Advertising and its Impact on Brand Equity: A Study of Consumers of Garhwal Region of Uttrakhand State

Dr. D.S. Chaubey**Director

Uttranchal Institute Of Business StudiesDehradun

Mo-9411712859 email-chaubeyds@yahoo.com ** Dr S.M.Tariq Zafar

Director, Charak Institute of Business Management, Lucknow, U.P

smtz2007@gmail.com, mobile 09368953434

Shyam Sunder Saini***Research Scholar

Department of Management Studies,Pacific University, Udaipur, Rajasthan

e-mail: sssaini70@rediffmail.com,Abstract

The opening up of the Indian economy has given a level playing field for foreign brands against Indian brands. Several multinational companies have begun to focus their attention on Indian markets. The presence of global brand into Indian market has enhanced the competition into different brand. Advertising of the product has emerged as one of the most important tool to build up brand equity. Brand equity becomes an important element for being able to establish the differentiation regarding the products and services. In order to understand how much advantage would be provided by the advertising to the enterprises in building brand equity, it is necessary to assess the different factors and messages conveyed in advertising for building brand equity. The goal of the study is to measure the brand equity and the factors affecting the brand equity of  of hair care products, according to the perceptions of customers of Garhwal region. Sub-goals are to determine whether advertising enhances the brand equity of the product . For this purpose, a structured questionnaire was designed and piloted on a predetermined sample of 361 respondents of Garhwal region from different demographic characteristic. After collection of data it was analysed and some important findings and appropriate conclusions were drawn Factor analysis indicates that There are nine factor Product quality conformance factor, Product image factor, Product information factor, Imitating motives , Value addition in products through advertisement factor , Reliability and loyalty factor ,Product knowledge and quality conformance factor and Personal judgment and confidence motive , and Uses and Application motives promoting brand equity of the product. Regression equation reveals that company must focus on these issues to buildup brand equity of the hair care product.   The study reveals that advertising plays an important role in increasing brand awareness, brand image, and brand loyalty and in turn increasing brand equity but with varying extent.

Key Words: Brand Equity, Brand Association, Brand Loyalty, Brand Personality, etc.

IntroductionThe opening up of the Indian economy has given a level playing field for foreign brands against Indian brands. Several multinational companies have begun to focus their attention on Indian markets. The presence of global brand into Indian market has enhanced the competition into different brand. Brand is one of the most important concepts related to the marketing science. Extensive competitive environment that the enterprises are confronted with today and their competition in being different among thousands of similar products that could draw consumers’ attention necessitate the products to have certain elements of differentiation other than their physical characteristics. Hence the brand becomes an indicator of value and power (Marangoz, 2007A). However the value and power possessed by each brand demonstrate differences from others. Brand equity provides a strong platform for introducing new products and insulates the brand against competitive attacks. The current brand strategy followed by business houses in India need a dramatic makeover. . in the present changing business environment, firm has to adapt innovative advertising, market communication and branding to remain in the market and enhance brand equity of the product. The Indian companies have to respond to these challenges with better strategies and by delivering the brand promise to the customers. From the perspective of the trade, brand equity contributes to the overall image of the retail outlet. It builds store traffic, ensures consistent volume, and reduces risk in allocating shelf space. Therefore determination of the level of the value that the brand has is of great importance for the administrators of the enterprise and in terms of the decisions they make. In this study, the methods for measuring the brand equity and consumer based brand equity which is one of the methods used for measuring brand equity purposes, is explained in detail. In this paper we will try and understand the minds of the consumers and try to evolve a strategy that will closely resemble their outlook

