The Impact of Brand Features on Brand Equity

Business Research Proposal

Business Research Method Proposal

Group Leader:

Azka Iqbal…………………...13219

Group Members:

Faisal Noor……………………13277

Zohaib…………………………

Daniyal Sheikh………………..13285

Proposal Topic:

‘The Impact of Brand Features on Brand Equity’

Superior University Raiwind Road Lahore


Submitted To: Mam Khansa Irem

ACKNOWLEGEMENT

We would like to thanks our supervisor Miss Khansa Irem for her reliable guidance and support

during the proposal and then we would like to thanks our parents and family members for being

the best support, now and always.

Last but not the least we would like to thank my friends who support me, guided me and helped

me whenever require during my proposal.



Table of ContentsAbstract 4

1. Introduction 5

1.1 Background of the study 5

1.2 Purpose Statement 7

1.3 Research Objectives 7

1.4 Research Hypothesis 7

1.5 Conceptual Frame work……………………………………………………………………………8

1.6 Term Definition…………………………………………………………………………………….8

1.7 Significance of the Study……………………………………………………………………..……9

2. Literature Review…………………………………………………………………………………..10

3. Research Methodology……………………………………………………………………………13

3.1 Research Paradigm……………………………………………………………………………….13

3.2 Population and Sampling………………………………………………………………………...14

3.2.1 Research population……………………………………………………………………………14

3.2.2 Sampling……………………………………………………………………………....14

3.3 Data Collection Method……………………………………………………….………...15

3.4 Data Analysis…………………………………………………………………………...15

4. Ethical Considerations……………………………………………………...………………16

5. Limitation and Delimitation………………………………………………………….…..…16

6. References…………………………………………………………………………………..17



‘The Impact of Brand Features on Brand Equity’

Abstract:

The purpose of this study is to investigate the impact of monetary and non monetary

purchase intention and customer loyalty toward brand in industrial markets. It is very challenging

for managers to investigate that how they create proper brand equity for identity, difference that

provide company a competitive advantage form others in the market with this regard managers

should use different communication tools which has a stronger affect. This study also examines

the relationship between advertisement and brand equity and switching behavior of customer

toward brands. Study also explores the effect among brand awareness, perceived quality, brand

loyalty, customer purchase intention and mediating effect. The research having effect on

marketing advertisement, and price promotion to brand equity This research tends to explore

relationship between brand equity as a whole construct comprising (brand association & brand

awareness, perceived service quality and service loyalty) with purchase intention. The

purpose of the present research is to investigate and build the new model of consumer-based

brand equity by exploring the knowledge of brand defection. The study sought to extend

empirical evidence on the association between brand loyalty and product-related factors:

packaging, price and brand awareness. This research presents the impact of promotional tools

(print media, TV advertisement, LCD‟s and Billboards) on sales growth in rural areas of

Pakistan. The study is to investigate resellers’ point of view about the impact of brand awareness,

perceived quality and customer loyalty on brand profitability and purchase intention.



1. Introduction

1.1 Introduction and Background

Marketing mix is one of tools that affects brand equity and is an important challenge for

determining optimized marketing budget for increasing target market (Soberman, 2000) and

brand (Ataman Mela and Van Heerda, 2010)

(Philip kotler page: 198).Brand awareness, brand association, brand loyalty and perceived quality

are the four components of brand equity (Aaker: 1991). In addition to that a dominant brand

elaborates a positive impact of product quality and delivers the brand awareness in consistent

manners and builds the brand image. According to Yoo, Donthu, and Lee, all marketing action

done, effectively or ineffectively, to create, control, and exploit brand equity.

Macdonald and Sharp (2000) mention that even though consumers familiarize and are willing to

purchase a product, brand awareness is still an important factor to influence purchase

decision. Consumers’ purchase decision can be influenced if a product has higher brand

awareness (Dodds, Monroe, & Grewal, 1991; Grewal, Monroe & Krishnan, 1998).

Davis and Keller (2001) argue that marketers in the service sector through research in the

field of brand equity can measure and manage power of brands. Empirical research shows

that Marketing activities will lead to the creation of brand equity; It Is required to study the

effects of advertising and promotions on brand equity that gained a better understanding of

the dimensions of brand equity.

Aaker (1991) defines brand equity to be the added value which is attributed towards the product`

name. The purpose of this study is i) to measure the impact and relationship which brand equity

has on purchase intention and how brand performance supports such construct. ii) To

identify which organization has the greatest brand equity (brand association, brand awareness,

perceived service quality and service loyalty) among the organizations under consideration

iii) Explore brand equity from the point of view of service industry.



