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JULY 2012

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VOL 4, NO 3

IMPACT OF BRAND RELATED ATTRIBUTES ON PURCHASE INTENTION OF CUSTOMERS. A STUDY ABOUT THE CUSTOMERS OF PUNJAB, PAKISTAN.

Imran Khan, Tauqir Ahmad Ghauri and Salman Majeed Department of Management Sciences, The Islamia University of Bahawalpur, Bahawalnagar Campus. Abstract Many studies have been conducted on the purchase intention of consumers in the world but few studies are there in Pakistan. This study shows the brand related factors (Brand knowledge, brand relationship, behavioral intention, brand advertisement and past experience about the brand) on the purchase intention of the customers. It establishes the relationship among these variables. This research also concentrates on the demographics attributes impact on purchase intention of customers. Current study results identify that brand knowledge and brand advertisement has same impact on both male and female. Behavioral intention, past experience and purchase intention is high in female then male customer. But male customers have stronger brand relationship then female customers. Behavioral intention and purchase intention of upper Punjab employees is high. Impact of advertisement and knowledge about brand increases as customer age increase. All the brand related factors shows positive relationship with purchase intention of customers. Companies operating in Pakistan should have improve their brand related attributes to increase purchase intention of their customers, which is a key to their value generation.
Keywords: Brand awareness; brand knowledge; behavioral intention; advertisement; Pakistan.

1.

Introduction

A number of researches have been conducted on the purchase intention and the factors affecting purchase intention. Most of these researches are in the consideration of developed countries. Few researches are done on developing countries. Consumer purchase intention is the decision making process used by consumers relating to a market deal in the form of purchase of products and services from one seller or group of sellers. Consumers go through different decision criteria when making any purchase decision like brand, prices, quality, performance, features, convenience and user friendliness.

2.

Literature Review

2.1-Purchase Intention Purchase intention can be defined as individuals intention to buy a specific brand individuals who want to buy a specific brand which they has chosen for themselves after certain evaluation; there are variables by which we can measure purchase intention for instance consider the brand for purchasing and expecting to purchase the brand in the future (Laroche and Zhou, 1996; Laroche and Sadokierski, 1994; MacKenzie and Belch, 1986). Doing purchase intention for a specific brand requires assessment of all brands available in market (Teng, Laroche and Huihuang, 2007). It is shown that approaches toward a specific brand have great effect on brand purchase intention (Brown and Stayman, 1992; Homer, 1990; MacKenzie, 1986), and brand attitude has positive relation with purchase intention. It is also found that a consumers intention is settled by attitude toward the same and other brands which are present in his consideration set (Laroche and Sadokierski, 1994; Laroche and Zhou, 1996).

2.2-Brand Knowledge Brand knowledge consists of Brand awareness and Image (Agarwal and Rao, 1996; Mackay, 2001; Pappu and cooksay, 2005). Current purchases of customers are affected by brand knowledge and we have found that brand image has direct effect on customer purchases and brand awareness have indirect affect on customer purchases (Franz-Rudolf Esch et al. 2006). We suppose there are two consumer behaviors which are current and planned

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future behavior. Current behavior is buying the brand and using the brand and having experience about the brand, and future behavior is intended to consider the brand to buy in the future (Franz-Rudolf Esch et al. 2006).

2.2.1 Brand Awareness Brand awareness is defined as the extent to which how consumer can easily memorize the brand when he is going to buy a product. For the formation of brand awareness, brand image is an essential condition (Keller, 1993). To evaluate brand awareness brand recall is a tool by which we can easily measure and predict brand awareness (Franz-Rudolf Esch el al. 2006).

2.2.2 Brand image when consumers strongly recommend the brand, and have unique relations with a brand, that generates positive attitude toward the brand (Keller, 2003). We consider brand image as an important factor because it adds to the consumer's decision process either he should purchase the brand or not (Dolich, 1969). Brand image has a great effect on consumers' next behavior (Johnson and Puto, 1987; Fishbein, 1967), and have great contribution in the brand equity (Biel, 1992). 2.3-Brand Relationship The process of relationship has positive emotions and cognitive benefits that can generate bond between the consumer and the brand, so we come to know that if brand fulfill the customers need and provides benefits to customer then there is a strong bond between consumer and brand (Fournier, 1998). If consumers have actually participated or imagination in communities of brands then brand relationships are formed (Fournier, 1998; Fournier and Yao, 1997; McAlexander et al, 2002; Muniz and OGuinn, 2001). There are exchange and communal relationships found in Brand relationships (Franz-Rudolf Esch et al. 2006).

