Table of Contents CHAPTER No 1 ............................................................................................................................. 2 BACKGROUND ........................................................................................................................ 2 PROBLEM IDENTIFICATION ................................................................................................. 5 Problem Statement ...................................................................................................................... 5 Research Question ...................................................................................................................... 5 Objectives of the study................................................................................................................ 6 Rationale of the study ................................................................................................................. 6 Scope of the Study ...................................................................................................................... 7 Limitation .................................................................................................................................... 8 Theoretical Framework ............................................................................................................... 9 Hypothesis................................................................................................................................. 10 CHAPTER NO 2........................................................................................................................... 11 LITERATURE REVIEW ......................................................................................................... 11 CHAPTER NO 3........................................................................................................................... 15 METHOD ................................................................................................................................. 15 Sample....................................................................................................................................... 15 Instruments and measures ......................................................................................................... 16 Procedure .................................................................................................................................. 17 References ..................................................................................................................................... 18 Annexure ....................................................................................................................................... 20 1 CHAPTER No 1 BACKGROUND A brand has been defined as a field of marketing originated since the 19th century with the advent of packaged goods. When shipping their items, the factories would literally brand their logo or insignia on the barrels used. In 1900’s, father of marketing James Walter Thompson published a house ad explaining trademark advertising, in and an early commercial description of what is known as branding. Afterwards Companies soon adopted slogans, mascots, and jingles which began to appear on radio and early television which were a few sources of information in that era (Kotler, Philip and Pfoertsch, Waldemar (2006). By the 1940s, Mildred Pierce manufacturers began to recognize the way in which consumers were developing relationships with their brands personality social/psychological/anthropological in sense. This a clicked the mind of many manufacturers and they quickly learned to correlate other kinds of brand values, such as youthfulness, fun or luxury and richness with their products. This began to put into practice what was known as branding, where it was felt that consumers buy the brand instead of the product as studied by (Mael & Ashforth, 1992). This trend arose in the 1980s into what has been described as brand equity mania. Marketers engaged in branding seek to develop or align the expectations behind the brand people experience, associated creating with a the impression product or that service a brand has and certain qualities or characteristics that make it special or unique. A brand image may be developed by attributing a "personality" to or associating an "image" with a product or service 2 equity, whereby the personality or image was "branded" into the realization of consumers. A brand personality was therefore one of the most valuable elements in involved in consumer buying decision/behavior. The phenomena of creating and maintaining a brand equity was called brand management (Kotler, Philip and Pfoertsch, Waldemar 2006) As products become increasingly similar, companies are turning to branding famous people as a way to create a preference for their offerings. Branding has been the essential factor in the success of well-known consumer goods such as Coca Cola, McDonald's, IBM, Microsoft, BMW, and Mercedes. In fact, these brands are worth many times more than the book value of the assets used to make these brands (Bhattacharya, Rao, & Glynn, 1995; Mael & Ashforth, 1992). The importance of brand personality to consumers brand image and brand equity has not been widely acknowledged but only a few researchers, such as Plummer (1985) and David Aaker (1996), have pointed out the significance of brand personality in building competitive advantage and brand loyalty. Recently, Jennifer Aaker (1997) presented the empirical results of her research on the measurement of brand personality and variables involved in the positioning of a brand. In this report the specific area of research is to know how people associate themselves with different brands. In a nutshell it is always dependent upon the way the brand is positioned in the mind of customers and ultimately it affects the customer’s choice and investigates, their by buying behavior. researching which Afterwards variables the research hold more importance on brand positioning and consumer association. This 3 research has positioning two and aspects another to is itself one consumer being association the brand with brand personalities, which ultimately leads to influence the consumer buying behavior. Extensive efforts were done and found numerous previous researches