Advertising is not about selling product, but about promoting the qualities that differentiate your product from so many others. Advertising is about positioning that brand by promoting and communicating your product’s differentiators to a targeted mass audience. The goal of advertising is to focus attention on what sets your firm apart from others. Branding, through repeated, frequent advertising, is the most effective way to accomplish that goal. Advertising means generating opportunities, and good advertising is generating thousands of potential opportunities every day. The only way to be heard is to speak, and the only way to be remembered is to repeat over and over a very simple, compelling, single-minded message. Consider that the public is faced with roughly 700 ads and brands per day. To stand out, you must not merely speak, but yell, breaking through the clutter and getting the attention of the prospect with the use of strong creative and a quick, easy-to-retain message. The most effective and efficient way to do so is through frequent, repeated advertising in the same publications or airwaves reaching the same industry or targeted audience. A successful advertising campaign brings many other benefits that law firms never seem to address. Some are extremely important when building a brand or positioning your firm within the marketplace. Advertising is an investment in growth, generating opportunities, positioning a brand and reaching thousands of potential customers. When weighing the value of an advertising campaign and whether advertising is right for your firm, one should consider the various benefits like ability to communicate, reminding ability, retaining ability and ability to help firm for movement and growth and its stimulating ability for promoting conversation between firm, among clients, potential clients and competing firms and its nature for helping customer in eliminating brand confusion.

Review of Literature

BRAND is a promise made to the consumers by the company. Brand, not only has Functional and Mental dimensions but also Social and Spiritual dimensions. The challenge in front of Indian organizations today is to first understand and then satisfy the needs of the customers. The needs of the customers today are experiences and not just the products. The Indian Organizations have to concentrate on delivering the experiences to the customers leading to satisfaction and association with all the dimensions of the brand. These experiences can be delivered by involving the customer in the supply chain which demands improvement from the organization in terms of training the employees and aligning the culture to deliver value to the customers. The participation of the customers can be ensured by using novel methods of communication and branding. The Profit and Sustainability of Indian Brands will depend on how efficiently and quickly the organization can adapt to these new demands of the customers.

Branding—A Different PerspectiveBranding can be rational or irrational. Customers buy brand not only for the intrinsic values associated with it but also because the brand has surprised them in the past with newer and more novel experiences. Branding is a promise made to the customer that will deliver values beyond expectation. Branding strategy hence should also involve continuously communicating to the customer of the novel experiences that he/she has had with the brand. We believe that effective branding involves working on four important dimensions, namely: functional dimension, social dimension, spiritual dimension and mental dimension. The functional dimension concerns the perception of benefit of the product or service associated with the brand. The Social Dimension concerns the ability to create identification with the group. The Spiritual Dimension is the perception of global or local responsibility and the Mental Dimension is the ability to support the individual mentally.7

The present research employed a conceptual framework by Srivastava and his colleagues (1998) in order to address posited relationships between advertising, R&D, brand equity, and shareholder value. Using secondary data from various industry and academic sources during a ten-year time span, simple and multiple regression analyses were performed in conjunction with path analyses to evaluate the posited relationships. The findings of the research showed that advertising can not only work to improve market performance measures but also to develop and maintain brands. These relational and intellectual market-based assets can intertwine to create a unique competitive edge for the firm in the marketplace (Srivastava et al. 1998). For example, stronger customer relationships could be created when a firm uses knowledge about buyer needs and preferences to build long-term relationship bonds with external entities such as customers and distributors (Srivastava et al. 1998). The importance of these market-based assets has been also emphasized by other researchers in marketing. Brand equity (Aaker 1991; Keller 1993, 1998; Shocker et al. 1994), customer satisfaction (Anderson and Sullivan 1993; Fournier and Mick 1999), and the management of strategic relationships (Anderson and Narus 1996; Garbarino and Johnson 1999; Morgan and Hunt 1994) are the underlying concepts of market-based assets, whether relational marketbased assets, intellectual market-based assets, or both. Unlike other tangible assets in business organizations, such as plant and equipment, raw materials, and finished products, the value of market-based assets is hard to measure and does not appear on the balance sheet. For these reasons, many firms still consider expenditures for marketing activities an expense rather than an investment.