2.4-Behavioral Intention There are two things in Behavioral intention which are Brand Switching and Brand Loyalty (Paurav, 2009). In today business settings, conversion of intention into purchase decision has become the major challenge (Mittal and Kamakura, 2001; Sniehotta et al. 2005).

2.4.1 Brand Loyalty Operations of loyalty lie in how much consumer actually consumes the goods or services of brand we measure it by measuring consumer purchasing frequency (Lin et al. 2000; Veloutosou et al. 2004). It determines the level of utilization of goods and services from particular/specific retail location or seller (Driver, 1996; East et al. 1995). Loyalty is a process of evaluating consumers switching from one to another brand or adopting another brand (Hsiu-Yuan and Li-Wei, 2005). There are several ways to evaluate Brand Loyalty i.e., how much brand is familiar among consumers (Dick et al. 1996; Wood, 2004; Feltham, 1998), using the brand and level of positive experience and convenience (Rowley, 2005; Lin, 2000), social cost, self concept and brand image (Abendoth, 2001; Auty, 2001), satisfaction and perceived value (Baltas, 1997; Ness et al. 2002; Wood, 2004).

2.4.2 Brand Switching When there is drop in brand loyalty or customer choosing other brands for their use then brand switching occurs (Paurav, 2009). Two factors affect consumer behavior i.e., intrinsic and extrinsic motivations. More variety and preference for other brands have a major role in case of Intrinsic motivation (McAlister and Pessemier, 1982). In case of extrinsic motivation it is avoiding or getting another brand for their consumption purpose or purchasing the brand (Van Trijp et al. 1996).

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2.5-Brand Advertisement When consumer place attention to an advertisement that produce feelings toward brand which is promoted in the advertisement and those individuals who have favorable and good feelings regarding brand have favorable attitude toward brand (Edell and Burke, 1987; Gardner, 1985). It is found that as positive response increases towards specific brand or advertisement, chances of positive evaluations also increase, on the other hand evaluation of other competing brands and advertisements have negatively influence of that evaluation (Teng, Laroche and Huihuang, 2007).

2.6-Past experiences If a consumer considers his past purchases and experiences for deciding his future purchases, it can better predict his purchase intentions for future purchases (Conner and Armitage, 1998). This phenomenon is based on behavioral learning theories. (Bentler and Speckar, 1979). If consumer gets benefits by purchasing a product or service then it is sure that consumer will purchase again and also tell other about their positive experience to others (D'Souza et al. 2006).

3.

Theoretical Framework
Independent Variables Dependent Variable

Brand Knowledge

Brand Relationship Purchase Intention Behavioral Intention Country of origin Past Experiences

4.

Methodology

4.1 Questionnaire Questionnaire contains seven sections. First section contains the demographic information of responsents. Next two sections contain elements about the brand knowledge and brand relationship respectively. These elements are extracted form the study of Franz R Esch et al. (2006). Section four and five are related to the elements about consumers behavioral intention and purchase intention which are taken from the study of Paurav, (2009). Section six contains elements of brand advertisement extracted from the research of Lafa Tang, Michel Laroche and Huihuang Zhu (2007). The last section of questionnaire is about past experience and its elements are extracted from the study of Hee Yeon Kim and Fac-Eun Chung (2011). All these authors have tested reliability and consistency of these elements of questionnaire well in every aspect. All sections contain alpha between acceptable range of 0.65 to 0.84. Five point likert scale is used to collect response from respondents. (5= Strongly Agree and point 1 = Strongly Disgree) 4.2 Sampling 750 questionnaires were distributed among eight different districts of province Punjab of Pakistan (4 districts from upper Punjab and four districts from lower Punjab). 620 questionnaires were got back fully filled, which

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gave response rate of 82%, which is a sufficient sample size for analysis. Questionnaires were filled with personal assistance.

5.