related to this topic and found a variety of different outcomes (Kotler, Hogg & Abrams, 1988; Lau, 1989; Mael & Ashforth, 1992). This research concludes that factors on which customers association and brand positioning are varying from one region to the other. However it was decided to conduct this research within the boundaries of Islamabad and Rawalpindi as it hosts various kinds of people with different cultures and life styles all over accurate analyzing from Pakistan. analysis the of This the customers would importance buying help of behavior. us both The in getting an the factors in outcome of our research will help the Islamabad and Rawalpindi consumer market in positioning their brands to compete with other international brands in the local market. It has been observed that our local consumers have good buying power can they afford to buy the different brands. The inhabitants in big cities of Pakistan such as Islamabad, Lahore, Karachi, Peshawar etc are very much brand conscious and they usually prefer to be associated to big brands names. Brand name and taste influence customers buying behavior that affects the brand choice pattern of consumer. The main reason for this is the influence of the electronic as well as the print media on people’s choice of brands. The other reasons include ever increasing promotional and advertisement campaign which affects their mind in a way that 4 people want to be modernize so in order to it they try to adopt western culture and whenever they see brand name and taste with have some checking western the touch price of in it that they brand want to because buy it they without find it attractive. PROBLEM IDENTIFICATION After doing extensive research on different articles available on net and in books, finally came up with a problem statement, which was extracted, from all that material which has gone through for the understanding of the different hurdles involved in the field of marketing. Problem Statement This research identifies the tendency of customers association with certain brands largely depends upon effective brand image through Brand Personality. Research Question What is the impact of Brand Personality on brand image? What is the impact of Brand Personality on brand equity? 5 Objectives of the study To measure the impact of brand personality on brand image To evaluate the impact of brand personality on brand equity To help verify the relationship among brand personality and brand image and brand equity. Rationale of the study The core purpose of conducting this research is to determine how to create a better image of the brands in the mind of customers by analyzing the different variables, which will help in the right positioning of the brand. Once a company is able to make the right positioning of their brand, it leads to the customer satisfaction and customer loyalty. As people tend to associate themselves with certain brands because those brand reflect their personality and their attitude. For example; rich people in order influence other try using those brands, which have created in image of the elite’s selection or choice, Like wearing GUCCI, ARMANI AND DOLCE GABBANA driving BWW, Hummer etc. Also investigated to know how the local firms do are tackling with this problem to compete with the international brands in the market. As what organizational activity the companies operating in Islamabad should focus on, all the companies have the choice of either to penetrate the market by a mind blowing product with out of this world features or by marketing their product intensively and thus creating a high level elite image to cater 6 the those consumer which are largely influenced by the westernization or modernization. This research will determine whether in Islamabad and Rawalpindi people tend to associate themselves with certain brands which have band name and taste or not and study the method of this association. This research will help us to find out that what kind of customers are there in Islamabad and Rawalpindi either they are quality conscious or they just buy products because or brand personality associated or of good brand name it will also help organizations working in the Pakistan to know about customers behavior which will help organizations to increase its sales by knowing on which area they should concentrate more massive to attract customers. The conclusion methodology of this involved research improving would image introduce of the the brands. new By understanding the consumer psychology and give different ideas to the managers and they will come to know that how do customers associate themselves with strong brand name and taste and ultimately it influences their buying behavior. Scope of the Study The scope of this research involves the careful study to find out what is it that people of Islamabad and Rawalpindi (Pakistan) prefer most, either they want those products which have brand name and taste and strong tendency to reflect the customer image and so this research is not limited to specific area and for this research data will be collected from different 7 kind of people to get their views regarding this problem to out find the required solution. This research doesn’t require any changes to be made in given environment so in our area of research is “field study” because we are doing research in completely natural environment and getting the required data without making any changes in the surroundings. One important aspect of this study is that most of the data collected, is from the youngsters, because 75 percent of Pakistan’s population comprises of the youth aging which ranges between 15 – 30 years. So it is the vast market and their choice and buying behavior influences each brand positioning strategy, which is to be introduced in the market, and being a marketing student the fore most job is to anticipate these critical factors for a successful marketing planning of the firm. Limitation The main limitation for this is the influence of the electronic as well as the print media on people’s choice of brands. The other reasons include ever increasing promotional and advertisement campaign which affects their mind in a way that people want to be modernize so in order to it they try to adopt western culture and whenever they see brand name and taste with have some western touch in it they want to buy it without checking the price of that brand attractive. 