Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Brand Equity Affecting Purchasing Decision Process of Doughnut from the Department Store in Bangkok Pornnarat Boonwanna*, Chanin Srisuwannapa* and Nuttawut Rojniruttikul *** The objectives of this study were (1) to study the level of the purchasing decision process of doughnut from the department store in Bangkok, and (2) to study the brand equity affecting the purchasing decision process of doughnut from the department store in Bangkok. Data were obtained from the surveys given to 400 customers who purchase doughnut in the department store in Bangkok. Accidental Sampling method was used to collect data. Data analysis was performed by using a statistical program. Statistics used in the study included percentage, arithmetic mean, and standard deviation. Multiple linear regression analysis was used to test the hypothesis. The results of this study can be concluded as follows: 1)The level of the purchasing decision process of doughnut from the department store in Bangkok was at medium level. 2) Brand equity in terms of brand awareness, perceived product quality, brand association, and brand loyalty could affect the purchasing decision process of doughnut from the department store in Bangkok. All independent variables could explain the variation in purchasing decision process at 77.1 percent. Field of Research: Marketing Research 1. Introduction It is very challenging and competitive for a business to grow sustainably in the economy. Many companies have develop strategies that can target their customers effectively; therefore, consumers tend to have more alternatives for selecting products and services than in the past. Although there are a variety of brands for one product, the one that is well-known and unique is likely to be the main factor in consumers' decision-making. As a result, branding is very important for consumers in choosing their target products. According to Schmidt et al. (2002), branding could influence consumers' reasons and feelings for making purchases; consequently, many companies focus on developing brand strategies that show their product uniqueness. Moreover, marketers believe that using the right and powerful strategies for the brand equity may increase the value of products (Aaker 1996). Therefore, branding has been accepted as a key main role for a successful marketing plan. Designing a powerful brand requires both investment and continuous development __________________________________________________________________ *Miss. Pornnarat Boonwanna, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : godrenfish_np@hotmail.com ** Dr. Chanin Srisuwannapa, Faculty of Science, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : Chanin_sri@yahoo.com *** Assistant Professor Dr. Nuttawut Rojniruttikul, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : krnuttaw@kmitl.ac.th Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 with an emphasis on the brand equity, which is believed to help add to the value of products. In addition, the brand equity may build customer satisfaction in terms of experience in using products and services. As a consequence, consumers may be willing to buy products with price premium and eventually develop brand loyalty for those products. Given the fact that doughnuts are known as an easy and fast food and they are likely to attract any customers with no limit on gender and age; as a result, the business of selling doughnuts has increasingly become very popular. In general, the doughnut business sector in Thailand accounts for three to four billion baht, and it is estimated that the business will grow approximately 10-15%. With the growth of the doughnut businesses in Thailand, the business is being expanded to the consumers residing in a metropolitan area. However, there are a variety of companies that own doughnut stores in Thailand. These include American companies (i.e. Krispy Kreme, Dunkin' Donuts), Asian companies (i.e. Mister Donuts, Bapple Donuts & Coffee), as well as Daddy Dough which is a Thai company. Moreover, this study was designed to focus on studying the brand equity affecting purchasing decision process of doughnut from the department store in Bangkok. The results of this study will be used for planning and managing of the brand equity for doughnut stores available in Bangkok. Additionally, the factors of the brand equity will be appropriately used to analyze the decision-making process of the target consumers. 2. Literature Review The present research employs brand equity based on Aaker’s (1991) model. Aaker built his model on four dimensions. Each is briefly reviewed below, together with the related hypotheses which have been separately tested in the succeeding sections of this study. 2.1 Brand Awareness Brand awareness refers to the strength of a brand’s presence in consumers’ minds and is an important component of brand equity (Aaker 1991: and Keller 1993). Aaker mentioned several levels of brand awareness, ranging from mere recognition of the brand to dominance, which refers to the condition where the brand involved is the only brand recalled by a consumer. Aaker (1991) defines brand awareness as “the ability of the potential buyer to recognize and recall that a brand is a member of a certain product category”. According to Keller, brand recall refers to consumers’ ability to retrieve the brand from memory, for example, when the product category or the needs fulfilled by the category are mentioned. Keller (1993) argued that “brand recognition may be more important to the extent that product decisions are made in the store”. Customer-based brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2.2 Brand Association A brand association is “anything linked in memory to a brand” (Aaker 1991). Aaker (1991) argued that a brand association has a level of strength, and that the link to a brand (from the association) will be stronger when it is based on many experiences or exposures to communications, and when a network of other links supports it. Brand associations may reflect characteristics of the product. Product associations and organizational associations are taken as the two mostly referred categories according to Chen’s (2001) brand association typology. Further, Aaker (1991) suggested that brand associations could provide value to the consumer by providing a reason for consumers to buy the brand, and by creating positive attitudes/feelings among consumers. Rio et al. (2001) proposes that brand associations are a key element in brand equity formation and management. In this respect, high brand equity implies that consumers have strong positive associations with respect to the brand. 