However, market-based assets can also function in the exact same way as any other tangible asset that is believed to be an investment, doing so by way of “lowering costs, attaining price premiums, generating competitive barriers, providing a competitive edge by making other resources more productive, and providing managers with options” (Srivastava et al. 1998, p. 6). Brand equity is the core concept of this dissertation research because it can influence customer relationships and partner relationships, which are major forms of market-based assets. The specific effects of brand equity could be either consumer-level outcomes such as attitude awareness, image, and knowledge, or firm- level outcomes such as market share, price, revenue, and cash flows (Ailawadi et al. 2003). The two perspectives of brand equity are linked since firm- level outcomes, such as incremental 20 cash flow, are the aggregated consequences of consumer-level effects, such as image and attitude (Aaker 1991; Keller; 1993; Srivastava et al. 1999). Brand equity is generally believed to be the outcome of marketing and R&D efforts for a product (Keller 1998; Srivastava et al. 1998). According to Leuthesser (1988), from the firm’s perspective, brand equity can be the incremental cash flows resulting from the product with the brand name compared with the product without the brand name. From the consumer’s perspective, brand equity can be a utility, loyalty, or differentiated clear image not explained by product attributes. Advertising can play a key role in achieving superior brand equity by communicating with potential customers (Ailawadi et al. 2003; Srivastava 1998). R&D can also contribute to brand equity by helping a firm be equipped with knowledge and information about customers and competitors to survive in the market. Knowledge and information are essential to develop new products and services which can bring superior brand equity. This knowledge and information sometimes can be acquired through the relationships built around a firm’s customers and channel members (Srivastava et al. 1998). Even though all marketing efforts may be important, it is believed that the role advertising plays is superior to that of other forms of marketing efforts in building and maintaining brand equity (Aaker 1991; Keller and Aaker 1992; Keller 1998; Ailawadi et al. 2003). As a testament to the importance of advertising to build and maintain brand equity, top consumer product companies usually allocate a significant amount of their 21 budgets to advertising, often between 10 to 15 percent of sales every year (Herremans, Ryans, and Aggarwal 2000). What can advertising do to enhance market-based assets and, ultimately, increase shareholder value, and how does this happen? First, advertising can influence relational market-based assets by improving customer relationships. Customer relationships are mainly created on the basis of value delivered to customers. Customers perceive higher value for a certain brand when it can provide unique and superior product functionality, features, and quality as well as wider availability, greater ease of use, and better reputation and image (Srivastava et al. 1998). Advertising communicates these elements of brand value to customers, and it helps marketing managers build, increase, and maintain customer relationships with the brand. This brand value contributes to brand equity (Keller 1998; Srivastava and Shocker 1991). Brand equity is generated when customers have a high level of awareness and familiarity with the brand and hold some strong, favorable, and unique brand associations in memory (Keller 1998). A brand with significant equity can result in customers being more accepting of a new brand extension, less sensitive to price increases, and more willing to seek the brand in a new distribution channel (Keller 1993). Brand equity can also reinforce partner relationships with other external entities such as retailers and distributors. Distribution cha nnels are willing to cooperate with firms that maintain high brand equity across their brand portfolios, and other strategic partners may also be interested in co-branding with these brands (Srivastava et al. 1998). Therefore, advertising can play a key role in increasing the value of market-based assets by creating brand equity, which can function as a stepping stone between advertising and shareholder value. Incorporating brand

equity with a conceptual framework may provide a comprehensive structure for exploring the ultimate utility of advertising in business organizations.

Objectives and Methodology

Preliminary Studies of the Research Motivated by the idea that different industries may have different brand equity dimensions, it would be appropriate to develop different measures for each industry to measure the factors affecting the brand equity. The goal of the study is to measure the brand equity and the factors affecting the brand equity of  of hair care products, according to the perceptions of customers of Garhwal region. Sub-goals is to determine whether advertising enhances the brand equity of the product . For this purpose,a structured questionnaire was designed and piloted on a predetermined sample of 361 respondents of Garhwal region from different demographic characteristic. After collection of data it was analysed and some important findings and appropriate conclusions were drawn. HypothesesThe following hypothesis has been assumed for the proposed studyH1: There is a positive relationship between different factors of advertising promoting brand equity with the customers willingness to spend premium price for products of reputed brand