8 because they find it Theoretical Framework The framework is illustrated as follows: Independent variable Dependent variable Brand Equity Brand personality Brand Image 9 Hypothesis H1: There is a significant impact of brand personality on brand equity. H2: There is a significant impact of the brand personality on brand image. H3: Brand personality is positively related to brand equity and brand image. 10 CHAPTER NO 2 LITERATURE REVIEW Branding was the road that a company must travel to define what it wants to be excellent at and how its offerings differ from competitors. company's Branding earlier articulating its was the decisions value on outward expression positioning propositions to its buyers. of the products When and branding works, the customers become familiar to those products and they always show a great degree of loyalty. Also for the firms when sales people enter the offices of customers already well known and respected who stand ready to give them a hearing (Kotler, Philip and Pfoertsch, Waldemar 2006). The term brand stands for a name, logo, slogan or design scheme associated with a product or service. Brand recognition and other reactions are created by the use of the product or service and through the influence commentary. A brand information connected is of a to advertising, symbolic the product design, embodiment and and of serves media all to the create associations and expectations around it. A brand often includes a logo, fonts, color schemes, symbols, and sound, which may be developed to represent implicit values, ideas, and even personality. Marketers are continuously engaging themselves in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand image may be developed by attributing a "personality" to or associating an "image" with 11 a product or "branded" into service, the whereby the consciousness personality of or image was A brand was consumers. therefore one of the most valuable elements in an advertising theme. The art of creating and maintaining a brand was called brand management. (Bhattacharya, Rao, & Glynn, 1995; Mael & Ashforth, 1992) Researchers have identified a number of strategies that can be used by advertisers/marketers to position their brands (e.g., Kalra and Goodstein 1998). One common approach in positioning an offering is Shansby1982). competitors with respect Positioning represents an to a a competitor brand inherent against aspect (Aaker one of and or more achieving brand differentiation and, ultimately, gaining a competitive advantage that helps ensure a brand’s long-run success in the market (Porter1985). Competitive positioning is often achieved via the use of comparative advertising (e.g., Dröge and Darmon 1987), form of advertising that has traditionally involved comparisons of brands from within the same product category (Wilkie and Farris 1975). Thus, competition in a product category may prompt a brand to deploy strategies aimed at taking market share from substitutes residing in other product categories, additionally marketers attempting to expand the life cycle of mature products may employ “expansive” advertising suggesting new usage contexts for the focal brand (Wansink 1994). Such advertising often entails the use of comparisons against offerings from outside the focal brand’s original product category. . As an example, Campbell (1995) found that the success of a persuasion attempt could be diminished if consumers associated manipulative intent on the part of the marketer. 12 the tactic with Thus, the level of appropriateness that consumers attach to alternative tactics can be an important factor in predicting the ultimate effectiveness of positioning strategies that affirm may adopt. Many people are likely to express them-selves and/or enhance themselves by selecting particular brands. Their level of brand identification determines the degree to which the brand expresses and enhances their identity. In short, the issues of why and how brand personalities affect consumers’ brand loyalty have not been addressed. The study reported here borrowed the methodology developed by Aaker (1997) to measure some dimensions of brand personality. He also specifies consumers’ behaviors in respect of word-of-mouth reports about a brand, and brand loyalty. When there is a fit between brand personality and a consumer’s self-expression, the consumer may consider a brand as a person, or even a companion. In the real world, we find this kind of relationship between brand and human (Fournier, 1998). Sometimes, the human characteristics attached to a certain brand are used to express one’s own image or personality . The physical products and services are identical, or almost identical, worldwide and meet the same widely held human needs. In some cases the physical product may vary for local reasons while still meeting the same needs. For instance, McDonald’s - the one food company in the list - has a beefbased menu in the US but a chicken-based menu in India. The way in which Coca-Cola, McDonald’s and Disney are positioned around the world is very consistent: Disney, for example, represents the same special set of family values worldwide. 13 For many global brands, consumers value the country of origin; paradoxically, the country of origin is therefore a factor in making them global. Thus Coca-Cola and McDonald’s and Marlboro cigarettes are all very much associated with securing a piece of American lifestyle or American entertainment culture - and as a result you often find there is an association between the brand itself, the loyalty to the brand particular with and the fact national expertise in that culture. the brand Consumers particular is embedded associate products: French in a countries perfumes; Japanese consumer electronics; American movies, computers and mass-market packaged goods; German cars and sausages. These associations are globally shared and are of main target for the marketers to take advantage of the factor of customer association with certain countries and cultures. They come up with those products and services, which tends to express some cultural or regional values in them to attract the customers beyond the national borders of the home product or service. Levitt, Theodore (1983) 14 CHAPTER NO 3 METHOD Sample To verify this research a questionnaire of twelve questions is prepared which focuses on