Brand Analyses of Global Brands Versus Local Brand in ...

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Theses and Dissertations--Retailing and Tourism Management Retailing and Tourism Management

2014

Brand Analyses of Global Brands Versus Local Brand in Indian Brand Analyses of Global Brands Versus Local Brand in Indian

Apparel Consumer Market Apparel Consumer Market

Aniket Sengupta University of Kentucky, [email protected]

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The document mentioned above has been reviewed and accepted by the student’s advisor, on

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Aniket Sengupta, Student

Dr. Min-young Lee, Major Professor

Dr. Scarlett Wesley, Director of Graduate Studies

BRAND ANALYSES OF GLOBAL BRANDS VERSUS LOCAL BRAND IN INDIAN

APPAREL CONSUMER MARKET

_______________________________________

THESIS _________________________________

A thesis submitted in partial fulfillment of the

requirements for the degree of Master of Science in the College of Agriculture

at the University of Kentucky

By

Aniket Sengupta

Lexington, Kentucky

Director – Dr. Vanessa Jackson, Professor of

Merchandising, Apparel and Textiles

Lexington, Kentucky

2014

Copyright © Aniket Sengupta 2014

ABSTRACT OF THESIS



The purpose of this study was to conduct brand analyses on global brands in comparison to local retailers in India taking into account the regional differences and Indian consumers’ affinity towards global brands. The study has derived its conceptual framework from previous work done by Lee, Knight, and Kim (2008) and Bhardwaj, Kumar and Youn-Kyung (2010) with some added attributes. Quantitative data included a sample of 194 subjects where the sampling was conducted randomly as well as the involvement of convenient method to analyze the brands in real-world scenario. The survey involved the questionnaire which was utilized in previous researches and analyzed under the light of statistical treatment. The results confirm the importance of global brands (influence of European brand over American brand) over local brand in the Indian apparel consumer market.

KEYWORDS: Apparel, Brand, Affinity, Globalization, India

Aniket Sengupta

07/21/2014



By

Aniket Sengupta

_____Dr. Min-young Lee______ Director of Thesis

Dr. Scarlett Wesley_______

Director of Graduate Studies

_________July 21, 2014_____ ____

In memory of Dida, Dadu and Mama

ACKNOWLEDGEMENTS

The completion of this thesis would never been possible without the loving

guidance and support from a lengthy list of academic faculty members, family, and

friends. A massive thank you goes to my thesis advisor Dr. Min-young Lee, for not only

helping me through entire aspect of this thesis process, but for being an enriching role

model and friend during my years at the department. I would also like to thank Dr.

Scarlett Wesley and Dr. Jason Swanson for being on my committee and helping me

throughout and opening email inboxes for my multiple questions. Without their guidance

my thesis would be incomplete. A special thank you also belongs to Dr. Kimberly Miller-

Spillman, Ms. Mika Pryor and Dr. Susan Michelman, for all the opportunities they

awarded me and always having a supportive outlook. A huge sense of appreciation and

heartfelt gratitude to my department chair Dr. Vanessa Jackson, her help has been just so

inspiring for me. My greatest supporter has been Dr. Ann Vail and Mr. Gary Schaeffer –

thanks always for being my second family.

I want to first thank my Papa, Mom, my wonderful cousins – Averi, Sounak,

Syamantak, Anirban, Mahua, Koushik and Prasenjit, my inspiring family – Arijeet,

Deepali, Lina and Sujit, lovely childhood friends – Antu, Jayeeta and Arkadyuti for

always keeping faith in me and telling me this day would come soon. To Debanjan,

Mary, Rohith, Sanjay, Amoha, Rajeev, Brent, Nandita, Mr. Kar, Mallory, Shawn, Adam,

Thomas, Tabitha, Anil, Wade, and Kyle I thank each of you for your unconditional

support and encouragement, without you all I would not have survived Graduate School.

iii

TABLE OF CONTENTS

Acknowledgments..............................................................................................................iii

List of Tables......................................................................................................................vi

List of Figures....................................................................................................................vii

Chapter One: Introduction Background.................................................................................................................3 Purpose of the study……………………………………………………………........5 Hypotheses..................................................................................................................5 Specific sub-objectives ..............................................................................................6 Justification ................................................................................................................9 Conceptual Framework…………………………………………………………….10 Assumptions and Limitations....................................................................................12 Summary ...................................................................................................................13 Chapter Two: Review of Literature Introduction………………………………………………………………………...15 Theory of Branding………………………………………………………………...16 Benefits of Branding……………………………………………………………….18 Expectation from Brands…………………………………………………………..19 Consumers’ Attachment to Brands………………………………………………...19 Consumer Satisfaction Measures…………………………………………………..20 Brand Analyses…………………………………………………………………….23 India – Country of Extremes…………………………………………………….....26 Global Brands in Indian Apparel Retail Market…………………………………...32 Regional Differences in the Choice of Brands…………………………………….36 Brands in the study………………………………………………………………...37 Previous studies on Country-Specific Apparel Brand Analyses…………………..39 Hypothesis Development…………………………………………………...41 Chapter Three: Methodology Introduction…………………………………………………………………………47 Research Design…………………………………………………………………....47 Research Method…………………………………………………………………...48 Brand Selection…………………………………………………………………….49 Instrument and Measures…………………………………………………………..49 Chapter Four: Results Introduction………………………………………………………………………..51 Sector – 1 Results………………………………………………………………….52 Sector – 2 Results………………………………………………………………….53 Sector – 3 Results……………………………………………………………….....54

iv

Sector – 4 Results………………………………………………………………….62 Sector – 5 Results………………………………………………………………….67 Summary…………………………………………………………………………..71 Chapter 5: Discussion & Conclusions Introduction…………………………………………………………………….....72 Sector – 3 Discussion……………………………………………………………..72 Sector – 4 Discussion……………………………………………………………..77 Limitations………………………………………………………………………..80 Conclusion………………………………………………………………………..80 Appendices Appendix A……………………………………………………………………....83 Appendix B……………………………………………………………………....90 References…………………………………………………………………………..91 VITA……………………………………………………………………………….101

v

LIST OF TABLES

Table 3.1, Measures…………………………………………………………….....50 Table 4.1, Reliabilities of the factors……………………………………………...54 Table 4.2, Results of repeat measure (split-plot) analysis………………………...55 Table 4.3, Estimated Marginal Means of Brands………………………………....55 Table 4.4, Results of Multi-group comparisons…………………………………..56 Table 4.5, Results of Multi-group comparisons…………………………………..62 of affinity for global brands Table 4.6, Estimated Marginal Means of Brands……………………………….....63 Table 4.7, Results of Paired Sample Analyses…………………………………….68 of Brands – Brand Specific Associations Table 4.8, Results of Paired Sample Analyses…………………………………….69 of Brands – General Brand Impressions Table 4.9, Results of Paired Sample Analyses…………………………………….70 of Brands – Brand Commitment

vi

LIST OF FIGURES

Figure 1.1 Retail in India………………………………………………………….3 Figure 1.2 Framework for Brand Analyses……………………………………....12 Figure 2.1 ASCI Customer Framework………………………………………….22 Figure 2.2 Customer Brand Equity Model……………………………………….23 Figure 2.3 Attributes of Brand Analyses ………………………………………..24 Figure 2.4 Size of Indian apparel retail market……………………………….....32 Figure 2.5 Share of Indian apparel retail market………………………………...32 Figure 2.6 International Fashion Brands in India………………………………..33 Figure 2.7 Global Retailers entry timeline in India……………………………...33 Figure 2.8 Country of Origin…………………………………………………….36 Figure 4.1 Frequency of shopping for study sample…………………………….53 Figure 4.2 Spend per season on clothing purchase for study sample……………53 Figure 4.3 Interaction plot of emotional value by region and brand type……….57 Figure 4.4 Interaction plot of perceived quality by region and brand type……...58 Figure 4.5 Interaction plot of brand awareness by region and brand type………59 Figure 4.6 Interaction plot of brand image by region and brand type…………...60 Figure 4.7 Interaction plot of brand loyalty by region and brand type…………..60 Figure 4.8 Interaction plot of purchase intention by region and brand type……..61 Figure 5.1 Regions of India………………………………………………………72

vii

Chapter – One

Globalization is the principal and most favorite slogan of brands and businesses

around the world. This concept has turned into a key idea for business theory and

practice, and also entered academic debates (Giddens, 1990). Globalization involves

economic integration of countries, the gradual transfer of policies across borders and the

transmission of knowledge ensuring a cultural stability (Larsson, 2001). The global

phenomenon has involved the interlacing of economic and cultural activity. Globalization

has heralded the onset of a borderless world (Ohmae, 1990). Globalization in the sense

of connectivity in economic and cultural life across the world has been growing for

centuries. We have also witnessed the rise and globalization of the idea of a ‘brand’.

Large corporations operate across many different countries by developing and marketing

products that can be just sold in New Delhi as well as in New York. Brands like Coca

Cola, Nike, Sony, and a host of others have become part of the fabric of vast numbers of

people's lives. Globalization involves the diffusion of ideas, practices and technologies.

“Globalization can thus be defined as the intensification of worldwide social relations

which link distant localities in such a way that local happenings are shaped by events

occurring many miles away and vice versa” (Giddens, 1990, p.64). It is something more

than internationalization and universalization. The phenomenon is not simply

modernization or westernization. It is not just the liberalization of markets but involves a

change in the way we understand geography and experience localness of a certain region.

Retail markets in developed countries such as the United States and Western

Europe have already reached a maturity stage, characterized by a slow population and

market saturation (Berner, Khermouch, & Pascual, 2001) and less space left for new

1

developments. These changing phenomena lead many retail conglomerates and firms to

expand towards rapidly developing countries to secure their position. For brands to strive

and expand their brands to global market, it is essential to understand consumer

preference for foreign and domestic brands based upon level of economic development,

ethnocentric bias, demographic characteristics of consumers, product type, and product

familiarity.

Countries like India, Brazil, China, and Indonesia have undergone a huge socio-

economic transformation over a short period of time due to income expansion and rising

trends of stable middle class (Kellogg Insight, 2012). These rising income groups are

potential buyers of various global brands with varying tastes and preferences (Eizenberg

& Salvo, 2012). Brands must be equipped with methods to impress these new consumer

segments – one of such methods is utilizing brand analyses to determine brand

awareness, brand impression, and brand commitment. Brand analyses involve properly

sizing up a business situation and ensuring the availability of long-term direction with the

establishment of appropriate objectives. Essentially also crafts an effective strategy for

further business development in a global market.

The choice for country in respect to the brand analyses in this study is India. India

is home to over 1.2 billion people (Census Bureau of India, 2011) and purchasing power

has significantly increased with the rise of middle-class enabling Indians to procure

various Indian and global brands more than ever. The Indian consumer market is very

attractive due to population size, increasing spending power and immense exposure to

media. The globalization of brands started in early 90s, when India opted for partially

free market-oriented economic policies (Rao, 1998; Bisaria, 2012) but there were many

2

problems associated which hampered the rapid growth of global brands. The recent

policy changes in foreign direct investment (FDI) into retail operations passed by the

Indian parliament has ushered in a new presence of global brands and created a renewed

interest in the Indian market (Chari & Madhav Raghavan, 2012).

The continental scale as well as the mix of languages and cultures makes India

complex but attractive as much as the European Union or maybe even more (Morell,

2012). India’s enormous consumer size makes it worth the effort put by global brands;

not an easy market to break into but for those who manage to thrive and survive – there

are surely some big profits to be won (Morell, 2012).

Background

Figure 1.1 Retail in India (2013)

As seen in the above Figure 1.1, the Indian consumer market is a crowded one with

many options. The competition is fierce and brands, both global and local need to be

adapt to the complexity of the Indian market. It has been noted that European origin

brands have significant market penetration and attracted consumers in India though

American brands entered the market early in the 1980s (Malviya, 2012). A brand like

3

Levi’s which has a nineteen year presence in the Indian market is rapidly losing ground

to European brands like Benetton. Benetton tend to attract the rising affluent young

Indian consumers with cheap price options and trendy designs which differentiate these

consumers from the older generations (Malviya, 2012). European brands entered the

Indian market in last decade and have followed more aggressive strategies for expansion

than their American counterparts (Morell, 2012). The rise of Indian brands like Flying

Machine, Killer, and Wills Lifestyle has increased the competition and the fight for

survival in the market. The immense need to analyze the market and to understand the

brand strategies of the brands irrespective of country of origin from a consumer point of

view gives rise to the need of this study.

Previous studies had limitation in accessing the broader sample demographics,

brands targeted in the research studies (Lee, Kumar & Kim, 2010; Bhardwaj, Kumar &

Kim, 2010), and so they have not adequately forecasted the effect of global brands on a

macro-economic level upon the Indian apparel retail market neither creating a possible

guideline for US origin brands to start expanding aggressively. India is an exception to

the rise and growth of global brands due to the presence of immense demographic

diversity and varying levels of consumer preferences when compared with other

emerging economies (Halepete & Iyer, 2008). Although consumers in developing

countries is not highly familiar with global brands before the brands actually enter the

market, they tend to become more loyal towards global brands compared to local brands

because of perception of better quality (Han & Qualls, 1985; Teas & Agarwal, 2000).

4

Purpose

This research study investigated two global brands (i.e., Benetton and Tommy

Hilfiger) and an Indian brand (i.e.,Wills Lifestyle). Each brand was analyzed by existing

brand analyses parameters (i.e., general brand impression, brand specific association, and

brand commitment) combined with two factors – difference in regions of India and

Indian consumers’ affinity towards global brands over local brands. The brands which

were chosen in this study are well known in India. Benetton is originally an Italian origin

brand, entered Indian market in 1991 and has steadily been growing with more and more

stores every year with solid profits (Knowledge@Wharton, 2013). Tommy Hilfiger, one

of the American fashion retail icons came to India in 1997 and has been growing through

multi-brand outlets and standalone stores (Afonso, 2012). Wills Lifestyle is India’s most

admired brand owned by ITC (Indian Tobacco Corporation). The company is a big player

in the Indian market operating various retail formats and accredited by Superbrands

Council of India.