Table-1 Demographic Characteristics Of RespondentsCategories Count Percentage

361 100

Age

Upto 20 Years20-30 Years30-40 Years40-50 Years50 to 60 yearsabove 60 Years

3612472754311

10.034.319.920.811.93.0

GenderMaleFemale

214147

59.340.7

Marital Status MarriedUnmarried

26893

74.225.8

EducationLevel

No formal educationUnder GraduateGraduatePG and AboveProfessional Qualification

506932

12585

13.919.18.9

34.623.5

Income Level Upto Rs 1500015000-2500025000-3500035000-50000Above 50000

11385419527

31.323.511.426.37.5

Occupation StudentBusinessServiceProfessionalHouse WifeAny Other

5849

14532689

16.113.640.28.9

18.82.5

The demographic characteristics of the respondents presented in the above table reveals that out of total 361 respondents 10.1% respondents were of the age group Upto 20 years. 34.3 were in the age group 20-30 Years, 19.9% were in the group of 30-40 and 20.8% respondents were in the age group of 40-50 years. 11.9% respondent were in the age group of 50-60 Years and remaining 3% respondent were in the age group of above 50 years. For a research dealing with brand equity of Hair care product it is important to know the Sex of the respondents as in the current scenario, males are equally personality conscious as compared to women. From the above table it is clear that 59.3% were Male and the rest that is 40.7% were female. The information pertaining to Marital Status of respondents shows that 74.2% were married and the rest were unmarried. Educational qualification was another demographic which reveled interesting facts. 34.6% were those respondents who were Post graduate and above, no formal educational categories respondents were 13.9%followed by Graduate with 8.9 and finally under graduate category with 19.1 percentage. Middle income category respondent account for 54.8% and it is also significant to note that sample is dominated by service category respondents as it account for 40.2% respondents in the sample.

Table 2 -Media Accessibility Description Frequency Percent Percentage

A Radio 160 8.8% 44.3%

B Magazine 272 14.9% 75.3%

C Television 343 18.8% 95.0%

D Newspaper 342 18.8% 94.7%

E Hoardings 309 16.9% 85.6%

F Advertising on electronic media 272 14.9% 75.3%

G Others 126 6.9% 34.9%

Total 1824 100.0% 100%

The present era truly represents an age of the ‘information revolution’. The business institutions are using several media of advertisements to communicate their message to the consumers. It is firmly believed that the consumers may have access to many sources located at different points by which they can get an opportunity to read/watch an advertisement and generate a need for acquiring some products /services and ultimately settle on buying decision. With this, an attempt was made in this study to determine the accessibility of respondents to various media of advertisements. For this purpose, the respondents were requested to indicate their accessibility to various media of advertisements. Multiple response were processed with the help of SPSS software and indicates that radio has got very less accessibility among the respondents. Advertising on internet and magazine has got almost equal accessibility to 75.3% respondents each. Simillarly television and newspaper has got accessible among 95% respondents each. Hoardings were indicated by 85.6% respondents. this signifies the better media accessibility among the respondents.

Table 3-Most Appealing MediaSl No.

Description Frequency Percent

A Magazine 87 24.1

B Television 252 69.8

C Newspaper 3 .8

D advertising of product on mobile 19 5.3

E Total 361 100.0

Media is a facilitating institution of communication. Rapid industrialisation and technological revolution have brought a qualitative and quantitative change in the media. Today, it is seen that there is stiff competition among the media and all of them are bringing substantial qualitative change to offer better to their customer. Advertising scenario in India cannot be understood without considering its effectiveness among the people. For this, it is necessary for the marketer to assess the appealing ability of the media to the consumers. It seen in the above table that television is one of the most appealing media as revealed by 69.8% respondents in the sample. It was followed by advertisement in magazine that account for 24.1% respondents. News paper and advertising on mobile was indicated by 0.8 and 5.3% respondents in the sample.

Table 4 : Reasons of Favourite Advertisements

Reasons Responses Percent of Cases

N Percent

it shows the comparative study over the other brands

109 22.4% 30.2%

Better use of celebrities 115 23.6% 31.9%

it is stylish in nature 147 30.2% 40.7%

It presents the correct information of the products

54 11.1% 15.0%

Other reasons 62 12.7% 17.2%

Total 487 100.0% 134.9%

An attempt was made to assess the reason which makes an advertisement to be the favourite one to the respondents. The analysis explains that there are various reasons which can be attributed for making an advertisement of most favourite for the respondents. These reasons may include, it shows the comparative study over the other brands, Better use of celebrities, it is stylish in nature, and It presents the correct information of the products and many other other reasons. The analysis signifies that in comparison to other reasons, the stylish presentation of advertisement is the prominent reasons for making an advertisement to be most liked by majority of the respondents.