every aspect of this research. These questions are built on the basis of the brand personality which is the main topic of this research. The total sample size of this study is 150. These questions will be asked from different people based upon the two variables i.e. brand equity and the brand image. Data collected will be primary data through questionnaires and interviews. All the questions are the closeended questions. All the questions are made precise and to the point. Each questions focus directly on the basis on which the brand positioning is done. All these questions are the most relevant questions and very easy to answer and doesn’t require a lot of time. However designing such a questionnaire, which directly addresses the each variable, involved in brand image building requires efforts. Also to get feedback on each questionnaire, requires a lot of effort because people usually didn’t show that much interest while filling the questionnaires (the reason for it might be the busy life today and also people may have other important things to deal with). Sometimes, some of them directly say no without checking it and some are those, which didn’t bother to read the questions while filling the questionnaire. However a few people are those, which show some willingness to read and fill these questionnaires this is actual reason that questionnaire, are precise otherwise people may lose interest when they see a lengthy questionnaire. 15 Instruments and measures The tool that will be used to collect data was random stratified sampling. And questionnaires will be distributed among 150 respondents of four different groups to collect the findings of research data. Also other than questionnaire, data will be collected in variety of ways, in different atmosphere, region and age groups through interviews. Collection of data through interviews involves two types methods. The accurate analysis of data requires the measurement scale to be correct. For this reason the major variables in this study will be measured using the five point likert scale. This scale was developed by Aaker(1997). The scale is dividing into five categories: Strongly agree Agree Neutral Disagree Strongly disagree Well for strongly agree 5 points is reserved, for agree reserved 4-points, for neutral 3points,for disagree 2- points and for strongly disagree 1-point. After collecting the data through the above mentioned instrument will be analyzed using Regression analysis with the help of Statistical Package for social sciences SPSS. 16 Procedure The procedure of carrying out the data collection activity starts from the distribution of the questionnaires among the people. The data of this research report has gathered from four types of peoples using the primary data source. This data will be gathered in the form of questionnaire and the interviews. Four different types of peoples are retail owners, manufacturers and other service providing firms, students and general consumers. Also this research is not restricted to males as females are also more involved in buying products then men in our country. This requires distributing these questionnaires amongst different aged females to get their valued feedback. Along with distribution explained of to questionnaires them and solved all all the questions related query will to be the respondents so that they could fill the questionnaires easily and with the relevant results. Only one questionnaire will be given to each respondent. Responses collected through questionnaire are converted into percentages. A frequency tabulation and cross tabulation method will be used to convert results of questionnaires into percentages. The result of the findings will be tested through the SPSS for the research finding. 17 References Aaker, D.A. (1996). Building Strong Brands. New York: The Free Press. Aaker, J. (1997). Dimensions of brand personality. Journal of Marketing Research, 34, 347–3 56. Aaker, J. (1999). The malleable self: the role of self- expression in persuasion. Journal of Marketing Research, 36, 45–57. Fournier, S. (1998). Consumers and their brands: developing relationship thin consumer research. Journal of Consumer Research, 24, 343–373. Kim, C. (1998). Brand personality and advertising strategy: an empirical study of mobile-phone services. Korean Journal of Advertising, 9, 3 7–52. Plummer, J. T. (1985). How personality makes a difference. Journal of Advertising Research, 24(6), 27–31 Levitt, Theodore (1983) The Globalization of Markets Harvard Business Review May/June Kotler, P. 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The identification of social on effect brand identification of brand loyalty: Japanese Psychological Research 2001, Volume 43, No. 4, 195–206 Special Issue: Consumer behavior 19 Annexure Name____________________ Gender________ Occupation_______________ Age___________ Brand personality Q.NO.1 Does the attractiveness of the brand personality (Image) really matters for you? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.2 The brand you choose, helps you to express yourself? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.3 The brand reflects your personality? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.4 Your brand is different from the other brands? Strongly agree Agree 20 Neutral Disagree Strongly disagree Brand Image Q.NO.5 Are you interested in what other thinks about your favorite brand? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.6 When someone criticizes the brand you choose, do you feel like insult? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.7 Do you recommend your brand to others? Strongly agree Agree Neutral Disagree Strongly disagree 21 Brand Equity Q.NO.8 The suggestions from your friends, peers influence your decision to choose among brands? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.9 I will continue to use this brand because I am satisfied and acquainted with the brand? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.10 Would you buy the additional products and services in this brand? Strongly agree Agree Neutral Disagree Strongly disagree Q.NO.11 I will use this brand in spite of the competitors deal Strongly agree Agree Neutral Disagree 22 Strongly disagree Q.NO.12 The frequent and expensive advertisement means Brand will also be good? Strongly agree Agree Neutral Disagree Strongly disagree . 23 that