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A RESEARCH PROJECT ON
FINDING FACTORS AFFECTING THE BRAND PREFERENCE: A CASE STUDY ON AIRTEL BANGLADESH LIMITED.
Submitted By: Mohammad Mohaiminul Islam Class Roll: 29 ID. NO: 40916018(16th Bagch) EMBA program
Letter of Transmittal
3rd May 2011 To Professor A. K. FAZLUL H. SHAH Department of Marketing University of Dhaka Subject: Report Submission Dear Sir, I am a student of EMBA (16h Batch), Department of Marketing, University of Dhaka. With humble respect I would like to convey you knowledge that I have prepared my report. This report writing assignment is a partial requirement of the course Advanced Marketing Research in the EMBA program of Dhaka University. I have tried my best to prepare the report in consistence with the optimal standard under your valuable direction. I would be very grateful if you kindly accept this report. I tried heart and soul to make this report as a complete one. It would be pleasure for us if this report can serve its purpose. Sincerely,
Acknowledgement
3 At the very beginning, I would like to express my deepest gratitude to the Almighty ALLAH for giving me the strength and the ability to finish the task within the scheduled time. It should be mentioned that I am grateful to our course teacher professor A. K. FAZLUL H. SHAH, Department of Marketing, University of Dhaka for their part on preparing this report. At last I wish to our entire course mates. My sincere thanks goes to, all of my friends who gave the opportunity me to give time in preparation of the report. At last my sincere apology goes to the readers for my conceptual and printing mistakes, if there is any.
Table of Contents
Letter of Transmittal Acknowledgement
Executive Summery Problem Definition Objective Methodology Approach to the Problem Research Design Data Analysis Result Conclusion Recommendations Exhibit
1.Executive Summery
A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the concrete symbols such as a name, logo, slogan, and design scheme. Brand recognition and other reactions are created by the accumulation of
5 experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary. A brand is a symbolic embodiment of all the information connected to a company, product or service. A brand serves to create associations and expectations among products made by a producer. The brand, and "branding" and brand equity have become increasingly important components of culture and the economy. Customers often say that they prefer a brand that is reliable, available, affordability etc. The set of factors that finally determines customers preference about a particular brand and which works as the key factor that makes them choose a certain brand over others is the ongoing concern for both the market leader and the followers. Based on this, the original problem statement has been constructed on a specific product that is airtel sim.
Problem statement:
Research will be done to investigate whether the factors Corporate Image, Brand Loyalty, Competitive Advantage, Value added services of the Product, Network quality, Past Usage Experiences, Network Availability, Price, Advertising have significant influence on brand preference for airtel , over its competitors like Grameen Phone, Aktel, Banglalink, Citycell and Teletalk. Therefore, the problem statement of this research is FINDING FACTORS AFFECTING THE BRAND PREFERENCE: A CASE STUDY ON airtel Bangladesh Limited.
2. Problem identification
The problem was identified as the preference of the subscribers towards airtel is decreasing day by day due to some factors though its revenue is still on rise, which are identified as independent variables from the initial study.
Dependent Variable:
Brand Preference of airtel is decreasing day by day
Independent Variables:
1. Corporate image of Bharti Airtel will be a key factor on preferring Airtel SIM. 2. Brand loyalty towards airtel is very strong
6 3. Competitive Advantage of airtel over other brands is unquestionable. 4. Voice quality of airtel is very satisfactory. 5. First test experience of airtel is unique 6. Users of airtel are satisfied. 7. Past Usage Experiences of airtel is enough for repurchasing. 8. Availability of Airtel SIM is in more than 95% of the entire market 9. Price of airtel is highly affordable 10. Advertising activities of airtel has always increased its demand in the market 11. Packaging of airtel is appraised by one & all
Data collection
7 In this unique study, secondary sources of data are not sufficiently available. As a result, the researcher requires primary data to investigate the research problem. To collect data from the primary sources, the researcher will use questionnaire method. Survey will be done among the DU students available at TSC.
Survey Instrument
Questionnaire: A structured questionnaire will be used to collect data from the respondent.
Sample size:
The sample size of the research will be 30.
