The Impact of Branding on Consumer Behaviour (a Case Study of Diamond Bank Plc)
Chapter One
OBJECTIVES OF THE STUDY
- To determine the nature of branding and branding strategies
- To determine the nature of consumer behavior
- to determine affective branding strategies that would impact on consumer behavior
- To investigate the impact of branding on consumer behavior
- To investigate the impact of branding on consumer behavior in Diamond Bank Plc.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The topic of consumer behaviour is one of the massively studied topics by the researchers and marketers in the past and still being studied. Researchers show different reasons as to why consumer behaviour has been the topic of many academics and researchers. One of the common views is that understanding consumer behaviour has become a factor that has a direct impact on the overall performance of the businesses (Kotler and Keller, 2012). Another view suggests that understanding consumer behaviour has become crucial especially due to fierce competition in retail industry in the UK and worldwide (Lancaster et al, 2002). This chapter will introduce some other areas of research background of consumer behaviour addressing the works of researchers and marketers. Moreover, consumer decision making process, in particular, five stages of consumer decision making process will be discussed in detail.
It is worth noting that consumer buying behaviour is studied as a part of the marketing and its main objective it to learn the way how the individuals, groups or organizations choose, buy use and dispose the goods and the factors such as their previous experience, taste, price and branding on which the consumers base their purchasing decisions (Kotler and Keller, 2012).
One of such studies of consumer buying behaviour has been conducted by Acebron et al (2000). The aim of the study was to analyze the impact of previous experience on buying behaviour of fresh foods, particularly mussels. In their studies the authors used structural equation model in order to identify the relationship between the habits and previous experience on the consumer buying decision. Their findings show that personal habits and previous experience on of the consumers have a direct impact on the consumers’ purchase decision in the example of purchasing fresh mussels. They also found that the image of the product has a crucial impact on the purchasing decision of the consumer and further recommended that the product image should continuously be improved in order to encourage the consumers towards purchasing.
Another study conducted by Variawa (2010) analyzed the influence of packaging on consumer decision making process for Fast Moving Consumer Goods. The aim of the research was to analyze the impact of packaging for decision making processes of low-income consumers in retail shopping. A survey method has been used in order to reach the research objectives. In a survey conducted in Star Hyper in the town of Canterville 250 respondents participated. The findings of the research indicate that low-income consumers have more preferences towards premium packaging as this can also be re-used after the product has been consumed. Although the findings indicate that there is a weak relationship between the product packaging and brand experience. However, it has been proven by the findings of the research that low-income consumers have greater brand experience from the purchase of ‘premium’ products when compared to their experience from purchasing ‘cheap’ brand products.
Lee (2005) carried out study to learn the five stages of consumer decision making process in the example of China. The researcher focuses on the facts that affect the consumer decision making process on purchasing imported health food products, in particular demographic effects such as gender, education, income and marital status. The author employed questionnaire method in order to reach the objectives of the research. Analysis of five stages of consumer decision making process indicate that impact of family members on the consumer decision making process of purchasing imported health food products was significant.
The author further explains this by the fact Chinese tradition of taking care of young and old family members have long been developed and marriage is considered to be extremely important in Chinese tradition. This reflects in the findings of the study that the purchase of imported health food products made by a person for the people outside the family is declined significantly by both male and female Chinese after they get married.
Five Stages Model of consumer decision making process has also been studied by a number of other researchers. Although different researchers offer various tendencies towards the definitions of five stages, all of them have common views as they describe the stages in similar ways. One of the common models of consumer decision making process has been offered by Blackwell et al (2006). According to him, the five stages of consumer decision making process are followings:
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter shows how the study was carried out. The procedures and methods employed in the conduct of this research is discussed under the following headings:
Research design
Sources and methods of data collection
Population and sample size determination
Instrument design and administration
Method of data analysis
RESEARCH DESIGN:
The research design adopted is the survey method. This is chosen because it permits the use of inductive approach, where sample sizes are use to make generalization about the population.
SOURCES AND METHODS OF DATA COLLECTION:
Data for this research were obtained from both the primary and secondary sources. The primary sources of data were the questionnaire designed and administered to the auditors. Whereas the secondary data collected from text books journal from the libraries and internets and magazines constitute forms the theoretical framework of the study.
QUESTIONNAIRE DESIGN
The questionnaire was constructed in a simple manner to avoid confusion and for easy understanding by the respondent. And it was delivered personally by the researcher to the respondent and collected back on completion.
POPULATION DISTRIBUTION AND SAMPLE SIZE
DETERMINATION
For the purpose of this study, a total number of 40 questionnaires will be administered. This will cover employees in three grades
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND INTERPRETATION
INTRODUCTION
In this chapter the focus is on method of data collection presentation and analysis.
questionnaire administration
The analysis of the data consists of the statistic calculations performed with the raw to provide answer to the questions initiating the research
The analysis of the data collected through questionnaire is done with simple percentages.