Table5 Ability to identify Product without advertising

Sl No. Description Frequency Percent

A Yes 203 56.2

B NO 158 43.8

Total 361 100.0

Advertisements are made to develop a Brand, It is created to develop Brand Recognition and also Goodwill of any product. Advertisements are also made to develop awareness among public whether it is new Product or Public Service Message. Low-involvement advertising needs extensive repetition in advertising (Hawkins 1998.) the repetition of advertisement of product enhance its recognition and customer get conditioned with the brand. With this in mind an attempt was made to know the ability of customer to identify the product without advertising. The survey reveals that more than half of the respondents(56.2%) were in position to identify Product without advertising. In comparison to this 43.8% respondents could not identify product without advertising.

Table6 -How convincing did you find this advertisement

Sl No. Description Frequency

Percent

A Very Convincing 161 44.6

B Somewhat convincing 79 21.9

C Undecided 43 11.9

D Not very Convincing 25 6.9

E Not at all convincing 53 14.7

Total 361 100.0

An advertising has an important role in the today's business. A good advertisement inform the customer, motivate them for action, convince them and persuades them for final purchase. The success of advertising depend upon its ability to convince the target market to purchase product or service. With this in mind an attempt was made to know how far the advertisement of hair care product is convincing to them. Survey reveals that 44.6% respondents are of the opinion that it is very convincing. 21.9% say that it is somewhat convincing. 11.9% respondent remain undecided. 6.9% respondents indicated that it is not very convincing. And remaining 14.7% respondent said that it is not at all convincing to them.

Factor Analysis

Our perception is an approximation of reality.  Our brain attempts to make sense out of the stimuli to which we are exposed.  Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus.  It is followed by the Interpretation which involves making sense out of the stimulus.  Several factors influence the extent to which stimuli will be noticed.  One obvious issue is relevance.  Consumers, when they have a choice, are also more likely to attend to pleasant stimuli. The perception forms Consumer attitudes that are a composite of a consumer’s (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object--within the context of marketing. These

components are viewed together since they are highly interdependent and together represent forces that enhance brand equity. Keeping these into consideration, an attempt was made to identify the determinants of brand equity in hair care products. For this respondents were asked to rate their views on the statements such as: After observing the advertisement of the product, I will have a good impression to the product advertised, I feel positive effect of electronic advertising of product on the prices of advertised products?, I belief that Advertising conform the product quality, Products that I have used usually live up to the promises of quality and performance made in their advertisements, I feel positive about the product while seeing advertising of the product, Advertisement of the product convince me most in favour of product, I usually get better value for my money in advertised brands of products than in unadvertised brands, In general, I trust advertising of the product on various advertising media, Advertisements provide necessary and sufficient information about products., Advertisements provide better information and different characteristics of products., After observing advertisements of the product, I would like to try the advertised product., After observing advertising of the product electronically, I would like to buy the advertised product., I associate myself with the celebrity engaged in advertisement, After viewing this ad, I would consider purchasing the product., Advertisement add the value endowed by the brand name , brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets, I usually rely on product information as advertised, Advertisements displayed in various media have reliable and valid information about the product., Advertisement build my confidence translates my loyalty and willingness to pay a premium price for the brand, After observing internet advertisements, I would like to consume the advertised product., The benefits described in the ad are believable to me., Advertising enhance the consumer’s personal judgment about the overall quality or excellence of a product or service., Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors., Advertisements explain the usage and applications of products correctly as compared to print media., Respondents were asked to rate the various statement on a scale of 1 to 5 in order of their preference. The exploratory factor analysis was used in order to identify the various motivational factors of visiting retail store. Principal Component analysis was employed for extracting factors and orthogonal rotation with Varimax was applied. As latent root criterion was used for extraction of factors, only the factors having latent roots or Eigen values greater than one were considered significant; all other factors with latent roots less than one were considered insignificant and disregarded. The extracted factors along with their Eigen values are shown in table 8. The factors have been given appropriate names on the basis of variables represented in each case. The names of the factors, the statements, the labels and factor loading have been summarized in Tables 8. There are 9 factor each having Eigen value exceeding one for motivational factors. Eigen values for nine factors are 5.319, 2.630, 2.012, 1.905, 1.397, 1.228, 1.106, 1.057, 1, 019, , respectively. The index for the present solution accounts for 76.82 % of the total variations for the factors of brand equity. It is a pretty good extraction because we are able to economise on the number of choice factors (from 23 to 9 underlying factors), we lost 23.18 % of information content for choice of variables. The percentages of variance explained by factors one to four are 23.127%, 11.436%, 8.748%, 8.284%, 6.072%, 5.337%, 4.808%, 4.597%, 4.430%, respectively. Large communalities indicate that a large number of variance has been accounted for by the factor solutions. Varimax rotated factor analysis results for factors are shown in table 8 which indicates that after 9 factors are extracted and retained the communality is 0.746 for variable1, 0.906 for variable 2 and so on. It means that approximately 74.6 % of the variance of variable1 is being captured by 9 extracted factors together. The proportion of the variance in any one of the