The purpose of this study is to investigate and build the new model of brand defection influenced

CBBE. In our study, brand defection from consumer perspective is the defection of consumer’s

psychological activity, and the defection begins with the defected willingness of consumer.

Academics and practitioners alike have recognized the importance of loyal customers,

because such customers usually spend more, buy more frequently, are motivated to search for

information, are more resistant to competitors’ promotions and are more likely to spread positive

‘word of mouth’ (Bytyqi & Vegara 2008; Chaudhuri & Holbrook 2001; Dick & Basu 1994;

Keller 2008).

For creating the brand equity the previous researches suggest that marketing mix factors are very

important (e.g., Yoo et al., 2000; Buil et al., 2013). Hence, one of the main problems for the

marketers is providing the suitable budget for marketing in order to achieve both the

highest affect on the target market and also the brand (Soberman, 2009) (Ataman et al., 2010).

For the new industry or brand it is very important that the brand should increase its

sales. For this purpose they used different techniques of promotion. These techniques include

the electronic media and print media; electronic media include TV, radio, commercial LCD’ and

the print media include news papers and magazine.

Retailer as well as purchase behavior of consumer slants if a product comprises of elevated

alertness regarding the brand (Grewal, Monroe & Krishnan, 1998).Profitability performance

tends to have positive relationship with brand awareness. Profitability performance is a monetary

input of brand to the revenue of the retailer.

Many scholars have highlighted different concepts such as Brand Equity (Aaker, 1992),

Customer Equity (Rust et al., 2000, Mehmood et al 2011 (a)) which these concepts carry

consumer buying behavior. A good solution for making brand superiority is through brand

personality. Sticking personalities to brand helps in making a different identity and then end to

better desirability for consumers Positive customer-based brand equity, in turn, can lead to

greater revenue, lower costs, and higher profits; and it has direct implications for the firm’s

ability to command higher prices, customers’ willingness to seek out new distribution channels,

the effectiveness of marketing communications, and the success of brand extensions and

licensing opportunities (Keller, 2003). According to Huber (2010), While presence in the



global markets needs top quality and best price. The consumers stick to the pinpoint brand

inside the very similar circumstance.

1.2 Purpose Statement

The purpose of the study was to investigate the impact of packaging, price and brand

awareness on brand loyalty. The research is conduct to identify the relationship between brand

equity and brand loyalty. The intent of research is to understand and explore the effects among

brand awareness, perceived quality, brand loyalty and customer purchase intention and

mediating effects of perceived quality and brand loyalty on brand awareness and purchase

intention in Pakistan. What are factor that influence the brand equity and brand loyalty how

customer in Pakistan switch to a new brand and what are the basic factors needs to a brand for

the successful entry in market and also they are keep loyal to this brand. This study investigates

that whether marketers and brand managers should use the all the tool of marketing

communication and which medium is stronger affect on the brand equity.

1.3 Research Objectives

To examine the relationship that influences the effectiveness advertisement.

To test the influence of brand awareness on effective advertisement.

To determined that brand loyalty does influence the effective advertisement.

To examine the perceived quality influence the effective advertisement.

Brand switching relationship with effective advertisement.

1.4 Research Hypothesis

H1: Brand equity has a significant and positive relationship with effective advertisement.

H2: Brand awareness has a significant and positive relationship with effective advertisement.

H3: Brand loyalty has a significant and positive relationship with effective advertisement.

H4: Perceived quality has a significant and positive relationship with effective advertisement.

H5: Brand Switching has a negative relationship with effective advertisement.



1.5 Conceptual Frame Work

Dependent Variable Independent Variable

1.6 Term Definition

Brand Equity:

Brand equity is set of brand value and responsibilities that are attached to the brand and

name its image, which enhance or reduce from the worth provided by the products or services.

Brand Loyalty:

brand loyalty as an intensely held assurance to repurchase or patronize a favorite product or

service continuously in the future, thus causing repetitive the same-brand although

situational impacts and marketing exertions having the potential lead toward switching

behavior.


Advertising

Effectiveness

Brand Equity Brand Awareness Perceived Quality Brand Loyalty

Brand Switching

Independent VariableDependent Variable


Brand Awareness:

Brand awareness involves consumer acknowledgement, remembrance, knowledge supremacy,

top of-mind awareness, brand attitude and performance of brands.

Perceived Quality:

Perceived quality is the continuous improvement process which always keeps on changing

and stimulates product performance to satisfy contemporary needs and wants of the

customers.

Brand Switching:

Keller explained brand switching as the behavior of the customers to move from one brand to

another.