Hypotheses

The study analyzed global and local apparel brands in the Indian market in the

parameters of general brand impression, brand specific association, and brand

commitment.

Hypotheses are developed to determine whether –

• Indian consumers’ responses to brand analyses components differ among global

brands and the local brand in respect to difference in regions.

5

• The impact of Indian consumers’ affinity towards global products on their

responses to brand analyses components differs among global brands and the

local brand.

Specific sub – objectives

Objective I - To examine brand emotional value and perceived quality of American

brand, European brand and local brand.

Brand-specific association has been linked to the feature and attribute that makes

consumers more associated with a brand or brand and makes it distinct from other brands

or brands (Dillon et. al., 2001). As proposed by Lee et al. (2008), perceived quality and

emotional value are the two major dimensions of brand-specific association as they form

critical factors in product perception. Emotional value in respect to global brands in

Indian market can be defined as the amount of value that relates to consumers’ feeling for

a certain brand (Sheth, Newman & Gross, 1991; Barnes & Mattsson, 2008). Perceived

quality can be simultaneously defined as consumers’ subjective evaluation of superiority

of certain brand over others (Rigaux-Bricmont, 1982; Zeithaml, 1988).

• Hypothesis 1a: Indian consumers will give higher ratings on emotional value

and perceived quality to the European brand than the American brand and the

local brand based on regional differences.

• Hypothesis 1b: Indian consumers will give higher ratings on emotional value

and perceived quality to the American brand than the European brand and the


• Hypothesis 2a: Indian consumers with affinity towards global brands will give

higher ratings on emotional value and perceived quality to the European

6

brand, while they give lower ratings on emotional value and perceived quality

value to the American brand and the local brand.

• Hypothesis 2b: Indian consumers with affinity towards global brands will give

higher ratings on emotional value and perceived quality to the American


value to the European brand and the local brand.

Objective II – To examine brand awareness and brand image of American brand,

European brand and local brand.

The conceptual framework for creation of the term general brand impressions

with two attributes - brand awareness and brand image was done in a previous study

(Keller, 1993). Brand awareness in relation to global brand can be defined as recognition

of brand name through visual representation (i.e., logo or ad jingle) (Hoyer & Brown,

1990; Rossiter & Percy, 1987). Brand image can be identified with consumers’

perception about a certain brand or brand, whether positive or negative (Dobni &

Zinkhan, 1990; Hofstede, 2007). This study is comparing the level of consumer brand

awareness and image ranging from American brand to European brand with a local brand

with prior consideration that an Indian consumer will have more favorable attitude

towards global brands (Suh & Smith, 2011).

• Hypothesis 3a: Indian consumers will give higher ratings on brand awareness

and brand image to the European brand than the American brand and the local

brand based on regional differences.

7

• Hypothesis 3b: Indian consumers will give higher ratings on brand awareness

and brand image to the American brand than the European brand and the local



higher ratings on brand awareness and brand image to the European brand,

while they give lower ratings on brand awareness and brand image value to

the American brand and the local brand.


higher ratings on brand awareness and brand image to the American brand,


the European brand and the local brand.

Objective III - To examine brand loyalty and purchase intention of American

brand, European brand and local brand.

The enduring desire to maintain a value-oriented and symbiotic relationship with a brand

is defined as brand commitment (Traylor, 1981; Coulter et al., 2003). Brand commitment

has been linked with two attributes – brand loyalty and purchase intentions (Moorman et

al., 1992). Brand loyalty has been referred to as a continuous long-term attachment to a

brand which acts as an important strategy for brands to achieve a competitive advantage

in the particular market (Sirdeshmukh et al., 2002). Purchase intention can be referred to

as consumers’ tendency to procure specific brands in comparison to other existing brands

in a routine manner (Yoo et al., 2000).

8

• Hypothesis 5a: Indian consumers will give higher ratings on brand loyalty and

purchase intentions to the European brand than the American brand and the


• Hypothesis 5b: Indian consumers will give higher ratings on brand loyalty and

purchase intention to the American brand than the European brand and the



higher ratings on brand loyalty and purchase intention to the European brand,

while they give lower ratings on brand loyalty and purchase intention value to



higher ratings on brand loyalty and purchase intention to the American brand,



Justification

Most of the globalization research efforts have concentrated on the economic and

industry conditions that influence investment and business decisions in India, less

research has focused on Indian consumers. With several global and domestic brands

competing in India’s competitive apparel retail market, the success of marketing

strategies for both global and domestic brands can emanate from consumer perceptions of

these brands available in India. There are also many global brands which have not

formally entered the Indian market but have considerable presence through discount

online websites. The challenge for global brands is to understand how to compete

9

successfully against local brands by offering brands that act as a symbol of modernity and

good life to Indian consumers (Ger & Belk, 1996). The higher level of brand awareness

among Indian consumers can influence their selection or choice of brand during purchase

process, and hence benefit global brands by increased sales and more retail store space.

This study would help global brands specifically the American brands to reach out to all

segments of Indian consumer and in future to gain a foothold in the market. The domestic

brands if they received lower ratings after the study can learn from their mistakes which

will help them to boost consumer confidence by offering quality products which are

equivalent to those global brands but at a lower price as Indian consumers are very price-

sensitive (Mishra, 2010; Kuruvilla & Joshi, 2010; Prasad & Aryasri, 2011). As the

sampling is random in this study, so it is hoped that more and more consumers from

various demographics will be covered to give a real-world picture of effect of the

presence of apparel brands in India.

Conceptual Framework

Retail in India has emerged as one of the most vibrant and fast paced industries,

accounting for over 10 percent of the country’s GDP and 8 percent of total employment

(UKBIC, 2011). India’s retail market is projected to grow at a rate of 12 percent per

annum to reach $543 billion in 2014 (IBEF Annual Report, 2012).

Strong fundamental economic growth, the mushrooming population, increasing

disposable income, an expanding middle and upper class consumer base and the large

scale construction of organized retail infrastructure are key factors driving this growth,

making India the world’s fifth largest retail destination (AT Kearney, 2006). Despite this,

India’s venture into the organized retail space is still at an evolutionary level indicating

10

that the opportunity in India for global brands remains immense (Sikhri & Wadhwa,

2012).

In order to succeed in the Indian market, US/European brands need to understand

her diversity and uniqueness and accordingly adapt and reinvent their brands to fit the

tailored requirements of the sensitive Indian consumer (UKBIC, 2011). Replicating a

one-size-fits-all global model will not be a successful approach where India is concerned.

More often than not, US/European brands have the aspiration to customize their model

for India but lack the confidence to do so and therefore opt for the safer option which

does not always work (Technopak Survey, 2010).

The identity of a region refers to those differentiating physical, cultural and

historical features that make one region different from another (Paasi, 2002). Regional

identity refers to the extent to which people identify themselves with the region’s

practices, discourses and symbols (Paasi, 2002). This regional difference in Indian

context enables us to start the research which correlates with attitudes towards a global

brand versus Indian brand. Attitudes towards global brands stems from functionality of

product, design variations and need for uniqueness (Sheth, Newman & Gross, 1991).

India has many cosmopolitan cities and regions, the need and positive attitude for global

brands arises from this cosmopolitanism (Cleveland, Laroche & Papadopoulos, 2009).

The other regions might not be influenced by global trends, so their shopping preferences

are rather limited (Steenkamp & Gielens, 2003). Studies have revealed that affinity

towards global brands is related to brand preference (Kotler & Armstrong, 2006;

Grundey, 2006 and Rajput et.al, 2012). The framework represented in Figure 1.2

addresses the concept that regional differences in India have an effect on choice of brands

11

among Indian consumers. Another aspect of this framework touches on the favorable

attitude of Indian consumers towards global brands over local brands which would

determine brand preferences.

Figure 1.2 Framework for Brand Analyses

Assumptions and Limitations

Assuming the growing trend of apparel consumption among Indian consumers,

this study attempts to find out brand loyalty among various demographics. The

assumptions about the growth of economy, growth of retail space, rising income levels

and presence of young population is made from various surveys and researches done by

Confederation of Indian Industries, AC Nielsen, A.T. Kearney and Cushman &

Wakefield over the decade. Prior research on globalization and branding has examined

consumers’ evaluation and purchase intention of foreign products, mainly focusing on

quality factors (Aaker & Jacobson, 1994; Bandyopadhyay, 2001; Batra et al., 2000;

Gaedeke, 1973).

Brand commitment Brand Loyalty

Purchase Intention

General brand impressions Brand Awareness

Brand Image

Brand-specific associations Emotional Value Perceived Quality

Affinity towards

Global Products

Region

12

The limitations are primarily on the access to various types of demographics and

covering all big cities and large towns. This particular research attempted to cover three

metropolitan cities and five large towns. Thus future research can generalize the sample

more and cover all the states and even small towns and some semi-urban localities to get

the exact picture about the perception of Indian consumers toward global and domestic

apparel brands. Replication of this study in comparison with other rapidly developing

countries can be undertaken to set up a guideline to be followed when a global brand is

trying to enter a new market.

Summary

The research emanates from the term “globalization”. Globalization has been a

defining objective of the 21st century, but seeds of this phenomenon were laid in the

earlier centuries. Globalization gave rise to various brands, internationalization of brands

started as more and more countries opened up their economies. Brands are associated

with consumer attitude; in a foreign country, this attribute plays an important role to

decide the success of a certain brand. India has been chosen as a candidate to study the

effect of global brands and Indian brands on Indian consumer. India is a huge emerging

economy based upon strong private sector with brand conscious consumer. So this

quality attracts global brands to flock in the country but due to certain constraints and

government regulations, a certain retail revolution is on the anvil but not materialized.

This study attempted to uncover the effect of regional differences and affinity of Indian

consumers towards global and local brands with the help of brand analyses. Hypotheses

have been developed from the objectives of this study – consumers’ affinity towards

global brands and regional differences towards brands and responses towards brand

13

analyses among consumers. The assumptions and limitations of study are the sample size

and inability to study more brands. Future studies can reflect on broader study of

different regions in India and detailed analysis of Indian consumers.

14

Chapter – Two

The following literature review provided the study a generalized view regarding

the topic of brand equity and various aspects of brand management. The literature review

started with the description of the term “brand” and its origins and the brief evolution of

branding in the field of apparel and fashion. It also reflected the essence of branding and

its outcomes on the sales and marketing aspect of the industry. This review dealt with the

important aspect of consumers’ attachment to brands and the perceived notion of

possessing a certain brand and the psychological aspirations of the customers.

The following literature review mentioned various scholarly papers on the similar

topic done by researchers from various universities. There was an attempt to cover the

preliminary concept of managing a brand and the effective communication involved to

make the brand a success in the competitive market. The important aspect of this

literature review was the detailed informative study on the choice of market – which is in

this case, India. The rise of the Indian consumer market, brands operating in the market

and the influence of future demographics and socio-economic structure of the Indian

market are included in this literature review. Global apparel retail brands have entered the

Indian market since 1980s and more rapidly after the 1991 economic reforms. They have

had competition from Indian apparel retail brands and moreover with the rise of

consumerism, the difference of perception of various brands is decreasing thus bridging

the gap between the big cities and other urban centers. Regional differences in India have

also been incorporated in this review to uncover the changing Indian consumer market.

Studies done by various business analytics groups have been presented to support the

study of Indian consumer market.

15

After reviewing the literature available on the topic, a research model was

developed and then based on further analyses, hypotheses were derived. The underlying

premise of this literature review is to provide the reader a scholarly study of brand

analyses and its various parameters and why there is a need of brand analyses in the

research about brands in respective countries and studying the various aspects of

consumers which affect the growth of the brand. The literature review also attempts to

find out a logical pursuit to the concept of brand analyses and its effect on the consumer

study which would prepare the market for the entry of new global brands and also enable

the domestic brands to rectify their problem areas and to focus more on quality and

customer retention.

Theory of Branding

There are brands and logos present all around us, starting from the wine we

consume to the clothes we wear, in the billboards along the interstate, to the

advertisements which don the buses, subway and yellow cabs (Hampf & Lindberg-Repo,

2011). Branding has proven to be an essential strategy for marketing even in non-

commercial organizations like political outfits and charities. It can be utilized for

enhancing the profitability of actors, sports personalities, celebrities and also cities

(Moor, 2007). Branding is considered as a separate industry which acts as a key

mechanism to enable the smooth functioning of a market-oriented economy (Moor, 2007;

Henderson & Arora, 2010). Some brands of specific countries are considered superior to

others in countries which raised the question of effect on homogenization of culture

(Moor, 2007; Bastos & Levy, 2012) but the brands help create a working identity for a

product influencing consumers’ purchase intention.

16

Brand and advertising walks in continuum with each other creating a composite

industrial environment; this continued focus on advertising has given rise to a functioning

cultural economy at the expense of other forms of promotion (Du Gay & Pryke, 2002).

Branding converts a certain commodity into a self-promotional form which creates an

insatiable desire among consumers who want to procure it (Lury, 1993). Before delving

into further discussion about brands and how they help to generate revenue for brands

and corporations, we should understand the proper definitions.

