Brand equity and customer purchase decision
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Transcript of Brand equity and customer purchase decision
Slide
The Influence of Brand Equity on
Customer Purchase Decision
3 Background to the Study
4 Research Problem
5 Research Objectives
6 Value of the Study
7 Theoretical Foundations
10 Research Methodology & Design
11 Target Population
12 Sampling Design
13 Data Collection
14 Data Analysis
15 References
Background to the study • Nature based tourism is a large global industry. Much of this form of tourism is
dependent upon the attributes of the natural environment and takes place in parks,
reserves and other forms of protected areas (Pingram & Jenkins, 2006).
• Positive brand equity created during the colonial period was stimulated by
development of a vibrant tourism industry augmented by exposure created by Big
Game Hunting.
• Present day Kenya has undergone through changes in conservation and wildlife
protection leading to the abolition of game hunting and establishment of more than
60 protected areas covering 8% of land area.
• Kenya’s vision 2030 emphasized on a yield branding strategy complemented by
expansion of underutilized parks with the aim of making parks and reserves
memorable, impressive, distinctive and valuable to specific segments.
• Up to date, 18 national parks and reserves have been branded.
• However, with the branding efforts in place, the Travel and Tourism Competitive Index
(2015) reported a decline in the ranking of Kenya’s tourism sector.
• In the 21st century, branding ultimately is the only unique differentiator, brand equity
on the other hand is now a key asset (Clifton & Simmons, 2003).
• Possession of a brand is not enough for brand effectiveness because brand equity
has a great influence on customer choice of a brand (Keller, 2002). 3
Research Problem • Despite enormous publicity and branding initiatives carried out in parks and
reserves of Kenya, visitors are still faced with uncertainty when making
purchase decisions.
• Numerous studies undertaken on brand equity and customer purchase
decision have promoted understanding of brand equity on customer
purchase preference and customer perceptions on product quality.
• The influence of brand equity on customer purchase decision in the tourism
industry remains insufficiently exploited and more so in branded parks and
reserves of Kenya.
• The main motivation of the study is the insufficient evidence indicating the
influence of brand equity on customer purchase decision and subsequently
rises in sales volumes in branded parks and reserves of Kenya.
• The study looks into the phenomenon to shed more light and provide more
insights by seeking to answer the main question:
How does brand equity influence customer purchase decision of branded
parks and reserves in Kenya?
4
Research Objectives
General Objective
• The study intends to establish the influence of brand equity on
customer purchase decision in branded parks and reserves of
Kenya.
Specific Objectives
• To establish the influence of customer awareness on consumer
choice of branded parks and reserves in Kenya.
• To establish the effect of brand associations on customer
purchase decision in branded parks and reserves of Kenya.
• To establish the influence of proprietary assets on customer
purchase decision on branded parks and reserves of Kenya.
5
Value of the study
The study will be useful towards ensuring that :
• Better insights are gained on the influence of brand equity on
customer purchase decisions in Kenya’s tourism industry.
• More wealth in knowledge is added to Kenya’s tourism
practitioners, businesses, destination marketing organizations.
• Promote better decision making in marketing nature-based
tourism products in Kenya and building focus on customer driven
marketing strategies in parks and reserves of Kenya leveraging on
Brand Equity as a key asset.
• The approaches and concepts that will be adopted, and the
results that will be found will assist future researchers investigating
similar phenomena by testing the theories used and developing
new ones to meet various industry specific needs.
6
Theoretical foundations of the study
• Brand Equity plays a significant role in the understanding of the
objectives, mechanisms and net impact of the holistic impact of
marketing (Reynolds & Phillips, 2005).
• Measures capturing facets of brand Equity have become part of a
set of marketing performance indicators (Ambler, 2003).
• In this study on the Influence of Brand Equity on Customer
Purchase Decision of Branded Parks and Reserves of Kenya, it will
be guided by the Signal Detection Theory and the Lovemarks
Theory.
7
Signals Detection Theory (SDT) • The factors that determine the likeability and awareness of a brand can be
understood using SDT.
• The success of SDT analysis in a large number of human perceptual
judgment situations suggest the theory may be useful in evaluating
consumer reactions to a variety of products (Cradit, 1994).
• SDT assumes that the target and distractor advertisements generate
overlapping evidence distribution with the mean of target adverts
distribution higher on familiarity continuum than the mean of distractor
adverts distribution.
• This suggests that though majority of target adverts may result in feelings
and familiarity stronger than those elicited by majority of distractor ads,
there are cases in which a distractor advert can elicit a strong feeling of
familiarity (Cradit, Tashian & Hofacker, 1994).