2.3 Perceived Product Quality Perceived Product Quality is another important dimension of brand equity (Aaker 1991). Perceived quality is not the actual quality of the product but the consumer’s subjective evaluation of the product (Zeithaml 1988). It is a competitive necessity and many companies today have turned customer-driven quality into a potent strategic weapon. They create customer satisfaction and value by consistently and profitably meeting customer’s needs and preferences for quality. Kotler (2000) draws attention to the intimate connection among product and service quality, customer satisfaction, and company profitability. 2.4 Brand Loyalty Brand loyalty is a major component of brand equity. Aaker (1991) defines brand loyalty as a situation which reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features. Javalgi and Moberg (1997) defined brand loyalty according to behavioral, attitudinal, and choice perspectives. While behavioral perspective is based on the amount of purchases for a particular brand, attitudinal perspective incorporates consumer preferences and dispositions towards brands. Definitions regarding the choice perspective focus on the reasons for purchases or the factors that may influence choices. These brand loyalty definitions were empirically researched under three major categories: multi domain approach, behavioral approach, and attitudinal approach (Rundle-Thiele and Bennett 2001). Oliver (1997) defines brand loyalty as a deeply held commitment to rebuy or repatronise a preferred product or service consistently in the future, despite situational influences and marketing efforts having potential to cause switching behavior. Oliver’s definition emphasizes the behavioral dimension of brand loyalty, whereas Rossiter and Percy (1987) argued that brand loyalty is often characterized by a favorable attitude towards a brand and repeated purchases of the same brand over time. Brand loyalty is also conceptualized based on an attitudinal perspective. Chaudhuri and Holbrook (2001) argued that “attitudinal brand loyalty includes a degree of dispositional commitment in terms of some unique value associated with the brand”. From an attitudinal perspective, brand loyalty was defined as “the tendency to be loyal to a focal brand, which is demonstrated by the intention to buy the brand as a primary choice” (Yoo and Donthu 2001). Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2.5 Decision-making process Decision-making process theory of Kotler (2003) explained about importance of process of selecting one from many options. Consumers tend to make a decision from many products and services, they would select best option for them. These processes consist of 5 main steps, namely, need or problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior. Beside, Solomon et al. (2002) explained that consumer’s buying decision usually start from buyer’s recognition, need or problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior. 3. The Methodology and Model Objectives 1. To study the level of the decision-making process of the consumers buying doughnuts from the department stores in Bangkok 2. To study brand equity affecting the decision-making process of the consumers buying doughnuts from the department stores in Bangkok. Research Methodology The hypothesis of this study was to assess brand equity components: brand awareness, perceived product quality, brand association, and brand loyalty affects the decision-making process of the consumers buying doughnuts from the department stores in Bangkok. Conceptual Framework This study aimed to identify the level of the decision-making process of the consumers buying doughnuts from the department stores in Bangkok with the use of Kotler's model (Kotler 2003) as the conceptual framework. Consumer decisionmaking process comprises five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. The concept of brand equity was also applied to this study. The authors assessed the relationships between four brand equity components: brand awareness, perceived product quality, brand association, and brand loyalty, identified as the independent variable; whereas, decision-making process of the consumers buying doughnuts from the department stores in Bangkok, identified as the dependent variable. The relationship between the independent variable and dependent variable is shown in figure 1 below. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Figure 1 conceptual model Independent variable Dependent variable Brand value - Brand awareness - Perceived Product Quality - Brand association - Brand loyalty purchasing decision process of the consumers purchasing doughnuts from the department stores in Bangkok Population and Samples The target population in this study were consumers buying doughnuts from the department stores in Bangkok. However, the actual number of the population was unidentified. Accidental Sampling method was used to collect data from 400 consumers who bought doughnuts from the department stores in Bangkok. Variables 1. Independent variable was brand equity that comprised:1) Brand awareness 2) Perceived Product Quality 3) Brand association, and 4) Brand loyalty 2. Dependent variable was decision-making process of the consumers buying doughnuts from the department stores in Bangkok Instrumentation Surveys were used as an instrument to obtain data. They were given to the subjects who were eligible to the study. The surveys were designed to have both closedended and open-ended questions. There are four parts of the surveys listed below: Part 1: This part comprised closed-ended questions asking about demographic (i.e. gender, age, marital status, education, occupation, salary) Part2: This part focused on brand equity of doughnut stores in the department stores in Bangkok. The questions asked about brand awareness, perceived product quality, brand association, and brand loyalty. A Likert scale, which is an interval scale ranging from 1-5, was used in each question in this part. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Part 3: The questions in this part were designed to acquire information about decision-making process the subjects used for buying doughnuts in the department stores in Bangkok. The questions asked about problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. A Likert scale ranging from 1-5, was used in each question in this part. Part 4: This part comprised open-ended questions asking about the subjects' opinions, feedback, and suggestions about the study. 4. The Findings Data analysis was performed with statistical tests. The results showed that: Personal information Table 1: Personal Factors Frequency 1. Gender Male Female Percentage 169 231 42.3 57.7 Total 2. Age Below 20 years More than 20 years but less than 30 years More than 30 years but less than 40 years More than 40 years but less than 50 years More than 50 years 400 01101 48 207 103 39 3 12.0 51.7 25.8 9.7 0.8 Total 3. Marital status Single Married Widow/Divorce/Seperated Total 3. Education Secondary school or below High school / Vocational certificate Diploma / High vocational certificate Bachelor’s degree Higher than Bachelor’s degree 400 100.0 279 115 6 400 69.7 28.8 1.5 100.0 28 34 23 140 31 7.00 11.25 8.50 62.75 10.50 Total 5. Occupation Student / College student Government employee Public enterprise employee Private employee / Shops 400 01101 159 28 20 132 39.7 7.0 5.0 33.0 Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Self employed 45 11.3 Others 16 4.0 Total 400 01101 6. Salary Below or equal to 10,000 bath 109 27.2 Between10,000 bath - 20,000 bath 136 34.00 Between20,000 bath - 30,000 bath 85 21.3 Between30,000 bath - 40,000 bath 42 10.5 Between40,000 bath - 50,000 bath 13 3.2 More than 50,000 bath 15 3.8 Total 400 01101 Table 1 shows that a majority of the subjects were single female between the ages of 20 -30. Also, the majority of the subjects had a bachelor degree, worked in private sectors. The average salary ranged from 10,000 baht - 20,000 baht. Table 2 Mean ( X )k, standard deviation (S.D.), level and rank of each component of brand equity Brand value 1. Brand awareness 2. Perceived Product Quality 3. Brand association 4. Brand loyalty Total Xk 3.581 3.530 3.625 3.134 3.467 S.D. Level Rank 0.726 0.833 0.713 0.822 0.643 High High High Moderate High 2 3 1 4 - Table 2 shows that overall, the components of brand equity were considered high. Of this scale, brand association ranked first, brand awareness ranked the second, Perceived Product Quality ranked the third, and brand loyalty ranked the fourth. Table 3 Mean( X ), standard deviation(S.D.), level and rank of decision-making process for buying doughnuts in the department stores in Bangkok Decision-making process of the consumers buying doughnuts from ( X S.D. Level Rank the department stores in Bangkok 1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 4. Post-purchase behavior Total 3.391 3.178 3.365 3.364 3.581 3.376 0.789 0.796 0.781 0.812 0.726 0.652 Moderate Moderate Moderate Moderate High Moderate 2 4 3 4 1 - Table 3 shows that the level of the decision-making process for buying doughnuts in the department stores in Bangkok was medium. Out of the scale, post-purchase Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 behavior ranked the first, need recognition ranked the second, evaluation of alternatives ranked the third, purchase decision ranked the fourth, and information search ranked the fifth. Table 4 the analysis of multiple linear regression on brand equity affecting the decision-making process of the consumers buying doughnuts from the department stores in Bangkok Variable Constant Brand awareness Perceived Product Quality Brand association Brand loyalty bj 0.334 0.523 0.056 0.095 0.200 t 3.772 17.033 2.160 2.677 7.958 p-value 0.000** 0.000** 0.031* 0.008** 0.000** R = 0.878 ; R2 = 0.771 ; SEE = 0.314 ; F =332.101; p-value = 0.000** Remark * statistical significant at 0.05 **statistical significant at 0.01 As can be seen in table 4, the result of the multiple linear regression suggested that brand awareness, brand association, and brand loyalty had a significant (P < .01) correlation with the decision-making process for the subjects buying doughnuts from the department stores in Bangkok. The analysis also suggested that perceived product quality had a significant (P < .05) correlation with the decision-making process. In addition, brand equity accounted for 77.1 percent of the variance in the decision-making process. 