Forty (40) questionnaire were distributed to the respondents. The researchers were able to collect thirty (30) questionnaire back and all the thirty questionnaires were manually processed and the data were reported in table with the response to the questions in percentage
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to the impact of training and development on high productivity.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of associated with inadequate training of the personnel of the organization and its impact on productivity.
SUMMARY OF THE STUDY
Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product). Sources of influence on the consumer. The consumer faces numerous sources of influence. Often, we take cultural influences for granted, but they are significant. An American will usually not bargain with a store owner. This, however, is a common practice in much of the World. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty, for example, and food manufacturers have found that it is more effective to advertise their products on the radio in the late afternoon when people are getting hungry. A person’s self-image will also tend to influence what he or she will buy—an upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumers buy—often, consumers seek to imitate others whom they admire, and may buy the same brands. The social environment can include both the mainstream culture (e.g., Americans are more likely to have corn flakes or ham and eggs for breakfast than to have rice, which is preferred in many Asian countries) and a subculture (e.g., rap music often appeals to a segment within the population that seeks to distinguish itself from the mainstream population). Thus, sneaker manufacturers are eager to have their products worn by admired athletes. Finally, consumer behavior is influenced by learning—you try a hamburger and learn that it satisfies your hunger and tastes good, and the next time you are hungry, you may consider another hamburger. Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth
CONCLUSION
Conclusion In conclusion we have to stress the fact that brand is the factor which has an impact on consumer purchase decision-making process. Brands provide information about products and create associations that affect the mind of the consumer in purchase process. Very important category of consumer behavior research is brand awareness. Suitable forms of marketing activities as a whole can create a positive brand associations and start a purchase action of positively seen brands. Brand represents a certain value in the mind of consumer. Without the psychological linkage would be a product or a service indistinguishable from each other. Our survey was aimed on impact of a brand on consumer behavior. More than a half the amount of respondents chooses their products or services by a brand. Participated survey respondents stated that the quality is the key factor in their decision-making process of purchasing a brand. A higher quality of products, national pride, support of the Slovak economy, support of domestic producers was the most mentioned reason for purchasing Slovak brands. Current edification in Slovak republic conducted by national education project of social responsibility “Quality from our regions” aimed at supporting macroeconomic stability in Slovakia has proven very useful by purchasing Slovak brands. Previous studies have shown that brand management helps enterprises to protect their image and that a strong brand has a high market share. The actual or prospective purchaser of products or services (AMA, 2015) – customer – is an important category in brand management. A brand can be successful if the brand management system is competent and as a result of relevant marketing activities can be seen loyal and satisfied customer/consumer. Consumer behavior is influenced by a variety of factors interacting in complex ways. With better understanding of customer’s perceptions; companies can determine the actions required to meet the customer’s need (Shende, 2014). Due to the current global conditions, the marketplace is becoming a place of a super-saturation of products resulting in brand loyalty disappearance. These conditions can be avoided when companies create loyalty relationships with their customers. Therefore it is necessary that the value proposition of the offered brands meet consumers’ values and desires.
RECOMMENDATION
The study recommends that the commercial banks in this part of the country should carry out thorough hand reliable marketing research to determine the places that will be viable to establish their branches. Considering the dispersed nature of the customers in the state, bank should adopt more personal selling method by permitting their marketers to reach-out to the prospective banks customer that are still outside the banking net and make the banking services more inclusive without generating unreasonable capital cost of establishing branches to the places remote to where the branches are available. The study recommends that the commercial banks should utilize the advantages of the newly introduced cashless policy of CBN by engaging more of their customers and prospective customers to use the Point of Sales machine, to carry out their transactions which will go a long way in reducing the risk associated with the cash handling and the cost of physical transportation to the banks location. The study also proffers the prescription that the bank should sensitize and train their customers on how to make effective use of the telephoning banking to avoid unnecessary stress associated with petty transactions that do not justify the stress and cost. More so, the commercial banks in this part of the country have been beleaguered with complacent, hence leaving part of the benefit due to them unexploited as far as banking is concerns. Consequently, the rivalry institutions that are not insured and are unguided like saving and loan institutions take on these people and exposed them to fiscal danger and harassment. These informal economic participants that have no time to visit banks are left unattended to. The study recommends that commercial banks should plan and ensure that this class of people is integrated into banking world. Ultimately, customers ‟satisfaction should be watchword of these commercial banks as the study reveals that customers‟ satisfactions have significant positive impact on commercial banks performance.
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