original variable which is being captured by the extracted factors is known as communality (Nargundkar, 2002).

Table 8 Principal Component analysis with Rotated Component

Component Communalities

1 2 3 4 5 6 7 8 9

After observing the advertisement of the product, I will have a good impression to the product advertised

.868

.746

I feel positive effect of electronic advertising of product on the prices of advertised products?

.828906

I belief that Advertising conform the product quality

.664.763

Products that I have used usually live up to the promises of quality and performance made in their advertisements

.519.814

I feel positive about the product while seeing advertising of the product

.888

.826

Advertisement of the product convince me most in favour of product

.795

.799

I usually get better value for my money in advertised brands of products than in unadvertised brands

.669

.889

In general, I trust advertising of the product on various advertising media

.614

.796

Advertisements provide necessary and sufficient information about products.

.869.775

Advertisements provide better information and different characteristics of products.

.718.724

After observing advertisements of the product, I would like to try the advertised product.

.539 -.375.857

After observing advertising of the product electronically, I would like to buy the advertised product.

.808

.854

I associate myself with the celebrity engaged in advertisement

.715.696

After viewing this ad, I would consider purchasing the product.

.566.588

Advertisement add the value endowed by the brand name , brand loyalty, brand awareness, perceived quality, brand associations, and

.869

.848

I usually rely on product information as advertised

.485

.716

Advertisements displayed in various media have reliable and valid information about the product.

.792.774

Advertisement build my confidence translates my loyalty and willingness to pay a premium price for the brand

.758.750

After observing internet advertisements, I would like to consume the advertised product.

.829

.699

The benefits described in the ad are believeable to me.

.545.795

Advertising enhance the consumer’s personal judgment about the overall quality or excellence of a product or service.

.715.653

Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors.

-.686

.629

Advertisements explain the usage and applications of products correctly as compared to print media.

.853.777

Initial Eigenvalues5.319 2.630 2.012 1.905 1.3971.228 1.106 1.0571.019

% of Variance23.127 11.4368.748 8.284 6.0725.337 4.808 4.5974.430

Cumulative %23.127 34.53643.31151.594 57.66763.00467.81272.40876.839

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 11 iterations. Table 9: Principle components and associate variable

Factor Name of Dimension

Statement Factor Loading

F1 Product quality conformance factor

After observing the advertisement of the product, I will have a good impression to the product advertised

.868

I feel positive effect of electronic advertising of product on the prices of advertised products?

.828

I belief that Advertising conform the product quality .664

Products that I have used usually live up to the promises of quality and performance made in their advertisements

.519

F2 Product image factor

I feel positive about the product while seeing advertising of the product .888

Advertisement of the product convince me most in favour of product .795

I usually get better value for my money in advertised brands of products than in unadvertised brands

.669

In general, I trust advertising of the product on various advertising media .614

F3 Product information

Advertisements provide necessary and sufficient information about products.

.869

factor Advertisements provide better information and different characteristics of products.

.718

After observing advertisements of the product, I would like to try the advertised product.

.539

F4 Imitating motives After observing advertising of the product electronically, I would like to buy the advertised product.

.808

I associate myself with the celebrity engaged in advertisement .715

After viewing this ad, I would consider purchasing the product. .566

F5 Value addition in products through advertisement factor

Advertisement add the value endowed by the brand name , brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets

.869

I usually rely on product information as advertised .485

F6 Reliability and loyalty factor

Advertisements displayed in various media have reliable and valid information about the product.