A brand is a name, term, design, symbol, or any other feature that identifies one

seller's good or service as distinct from those of other sellers (American Marketing

Association Dictionary, 1960). The word "brand" is derived from the Old

Norse brandr meaning "to burn” which refers to the practice of producers burning their

mark (or brand) onto their products. The concept of brands is not new but comparatively

branding a brand is a product derived from the start of modern globalization at the end of

the Cold War. It was actually during the 1990s, that a previously essential set of practices

– product design, retail design, point-of purchase marketing came together to be known

as branding (Bastos & Levy, 2012). The effects of branding caught the unfettered

attention after the publication of Naomi Klein’s (2000) No Logo which created interest

among scholarly circles to research more and more on this concept. Promotional

activities of brands and corporations have always been subjected to public criticism and

activism but Klein’s book dealt more about identifying new avenues and creating

guidelines for innovative scope of marketing activity and to connect these to the ongoing

globalization of labor markets and analyzing its after-effects (Moor, 2007). There is

another definition which also defines brand as a unique property of a specific company

17

which has been developed over a certain time period enabling it to embrace a defined set

of values and attributes which meaningfully helps a consumer identify products otherwise

would resemble the similar attribute (Murphy, 1990). The perpetual rise of branding can

be attributed as a method of a more reflexive capitalism (Thrift, 1997) where a market is

created for the commodity to make the consumers slowly but steadily conform to the

structures presented in the concept envisaged by the certain company or brand.

Benefits of Branding

Proper branding can result in higher sales of not only one product, but on other

products associated with that brand (Bennett & Hill, 2012). Some people distinguish the

psychological aspect; brand associations like thoughts, feelings, perceptions, images,

experiences, beliefs, attitudes, and so on that eventually become linked to the brand from

the experiential aspect (Hislop, 2001). The experiential aspect invariably consists of the

sum of all points of contact with the brand and is known as the brand experience (Brakus

et.al, 2009) which is a brand's action perceived by a person. Brand experience as a

concept is defined as certain sensations, feelings, cognitions, and behavioral responses

evoked by brand-related stimuli which arise as part of a brand’s design and identity,

packaging, communications, and environments (Brakus et.al, 2009). The psychological

aspect, sometimes referred to as the brand image, is a symbolic construct created within

the minds of people, consisting of all the information and expectation associated with a

product, service or the company that is providing them (Engel, Blackwell & Miniard,

1995; Dacin & Mitchell, 1986).

18

Expectations from Brands

People engaged in branding seek to align the expectations behind the brand

experience, creating the impression that a brand associated with a product or service has

certain qualities or characteristics that make it special or unique. A brand is therefore one

of the most valuable elements in an advertising theme, as it demonstrates what the brand

owner is able to offer in the marketplace. So we can posit that the art of creating and

maintaining a brand is called brand management. “In marketing research, seven brand

management approaches have been identified during 1985–2006: the economic approach,

the identity approach, the consumer-based approach, the personality approach, the

relational approach, the community approach and the cultural approach. These

approaches reflect a development where the focus has shifted from the sending end of

brand communications in the first period of time; have then turned their attention to the

receiving end in the second period; and finally have addressed contextual and cultural

influences on the brand to the global understanding of brand consumption” (Heding,

Knudtzen & Bjerre, 2008, p.15). Careful brand management seeks to make the product or

services relevant to the target audience. Lastly, brands should be seen as more than the

difference between the actual cost of a product and its selling price as they represent the

sum of all valuable qualities of a product to the consumer (Duncan & Moriarty, 1997).

Consumers’ Attachment to Brands

Holding onto a consumer base has never been easy in a foreign market for a

global brand in the presence of millions of local brands (Kapferer, 2012). For example,

nowadays within a five-minute walk in majority of cities or towns, we can find at least

five retail outlets selling similar merchandise each competing for space and attracting for

19

more customer patronage. Corporations have spent billions of dollars trying to make

consumers as loyal to their products and services. Ever since consumers on market

research panels began weighing in on everything from baby food quality to shoe shapes,

companies have tried to tailor products to meet shoppers’ preferences (Gronroos, 2004).

More recently, as the Internet and other channels of electronic commerce became

common market-research tools in the mid-90s, businesses have tracked what individual

customers buy – and do not buy. Now, with all that information at their fingertips,

executives have been trying to figure out which business practices make faithful

customers loyal. Yet there is this constant dilemma about why customers stick with a

brand (Duncan & Moriarty, 1997).

Today, the search for the ties that bind customers to brands has taken on fresh

urgency. The branding aspect of commodities acts as an integral part of brand’s

sustainability (Okonkwo, 2007). The brand is the reason why consumers associated

themselves with a company that creates and sustains the attraction and desire for products

(Bororian & Poix, 2010). The equity markets are volatile and venture investors are

chastened, so loyal customers represent a company’s best prospects for pumping capital

into a business which can be counted on to build a solid base of revenues as well as to

expand profits.

Consumer Satisfaction Measures

Consumer satisfactions with brands are essential for a company or a brand to

sustain and survive in a certain market. Quantitatively, satisfaction scores can be

measured by only past experience, the American Customer Satisfaction Index (ACSI) in

20

Figure 2.1, for instance, plots whether a customer thought he/she perceived good value

from the particular brand. The index reflects a rational assessment at a particular moment.

People tend to stay faithful to brands that earn both their rational trust and their

inner affection. A consumer sees and interprets through the brand image which

eventually leads to a positioning of the brands in his/her mind through perceptions and

associations (Okonkwo, 2007). This allocation of a space for the brand in consumers’

mind is known as brand share and which influences further purchase decisions and

creates brand loyalty (Okonkwo, 2007). That dynamic turns out to be predictor of

behavior than consumer satisfaction measures alone.

When a brand inspires both rational loyalty and emotional attachment, customers

will continually reward it with their business. The customers will agree strongly with

both statements about a brand’s reliability – “this brand always delivers on what they

promise” and “this brand is a name I can always trust” – they are actually demonstrating

their confidence in the brand (Gallup, 2001). Confidence normally precedes more intense

feelings of attachment, because it determines whether a customer feels secure about a

brand’s utility (Gallup, 2001). The total branding concept is the source of brand’s wealth

and when the distinctive attributes are added together resulting in continuous demand and

commitment to the brand from consumers, then the brand is said to possess high brand

equity.

21

Figure 2.1 ASCI Customer Framework (Fornell et.al, 1996)

The brand equity is translated to brand value, which can be defined as

the financial success that a company eventually gains as a result of its brand’s strength

(Bororian and Poix, 2010). To understand brand equity, we need to understand the brand

equity model established by Keller (1993) known as Customer Brand Equity Model

(CBEM). The concept behind the Customer Brand Equity Model is simple – To

construct a strong brand, the company must shape how customers think and feel about

their product. They need to build the right type of experiences around the brand enabling

the customers to have specific, positive thoughts, feelings, beliefs, opinions, and

perceptions about it. When the company has strong brand equity, the customers will buy

more from them; they will recommend the certain brand to other people. They tend to

more loyal, and the company is less likely to lose this loyalty to competitors.

22

Figure 2.2 Customer Brand Equity Model (Keller, 1993)

Brand Analyses

Brand has always been portrayed as a powerful tool and its success depends on its

proper positioning among the consumers. Due to the immense competition among the

brands and diversification of consumers in global markets, the assessment of brand

evaluation becomes more and more challenging. To actually resolve this phenomenon,

global marketers and brands always seek for measures to strengthen their brands across

national boundaries by evaluating the effectiveness of the implementation of marketing

mix and positioning of the brands. Consumers always use brand names and various

product attributes as cues for information that help in the purchase decision making

process. More specifically, consumers often recognize a status brand only with a brand

name and image without any knowledge of other features of the brand (O’Cass & Frost,

2002). The attributes of brand analyses is depicted in Figure 2.3.

23

Figure 2.3 Attributes of Brand Analyses

Brand-Specific Association

Brand-specific association has been linked to the feature, attribute, or

characteristic that makes consumers more associated with a brand and makes it distinct

from other brands (Dillion et al., 2001). As proposed by Lee et al. (2008), perceived

quality and emotional value are the two major dimensions of brand-specific association

as they form critical factors in product perception. Emotional value is defined as the

value that relates to individuals to their feelings or affective states (Sheth, Newman, &

Gross, 1991) or the benefit derived from the sense of pleasure through either the purchase

or consumption of a brand (Sweeney & Soutar, 2001). Perceived quality has been defined

as a consumers’ appraisal or subjective evaluation of the overall excellence or superiority

of the products (Zeithaml, 1988).

General Brand Impression

The pivotal role in consumers’ decision-making process is played by general

brand impression. So much as marketers seek to add meaning to their brands, the

24

consumer also adds their own distinctive meaning to what the brand represents, and the

latter may be far more essential than anything the marketer meant or intend to achieve

(Hollis, 1995). Specifically, Keller (1993) provided a conceptual framework for creation

of general brand impressions with two dimensional attribute – brand awareness and brand

image. Brand awareness is defined as the brand knowledge involving recognition of the

brand name at the rudimentary level (Hoyer & Brown, 1990). In this context, Rossiter

and Percy (1987) related brand awareness to (a) the consumers’ ability to trace a brand in

different conditions and (b) the likelihood that a brand will easily come to consumers’

mind. Similarly, increase in brand awareness raises the likelihood that the brand will be

considered more frequently while purchase is made (Baker et al., 1986). Brand image is

generally the perception of the product by the consumer which links features or

characteristics of a particular brand to consumers’ memory and builds a general brand

impression. It is quite evident that brand awareness and brand image influence the

formation and strength of general brand impressions.

Brand Commitment

Brand commitment has been defined as an enduring desire to maintain a valued

relationship with a brand (Moorman et al., 1992) and can be classified into brand loyalty

and purchase intentions. Brand loyalty has been identified as an important strategy for

brands to obtain a competitive advantage in the market (Sirdeshmukh, Singh, & Sabol,

2002). Moreover brand loyalty has been perceived a continuous long-term attachment to

a brand. Similarly, Gaedeke (1973) emphasized that developing economies such as India,

China, and Taiwan prefer brands from western or developed countries and are more loyal

towards them. Another important component of brand commitment, purchase intention,

25

indicates the tendency of consumers to purchase specific brands in a routine manner

compared to other brands (Yoo et al., 2000).

India – Country of Extremes

According to Winston Churchill, India was just a geographical expression and

bound to fall apart. After six decades of successful existence, India is truly a unique

country in the world who embraces the extraordinary mixture of ethnic groups. There is

the dilution of mutually incomprehensible languages, the varieties of topography and

climate, the diversity of religions, countless cultural practices and the range of economic

developments (Tharoor, 1999).

Benefits and Opportunities

The consumer market relates to buyers who purchase goods and services for

consumption rather than resale (Lai, 1995). Consumers vary in their tastes, preferences

and buying habits which vary from country to country. Most consumer based brand

researches has been done on developed countries like US, UK, France, however, nearly

80 percent of global consumers reside in emerging and newly industrialized countries like

China, India and Brazil (Steenkamp & Burgess, 2002). A certain consumer market like

India or China will include varied demographic and geographic traits affecting brand

awareness and loyalty.

There are various reasons for choosing India as the country of focus in this

brand analyses study. India is currently facing the world’s most dynamic combination, of

highly informed and demanding consumers in one hand, and of rapidly increasing

consumption levels across various retail product categories specifically apparel and

accessories merchandise (Euromonitor, 2013). Higher growth levels of consumer demand

26

and the consequent response of leading retail businesses have created a more complex

and competitive marketplace – one which requires each firm or conglomerate to be more

adaptive to customer needs and more aggressive at exploiting their unique capabilities to

fulfill those needs (Silverstein, 2013). India has emerged as the most attractive market for

retail investment and development (Global Luxury Brand Study, 2008; Kearney, 2006).

Understanding an Indian consumer

To understand the scale of the prospect of luxury and fashion in India, there is a

need to consider the concept from two different perspectives (Bororian & Poix, 2010).

The first perspective is from the consumer side – who until a decade ago was a passive

spectator to the world of fashion brands (Bororian & Poix, 2010). They viewed India’s

rich tradition and magnificent heritage of fine craftsmanship and creativity only from

sidelines and consequently paid minimal attention towards the increasing number of

Indian brands who had previously ruled within a closed gambit of affluent class. This

type of consumer has however been fueled by change of demographics which has given

access to this huge base to redefine their priorities in respect to fashion (Bharadwaj,

Swaroop & Vittal, 2005). Indian consumer base is comprised historically affluent and

post 90s affluent class which enables them to travel abroad and to hone the fashion

sensitivity and satiate the need to procure global as well as local brands (Goswami,

2008). The other perspective is the global and Indian companies already present in the

market or whose future presence is imminent (Bororian and Poix, 2010) that are seeking

ever-green pastures where they desire to attract more and more Indian consumers.

Considering the current number of Indian consumers and further possibility of creating

new consumers puts the stakes high where a stage has been developing for two decades

27

to establish India as a leading consumer driven society. India’s ancient history, continued

traditions mixing with Western-style living coupled with diverse demographics forms an

ideal country for brands to grow across all the sectors (Bororian & Poix, 2010).

Whereas luxury and fashion have been a prevalent part of Indian life for centuries

but the concept of branding in these categories in regards to domestic knowledge and

practice have been very limited. “The tradition and heritage of being Indian and buying

Indian-made luxury and fashion items have, until very recently, not created a market

filled by the formidable local Indian talent” (Bororian & Poix, 2010, p.6). This has

provided eluding of Indian consumers towards the acceptability of domestic brands; they

feel comfortable towards foreign brands though in some cases, Indian brands fare better

in quality than their foreign counterparts (Gopal & Srinivasan, 2006). The factors which

fuel the growth of foreign brands in India can also spell the demise of domestic brands,

so there is a need to establish symbiotic and mutually beneficial relationship between the

two counterparts whose sole objective will be to develop the Indian consumer mindset

conforming to world-class standards.