5. Summary and Conclusions From the study of brand equity affecting decision-making process of buying doughnuts from the department stores in Bangkok, it showed that overall decision of decision-making process of buying doughnuts from the department stores in Bangkok were in moderate level. When considered each aspect that affected decision-making process of buying doughnuts from the department stores in Bangkok, it showed that brand equity in the aspect of brand awareness did most affect toward affecting decision-making process of buying doughnuts from the department stores in Bangkok. Because it make consumer memorize or recognize the brand and also make them familiar with the brand. This lead them to trust in the brand and it’s quality that become rational for them to decide to buy. This result is in harmony with Emma and Byron (2000) which found that consumer who has high brand awareness level, will eventually decide to buy more than those who are low in brand awareness. Researcher think that consumer who are able to aware the brand immediately without any help and the reason that they realize the first brand is because that specific brand is outstanding compare with others brand in consumer’s mind. This specific brand also positioned in the top of consumer’s mind which make them Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 decide to buy the specific brand. This finding also in harmony with research of Ovidiu (2009) which found that brand awareness did affect toward consumer’s buying decision. This is because of consumer’s familiar with the brand which make them trust in specific brand and lead to buying decision eventually. brand equity in the aspect of brand loyalty did affect toward decision-making process of buying doughnuts from the department stores in Bangkok. This because of consumer’s satisfaction from experience with the brand which make them bound with the brand and eventually become loyal to the specific brand. Brand loyalty then lead to repeat of buying the specific brand. This is in harmony with research of Yoo and Donthu (Yoo and Donthu 2001) which found that brand loyalty did affect toward consumer’s buying decision. Brand loyalty also show intention to buy product from specific brand which caused by loyalty. The researcher thought that high loyalty in the specific would make the brand become more powerful. This is in harmony with notion of Aaker (Aaker 1996) which explained that consumer who is loyal to the specific brand will buy product because of the brand and willing to pay more to a specific brand than competitive brands. brand equity in the aspect of brand connection did affect toward decision-making process of buying doughnuts from the department stores in Bangkok. This is because of the connection between consumer and the brand which make the consumer to be able to memorize each element of the brand, namely, property, presenter or brand’s symbol. This make consumer to create good attitude toward the brand and then lead to buying decision process. This finding is in harmony with research of A. BeleÂn del RõÂo et al. (2001) which found that brand connection did affect toward consumer’s response. The result of the finding accepted hypothesis which said that brand connection gave positive effect toward consumer which leads them to decide to buy specific product and willing to pay more price. This can be conclude that brand connection does affect toward consumer’s response. The researcher thought that if the consumers were able to connect each element of the specific brand, it would make that brand standing in their mind which then affected toward consumer’s buying decision finally. This is in harmony with research of Len et al (Len et al 2007) which found that brand connection played a major role and very important. Because brand connection is a foundation that lead to brand loyalty and consumer’s buying decision. brand equity in the aspect of brand awareness did affect toward decision-making process of buying doughnuts from the department stores in Bangkok. Because it is important to perceive quality and customer considered product or service quality alongside with brand. This is the result of admire and attitude toward specific brand and then consumer will perceive in quality of specific product or service. This perceived quality will help making consumer to buy from specific brand more than competitive brand. This is in harmony with research of Mohammad et al. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 (Mohammad et al. 2012) which found that perception of brand quality did affect directly toward consumer’s buying decision. Suggestion Suggestion for this research 1. Brand awareness aspect. Doughnuts shop within the department stores should do marketing activity that help consumer increase awareness the brand of doughnuts shop within the department stores. 2. Brand quality perception aspect. Doughnuts shop within the department stores should develop their Doughnuts continuously focusing on Doughnuts’ quality and increase variety of Doughnut taste. 3. Brand connection aspect. Doughnuts shop within the department stores should execute more communicating marketing strategy in order to increase the connectivity between brand and consumer continuously. By presenting the brand of Doughnuts shop within the department stores more closely to the customers. 4. Brand loyalty aspect. Doughnuts shop within the department stores should communicate by implementing marketing activity in order to position the brand of Doughnuts shop within the department stores in consumer’s mind, which then lead to repeat of buying and word of mouths. Suggestion for further research This research studied brand equity that affect toward decision-making process of buying doughnuts from the department stores in Bangkok. The researcher suggest that further research should expand research area into capital perimeter. In order to acknowledge others specific form of consumer’s decision-making process of buying doughnuts from the department stores. 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