• SDT further assumes that the customer sets a decisional criterion/threshold
on the familiarity continuum whereby if feelings/familiarity exceeded the
criterion, the customer reports recognition of the ad, and if the feelings fail
to exceed the criterion, the customer reports no recognition of the advert.
8
Lovemarks Theory • The Lovemarks theory suggests that a company must go beyond
creating a brand to creating Lovemarks in order to build strong
customer loyalty (Roberts, 2004).
• A consumer that is already in love with a brand feels that the brand
in some way ignites the imagination, pleases the senses and arouses
a deep relevance (Roberts, 2006).
• Satisfaction alone is not enough to keep the customer loyal, many
satisfied customers switch to competitor brand (Reichheld, 1996).
• Satisfaction may result in loyalty if it sustains for a longer period of
time, few satisfied customers tend to love a brand.
• It is the emotional and passionate love with a brand that is a
predictor of brand loyalty (Carroll & Ahuvia, 2006).
• In this era of intense competition between brands and customer
indifference, brands must be converted into Lovemarks in the eyes of
the customers in order to survive. (Roberts, 2004).
9
Research Methodology and Design
Research Design
• The study will adopt descriptive research design as it seeks to
describe the degree to which brand awareness, brand
associations and proprietary assets influence customer purchase
decision of branded parks and reserves in Kenya.
• Single cross-sectional design will be adopted during data
collection with the survey employing questionnaires to collect
information.
• The questionnaires will be distributed to a sample of individuals
whom will then provide their intentions, attitudes, opinions and
motivations.
10
Target Population
• The target population of the study will be seventy five (75)
customers of branded parks and reserves in Kenya.
• The target population will be drawn from customers with Kenyan
citizenship and foreign visitors with at least a minimum age of
eighteen (18) years and with a history of visits to any branded park
or reserve in Kenya within the last twelve (12) months.
• The target population will be derived from three (3) prime parks ;
The Nairobi National Park, Lake Nakuru National Park and The
Impala Park.
• A duration of three (3) weeks will be used for collection of data
due to the target population spreaded out across a large
geographic region of Kenya.
11
Sampling Design
• Probability sampling will be adopted for the study as it offers the
key components of randomization, generalization and
• The study will apply cluster sampling as the population of the
study will be dispersed across a wide geographic region.
• Random sampling will then be used in the study so that the yield
generated from the samples will be generalized to a larger
population in Kenya. Different groups of the population will also
get a chance of selection as a member of the sample.
12
Data Collection
• Primary and secondary sources of data will be used in the study.
• Primary data will comprise information that will be collected in the
field using questionnaires administered to the target population.
• The use of questionnaires will allow for collection of data from a
large sample while upholding confidentiality.
• The questionnaires will be both open and closed-ended.
• A pre-test will be carried out on a small sample to ensure the
effectiveness of the questionnaire in measuring what they are
intended to measure.
• Secondary data will involve data obtained from already published
literature on brand equity, customer purchased decision and,
tourism and travel. E.g. UNWTO (World Tourism Barometer, Travel
and Tourism Competitive Index), World Bank (Kenya’s Tourism :
Polishing the Jewel) and GoK Sectoral reports etc.
13
Data Analysis
• Quantitative Methods of data analysis will be used in the study.
• Data analysis will involve editing, coding and preparing the data
for analysis.
• Data collected will be measured using numerical values in form of
Means and Standard Deviations.
• Cross-Tabulations will be used to make comparisons between
different subgroups and identify differences and similarities.
• Correlation Analysis will be used to measure the strength of the
relationship between various variables of brand equity and
customer purchase decision.
• Regression Analysis will be performed to
14
References • Aaker, D. (2004). Brand Portfolio Strategy. New York: The Free Press.
• Chernatony, L., & McDonald, B. (2001).Creating Powerful Brands in
Consumer, Service and Industrial Markets. Oxford: Butterworth-Heinemann.
• Maingi, S.H., Ondigi, A.N, & Wadawi, J.K. (2015), Market Profiling and
Positioning of Park Brands in Kenya (Case of Premium and Under-Utilized
Parks). International Journal of Tourism Research, John Wiley & Sons, Ltd.
DOI: 10.1002/jtr.20136.
• O’Sullivan, D. and Abela, A.V. (2007) “Marketing Performance Measurement
Ability and Firm Performance”, Journal of Marketing, 71 (2): 79-93.
• Reynolds, T. J., & Phillips, C. B. (2005). In search of true brand equity metrics:
all market share ain't created equal. Journal of advertising research, 45(2):
171.
• Yi, Y., & La, S. (2004). What influences the relationship between customer
satisfaction and repurchase intention? Investigating the effects of adjusted
expectations and customer loyalty. Psychology and Marketing. Vol. 21 (5):
351 – 374.
(Just to mention but a few) 15