“What makes India different from any other emerging markets: its heritage and

sense of tradition with intricate craft-work, an impressive platform in breadth and depth

in both jewelry and textiles, and a captive audience already in place and willing to spend”

(Bororian & Poix, 2010, p.6). Indians come very close to the Western ideas for products;

their sense of luxury has more natural instinct than their counterparts in South Korea,

China and Japan. India is quite a latecomer to the phenomenon of foreign brands in

comparison to other countries in the same level of economic development. The current

28

Indian scenario is similar to what happened in Japan about five decades ago (Bororian &

Poix, 2010).

Although the Indian retail market has a huge number of organized as well as

unorganized retail players, the recent changes in federal foreign direct investments

policies have encouraged the entry of global brands such as Levi’s , Reebok, Puma,

Mango, Marks & Spencer, United Colors of Benetton, Gucci, Louis Vuitton, French

Connection, Zara and Jack & Jones. At the same time, Indian consumers are becoming

more brand conscious and are spending more on branded products (Shashidhar, 2004). In

fact, India is ranked among the top three most brand conscious countries in the world

(Nielsen Global Luxury Brands study, 2008). The increase in the spending power of

Indian consumers is evidenced by the 25 percent to percent growth of Indian retail

industry, which is expected to be US $860 billion by 2018 (Technopak, 2008). The

numbers of multimillionaire families have been growing at the rate of 14 percent yearly

and currently there are approximately 1.6 million households that earn more than

US$100,000 per year, and they spend US$9000 per year in procuring fashion and luxury

items (Bororian & Poix, 2010).

According to McKinsey and Company (2008), Indian households are classified

into five economic groups based on real annual disposable income which is – a) Deprived

– Unskilled or low-skilled population in seasonal or part-time employment, b) Aspirers –

Small shopkeepers, small holding farmers, and low-skilled industrial or service workers,

c) Seekers (lower middle class) – Young college graduates, traditional white-collar

employees, mid-level government officials, and medium-scale traders, d) Strivers –

Urban business traders, senior government officials, medium-scale industrialists in towns

29

and rich farmers, e) Globals (the cream of society) – Senior corporate executives, large

business owners, politicians, big agricultural-land owners, celebrities and top-tier

professionals.

Among retail segments, branded apparel segment constitutes the second largest

retail sales in India (Vaid, 2007). In addition, Indian consumers are becoming aware of

products/services available from various countries due to their modern lifestyle that can

be explained by internet access, satellite communication, and travel, as well as increased

education (Global Emerging Market Survey, 2008). 29 percent of India’s population

resides in cities, among the lowest urbanization rates of any nation in the world. This has

been changing rapidly and over the next two decades, there is a huge expectation that the

number of Indians living in cities will grow by 300 million, where they will don new

styles and fashions to match new lifestyles (McKinsey, 2010). A large percentage of

these new city dwellers will be in their twenties, and making first-time choices for whole

categories of clothing items including denims, shirts, and even shoes. Younger Indian

consumers are more attuned towards westernization and therefore are more likely to

embrace the brands at a faster rate than their older generations, apparently an immense

potential exists for both global and domestic brands to target this segment of consumers

(Leone et.al, 2000). As the lifestyles of India’s booming urban consumers have evolved,

their clothing needs have broadened invariably, reflecting more varied usage occasions.

For men, clothing choices once came primarily in three basic categories: home-wear,

work clothes, and special occasion wear. Now, with more and more socializing

opportunities, men are buying more sophisticated combinations of outfits: party wear,

sportswear, and clothes for hanging out at the mall. Some 20 years ago, for example, men

30

from India’s northern regions only required a good dark suit or Sherwani, the traditional

long coat, to cover big occasions and important celebrations. But over the past several

years, men have begun to supplement those staples with expensive Western style jackets,

and collared shirts; some in “funky” patterns and cut for a night on the town, others in

stripes or checks for casual meetings with important business associates.

Nowadays, Indians are more inclined than consumers in other markets to buy

apparel for a specific purpose. Indeed, 38 percent of Indian respondents to a 2010

McKinsey study said they were highly likely to buy apparel for special events; a

significantly higher proportion than in Brazil (5 percent), Russia (3 percent) or China (6

percent). Family celebrations and weddings continue to consume an enormous share of

Indian consumers’ clothing budgets (Vaid, 2007). There has been minimal research

conducted on brand analyses or presence of only single brand research analyses in the

apparel retail sector in respect of Indian consumers. More and more data should be

collected randomly without controlled environment to track the actual growth parameters

of the Indian apparel retail market to forecast possible entry strategies for other global

brands that already have presence through e-commerce.

Indian apparel retail market has grown considerably over the decades; it has

shown resilience characterized by slow economic growth in recent months. The apparel

retail market is worth $38 billion as of 2012 estimate referring to Figure 2.4 (Technopak,

2012). The penetration of various apparel brands in Tier II and Tier III cities and rural

India are contributing to the growth of apparel retail market. Figure 2.5 reveals that the

share of apparel retail is increasing day by day. More and more global brands are

31

expected to enter the Indian market in the near future as the system becomes free of red-

tapism and bureaucratic control (McKinsey, 2010).

Figure 2.4 Size of Indian apparel market (McKinsey Report, 2010)

Figure 2.5 Share of Indian apparel retail market (McKinsey Report, 2010)

Global Brands in Indian Apparel Retail Market

Since the inception of Indian economic reforms in late 80s, the apparel sector has

been the principal benefactor for global brands (Saxena & Dutta, 2013). Though India

has a rich heritage of textiles, Indian consumers have always looked to the western world

for inspiration due to the impact of British colonial history and the ever-increasing

diaspora. Global brands have rising acceptability among the increasing Indian affluent

32

and middle class due to the rising consumer base and the rapidly growing economy

(Saxena & Dutta, 2013). These brands have positioned themselves in the premium-end of

the market. On the contrary, Indian companies have been enthusiastically supporting the

rise and acceptance of the global brands among the Indian consumers. Currently there are

over 200 global brands in the Indian apparel retail market and the numbers are increasing

rapidly (Saxena & Dutta, 2013).

Figure 2.6 International Fashion Brands in India (Saxena & Dutta, 2013)

Figure 2.7 Global Brands entry timeline in India

33

The luxury brands of Europe have had a long relationship with India’s

erstwhile princely and noble families, but modern India’s consumer market received the

global attention when she took steps towards economic liberalization in the late 80s. The

pioneering global brands in this era were Coats Viyella, Benetton and VF Corporation but

the Indian market was fragmented with some regional and few national brands (Sharma,

2011). Ready-to-wear apparel was a growing concept at that time in the land of countless

tailors, so global brands like Louis Philippe, Arrow, Adidas, and Nike got instant

acceptance for a huge consumer market that were eager for change in their wardrobes

(Sharma, 2011). The rapidly growing electronic and print media sector also helped the

global brands to gain consumer acceptance which helped establishing brand equity. Until

the late-1990s, India was a less attractive destination for global brands than West Asia or

East Asia (Saxena & Dutta, 2013).

The growth of good quality real-estate and large format department stores

enabled global brands to set up their businesses through franchisees or direct entry

through single brand retail stores in the early 2000s referring to Figure 2.6 and Figure 2.7.

The luxury retail market in India attracted brands like Prada, Cartier, Giorgio Armani,

Kenzo to set up businesses through their Indian counterparts and the trend is ongoing.

Spanish brand Zara got an overwhelming response in 2010 when it opened its first store

in Delhi and is currently on an aggressive expansion mode. There is a fresh round of

optimism regarding the Indian market as the pace of new brands entering the market has

picked up, and those already present in the market are showing signs of adapting their

strategies to grow their business including lowering prices and entering new segments.

34

As evidenced from Figure 2.8, which is derived from a study done by Third

Eyesight (2013), European brands have domination over American brands (30%) in the

levels of penetration in the Indian market. Renowned American brands like Gap,

Abercrombie & Fitch are unknown in the Indian consumer market, brands like Tommy

Hilfiger, Levi’s, and Lee etc. are well known in the Indian market (Saxena & Dutta,

2013). The confidence in the Indian consumer market has increased considerably after

the 2012 retail reforms passed by the Indian parliament. Existing global brands are

expecting the contribution from Indian businesses to grow multi-fold in the next decade.

Recently it has been reported that Italian brand Benetton grossed more than 20 percent

increase in revenues for 2013, on the other hand American icon Levi’s reported a

significant fall of 35 percent after it discontinued brands like Dockers, Sykes etc. as well

as closed down dozen standalone stores (Firstbiz, 2013). Rating agency Crisil has

predicted that the apparel consumer market will witness a trend of positive growth over

the decade. According to a study by Crisil, the branded apparel market in India is

expected to witness a positive growth over the next few years. The growth is driven by

rise of organized retail, rising disposable incomes, changing demographics and increase

of knowledge and awareness about brands.

However, it should always be kept in mind that Indian market is a unique one,

different from the West but also there are fewer similarities with other Asian economies

like China. Many of the global brands have had to create a very different positioning

from their country of origin which involved corrected pricing and investing on new

product development such as The Body Shop and Marks & Spencer (Saxena & Dutta,

2013). Brands like Puma have started to focus on varied consumer segment to

35

aggressively chase their India-specific objectives. The adoption of appropriate India

specific business model is required for global brands and this study will act as a guide

from a consumer point of view. Figure 2.7 chronicles the entry period of some global

brands into the Indian market.

Figure 2.8 Country of Origin (Saxena & Dutta, 2013)

Regional Differences in the Choice of Brands

In markets like India or United States, where it is characterized by a high degree of

competition, various levels of product differentiation and sometimes level of information

relayed to consumers vary regionally, differences of acceptance and knowledge of brands

will differ significantly (Cuellar & Claps, 2013). Brand choice emanates from these

factors and eventually defines the consumer segmentation of that certain brand category.

It can also depend upon the interpretation of consumers regarding certain brand names

through advertisements and their willingness to pay to procure such brands (Park et.al,

2010). Hoch et.al (1995) concluded about consumer demographic characteristics from

store-level data to determine demand of brands for a certain region. India is a

25%

30%

45%

Share of Foreign brands in Indian market

Others

American

European

36

geographically contiguous country with 29 states and 7 union territories. A cluster of

these states form five regions of India namely – 1) North India, 2) North-East India, 3)

East India, 3) West India & 4) South India. Each of these regions has diverse

demographics with varying language and cultural groups.

Consumer market varies across these regions as evidenced from a recent study on

Indian consumers revealing that the affluence level causes changes in brand acceptance

(Jin & Son, 2013). India has a mix of individualistic and collectivistic cultural tendencies,

even there are variations among states, and these attitudes invariably affect or influence

the growth of consumerism (Jin & Son, 2013). Levels of economic prosperity will define

the choice of brands; price of branded products in that case would be the principal

determinant (Cuellar & Claps, 2013). The identity of a region refers to those

differentiating physical, cultural and historical features that make one region different

from another (Paasi, 2002). Regional identity refers to the extent to which people identify

themselves with the region’s practices, discourses and symbols (Paasi, 2002). This

regional difference in Indian context has enabled to start the research which correlates

with attitudes towards a global brand versus Indian brand.

Brands included in the study

Benetton

Benetton Group S.p.A. is a global fashion brand, based in Ponzano Veneto, Italy. The

name derives from the original Benetton family who founded the company in 1965. The

company has a network of about 6,000 stores in the main international markets like

United Kingdom, China, India, Italy etc. The stores generate a total turnover of 1.6

billion Euros (2013 estimate). The company's core business remains their famous

37

clothing lines - United Colors of Benetton, Undercolors of Benetton, Sisley, and

Playlife. The products include womenswear, menswear, childrenswear and underwear

and they have also expanded into perfumes, stationery, and eyewear and travel bags.

Benetton is known for sponsorship of a number of sports, and for the provocative and

original "United Colors" publicity campaign. Their advertisements have been eclectic and

sometimes revolutionary. Benetton entered India in 1991 and since have expanded

rapidly in metropolitan cities and other big and small towns. Benetton today is a leading

brand in India with more than 106 stores across 45 cities in India. The retail network is a

mix of owned and franchised stores. India is also used as a market for Benetton Group's

global sourcing especially for kids' apparel (IBEF, 2008).

Tommy Hilfiger

Tommy Hilfiger is a US $6 billion apparel and retail company founded in 1985 by

American fashion designer, Tommy Hilfiger. The product line consists of men’s,

women’s and children’s apparel, sportswear, denim, and a range of licensed products

such as accessories, watches, fragrances and home furnishings. The company’s

headquarters are in Hong Kong, Amsterdam and New Jersey. Tommy Hilfiger has

become a global brand with a good distribution network in over 90 countries and

operating more than 1,000 retail stores throughout North America, Europe, Central and

South America and Asia Pacific. Tommy Hilfiger’s Indian subsidiary opened in 2004

with Arvind Brands as their partners. The subsidiary currently operates more than 1000

stores in 98 cities and in on an expansion drive throughout the country. Tommy Hilfiger

is the first designer wear brand to start operations in India which provides a unique

position in the market.

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Wills Lifestyle

Wills Lifestyle is owned by an iconic Indian conglomerate called Indian Tobacco

Company (ITC) started in 2000. The brand has been established as a chain of exclusive

specialty stores providing the Indian consumer a delightful shopping experience through

world-class ambience, customer facilitation and clearly differentiated product

presentation. The product offerings are similar to Tommy Hilfiger and Benetton. Wills

Lifestyle was named Superbrand 2012 by the Superbrands Council of India. Wills

Lifestyle has also been declared one of 'Asia’s Most Promising Brands’ by the World

Consulting & Research Corporation. Wills Lifestyle is the title partner of India’s most

premier fashion runaway event- Wills Lifestyle India Fashion Week. Taking the

celebration of the event to its stores, Wills Lifestyle has partnered with several leading

Indian designers including Ritu Kumar, Rohit Bal, JJ Valaya, Ranna Gill and Rohit

Gandhi.