1.7 Significance of the Study

1. Advertising has a substantial role in modern competition. Companies communicate to

their patrons, both prevailing and prospective customers. Companies allocate an

extensive portion of resources to advertisement. It is very essential to recognize

how well advertisement attracts and sustain customers emotional and rationale

appeals. The most stimulating complications encountered by advertisers and ad

agencies are the subject of evaluating the efficacy of the advertising.

2. Effectiveness Advertisement is distributed into communication effectiveness and

sales effectiveness. Sales volume can be used to estimate sales effectiveness,

message recognition, understand and fluctuating attitudes and actions of customers

for calculating communication effectiveness. The communication effectiveness can

be calculated by advertisement recognition.

3. Advertisement recognition is evoking of past memory of people after viewing

features of specific ads.



2. Literature Review

BILAL, M., KHAN, A., & KHAN, S (2013) The main aim of this research was to find out

how the marketing communication affects the Brand Equity in the cold drink and mobile

industries. Dependent variable (Brand Equity) it is called dependent because it "depends" on the

independent variable. Independent variables (Perceived quality, Awareness of brand, Advertising

& Brand Loyalty)

Jalilvand, M. R., Samiei, N., & Mahdavinia, S. H. (2011) paper aims to investigate the effect of

brand equity dimensions on purchase intention, based on Aaker’s well-known conceptual

framework in the Automobile industry. Dependent Variable Purchase intention is dependent

variable and affected by brand equity. Independent Variable Brand awareness, Brand association,

Perceived quality, Brand loyalty significantly affect on Purchase intention.

Yaseen, Nazia; Tahira, Mariam; Gulzar, Amir; Anwar, Ayesha December 2011 The study is to

investigate resellers’ point of view about the impact of brand awareness, perceived quality and

Customer loyalty on brand profitability and purchase intention. Dependent Variable is

profitability and purchase intension. Independent Variable Brand awareness, Perceived quality,

Customer loyalty are independent variable.

Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009) The main purpose of conducting this research

was to investigate the relationship between Brand Equity’s components and consumer buying

behavior in Iran in term of FMCG. Dependent Variable Consumer Buying Behavior is dependent

variable that is affected from independent variable. Independent Variable Brand Equity,

Customer Equity, Brand loyalty, perceived quality, Brand association are independent variable

that affect consumer buying behavior.

Dhurup, M., Mafini, C., & Dumasi, T. (2014) The purpose of the study was to investigate

the impact of packaging, price and brand awareness on brand loyalty. Dependent Variable

Brand loyalty was used as the Dependent variable. Independent Variable packaging, price and

brand awareness were used as the independent variables.



Mubushar, I. H., & Kamran Iftikhar, M. This study investigates that whether marketers and

brand managers should use the all the tool of marketing communication and which medium is

stronger affect on the brand equity. Dependent Variable Corporate Reputation is dependent

variable Independent Variable Integrated marketing Communication Brand Equity.

Aarabi, N., & Bromideh, A. A. (2006) The results of the present study show marketing

advertisements on perceived quality, brand awareness, brand image and brand loyalty has a

positive effect; price promotion has a negative effect on perceived quality and has positive effect

on brand image. Dependent Variable Advertising and price promotion are Independent variable,

Independent Variable Perceived quality of the brand, Brand loyalty and brand image are

dependent variable.

Nasim Roustapisheh Mehmood Zohoori, Shabnam Mousavi Khesal, Shahriar JUNE 2013VOL 5,

NO 2 This quantitative research tries to show the relationship between different method of

advertisement and brand equity in fast food industry of Iran. Dependent Variable Brand Equity

Brand Awareness, Brand Association, Perceived Quality, Brand Loyalty. Independent Variable

Online Advertisement, Print Advertisement, TV Advertisement.

Tariq M.I., Humayon A.A. Bhutta M.H. and Danish R.Q., Res. J. Recent Sci., 3(6),40-45(2014)

The aim of this study is to examine the relationship of effective advertisement on brand equity

and brand switching behavior Of the customers regarding major soft drink brands of Pakistan.

Dependent Variable Advertising Effectiveness Independent Variable Brand Equity, Brand

Awareness, Perceived Quality, Brand Loyalty.

Ramezani, M. R., & Heidarzadeh, K. (2014) The purpose of this study, is investigating

monetary and nonmonetary promotions on purchase intention and customers loyalty to brand

in industrial markets. Dependent Variable Brand perceived value, Brand association Independent

Variable Brand awareness Brand loyalty Perceived value of transaction Purchas intention.

Ahmed, K., Mehmood, N., Irem, S., & Sultana, A. (2012) this research examines the impact of

promotional tools (print media, TV advertisement, LCD‟s and Billboards) on sales growth in

rural areas of Pakistan. Dependent Variable Sales Growth is dependent variable Independent

Variable TV advertisement, Print media, Billboard advertisement, Commercial LCD’s.