8 purpose the R2 value was used. The R2 value indicates the overall contribution or influence of the independent variables on the dependent variable. If the value is zero, then it indicates no summed contribution of the independent variables in building the build image. A value above zero indicates some contribution. So, clearly it indicates that a zero R2 value results in an acceptance of the null hypothesis. In a brief, the hypotheses test according to multiple regression analysis can be stated as H0: R2 =0 H1: R2 0
5. Results
The data collected from the fieldwork were input in the SPSS. Before input, the variables were declared in the variable view window. After then, in the data window, the data were input. After inputting, analysis was made by clicking onto the analyze tab. For regression analysis, the linear regression was used and for discriminant analysis, analyze>classify>discriminant tab was used. After then, two output windows were found. Contents of these windows are analyzed and are given as results at the following sections.
Oneway
ANO VA BRAND_PREFERENCE Sum of Squares Between Groups 32.783 Within Groups 30.183 Total 62.967 Mean Square 6.557 1.258
df 5 24 29
F 5.213
Sig. .002
Md l oe 1 a .
R .7 8 9
RS u re qa .6 7 3
From it, it can be seen that, the value of R2 =.446 which is more than zero. R2 =0 means there is no correlation among the variables. But as this value is .446 which is greater than zero, this conclusion can be drawn that there is a significant amount of correlation among the variables. So, according to the one tailed test, the null hypothesis can be rejected which means an automatic acceptance of the alternative hypothesis. That is, the decision can be drawn that there are some relationships existing among the variables. 5.1.2 Relationship Analysis The summary of the multiple regression analysis, from which the relationship is analyzed, can be given in the following table.
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Coefficients a Unstandardized Coefficients B Std. Error .892 2.026 .349 .169 .007 .117 -.498 .388 .113 .152 -.124 .141 .027 .350 .797 .353 -.022 .258 .415 .254 -.202 .176 Standardize d Coefficients Beta .387 .011 -.287 .147 -.152 .022 .671 -.019 .394 -.289
Model 1
t .440 2.064 .063 -1.284 .743 -.876 .077 2.256 -.087 1.634 -1.146
(Constant) CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING
Sig. .665 .053 .950 .215 .466 .392 .940 .036 .931 .119 .266
As mentioned earlier in the data analysis section, these coefficients indicate the relationships among the variables. From this table, the following equation can be created
PR = 0.892 + 0.387 C + 0.011 P - 0.287 B + 0.147 Pr - 0.152 Q + 0.022 T + 0.671 S - 0.019 A + 0.394 AD - 0.289 PA
Where, PR = Preference of Airtel Sim C = Corporate Image P = Purchase Decision B = Brand Name Pr = Price Q = Quality T = Test S = Satisfaction A = Availability AD = Ad. Effectiveness PA = Packaging All the coefficients of the independent variables are not positive. It means, there is a positive relationship between the dependent variable and few of the independent variable and there is a negative relationship between the dependent variable and rest of the independent variable. It means, an increase in some of the independent variable would result in an increase in the dependent variable. In contrast a decrease in some other independent variables would result in a decrease in the dependent variable. The following section shows how much contribution each of the independent variable has over the preference of Airtel Sim. Corporate Image has only 38.7 % positive contribution on the preference of Airtel Sim Purchase Decision has 1.1 % positive contribution Brand Name has a negative contribution, 28.7 %
11 Price has a positive contribution of 14.7 % Quality has a negative contribution of 15.2 % Test experience has a positive contribution of 2.2 % Satisfaction has positive contribution of 67.1 % Availability has negative contribution of 1.9 % Ad. Effectiveness has 39.4 % positive contribution Packaging has a negative contribution of 28.9 %
Based on this regression analysis, the ratings can be done for the independent variablesEffects of independent variables on preference of Airtel Sim and their corresponding importance (Multiple Regression Analysis) Name of the Variables Satisfaction Corporate Image Ad. Effectiveness Price Test experience Purchase Decision Availability Voice Quality Brand Name Packaging Effect on the preference of Airtel Sim High Rank 1 2 3 4 5 6 7 8 9 10
Low
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Tests of Eq u ality of G rou p M ean s W ilks' Lamb da CO RPO RATE_IMAG E .998 PURCHASE_ DECISIO N .969 BRAND_ NAME .960 PRICE .985 Q UALITY .965 TEST .987 SATISFACTIO N .809 AVAILABILITY .911 AD_EFFECTIVENESS .901 PACKAG ING .987 F .048 .892 1.15 9 .434 1.01 6 .365 6.613 2.7 23 3.08 9 .360 df1 1 1 1 1 1 1 1 1 1 1 df2 28 28 28 28 28 28 28 28 28 28 Sig. .827 .353 .29 1 .51 5 .322 .55 1 .01 6 .11 0 .09 0 .553