Previous studies on Country-Specific Apparel Brand Analyses

There have been two studies done earlier on the brand analyses framework by

incorporating Dillon et. al.’s (2001) model and addition of brand commitment component

by Lee et. al.’s (2008). The first study by Lee et.al (2008) based on this model was

constituted on the purpose to understand how consumers in three countries (Mexico,

South Korea, and Japan) perceive a US global brand versus domestic brands and how

they react to their marketing efforts. Increasing numbers of global brands has given rise

to immense competition among the brands, at the same moment, various global markets

are turning into complex and the consumers in several markets expect localized

marketing and branding strategies. The findings of this particular study revealed

39

significant primary effects of country and brand type (global versus domestic) on the

parameters of the proposed framework. Interactive effects were also noted among the

three parameters of the framework. The study demonstrated that there are varied and

unique brand analysis differences which exist among consumers in three different

countries for both US global brand and domestic brands. The results provide significant

insights into what global and domestic brands must stress upon to get success in

capturing the attention and retaining the loyalty of consumers.

The second study by Bhardwaj et.al (2010) investigates differences between U.S.

global and local brands in the Indian market. It is postulated that global and local brand

influence brand equity, which is composed of brand image, brand awareness, emotional

value, perceived quality, brand loyalty, and purchase intention. Based on the results in the

study, it is worth noting that in addition to targeting Indian consumers with high

global brand awareness and favorable ATAP (Attitude towards American Products),

U.S. brands can reach Indian consumers with unfavorable ATAP who also show

low levels of purchase intention and brand loyalty toward foreign brands. The result

of lower ratings on a local brand’s brand-specific association demonstrated that local

brands need to boost consumer confidence by offering quality products equivalent to

those of global brands but with lower prices because generally it has been

noticed that Indian consumers tend to very price sensitive. This study did not

take into considerat i o ns f a c t o r s t h a t m od e ra t e t h e i n f lu e nc e o f b r an d type

and ATAP on the outcome variables. The study also laid the foundation for future

research which could expand the present model by introducing other moderating factors

such as culture and consumer demographics.

40

Hypothesis Development

Objective I - To examine brand emotional value and perceived quality of American,

European and local brands respectively.

Brand-specific association has been linked to the feature and attribute that makes

consumers more associated with a brand and makes it distinct from other brands (Dillon

et. al., 2001). As proposed by Lee et al. (2008), perceived quality and emotional value are

the two major dimensions of brand-specific association as they form critical factors in

product perception. Emotional value in respect to global and domestic brands in Indian

market can be defined as the amount of value that relates to consumers’ feeling for a

certain brand (Sheth, Newman, & Gross, 1991; Barnes & Mattsson, 2008).

When brands start satisfying people-based needs, they impart value which puts

them at a strong footing, similar is the case with brand (Sweeney & Soutar, 2001).

Consumers start to attach emotional value to that certain brand which has satisfied their

needs fully or substantially. If we start to think that consumers are value driven then the

brands must focus their goal to achieve the needed market place advantage (Woodruff,

1997; Meyers-Levy & Malviya, 1999). In respect to this research study, the Indian

market can be utilized to create a market place advantage for the established brands as

well as new entrants. Perceived quality can be simultaneously defined as consumers’

subjective evaluation of superiority of certain brands over others (Rigaux-Bricmont,

1982; Zeithaml, 1988). From a consumer point of view, the quality of brand is an

important aspect in the influencing the perception towards that brand. The consumer

scrutinizes a certain brand according to his/her perceptions of quality which may vary

from the deliverance of high quality as portrayed by the firm (Aaker, 1990). He/she can

41

possess strong attitudes towards the quality of the brand on a positive or negative scale

which later is transferred to the attributes of the brand.

Global brands are also often related to the positive or negative impact of a

country on other country where it is introduced (Papadoupoulos et al., 1993). Positive

country opinions are known to lead to favorable opinions of associated features such as

product quality which indicates that they eventually attach emotional value to the brand

while making purchasing decisions (Peterson & Jolibert, 1995).

• Hypothesis 1a: Indian consumers will give higher ratings on emotional value

and perceived quality to the European brand than the American brand and the


• Hypothesis 1b: Indian consumers will give higher ratings on emotional value

and perceived quality to the American brand than the European brand and the



higher ratings on emotional value and perceived quality to the European


value to the American brand and the local brand.


higher ratings on emotional value and perceived quality to the American


value to the European brand and the local brand.

42

Objective II – To examine brand awareness and brand image of American,

European and local brands respectively.

The influence of brand impression on consumer has never been broader;

traditionally has been linked with the marketing department of any company keeping in

mind about the profit share of the company’s revenue (Burrows, 2013). General brand

impressions rely on the concept of word of mouth communication as it involves

information vividness and influences clarity of perception towards a certain product

(Herr, Kardes & Kim, 1991). Favorable brand attitude can be derived from this concept

of brand impressions.

The conceptual framework for creation of the term general brand impressions

with two attributes - brand awareness and brand image was done in a previous study

(Keller, 1993). Brand awareness in relation to global and domestic brand can be defined

as recognition of brand name through visual representation (i.e., logo or ad jingle) (Hoyer

& Brown, 1990; Rossiter & Percy, 1987). Brand awareness also derives from the premise

that the qualities of a product or brand names a certain consumer gives consideration

while making a purchase decision (Macdonald & Sharp, 2000). In this case, consumer is

a passive recipient of information of product while purchase with minimal knowledge,

the cues to which a consumer depends is principal attributes of a certain brand –

packaging, color and brand image.

Brand image can be identified with consumers’ perception about a certain brand,

whether positive or negative (Dobni & Zinkhan, 1990; Hofstede, 2007). Product brand

image influences consumers’ purchase decisions both directly and indirectly by reducing

various risk perceptions (Aghekyan-Simonian et.al, 2012). With this constructs of brand

43

impressions, this study is comparing the level of consumer brand awareness and image

ranging from American brand to European brand with Indian brand with prior

consideration that an Indian consumer will have more favorable attitude towards global

brands (Suh & Smith, 2011).

• Hypothesis 3a: Indian consumers will give higher ratings on brand awareness

and brand image to the European brand than the American brand and the local


• Hypothesis 3b: Indian consumers will give higher ratings on brand awareness

and brand image to the American brand than the European brand and the local



higher ratings on brand awareness and brand image to the European brand,




higher ratings on brand awareness and brand image to the American brand,



Objective III - To examine brand loyalty and purchase intention of American,

European and local brand respectively.

The continuing desire to achieve a value-oriented and reciprocal relationship with

a brand is defined as brand commitment (Traylor, 1981; Coulter et al., 2003). Brand

commitment can be compared with consumer commitment comprising of two

44

components – affective and continuance (Fullerton, 2003; Harrison-Walker, 2001). With

this theory of consumer commitment, brand commitment can be linked with two

attributes – brand loyalty and purchase intentions (Moorman et al., 1992). Here, affective

component is synonymous with purchase intentions and continuance component with

brand loyalty.

Brand loyalty has been defined as a continuous long-term connection to a brand

which acts as an imperative strategy for brands to achieve a competitive advantage in a

certain market (Sirdeshmukh et al., 2002). Brand loyalty is also referred to as complex

mixture of attitudinal and behavioral elements; some even view that it is the strength of

relationship between those elements (Dick & Basu, 1994; Oliver, 1999). Consumers do

form relationships with certain brands and this also strengthens the consumer

commitment to brands and helps the brands to have a dedicated consumer base.

Purchase intention is defined as consumers’ inclination to obtain specific brands

in comparison to other existing brands in a routine manner (Yoo et al., 2000). This is

also a type of affective commitment which enables them to return to their brands more

and more; the certain brand creates a motivation among the consumers to procure them.

The purchase intention is influenced by reputation of a brand, brand image in comparison

to other competing brands and role of price promotions (Grewal et. al, 1998). Sometimes

purchase intention might influence consumers’ willingness to pay more for a certain

brand than others. Purchase intention of consumers also depends upon the influence of

global brand in a certain market (Kumar et.al, 2009) Eventually consumers become aware

of various brands, possibly they travel abroad and adopt those brands, brand loyalty

increases with the rise of purchase intentions.

45

• Hypothesis 5a: Indian consumers will give higher ratings on brand loyalty and

purchase intentions to the European brand than the American brand and the


• Hypothesis 5b: Indian consumers will give higher ratings on brand loyalty and

purchase intention to the American brand than the European brand and the



higher ratings on brand loyalty and purchase intention to the European brand,




higher ratings on brand loyalty and purchase intention to the American brand,



46

Chapter – Three

This research is designed to determine how much influence the global brand

has over the Indian consumers in comparison to domestic brand and the competitiveness

of the American origin brand over the European origin brand and future implications for

the growth of American origin brands in India. It is also designed to examine how general

brand impression, brand specific association, brand commitment affect the consumers’

perception about a certain brand in comparison to other brands. A quantitative research

design is utilized for this study. This chapter will briefly describe the research design and

procedures which has been used, the methods utilized to sample the subjects and

instruments employed to study the sample.

Research Design

Descriptive survey research is a type of empirical social research that is frequently

employed to make descriptive assertions and assumptions about a certain population,

such as the distribution of certain traits or attributes (Babbie, 1973). This study has

utilized a self-administered survey questionnaire to sample size of 193 individuals. It is a

cross-sectional research survey which means to collect data at one particular time from a

selected sample to describe a large population at a certain point of time (Babbie, 1973).

Conducting a cross-sectional research survey can be very beneficial in quite many ways

since it is considered an efficient technique for identifying associations. This type of

study enables the researcher to study large numbers of people in small amounts of time

and with the little cost.

47

Research Method

The study involves opinion-based research method with quantitative analysis.

Opinion based research methods consists of designing a series of hypotheses and then

analyzing the significance of those hypotheses and formulating various analyses based

upon the research question. Questionnaires are an effective way of quantifying data from

a sample group, and testing emotions or preferences. This method is very cheap and easy,

where budget is a problem, and gives an element of scale to opinion and emotion. They

are arbitrary, but at least give a directional method of measuring intensity.

The survey was distributed through Facebook and Twitter to reach out the Indian

respondents. Snowballing method of data collection was employed to ensure anonymity

of respondents. Though the sample is small but it is evenly distributed in the country. The

respondents who were contacted were kept on reminding to take part in the study. The

initial respondents shared the survey on their Facebook wall and also posted into their

twitter feed. The sample data was collected over a period of fifteen days.

The study utilized a repeated measure (split-plot) design involving more than two

independent groups (Keselman et.al, 1998). A split-plot analysis of variance (ANOVA)

analyzed a design in which a repeated measure (i.e. within subjects) factor is crossed with

a between-subjects (i.e. treatment variable) factor. Here between-subjects factor is

regions of India. This design is to test the hypotheses based on whether the regions of

India have any effect on the brand analyses components affecting the choice of brands;

Indian consumers prefer American-origin or European-origin or Indian-origin brand. The

second portion of this study is to analyze the effect of attitude of Indian consumer

towards global brands and the components of brand analysis (i.e, brand-specific

48

associations, general brand impressions, and brand commitment) through multivariate

tests. The affinity of Indian consumers towards global brands were divided into three

factors – low (1), medium (2), and high (3). To test the significance of three brands with

each other, paired sample T-tests were conducted.

Brand Selection

Three brand types (i.e. US global, European global and Indian local) were chosen

for this study. The choice of the US global brand is Tommy Hilfiger, the European global

brand is United Colors of Benetton, and the Indian domestic brand is Wills Lifestyle

(Indian Tobacco Company affiliate). These brands have a strong presence through Single

Brand Outlets (SBO) and Multi Brand Outlets in metropolitan and big and medium sized

cities over the different states of India.

Instrument and Measures

The measures consisted of brand-specific associations (i.e. emotional value and

perceived quality), general brand impressions (i.e. brand awareness and brand image),

and brand commitment (i.e. brand loyalty and purchase intention). Scale items for

emotional value were adapted from Sweeney and Soutar (2001); perceived quality, from

Dodds et al. (1991); brand awareness and brand loyalty, from Yoo et al. (2000); brand

loyalty and purchase intention, from Lee, Knight and Kim (2008). The scale item for

consumer attitude towards global products versus Indian products was developed from

Lee, Kumar and Kim (2010). Each item was rated on a seven-point scale anchored by

“strongly disagree” (1) and “strongly agree” (7). The measures for this study, refer Table

3.1, were initially developed in the USA and India using American and Indian

consumers. Check for the questionnaire in Appendix-A for more details.

49

Table 3.1 Measurements

Constructs Items Source Brand Specific Associations

Emotional Value

Be one that I enjoy Make me feel good Give me pleasure Make me want to use it Feel comfortable using it

Sweeney & Soutar (2001)

Perceived Quality

Be reliable Be durable Be high quality Dodds et.al (1991)

General brand impressions

Brand Awareness

I can recognize this brand among competing brands I am aware of this brand I can quickly recall the symbol or logo of this brand

Yoo et.al (2000) Brand Image

Have good reputation Be prestigious brand

Brand Commitment

Brand Loyalty

I am loyal to this brand This brand is my first choice among competing brands

Lee, Knight & Kim (2008)

Purchase Intention

I intend to buy this brand frequently I plan to buy this brand more often

General Information

Gender Age Group Marital Status Employment Status

Consumer Information

Region Awareness of brands Frequency of shopping Choice of shopping outlets Spending per season Goswami & Mishra

(2009) Consumer Attitude

I prefer Global products over Indian products Global products are of higher quality than Indian products Given a choice, I would love to buy global-made rather than Indian products Lee, Kumar & Kim

(2010)

50

Chapter – Four

The purpose of this chapter was to present data results related to the following

research objectives: 1) Indian consumers’ responses to brand analyses components differ

among global brands and local brand in respect to difference in regions. 2) The impact of

Indian consumers’ attitude towards global products on their responses to brand analyses

components differs among the global brands and the local brand.

