users. However, Fast Moving Consumer Goods (FMCG)

and foods are fast emerging as sectors where people prefer branded products.

Marketers should note that branded products are not popular in kitchenware and

furniture which implies that these categories are hitherto unexploited and can be

explored in future.

The study indicates that people give more importance to their own judgment as wellas opinions of their friends and family members while purchasing branded products.

Surprisingly, the study indicates that childrens opinions are not given much

importance by adults while purchasing branded products. This might serve as a guideto marketers using child models in advertisements of products which are aimed at

adults.

Customers are brought out to be smart when it comes to choosing branded productsas the most preferred reasons for choosing branded products are reliability and good

service quality. Brand managers should note that reasonable price of a branded

product ranks lower than reliability, service quality and looks & style of the brand.

This indicates a willingness on the part of consumers to pay a premium for reliable

and stylish branded products which offer good service quality.

Another point which comes out of the study is that brand ambassador of a producthas little or no influence on consumers while purchasing branded products. This

serves as a pointer that customers regard the core product as more important than

superficial add-ons like their favourite star endorsing a particular product.

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A majority of respondents were found to have an excellent knowledge of brandpunch lines which indicates a tendency on their part to relate to these punch lines.

Brand managers and marketers can innovate in this area by introducing new tag lines

in Indian languages which have local appeal.

The modern consumer is smart and sophisticated arriving at articulate decisions afterweighing all options. Consumers show a tendency not to stick to a particular brand

and keep on switching brands due to a variety of decisions. Marketers need to make

a lot of efforts to build strong brand loyalty among todays consumers.

Advertisements play an important role in influencing the minds of the people so as todecide their preferences in different brands. A majority of the respondents were

found to be between the influenced and neutral category as regards the impact of

advertisements. Marketers need to understand the process of information overload

in todays age which indicates that advertisements need to be sharp, exact and

innovative.

A number of respondents felt that branded products are expensive and out of reach

while many others felt that similar features are provided by non-branded products.

Marketers need to realize that for branded products to be preferred by consumers,

they need to have some value added benefits, while giving the impression that its

price is reasonable and justified.

Majority of the buyers are in the habit of shifting to another brand when the qualityof the branded product being used by them deteriorates and when the brand does

not provide satisfactory after sale service. Buyers will also shift when another brand

provides additional features and when another brand provides more variety of

products. Marketers should note that majority of the respondents will not shift to

another brand if the price of the brand being used by them is increased, indicating

the decreasing importance of price as compared to other factors like quality, after

sale service etc.

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The last fifty years have seen huge growth in businesses and brands throughout theworld. In India, the brand revolution started in the 1990s and is increasingly gaining

momentum. It is emphasized that in India, branding practices have evolved over

time, starting from the time when simplistic marketing tools were used to a time

when complex and dynamic marketing practices are being followed, aided to a large

extent by the growth of modern technology. The time is ripe for marketers and brand

managers in India to establish and maintain new innovative brands to keep in touch

with the latest developments happening throughout the world.

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Philip Kotler, Marketing Management, 13thEdition Tiwari Dharmendra Kumar, A Study of Demographic Effect on Consumer Behaviour,

Finance India (vol. 21)

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Rao V. Appa and Shanthi K. Vijaya, February, 2007, Customer Satisfaction andBranding at E-Seva Centers, Indian Journal of Marketing.

Koshy Moli.P., July 2007, Buying Behaviour and Promotion in Textile Retailing inKerala, Indian Journal of Marketing.

Maruthamuthu. K., Kumar K. Krishna and Vasan. M, August 2006, ConsumerBehaviour and Brand Preferences of Britannia Biscuits, Indian Journal of Marketing.

Chandrasekar.K, February 2006, Consumer Attitude Analysis, Indian Journal ofMarketing.

Indumathi V. M., Sivakumar.S.D. Raveendaran.N. Balaji.P, August 2007, ConsumerBuying Behaviour of Processed Spice Products, Indian Journal of Marketing.

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Mei-fang Chen, 2008, An integrated research framework to understand consumerattitudes and purchase intentions toward genetically modified foods, British Food

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Horsky Dan and Simon Leonard S., 1983, Advertising and the diffusion of the newproducts, Marketing Science (vol. 2)

Zeithaml Valarie A., 1988, Consumer Perception of Price and Value, Journal ofMarketing (vol.52)

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