Proceedings of Annual Tokyo Business Research Conference

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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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