The data was presented in five sectors, the chapter starts with the description of

the sample. The second sector, reported the reliability of data scales based on Cornbach

alpha. Cronbach alpha “determines the internal consistency” of survey instruments,

which proved the survey tool, was reliable when results were stable over testing

repetition (Santos, 1999, p. 1). The third sector examined the individual attributes (brand

specific associations, general brand impressions, and brand commitment) tested in

accordance with regions of India. The repeated measure results of the estimated means

were used to assess interactions of brand specific associations, general brand impressions,

and brand commitment toward acceptance of brands in different regions of India. The

fourth sector examined the significant interactions between three brands in respect to

each other in relation to brand specific associations, general brand impressions and brand

commitment. In this sector the data were analyzed by using paired sample T-tests. Lastly,

the fifth sector examined individual attributes (brand specific associations, general brand

impressions, and brand commitment) tested in relation with Indian consumers’ attitude

towards global brands over local brands.

51

The multivariate test results of the estimated mean were utilized to assess interactions of

brand specific associations, general brand impressions and brand commitment over

affinity towards global brands among the Indian consumers.

Sector – 1 Results

Description of Sample

The sample is constituted from four metropolitan cities of India and other large

cities. The attempt of this research was to cover all the regions of India – North, East,

North East, West and South. The sample included professionals and students irrespective

of their gender, the age group attempted to cover in this research is 18 – 35 and income

status of middle class to upper middle class in these cities. The sample consisted of 256

respondents collected through the use of Facebook, Twitter and email. Of 193 usable

surveys, 37.8 percent were from women.

The age of the respondents ranged from 18 to 50 with a median age of 34. The

study consists of mostly unmarried individuals (72 percent). Nearly 47 percent of the

sample were employed with some kind of job with students (35.8 percent) forming the

second largest group.

According to Figure 4.1, majority of the respondents prefer to shop for clothing 3-

4 times in a year followed by respondents shopping 5-6 times and more than 10 times.

Figure 4.2 depicts the spending per season on clothing purchases by the study sample.

Majority of the respondents spend between the range of Rs 1000 (i.e., $17) – Rs 7000

(i.e., $119.6) in a certain season. The units are in Indian Rupees (i.e. $1 = Rs. 58.52).

52

Figure 4.1 Frequency of shopping for study sample

Figure 4.2 Spend per season on clothing purchase for study sample


Reliability Analyses

Table 4.1 depicts the reliability study of items of brand analyses. All the items have high

reliability. Any number of 0.6 is considered to have some reliability factor with the

questions asked in the survey.

53

Table 4.1 Reliabilities of the factors

Constructs Items Tommy Hilfiger

Cornbach’s Alpha

Benetton Wills

Lifestyle Brand Specific Associations

Emotional Value

Be one that I enjoy Make me feel good Give me pleasure Make me want to use it Feel comfortable using it

0.93 0.94 0.95

Perceived Quality

Be reliable Be durable Be high quality 0.94 0.95 0.96

General brand impressions

Brand Awareness

I can recognize this brand among competing brands I am aware of this brand I can quickly recall the symbol or logo of this brand

0.84 0.93 0.94

Brand Image

Have good reputation Be prestigious brand

0.91 0.89 0.96

Brand Commitment

Brand Loyalty

I am loyal to this brand This brand is my first choice among competing brands

0.88 0.92 0.95

Purchase Intention

I intend to buy this brand frequently I plan to buy this brand more often 0.87 0.92 0.91

Sector 3 – Results


brands and local brands in respect to difference in regions.

54

Table 4.2 illustrates results of repeated measure analyses for the effect of region and

brand on brand-specific associations, general brand impressions, and brand commitment.

Table 4.4 displays the result of multi-group comparisons.

Table 4.2 Results of repeat measure (split-plot) analysis

Brand Analysis Subject analysis Region (R)

Brand Analysis (B)

R X B

Brand Specific Associations Emotional Value 12.227*** 5.328** 3.030* Perceived Quality 7.060** 6.184** 1.459 General Brand Impressions Brand Awareness 14.545*** 14.545*** 2.558 Brand Image 5.432* 2.091 4.128** Brand Commitment Brand Loyalty 22.314*** 13.796*** 2.775* Purchase Intention 18.314*** 8.483*** 2.162

Notes: * p < 0.05; * * p < 0.01; * * * p < 0.001

Table 4.3 Estimated Marginal Means of Brands

Items Tommy Hilfiger Benetton Wills Lifestyle Brand Specific Associations Emotional Value NNE (4.9); WS (4.7);

E (4.8) NNE (5.2); WS

(5.1); E (4.8) E (4.9); WS (4.7);

NNE (4.4) Perceived Quality NNE (5.5); E (5.4);

WS (5.1) E (5.6); WS (5.5);

NNE (5.4) E (5.6); WS (5.4);

NNE (4.8) General Brand Impressions Brand Awareness NNE (5.7), E (5.4);

WS (5.4) NNE (5.7); E (5.4);

WS (5.4) E (5.3); NNE

(4.9); WS (4.9) Brand Image NNE (5.5); E (5.4);

WS (5.1) E (5.6); WS (5.5);

N (5.4) E (5.6); WS (5.4);

NNE (4.8) Brand Commitment Brand Loyalty WS (4.3); NNE (4.2);

E (3.7) WS (4.9); NNE

(4.7); E (4.5) E (4.7); WS (4.5);

NNE (4.2) Purchase Intention NNE (4.3); WS (4.3);

E (3.9) WS (4.9); NNE

(4.8); E (4.5) E (4.6); WS (4.5);

NNE (4.2)

Notes: NNE – North & North East India; E – East India; and WS – West & South India

55

Table 4.4 Results of Multi-group comparisons

Items Tommy Hilfiger Benetton Wills Lifestyle Brand Specific Associations Emotional Value NNE (4.9) > E (4.6) NNE (5.1) > E (4.8);

WS (5.1) > E (4.8) E (4.8) > NNE

(4.4) Perceived Quality Not Significant NNE (5.3) > WS

(5.0) E (5.1) > NNE (4.5); E (5.1) >

WS (4.7) General Brand Impressions Brand Awareness Not Significant Not Significant E (5.2) > NNE

(4.9); E (5.2) > WS (4.9)

Brand Image NNE (5.5) > E (5.4) > WS (5.1)

Not Significant E (5.6) > NNE (4.8)

Brand Commitment Brand Loyalty NNE (4.2) > E (3.7);

WS (4.3) > E (3.7) WS (4.9) > E (4.5) E (4.7) > NNE

(4.2) Purchase Intention NNE (4.3) > E (3.9);

WS (4.3) > E (3.9) WS (4.9) > NNE

(4.8) > E (4.5) E (4.6) > WS (4.5)

> NNE (4.2)

Notes: NNE – North & North East India; E – East India; and WS – West & South India

The interaction plots are represented for the effect of region and brand on brand-

specific associations (Figure 4.3 and Figure 4.4), general brand impressions (Figure 4.5

and Figure 4.6), and brand commitment (Figure 4.7 and Figure 4.8).

Brand – Specific Associations

The significant main and interactive effects of regional differences of India and

brand type on brand-specific associations lead to the support of H1a with respect to both

emotional value and perceived quality. In terms of emotional value, Tommy Hilfiger (m =

4.7) had a lower estimated mean than Benetton (m = 5.0) but both had slightly higher

estimated mean than Wills Lifestyle (m = 4.6). The interactions between two region

groups (NNE and E) were significant in the brands Tommy Hilfiger and Wills Lifestyle

only in reference to Table 4.4. For Benetton, three region groups (NNE, E and WS) were

56

significant. According to Table 4.3, in Tommy Hilfiger, NNE (m = 4.9), was followed by

WS (m = 4.7) and E (m = 4.6). Similarly, in Benetton, NNE (m = 5.2) was followed by

WS (m = 5.1) and E (m = 4.8). For Wills Lifestyle, E (m = 4.9), was followed by WS (m

= 4.7) and NNE (m = 4.4). Results about perceived quality revealed that, Tommy Hilfiger

(m = 5.0) had a slightly lower estimated mean than Benetton (m = 5.1) but both had

higher estimated mean than Wills Lifestyle (m = 4.7). The interactions between three

region groups (NNE, E and WS) were significant in Tommy Hilfiger referring to Table

4.4. Similarly, the interactions between two region groups (E and NNE) were significant

in Wills Lifestyle. There were no significant differences in region groups for Benetton.

According to Table 4.3, in Tommy Hilfiger, NNE (m = 5.5) was followed by E (m = 5.4)

and WS (m = 5.1). Similarly, in Benetton, E (m = 5.6) was followed by WS (m = 5.5) and

NNE (m = 5.4). For Wills Lifestyle, E (m = 5.6), was followed by WS (m = 5.4) and

NNE (m = 4.8).

Figure 4.3 Interaction plot of emotional value by region and brand type

57

Figure 4.4 Interaction plot of perceived quality by region and brand type

General Brand Impressions


brand type on brand-specific associations lead to the partial support of H3a with respect

to brand image only. In terms of brand awareness, Tommy Hilfiger (m = 5.5) and

Benetton (m = 5.5) had the estimated mean but both had higher estimated mean than

Wills Lifestyle (m = 5.0). The interactions between three region groups (NNE, E and

WS) were significant in Wills Lifestyle only and not for Tommy Hilfiger or Benetton

with reference to Table 4.4. In Tommy Hilfiger, NNE (m = 5.7), was followed by both E

(m = 5.4) and WS (m = 5.4) having the similar estimated mean as seen in Table 4.3.

Similarly, in Benetton, NNE (m = 5.7), was followed by both E (m = 5.4) and WS (m =

5.4) having the similar estimated mean. For Wills Lifestyle, E (m = 5.3), was followed by

NNE (m = 4.9) and WS (m = 4.9) having the similar estimated mean. Results about brand

58

image revealed that, Tommy Hilfiger (m = 5.3) had a lower estimated mean than

Benetton (m = 5.5) but both had slightly higher estimated mean than Wills Lifestyle (m =

5.2). The interactions between three region groups (NNE, E and WS) were significant in

Tommy Hilfiger in reference to Table 4.4. There are no significant interactions in region

groups for Benetton whereas there are interactions between two region groups (E and

NNE) were significant in Wills Lifestyle. In Tommy Hilfiger, NNE (m = 5.5), was

followed by both E (m = 5.4) and WS (m = 5.1) as seen in Table 4.3. Similarly, in

Benetton, E (m = 5.6), was followed by WS (m = 5.5) and E (m = 5.4). For Wills

Lifestyle, E (m = 5.6), was followed by WS (m = 5.4) and NNE (m = 4.8).

Figure 4.5 Interaction plot of brand awareness by region and brand type

59

Figure 4.6 Interaction plot of brand image by region and brand type

Figure 4.7 Interaction plot of brand loyalty by region and brand type

60

Brand Commitment


brand type on brand-specific associations lead to the full support of H5a with respect to

brand loyalty and purchase intention. In terms of brand loyalty, Tommy Hilfiger (m =

4.0) had the lowest estimated mean than Benetton (m = 4.7) and Wills Lifestyle (m =

4.5). The interactions between three region groups (NNE, E and WS) were significant in

Tommy Hilfiger only in reference to Table 4.4. Similarly, the interactions between two

region groups (WS and E) and (E and NNE) were also significant in Benetton and Wills

Lifestyle respectively. In Tommy Hilfiger, WS (m = 4.3), was followed closely by NNE

(m = 4.2) and then E (m = 3.7) as seen in Table 4.3. In Benetton, WS (m = 4.9), was

followed by NNE (m = 4.7) and E (m = 4.5). For Wills Lifestyle, E (m = 4.7), was

followed by WS (m = 4.6) and NNE (m = 4.2).

Figure 4.8 Interaction plot of purchase intention by region and brand type

61

Results about brand purchase intention revealed that, Tommy Hilfiger (m = 4.1)

had the lowest estimated mean than Benetton (m = 4.7) and Wills Lifestyle (m = 4.4).

The interactions between three region groups (NNE, E and WS) were significant in

Tommy Hilfiger, Benetton and Wills Lifestyle. In Tommy Hilfiger, WS (m = 4.3) and

NNE (m = 4.3) had the similar estimated mean followed by E (m = 3.9). In Benetton, WS

(m = 4.9), was followed by NNE (m = 4.8) and E (m = 4.5). For Wills Lifestyle, E (m =

4.6), was followed by WS (m = 4.5) and NNE (m = 4.2).

Sector 4 – Results


responses to brand analyses components differs among the global brands and the

Indian brands.

Table 4.5 Results of multi-group comparisons of affinity for global brands

Items Tommy Hilfiger Benetton Wills Lifestyle Brand Specific Associations Emotional Value AH (5.2) > AM (4.8)

>AL (4.1) AH (5.3) >AM

(5.0) >AL (4.4)Not Significant

Perceived Quality

AH (5.4) > AL (4.6) Not Significant Not Significant

General Brand Impressions Brand Awareness

AH (5.6) > AL (5.0) Not Significant Not Significant

Brand Image AM (5.4) > AL (4.8) AM (5.6) > AL (5.0)

AL (5.1) > AH (4.9)

Brand Commitment Brand Loyalty AH (4.7) > AL (3.4) AH (5.3) > AL

(4.2) AM (4.9) > AL

(4.1) Purchase Intention

AH (4.9) > AM (4.2) >AL (3.4)

AH (5.4) > AL (4.1)

AM (4.7) > AL (3.9)

Notes: AH – high affinity for global brands; AM – medium affinity for global brands; and AL – minimal or low affinity for global brands.