5.2.1 Analysis made on Wilks' Lambda Wilks Lambda coefficient shows how much discrimination one independent variable can make among the three categories imagined for the preference of bansaicars. The higher values indicate lower discrimination ability and a lower value indicates higher discrimination ability. The variable which causes the most discrimination among the categories is indeed the most important one to look for. The value of Wilks' Lambda is least for satisfaction. As we know, the lower the value, the higher the ability to discriminate. So, satisfaction has the highest discriminating power among all the independent variables. Corporate image, packaging, test and price have high Wilks' Lambda value. In fact these values are the highest among all the independent variables. So it can be assumed that corporate image, packaging, test and price have a low discriminating capability. Other independent variables have moderate values of Wilks' Lambda. So these independent variables can be described as medium discriminating variables. 5.2.2 Analysis made on Standardized Canonical Discriminant Function Coefficients Standardized Canonical Discriminant Function Coefficients shows the relative importance of each of the independent variable in discriminating the categories of preference of Airtel Sim. The lower value of an independent variable shows a lower importance while a higher value shows the higher importance. From the table, it can be seen that, the value of lead time has the highest Standardized Canonical Discriminant Function Coefficients. It means this independent variable is the most important one, or the great influencer to discriminate
13 among the three categories of preference. The following table shows the relative importance of each of the independent variables. Discriminating capability of independent variables over the categories of preference and their corresponding importance (Standardized Canonical Discriminant Function Coefficients Analysis) Name of the Variables Satisfaction Corporate Image Ad. Effectiveness Price Test Purchase Decision Availability Quality Brand Name Packaging Effect on the preference of Airtel Sim High Rank 1 2 3 4 5 6 7 8 9 10
Low
5.2.3 Significance test for the independent variables (Analysis made on F ratio) F ratios indicate the significance of the independent variables effect in discrimination. The degree of freedom according to the test of equality table is 1 and 28. Between these two values, the F ratio is 5.213 (approx). The independent variable having a lower F ratio than this value means its effect is insignificant. From the table of group means, it can be seen that, only corporate image has the lowest F value(.048), and then Packaging(.360) . All the other variables have a high significance as their F ratio value is much higher than the theoretical value.
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7. Limitations of Study
Errors
Doing a study of such proportions may have resulted in errors to take place. Much potential error is systematic, the error that results from bias, while the remainder is random. This study takes into account these cases of errors. Major sources of error have been identified as follows: Situation as an Error: This perhaps has been one of the principle sources of errors. Such errors usually result from any condition that may have placed a strain on the survey. Customers who shop online are reluctant to take part in such studies and pay no heed to such surveys the respondent could not freely answer the questions. The physical and mental status of the respondent also at times resulted in error as respondents varied in enthusiasm and participation depending on their mood. Respondent as an Error: This kind of error results due to both non-response as well as inaccurate perception with regard to a specific concept or construct of a questionnaire. In this study, at times the respondents were reluctant to provide extreme positive or negative views and preferred to reside in the neutral area.
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Exhibit A -QUESTIONNAIRE:
Following questions are some items that ask your opinions about airtel SIM. Please fill up () one number per statement using the scale.
1. I prefer airtel among all other branded sim in the market.
Extremely Disagree 1 Strongly Disagree 2 Disagree 3 Some what Disagree 4 Neither agree nor disagree 5 Some what Agree 6 Agree 7 Strongly Agree 8 Extremely Agree 9
5.
Extremely Disagree 1
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Some what Disagree 4 Neither agree nor disagree 5 Some what Agree 6
Extremely Disagree 1
Strongly Disagree 2
Disagree 3
Agree 7
Strongly Agree 8
Extremely Agree 9
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Regression
Vr b sE t r d e o e aia le nee /Rmv d Md l oe 1 Vr b s aia le Et r d nee PCA I AKG N G , P R HS UCAE _ EI I DC O S N , AA AI I VI B L L T, Y Q AI Y UL , T C RO A OP RT EI A E _MG , PI E R , C BAD RN _ N M, A _ AE D E F CI E FE T V NS, ES T S, ET ST FC AI a T SA I N O A r q e t dv r b se t r d ll e u se aia le nee . D p n e tV r b :B A D P E E E C e e d n aia le R N _ R F R N E Vr b s aia le R mv d e oe
b
Mt o eh d
Et r ne
a . b .