.792

Advertisement build my confidence translates my loyalty and willingness to pay a premium price for the brand

.758

F7 Product knowledge and quality conformance factor

After observing internet advertisements, I would like to consume the advertised product.

.829

The benefits described in the advertisement are believable to me. .545

F8 Personal judgment and confidence motive

Advertising enhance the consumer’s personal judgment about the overall quality or excellence of a product or service.

.715

Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors.

-.686

F9 Uses and Application motives

Advertisements explain the usage and applications of products correctly as compared to print media.

.853

Principal components & associated Variables indicate that first factor (F1 Product quality conformance factor) indicating that the advertising conform the product quality and enhance the brand equity of the product. This is the combination of variable , After observing the advertisement of the product, I will have a good impression to the product advertised, I feel positive effect of electronic advertising of product on the prices of advertised products?, I belief that Advertising conform the product quality, Products that I have used usually live up to the promises of quality and performance made in their advertisements, , and accounting 23.127% variance of the total variances. The second Factor (F2) is the Product image factor which is the combination of variable like , I feel positive about the product while seeing advertising of the product, Advertisement of the product convince me most in favour of product, I usually get better value for my money in advertised brands of products than in unadvertised brands, In general, I trust advertising of the product on various advertising media, ,and accounts 11.43% variance of total variance. Third factor(F3) is the product information

factor indicating that advertising enhance the product information among customer and is the combination of factor like , Advertisements provide necessary and sufficient information about products., Advertisements provide better information and different characteristics of products., After observing advertisements of the product, I would like to try the advertised product., and account 8.748% variance of the total variances. Fourth factor (F4) is the imitating motives of the customers which denotes that customer tries to imitate the celebrity or model projected in the advertisement and is the combination of variable like , After observing advertising of the product electronically, I would like to buy the advertised product., I associate myself with the celebrity engaged in advertisement, After viewing this ad, I would consider purchasing the product And account for 8.284%. fifth factor (F5) is the Value addition in products through advertisement and is the combination of variable like , Advertisement add the value endowed by the brand name , brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets, I usually rely on product information as advertised, And account for 6.072%of variance. Sixth factor (F6) is the Reliability and loyalty factor which is the combination of variable like , Advertisements displayed in various media have reliable and valid information about the product., Advertisement build my confidence translates my loyalty and willingness to pay a premium price for the brand, And account for 5.337% of variance. Seventh factor(F7) is the Product knowledge and quality conformance factor and is the combination of variable like , After observing internet advertisements, I would like to consume the advertised product., The benefits described in the advertisement are believable to me., And account for4.808% of total variance. Eighth factor(F8) is the Personal judgment and confidence motive which is the combination of variable like , Advertising enhance the consumer’s personal judgment about the overall quality or excellence of a product or service., Advertisement increases the brand equity stems from the greater confidence that consumers place in a brand than they do in its competitors., And account for2 4.597% of total variance. Last factor (F9) is the Uses and Application motives which indicate in the variable like Advertisements explain the usage and applications of products correctly as compared to print media. Advertisements explain the usage and applications of products correctly as compared to print media and account for 4.430% variance of total variance.

Table 10- influence you most in paying extra premium for the productFrequency Percent Valid Percent Cumulative

Percent

Valid

Advertisement of the product 87 24.1 24.1 24.1Personal selling effort of the company

142 39.3 39.3 63.4

Sales promotion scheme 77 21.3 21.3 84.8Public relation 21 5.8 5.8 90.6Direct marketing of the product 34 9.4 9.4 100.0

Total 361 100.0 100.0

Marketer uses different techniques like Advertisement of the product Personal selling effort of the company Sales promotion scheme Public relation Direct marketing of the product to influence customers to pay extra premium for the product. Survey reveals that Personal selling effort of the company is the most effective means to influence customers for pay extra premium for the product as it was indicated by 39.3% respondents in the sample. It was followed by the advertisement of the products in different media which account for 24.1% respondents in the sample. Sales promotion scheme was indicated by 21.3% respondents in the sample. Public relation and Direct marketing of the product was indicated by 5.8% and 9.4% respondents in the sample.