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Table 4.6 Estimated Marginal Means of Brands

Items Tommy Hilfiger Benetton Wills Lifestyle Brand Specific Associations Emotional

Value AH (5.2); AM (4.8);

AL (4.1) AH (5.3); AM (5.0);

AL (4.4)AM (4.8); AH

(4.4); AL (4.4)Perceived Quality

AH (5.4); AM (5.3); AL (4.6)

AH (5.4); AM (5.3); AL (4.8)

AM (5.0); AL(4.7); AH (4.5)


Brand Awareness

AH (5.6); AM (5.6); AL (5.0)

AH (5.6); AM (5.6); AL (5.0)

AM (5.4); AL(5.0); AH (4.4)

Brand Image AH (5.6); AM (5.4); AL (4.8)

AH (5.8); AM (5.5); AL (5.0)

AM (5.6); AL (5.1);

AH (4.4) Brand

Commitment Brand Loyalty AH (5.6); AM (5.4);

AL (4.8) AH (5.6); AM (5.4);

AL (4.8) AM (4.9); AH

(4.2); AL (4.1)

Purchase Intention

AH (4.8); AM (4.2); AL (3.4)

AH (5.4); AM (4.7); AL (4.1)

AM (4.7); AH (4.3); AL (4.0)

Notes: AH – high affinity for global brands; AM – medium affinity for global brands; and AL – minimal or low affinity for global brands.

Brand – Specific Associations

The significant main and interactive effects of affinity for global brands and brand

type on brand-specific associations lead to the partial support of H2a with respect to

emotional value. In terms of emotional value for the Tommy Hilfiger brand, AH (m = 5.2)

group had a lower estimated mean than Benetton (m = 5.3) but higher estimated mean

than Wills Lifestyle (m = 4.4). The interactions between three affinity groups (AH, AM

and AL) was significant in the brands Tommy Hilfiger and Benetton only as seen in Table

4.5. In Tommy Hilfiger, high affinity group (m = 5.2), was followed by medium affinity

group (m = 4.8) and minimal or low affinity group (m = 4.1) referring to Table 4.6.

Similarly, in Benetton, high affinity group (m = 5.3), was followed by medium affinity

63

group (m = 5.0) and minimal or low affinity group (m = 4.4). For Wills Lifestyle,

medium affinity group (m = 4.8), was followed by both high affinity group (m = 4.4) and

minimal or low affinity group (m = 4.4). Results for perceived quality revealed that

Tommy Hilfiger brand, AH (m = 5.4) group had similar estimated mean as Benetton (m =

5.4) but both had higher estimated mean than Wills Lifestyle (m = 4.5). The interactions

between two affinity groups (AH and AL) was significant for Tommy Hilfiger only in

reference to Table 4.5. In Tommy Hilfiger, high affinity group (m = 5.4), was followed

by medium affinity group (m = 5.1) and minimal or low affinity group (m = 4.6) as seen

in Table 4.6. Similarly, in Benetton, high affinity group (m = 5.4), was followed by

medium affinity group (m = 5.3) and minimal or low affinity group (m = 4.8). For Wills

Lifestyle, medium affinity group (m = 5.0), was followed by minimal or low affinity

group (m = 4.7) and lastly high affinity group (m = 4.5).


The significant main and interactive effects of affinity for global brands and

brand type on general brand impressions lead to the partial support of H4a in respect to

brand image only. In terms of brand awareness value for the Tommy Hilfiger brand, AH

(m = 5.6) group had a similar estimated mean as Benetton (m = 5.6) but higher estimated

mean than Wills Lifestyle (m = 5.0). The interactions between two affinity groups (AH

and AL) was significant in Tommy Hilfiger only in reference to Table 4.5. In Tommy

Hilfiger, high affinity group (m = 5.6), was equaled by medium affinity group (m = 5.6)

but the value of minimal or low affinity group (m = 5.0) was lower than both groups as

seen in Table 4.6. Similarly, in Benetton, high affinity group (m = 5.6), was also equaled

by medium affinity group (m = 5.6) but the value of minimal or low affinity group (m =

64

5.0) was lower than both groups. For Wills Lifestyle, medium affinity group (m = 5.4),

was followed by low affinity group (m = 5.0) and then high affinity group (m = 4.4).

Results for brand image revealed that Tommy Hilfiger brand, AH (m = 5.6) group had

lower estimated mean than Benetton (m = 5.8) but both had higher estimated mean than

Wills Lifestyle (m = 4.4). The interactions between two affinity groups (AM and AL) was

significant for Tommy Hilfiger and Benetton only as seen in Table 4.5. Furthermore, the

interactions between two affinity groups (AL and AH) was significant in Wills Lifestyle.

For, Tommy Hilfiger, high affinity group (m = 5.6), was followed by medium affinity

group (m = 5.4) and minimal or low affinity group (m = 4.8) in reference to Table 4.6.

Similarly, in Benetton, high affinity group (m = 5.8), was followed by medium affinity

group (m = 5.5) and minimal or low affinity group (m = 5.0). For Wills Lifestyle,

medium affinity group (m = 5.6), was followed by minimal or low affinity group (m =

5.1) and lastly high affinity group (m = 4.4).

Brand Commitment

The significant main and interactive effects of affinity for global brands and

brand type on brand commitment lead to the full support of H6a in respect to both brand

loyalty and purchase intention. In terms of brand loyalty value for the Tommy Hilfiger

brand, AH (m = 4.7) group had a lower estimated mean as Benetton (m = 5.3) but both

have higher estimated mean than Wills Lifestyle (m = 4.2). The interactions between two

affinity groups (AH and AL) was significant in both Tommy Hilfiger and Benetton as seen

in Table 4.5. Furthermore, the interactions between two affinity groups (AM and AL) was

significant in Wills Lifestyle. In Tommy Hilfiger, high affinity group (m = 4.7), was

followed by medium affinity group (m = 4.0) but the value of minimal or low affinity

65

group (m = 3.4) was lower than both groups in reference to Table 4.6. Similarly, in

Benetton, high affinity group (m = 5.3), was also equaled by medium affinity group (m =

4.6) but the value of minimal or low affinity group (m = 4.2) was lower than both groups.

For Wills Lifestyle, medium affinity group (m = 4.9), was followed by high affinity

group (m = 4.2) and then low affinity group (m = 4.1). Results for purchase intention

revealed that Tommy Hilfiger brand, AH (m = 4.8) group had lower estimated mean than

Benetton (m = 5.4) but both had higher estimated mean than Wills Lifestyle (m = 4.3).

The interactions between three affinity groups (AH, AM and AL) was significant for

Tommy Hilfiger only as seen in Table 4.5. Furthermore, the interactions between two

affinity groups (AM and AL) was significant in Wills Lifestyle. For, Tommy Hilfiger, high

affinity group (m = 4.8), was followed by medium affinity group (m = 4.2) and minimal

or low affinity group (m = 3.4) in reference to Table 4.6. Similarly, in Benetton, high

affinity group (m = 5.4), was followed by medium affinity group (m = 4.7) and minimal

or low affinity group (m = 4.1). For Wills Lifestyle, medium affinity group (m = 4.7),

was followed by high affinity group (m = 4.3) and then low affinity group (m = 4.0).


Paired Sample Analyses between Brands

Brand Specific Associations

All findings should be referred to Table 4.7. The paired groups significant to each

other in respect to emotional value were Tommy Hilfiger versus Benetton (p < 0.01) and

Benetton versus Wills Lifestyle (p = 0.001). Similarly in respect to perceived quality, the

paired groups significant to each other were Tommy Hilfiger versus Benetton (p < 0.01)

and Benetton versus Wills Lifestyle (p = 0.001). In both the attributes of brand-specific

66

associations, the interaction between Tommy Hilfiger and Wills Lifestyle were not

significant to report in the results.


All findings should be referred to Table 4.8. The paired groups highly significant

to each other in respect to brand awareness were Tommy Hilfiger versus Wills Lifestyle

(p = 0.000) and Benetton versus Wills Lifestyle (p = 0.000). Similarly in respect to brand

image, the paired groups were not significant to each other to report in the results.

Brand Commitment

All findings should be referred to Table 4.9. The paired groups significant to each

other in respect to brand loyalty were Tommy Hilfiger versus Benetton (p = 0.000) and

Tommy Hilfiger versus Wills Lifestyle (p < 0.01). There were no significant interactions

between Benetton and Wills Lifestyle in case of brand loyalty and Tommy Hilfiger and

Wills Lifestyle in respect to purchase intention. Similarly in respect to purchase intention,

the paired groups significant to each other were Tommy Hilfiger versus Benetton (p =

0.000) and Benetton versus Wills Lifestyle (p < 0.05).

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Table 4.7 Results of Paired Sample Analyses of Brands – Brand Specific Associations

Constructs Pair of brands

ME t Df Sig.

Brand Specific Associations Emotional Value

Perceived Quality

Tommy Hilfiger versus Benetton

4.77

5.01 -2.624 169 0.009

Tommy Hilfiger versus Wills Lifestyle

4.76

4.66 0.807 161 0.421

Benetton versus Wills Lifestyle

5.06

4.68

3.313 164 0.001


5.14

4.79 2.811 166 0.006


5.14

5.20

-0.573 171 0.567


5.23

4.82

3.549 166 0.001

Note: ME = Estimated Marginal Mean, Sig. = Significance

68

Table 4.8 Results of Paired Sample Analyses of Brands – General Brand Impressions


ME t Df Sig.

General Brand Impressions Brand Awareness

Brand Image


5.46

5.46 - - -


5.54

5.05

3.901 161 0.000


5.54

5.05

3.901 166 0.000


5.41

5.46 -0.532 177 0.595


5.38

5.30

0.595 163 0.552


5.54

5.28

2.302 162 0.230


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Table 4.9 Results of Paired Sample Analyses of Brands – Brand Commitment


ME t df Sig.

Brand Commitment Brand Loyalty

Purchase Intention


4.17

4.69 -4.701 175 0.000


4.10

4.53

-2.977 163 0.003


4.79

4.53

1.968 165 0.051


4.25

4.67 -3.8 175 0.000


4.21

4.46

-1.711 164 0.089


4.78

4.43

2.446 167 0.015


70

Summary

The chapter started with the description of sample. The sample collected was not that

much but it included people from various regions of India. Their shopping habits were

chronicled through figures. Then the data was represented in respect to the factors which

influenced the brand analyses – 1) regional differences and 2) affinity towards global

brands. The data revealed mixed choices among Indian consumers regarding the three

brands. Benetton enjoyed more favorable acceptance among the sample studied than the

other two brands. Graphs indicated the level of difference of brand choices among the

various regions of India. Tables justified the study as the statistical treatment involved

studying the significance level of the factors over the three brands and their estimated

mean values. Reliability analyses table included in the chapter supported the initial

position that these factors have effect on the choice of acceptance of the three brands.

Paired sample analyses were conducted to find out the level of significance and

interactions among the three brands. Overall most of the hypotheses concerning the

European brand were supported in the results.

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Chapter – Five

The foundation of this study was based upon on the influence of regional

difference in India and Indian consumers’ affinity towards global brands over local

brands on the parameters of general brand impression, brand-specific association and

brand commitment (Yoo et.al, 2000; Lee et.al, 2008; Paasi, 2002). Previous research

devoted to the consumers in Mexico, South Korea and Japan revealed that levels of

economic development influenced the popularity of global brands in a certain consumer

market (Lee et. al, 2008). This study is different from the other studies based on brand

analyses. The research hypotheses based themselves on regional differences and also

included consumers’ affinity for a global brand over a local brand or vice versa. The

study included three different brands from different countries or regions – American,

European and Indian, and analyzed them on research parameters based on the research

framework. The study affirmed that Indian consumers are brand conscious and make

judicious choices based on their affinity which reflect on the brand analyses components.

Sector – 3 Discussion


brands and local brands in respect to difference in regions.

There are five regions in India – North, North-East, East, West and South. For

better data analysis, these regions were clubbed into three categories to evenly distribute

the number of respondents. The three categories are denoted by abbreviations – 1) NNE –

North and North East, 2) E – East and, 3) WS – West and South. The brand analyses

components comprised of brand specific associations (emotional value and perceived

72

quality), general brand impressions (brand awareness and brand image) and brand

commitment (brand loyalty and purchase intention).

Figure 5.1 Regions of India

According to Figure 5.1, there are 5 clusters of states which form the regions of

India. The color code in the Figure 5.1 refers to Purple as North India, Gray as West

India, Blue as South India, Dirty Green as East India and Pink as North-East India. The

states which form North India are Jammu & Kashmir, Punjab, Himachal Pradesh,

Uttarkhand, Uttar Pradesh, Haryana, NCT Delhi, Madhya Pradesh, Chhattisgarh, Bihar,

Jharkhand and Rajasthan. The states which form West India are Gujarat, Maharashtra and

Goa. Similarly, the states which form South India are Karnataka, Tamil Nadu,

Seemandhra, Pondicherry, Telangana and Kerala. East India comprises of West Bengal

and Orissa. Finally North East India consists of Sikkim, Assam, Arunachal Pradesh,

Mizoram, Nagaland, Manipur, Tripura and Meghalaya.

73

India as a united country is a 20th century invention when it got independence from

United Kingdom in 1947. The former country was divided along religious lines. India is a

federation of states with the central government based in New Delhi with constituent

states having their own form of governments. India follows a Westminster style

parliamentary system of government echoed in other British Commonwealth countries

like Australia and United Kingdom. When the central government lessened its reins on

industry and services, state governments began shaping the fortunes of their citizens

through state-level policy reforms. This resulted in faster growth in every state over the

last decade than any other decade in the post-independence era (Panagariya, Chakraborty

& Rao, 2014). In fact, some of the poorest states, notably Bihar and Orissa, have been

growing the fastest. The level of economic development varies along states and regions;

this is reflected on the choice of brands among consumers. As states become more and

more prosperous, the consumers have higher disposable income to spend on brands and

luxury goods (Mehta, 2013).