Results & Discussion

Under the demographic analysis, gender analysis shows that both male and female has equal knowledge about brand as mean scores are shown in the table-1 (male=3.84, Female= 3.91). Male customers have higher brand relationship (4.08) then female customers (3.87). Behavioral intention of the female customer about the product is slightly higher (3.98) then the male customers (3.84). Impact of brand advertisement is same irrespective of gender (male = 3.988, female = 3.89). Past experience shows more impact on female (3.72) then male (3.34). Purchase intention of female customer is higher (3.90) then male customers (3.46). Brand knowledge and Brand relationship is same in the upper and lower Punjab customers (Brand knowledge (upper Punjab= 3.89, lower Punjab = 3.84), brand relationship (Upper Punjab = 4.00, Lowe Punjab = 3.99)). Behavioral intention of the upper Punjab customer is high (4.08) as compared to the lower Punjab (3.69). which shows the higher brand loyalty and higher brand switching of the upper Punjab customers. Past experience shows same impact irrespective of the location of customer ( upper Punjab = 3.51, lower Punjab = 3.48). According to the results purchase intention of the upper Punjab customers is high (3.75) than the lower Punjab customers (3.51). Table-1 Brand Knowledge 3.84 3.91 3.89 3.84 3.74 3.90 30 4.02 Brand Relationship 4.08 3.87 4.00 3.99 4.16 3.87 4.14 Behavioral Intention 3.84 3.98 4.08 3.69 4.08 3.80 3.92 Brand Advertisement 3.88 3.89 3.98 3.78 3.76 3.88 4.19 Past Experience 3.34 3.72 3.51 3.48 3.20 3.65 3.52 Purchase Intention 3.46 3.90 3.75 3.51 3.55 3.68 3.64

Male Female Upper Punjab Lower Punjab 20-25 Year 26-30 Year Above Year

Impact of brand advertisement increases as customer age increases shown in result (20-25Years = 3.76, 26-30 Years = 3.88, more then 30 Years = 4.19). Behavioral intention of the 20-25 year age group customer is highest (20-25Years = 4.08, 26-30 Years = 3.80, more then 30 Years = 3.92). Brand relationship is also highest in same age group and above 30 year age group customers (20-25Years = 4.16, 26-30 Years = 3.87, more then 30 Years = 4.14). Knowledge about the Brand increases as age of the customers increases, as results shows (20-25Years = 3.84, 26-30 Years = 3.90, more then 30 Years = 4.00). Purchase intention among different age groups is approximately same (20-25Years = 3.55, 26-30 Years = 3.68, more then 30 Years = 3.64). Past experience impact more on second age group. (20-25Years = 3.20, 26-30 Years = 3.65, more then 30 Years = 3.52).

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Table-2 Correlations Brand Behavioral Relationship Intention Brand Relationship Behavioral Intention Brand Advertisement Purchase Intention Past Experience Brand Knowledge **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). 1 .573** Brand Advertisement .492** Purchase Intention .296** Past Experience .110

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Brand Knowledge .511**

.564**

.636**

.128

.554**

.405**

.271**

.415**

.179* 1

.546** .125 1

Brand Knowledge has moderate positive relationship with Purchase intention of customers shown in Table-2 (0.546). As we increase Brand intention, Purchase intention of customer also increase (0.636). Brand advertisement also increase the purchase intention of customers (0.405). brand relationship and past experience shows week positive relationship with purchase intention (0.296, 0.179). Results show that all these relationships are significant.

Conclusion
This research has many implications for the organizations operating in Pakistan. First they should focus on gender based brand activities. They must improve the brand knowledge among customers and develop effective brand advertisement which could increase the purchase intention of both male and female customers. Secondly, Brand knowledge is same in lower and upper Punjab but behavioral intention and impact of advertisement is high is upper Punjab. Organizations should focus on this aspect and must build appropriate strategies to increase brand loyalty of lower Punjab customers as well. Modifications are required in promotion strategies for lower Punjab consumers. Purchase intention of upper Punjab customer is high because of high brand loyalty. This can be attributed to the level of education, in upper Punjab; level of education is high then lower Punjab customers. Thats why they prefer to purchase branded products then the lower Punjab customers. Companies have to take proper actions to improve the brand loyalty of lower Punjab customers. Thirdly, results show the direct relationship among the brand advertisement, brand knowledge and age of the customers. Companies have to focus on all age group customers, especially the middle age group (26 to 30 years old). They have lowest behavioral intention means lowest brand loyalty. Thats why their switching behavior is high but they have highest purchase intention. Companies have to stop their flight and make them among the loyal customers that to improve revenues and profitability. Lastly, organizations have to focus more on the improvement in brand loyalty and brand knowledge because they have the highest positive relationship with purchase intention of customer. Intensive care on brand advertisement can also increase the customers for the companies.

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