Table11- Influence of advertising in paying extra premium for the productFrequency Percent Valid Percent Cumulative

Percent

Valid

To a great extent 57 15.8 15.8 15.8To some extent 92 25.5 25.5 41.3To a considerable extent 129 35.7 35.7 77.0To a little extent 83 23.0 23.0 100.0

Total 361 100.0 100.0

An attempt was made to know how far advertising of the product influence customers in paying extra premium for the product. The study reveals that 15.8% respondent are of the opinion that it influence to a great extent for paying extra premium. 25.5% respondent are of the opinion that it influence to some extent. 35.7% indicated that it influence to a considerable extent in paying extra premium for the product. Remaining 23% indicated to a little extent in paying extra premium for the sake of advertising. However it is significant to not that all the respondent feel that advertising influence the customer in paying extra premium for the product but with varying extent. Table12 -Mean of Different Factor of advertising influencing customers in paying extra

premium for the product

Influence of advertising in paying extra premium for the product

Product quality

conformance factor

Product image factor

Product information factor

Imitating

motives

Value addition in products

through advertisement

factor

Reliability and

loyalty factor

Product knowledge and quality

conformance factor

Personal judgment and

confidence motive

Uses and Application

motives

To a great extent 3.5789 3.6140 3.4474 3.6842 3.5877 3.6491 3.9035 3.4123 3.3509

To some extent 3.5679 3.5652 3.3261 3.4837 3.5489 3.5326 3.6793 3.1304 3.6196

To a considerable extent

3.3469 3.3605 3.3450 3.5233 3.3566 3.2674 3.6279 3.2868 3.7829

To a little extent 3.5301 3.4518 3.4066 3.5723 3.4036 3.2410 3.5843 3.4096 3.2771

Total 3.4820 3.4737 3.3705 3.5499 3.4529 3.3892 3.6745 3.2950 3.5568

As is evident from the mean ratings of various perceived advertising factor promoting brand equity and influencing customers in paying extra premium for the product, mean rating of Imitating motives is highest among respondents of all categories.

Coefficientsa

Model Unstandardized Coefficients

Standardized Coefficients

t Sig.

B Std. Error Beta1 (Constant) 3.682 .553 6.663 .000

Product quality conformance factor -.051 .137 -.036 -.368 .713

Product image factor .053 .145 .042 .370 .712

Product information factor .133 .104 .078 1.282 .201

Imitating motives -.034 .075 -.026 -.460 .646

Value addition in products through advertisement factor -.119 .077 -.096 -1.538 .125

Reliability and loyalty factor -.219 .065 -.178 -3.361 .001

Product knowledge and quality conformance factor -.156 .088 -.117 -1.778 .076

Personal judgment and confidence motive .089 .075 .063 1.184 .237

Uses and Application motives .021 .060 .019 .355 .723

a. Dependent Variable: How far advertising of the product influence you most in paying extra premium for the product

A regression analysis was carried out to have a relationship of all the factor of brand equity with the customers willingness to spend premium price for products of reputed brand. On the basis of information presented in the table 16 it can be expressed s Influence of advertising in paying extra premium for the product = 3.682-.051Product quality conformance factor+.053 Product image factor+.133 Product information factor+.034 Imitating motives -.119Value addition in products through advertisement factor -.219Reliability and loyalty factor-.156Product knowledge and quality conformance factor+.089 Personal judgment and confidence motive +.021 Uses and Application motives

Conclusions and Further SuggestionsIn the present fast changing economic environment, the enterprises are in a continuous effort to stay successful and be profitable. For this reason, the enterprises need several elements in every area which would help them in building brand equity. Advertising of the product has emerged as one of the most important tool to build up brand equity. Brand equity becomes an important element for being able to establish the differentiation regarding the products and services. In order to understand how much advantage would be provided by the advertising to the enterprises in building brand equity, it is necessary to assess the different factors and messages conveyed in advertising for building brand equity. Factor analysis indicates that There are mine factor Product quality conformance factor, Product image factor, Product information factor, Imitating motives , Value addition in products through advertisement factor , Reliability and loyalty factor ,Product knowledge and quality conformance factor and Personal judgment and confidence motive , and Uses and Application motives promoting brand equity of the product. Regression equation reveals that company must focus on these issues to buildup brand equity of the hair care product.   The study reveals that advertising plays an important role in increasing brand awareness, brand image, and brand loyalty and in turn increasing brand equity but with varying extent.

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