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M d lS m a o e u m ry A ju te R d s d S u re qa .4 6 4 S .E r td rro o th f e E tim te s a 1 9 .0 7
Md l oe 1 a .
R .7 8 9
RS u re qa .6 7 3
Model 1
df 10 19 29
F 3.335
Sig. .012 a
a. Predictors: (Constant), PACKAGING, PURCHASE_DECISION, AVAILABILITY, QUALITY, CORPORATE_IMAGE, PRICE, BRAND_NAME, AD_EFFECTIVENESS, TEST, SATISFACTION b. Dependent Variable: BRAND_PREFERENCE Coefficients a Unstandardized Coefficients B Std. Error .892 2.026 .349 .169 .007 .117 -.498 .388 .113 .152 -.124 .141 .027 .350 .797 .353 -.022 .258 .415 .254 -.202 .176 Standardize d Coefficients Beta .387 .011 -.287 .147 -.152 .022 .671 -.019 .394 -.289
Model 1
t .440 2.064 .063 -1.284 .743 -.876 .077 2.256 -.087 1.634 -1.146
(Constant) CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING
Sig. .665 .053 .950 .215 .466 .392 .940 .036 .931 .119 .266
Discriminant
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Analysis Case Processing Summary Unweighted Cases Valid Excluded Missing or out-of-range group codes At least one missing discriminating variable Both missing or out-of-range group codes and at least one missing discriminating variable Total Total N 30 0 0 Percent 100.0 .0 .0
.0
0 30
.0 100.0
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Group Statistics Std. Deviation 1.922 2.086 .941 1.656 1.580 1.454 1.302 1.457 1.718 1.885 1.345 2.167 .743 2.187 2.017 .900 .941 .915 .834 2.350 1.632 2.123 .850 1.921 1.812 1.196 1.241 1.253 1.398 2.107 Valid N (listwise) Unweighted Weighted 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 15 15.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000
Gp 1.00
2.00
Total
CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING
Mean 6.47 4.73 6.80 5.20 5.27 6.40 6.13 7.13 6.67 6.13 6.33 5.47 7.13 4.73 5.93 6.67 7.20 7.87 7.53 5.67 6.40 5.10 6.97 4.97 5.60 6.53 6.67 7.50 7.10 5.90
Tests of Equality of Group Means Wilks' Lambda .998 .969 .960 .985 .965 .987 .809 .911 .901 .987 F .048 .892 1.159 .434 1.016 .365 6.613 2.723 3.089 .360 df1 1 1 1 1 1 1 1 1 1 1 df2 28 28 28 28 28 28 28 28 28 28 Sig. .827 .353 .291 .515 .322 .551 .016 .110 .090 .553
CORPORATE_IMAGE PURCHASE_DECISION BRAND_NAME PRICE QUALITY TEST SATISFACTION AVAILABILITY AD_EFFECTIVENESS PACKAGING
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K A G IN G .6 1 4 .2 9 1 .4 1 7 .5 8 1 .4 4 6 .7 1 5 .6 3 1 .4 8 3 .5 8 8 1 .0 0 0
a. F 1 canonical discrim irst inant functions w ere used in the analysis. W ilks' L m da a b T of F est unction(s) 1 W ilks' L bda am .518 C hi-square 15.149 df 10 S ig. .12 7
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Structure M trix a F unction 1 .503 .3 44 .3 3 2 .2 11 .197 .185 -.12 9 .118 -.117 -.043
S T F C IO A IS A T N A _E F C IV N S D FE T E E S A A A IL Y V IL B IT B A D A E R N _N M Q A IT UL Y P R H S _D C IO U C A E E IS N P IC R E T S E T P C A IN A K G G C R O AE A E O P R T _IM G
P ooled w ithin-groups correlations betw een discrim inating variables and standardized canonical discrim inant functions V ariables ordered by absolute size of correlation w ithin function.
Functions at Group Ce ntroids Function Gp 1 1.00 -.93 3 2.00 .933 U nstandardized canonical discrim inant functions evaluated at group m eans