Emotional Value

North and North East India showed more favorable acceptance for Tommy Hilfiger

than West and South India and East India, similar trend of acceptance was observed in

case of Benetton. Contrary to the trends exhibited in case of two global brands, East India

showed more favorable acceptance to Wills Lifestyle (i.e., local brand) than West and

South India and North and North-East India. This part of study revealed that North and

North-East India and West and South India have more favorable acceptance to global

brands than the local counterpart.

74

Perceived Quality

North and North East India showed more favorable acceptance for Tommy

Hilfiger than West and South India and East India. East India showed more favorable

acceptance to Benetton than West and South India and North and North-East India.

Similar trend like in Benetton was observed for Wills Lifestyle. It reveals that consumers

in East India have favorable acceptance towards Benetton and Wills Lifestyle than

Tommy Hilfiger.

Brand Awareness


Hilfiger than West and South India and East India who showed similar acceptance. This

trend of acceptance was also observed in case of Benetton. Contrary to the trends

exhibited in case of two global brands, East India showed more favorable acceptance to

Wills Lifestyle (i.e., local brand) than West and South India and North and North-East

India who showed similar acceptance. This part of study revealed that North and North-

East India have more favorable acceptance to global brands than the local counterpart in

respect to other two regions.

Brand Image


Hilfiger than East India and West and South India. East India showed more favorable

acceptance to Benetton than West and South India and North and North-East India.

Similar trend like in Benetton was observed for Wills Lifestyle. It reveals that consumers

in East India have favorable acceptance towards Benetton and Wills Lifestyle than

Tommy Hilfiger.

75

Brand Loyalty

West and South India showed more favorable acceptance for Tommy Hilfiger than

North and North East India and East India, similar trend of acceptance was observed in

case of Benetton. Contrary to the trends exhibited in case of two global brands, East India

showed more favorable acceptance to Wills Lifestyle (i.e., local brand) than West and

South India and North and North-East India. This part of study revealed that West and

South India and North and North-East India have more favorable acceptance to global

brands than the local counterpart.

Purchase Intention

North and North East India and West and South India showed more favorable

acceptance for Tommy Hilfiger than East India. In case of Benetton, West and South

India showed more favorable acceptance to Benetton than North and North-East India

and East India. Whereas, East India showed more favorable acceptance to Wills Lifestyle

than West and South India and North and North-East India.

Available literature talks about difference of consumer acceptance with regional

difference (Paasi, 2002), North and North-East India and West and South India is more

exposed to global culture than East India. West and South India has more urban

population than the other two region groups (India Census Report, 2012). This affects

and changes the brand acceptance in the regions (Steenkamp & Gielens, 2003). Overall,

Benetton stands as a leader in all these regions of India than its American counterpart

(i.e., Tommy Hilfiger) and local counterpart (i.e., Wills Lifestyle). Hypotheses have been

supported for emotional value, perceived quality, brand image, brand loyalty and

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purchase intention in favor of Benetton. For brand awareness, majority of respondents

were aware of all the three brands, so the results were similar.

Sector – 4 Discussion


responses to brand analyses components differs among the global brands and the

Indian brands.

The levels of affinity towards global products were divided into three categories.

This was done to evenly distribute the data collected through the survey. The categories

are: 1) AH – high affinity for global brands; 2) AM – medium affinity for global brands;

and 3) AL – minimal or low affinity for global brands. The brand analyses components

comprised of brand specific associations (emotional value and perceived quality), general

brand impressions (brand awareness and brand image) and brand commitment (brand

loyalty and purchase intention).

Emotional Value

The significant presence of minimal or low affinity group for the three brands

reveals that the affinity for global brands is not very strong as the literature suggested

(Lee et.al, 2008; Bhardwaj et.al, 2010). In both global brands, the high affinity group was

leading than the other two groups significantly. In case of the local brand, medium

affinity group or consumers who are undecided about affinity towards the global brands

leading than the other two affinity groups. Hypothesis was partially supported in favor of

Benetton as a major choice of brand among the three brands.

77

Perceived Quality

In both global brands, the high affinity group was ahead than other two groups

significantly. In case of the local brand, medium affinity group or consumers who are

undecided about affinity towards the global brands leading than minimal or low and high

affinity groups. Hypothesis was not supported in favor of any of the three brands.

Brand Awareness

In both global brands, the high affinity group was equaled by medium affinity

group than minimal or low affinity group. In case of the local brand, medium affinity

group or consumers who are undecided about affinity towards the global brands leading

than the other two affinity groups. Hypothesis was not supported in favor of any of the

three brands.

Brand Image



(Lee et.al, 2008; Bhardwaj et.al, 2010). In both global brands, the high affinity group was

ahead than other two groups significantly. In case of the local brand, medium affinity


than the other two affinity groups. Hypothesis was partially supported in favor of

Benetton as a major choice of brand among the three brands.

Brand Loyalty



(Lee et.al, 2008; Bhardwaj et.al, 2010). In case of Tommy Hilfiger, the high affinity

78

group was ahead than other two groups significantly. In respect to Benetton, both high

and medium affinity group had similar marginal means than lower affinity group. In case

of the local brand, medium affinity group or consumers who are undecided about affinity

towards the global brands leading than the other two affinity groups. Hypothesis was

supported in favor of Benetton as a major choice of brand among the three brands.

Purchase Intention



(Lee et.al, 2008; Bhardwaj et.al, 2010). In case of global brands, high affinity group was

ahead than other two groups significantly. In respect to the local brand, medium affinity


than the high affinity group and minimal or low affinity group. Hypothesis was supported

in favor of Benetton as a major choice of brand among the three brands.

Studies have revealed that attitude towards global brands is related to brand

preference (Kotler & Armstrong, 2006; Grundey, 2006 & Rajput et.al, 2012). If it is

favorable, that gets reflected on the choice of brands, in this study it is for Benetton (i.e.,

European brand). There has been mixed responses towards the three brands but the

choice of brand has tilted to the European brand. There has also been relatively stronger

support for both Tommy Hilfiger and Wills Lifestyle. Eventually, Benetton has a prime

mover advantage than Tommy Hilfiger due to two reasons – 1) 96 percent of the

Benetton clothes sold in India are sourced within the country, helping it with sharp

pricing and quick response to local consumer tastes. 2) Benetton has been moving into

tier-III and -IV towns (like Dimapur, Bhavnagar & Kota) to connect with the young

79

consumers there. The strength lay in combining a global fashion point of view with local

sensibilities. (Kurian & Sharma, 2013). Wills Lifestyle as a local brand has the similar

advantage like Benetton but has not been able to capitalize on it very successfully. Then

the advantage may not be in the sourcing of apparel, but in the operations of the two

global brands. Wills Lifestyle can adapt to Benetton’s or Tommy Hilfiger’s operating

strategy and build on its market.

Limitations

The limitation of this study is the access to various types of demographics and

covering all big cities and large towns. The participation of respondents in this study has

been limited but variedly spread throughout the country. In future, studies based on this

topic can focus more on the sample and increase it to get the real world picture about the

perception of Indian consumers towards global and local brands. This is the first time -

three brands have been included in such study and then analyzed on two factors – 1)

regional difference and 2) consumers’ affinity towards global brands over local brands.

Replication of this study in comparison with other rapidly developing countries can be

undertaken. This can result in a guideline to be followed when a global brand tries to

enter a new market.

Conclusion

Hypotheses for this study were supported in favor of the European brand leading

over American and local brand. The two parameters of this study concerned about Indian

consumers’ affinity towards global brands and regional differences in India. As India

becomes more and more economically strong, affinity for procurement of global as well

as local brands will increase. The study sets precedence on the type of studies already

80

done on Indian consumer as it studied three brands. Based on the framework from

previous research, the study analyzed the acceptance of global brands and local brands

among Indian consumer. Interestingly, the study revealed that a certain portion of Indian

consumers have a strong affinity towards procuring global brands but there’s a group

which is still undecided.

Another interesting part of this research was when the brand analyses components

were studied with regional differences of India. The study clearly revealed that North and

North-East India and West and South India have similar choices in brands or brands

whereas East India was completely different. East Indians have less exposure to global

brands than their other counterparts; the region is poor and still developing. West and

South India showed more acceptances for global brands than the local brand. The region

is the most developed among geographical regions of India. As urbanization and retail

industry progresses more and more, Indian consumers will evolve too. So it can be

assumed after this study and studying other literatures that Indian consumer choice are

evolving and there will be more transformations (Rao, 2000; Srinivas, 2008; Gupta &

Hodges, 2012).

India is a rapidly developing economy based on strong private sector with brand

conscious consumer. This attribute about Indian economy attracts global brands to set up

stores in the country. The problems as evidenced from the study of literature reveal

regional constraints and government regulations hampering the rapid growth of retail in

India. The study can be set as a stepping stone for other scholars to study in depth about

the brands in India; both global and local as well as the Indian consumer choices. Finally,

Indian consumer market is ever changing which opens up new possibilities and the

81

brands need to tap into this burgeoning space (Sinha & Banerjee, 2004; Kaur & Singh,

2007).

82

APPENDIX – A Questionnaire

SECTION: 1 GENERAL INFORMATION The following questions will be used for description purpose only.

1. What is your gender?o Maleo Female

2. Which age group do you belong to?o 18 – 29o 30 – 39o 40 – 49o 50 and over

3. Kindly indicate your marital status.o Marriedo Unmarriedo Separated/Divorcedo Refuse to Answer

4. Kindly indicate your employment status.o Employedo Looking for worko Studento Retiredo Homemakero Businesso Refuse to answer.

SECTION: 2 CONSUMER INFORMATION

The following questions are regarding your information as a consumer of branded apparel products. Please provide your best answer for each.

1. Which region in India do you identify yourself with?o North Indiao North-East Indiao East Indiao West Indiao South India

2. Which brand/brands are you aware in this particular study?o Tommy Hilfigero United Colors of Benettono Wills Lifestyleo Tommy Hilfiger & United Colors of Benettono United Colors of Benetton & Wills Lifestyle

83

o Tommy Hilfiger & Wills Lifestyleo All the three brands

3. What’s your frequency of shopping in a certain year?o 1 – 2 timeso 3 – 4 timeso 5 – 6 timeso 7 – 8 timeso 9 – 10 timeso more than 10 times

4. Where do you shop for apparel products?o Branded outlets (Tommy Hilfiger, United Colors of Benetton, & Wills

Lifestyle)o Departmental stores (Ex. – Shoppers Stop, Pantaloons, and Spencers etc.)o General merchandise store (store in a market)o Super-marketo Online store (Ex. – Flipkart, Jabong, Myntra etc.)

5. How much would you usually spend per season (6 months) on clothingpurchases?

o Rs. 1000 – Rs. 3000o Rs. 3001 – Rs. 5000o Rs. 5001 – Rs. 7000o Rs. 7001 – Rs. 9000o Rs. 9001 – Rs. 11000o Over Rs. 11000

6. When shopping for clothes, do you?o always return to the same shopso decide to go in due to the window display/advertisementso Try new shopso Search beforehand for information and then visit the right store for meo Go to shops where there are special offerso Other

SECTION: 3 CONSUMER ATTITUDE The following questions are regarding the attitude of Indian consumers

towards Global products.

1 = Strongly disagree, 2 = Disagree, 3 = Disagree somewhat, 4 = Undecided, 5 = Agree somewhat, 6 = Agree, 7 = Strongly agree

1 2 3 4 5 6 7 1. I prefer Global products over

Indian products.

2. Global products are of higherquality than Indian products.

84

3. Given a choice, I would love tobuy global-made rather thanIndian products.

Kindly answer the questions which follow after every brand logo.

The following section is regarding attitude of Indian consumers toward Global brand. It is the brand analysis of Tommy Hilfiger based on components of brand specific associations, general brand impressions, and brand commitment.


1 2 3 4 5 6 7

1. This is the one I enjoy

2. Make me feel good

3. Give me pleasure

85

4. Make me want to use it

5. Feel comfortable using it

6. Be reliable

7. Be durable

8. Be high quality

9. I can recognize this brand amongcompeting brands

10. I am aware of this brand

11. I can quickly recall the symbol orlogo of this brand

12. Have good reputation

13. Be prestigious brand

14. I am loyal to this brand

15. This brand is my first choiceamong competing brands

16. I intend to buy this brandfrequently

17. I plan to buy this brand moreoften

86

The following section is regarding attitude of Indian consumers toward Global brand. It is the brand analysis of United Colors of Benetton based on components of brand specific associations, general brand impressions, and brand commitment.


1 2 3 4 5 6 7



20. Give me pleasure



23. Be reliable

24. Be durable

25. Be high quality






87





The following section is regarding attitude of Indian consumers toward Indian brand. It is the brand analysis of Wills Lifestyle based on components of brand specific associations, general brand impressions, and brand commitment.


1 2 3 4 5 6 7



37. Give me pleasure



88

40. Be reliable

41. Be durable

42. Be high quality










89

APPENDIX - B

IRB Approval

90

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VITA

Aniket Sengupta is a native of India. He received a Bachelor of Technology in Apparel

Production in 2010 from the National Institute of Fashion Technology, Kolkata, India.

After that he worked for one year in Embee International Industries at Ismailia, Egypt as

a marketing merchandiser. In fall of 2012, Aniket returned to Graduate School at the

University of Kentucky where he was awarded both a Teaching Assistantship and

Research Assistantship within the Merchandising, Apparel and Textiles Department.

Aniket worked primarily as a Teaching Assistant for Merchandising, Planning and

Control and Retail Entrepreneurship. He also completed a research paper on usage of

clothing care-labels with Dr. Min-young Lee and has been selected to present it at ITAA

Seminar 2014 in Charlotte, North Carolina. Aniket has been selected to join the doctoral

program in Agricultural Economics from Fall 2014 at the University of Kentucky under

Dr. Michael Reed.

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