Dolatabadi, H. R., Kazemi, A., & Rad, N. S. (2012) In order to reach this purpose, this study has

analyzed the influence of brand personality on sale product through brand equity concept, from

view point of retailer cosmetic product in Iran. Dependent Variable Perceived quality,

Awareness is dependent variable. Independent Variable brand Personality brand Equity brand

Sale.

Irshad, N., & Irshad, W. Service Based Brand Equity, Measure of Purchase Intention, Mediating

Role of Brand Performance. This research tends to explore relationship between brand equity as

a whole construct comprising (brand association & brand awareness, perceived service

quality and service loyalty) with purchase intention. Dependent Variable Perceived service

quality, brand awareness, service loyalty Independent Variable Purchase intention, brand

performance

Dr. Hsin Kuang Chi, Nanhua University, Taiwan Dr. Huery Ren Yeh, Shih Chien University.

The purposes of the study are to explore the effects among brand awareness, perceived quality,

brand loyalty and customer purchase intention and mediating effects of perceived quality and

brand loyalty on brand awareness and purchase intention. Dependent variable brand Loyalty

Independent variable brand Awareness.

Qi, Guoqin Zhao, and Shengliang Zong Journal of Economics, Business and Management, Vol.

1, No. 4, November 2013 the purpose of the present research is to investigate and build the new

model of consumer-based brand equity by exploring the knowledge of brand defection.

Independent variable brand Awareness. Dependent variables are brand equity.



3. Research Methodology

3.1 Research Paradigm:

The term ‘paradigm’ described as essentially a collection of belief shared by different scientist a

set of agreement about how problems are to be understood .how we view the world and thus go

about conducting research .these paradigm contain a basic set of beliefs or assumptions that

guide our inquiries. There are mainly three paradigm to the verification of theoretical proposition

i.e. Positivism, Interpretive, and pragmatism.

Positivism:

Positivism assumes that true knowledge is based on experience of senses and can be obtained

observation and experiment. Singular reality exist researcher is on distance collect data on

instrument researcher unbiased, formal style and it is inclined to be deductive which test theory.

Interpretivism:

An individual seek an understanding of the world where he live, work subjective meaning of

their experience or toward certain objects or things. Multiple realities exist researcher close visit

participant at their sites and collect data researcher biased, informal style and inductive in nature

that generate theory.

Pragmatism:

The third paradigm is associated with mixed method research. The goal of pragmatic research is

not to replace either of these approaches but rather to draw from the strength and minimize the

weakness both in single research studies and across studies. Singular and multiple both realities

exist, multiple stances formal and informal both.

Decision:

For our research we have adopt positivism paradigm because we have to verify theory and theory

verify through deductive process so that’s why we choose positivism in which we check

relationship between dependent and independent variables cause and effect relationship



determined so here positivism paradigm is much suitable to identify the significant impact either

it is positive or not.

3.2 Population and Sampling

3.2.1 Research population:

Our population is student of higher learning institutes of Lahore, Pakistan were selected on the

basis of simple random sampling and were asked to fill the questionnaires along with

open-ended questions in the form of interviews to investigate their intrinsic feelings.

3.2.2 Sampling:

Sampling is the process of selecting segment of the population for investigation one segment of

population is selected for investigation.

There are two techniques of sampling through which the data is collected following are the

techniques of sampling:

Probability:

Probability sampling used in quantitative research Probability sampling is an approach of

sampling in which the equal chance to be selected.

Non probability:

Non probability sampling used in Qualitative Research in which the chance or probability of

each unit to be selected is not known of confirms.

Reason about sampling Technique:


Probability Non Probability


This study used Probability sampling technique because it is quantitative in nature and further

selects one of its sampling techniques which named Simple Random Sampling and were asked to

question.

Sample size and site:

We select 206 students of higher learning institutes of Lahore, Pakistan on the basis of simple

random sampling and were asked to fill the questionnaires along with close ended

questions in the form of questionnaire.

3.3 Data Collection Method

There are two types of data collection method; Interview and Questionnaire

3.3.1 Interview vs. Questionnaire

Interview the form of data collection and it is used in Qualitative Research and interview is the

process of listening in and asking question between interviewer and interviewee. Any person to

person interaction or debate between two or more individual with a specific purpose in mind is

called interview.

Questionnaire is pre-formulated written set of questions to which respondent’s record their

answer” Questionnaire is self explanatory, read and answered by respondents and used in

quantitative research.

Select Questionnaire for Research:

In this research questionnaire are the instrument of data collection because it is quantitative

research approach and measuring scale that select is adopts a 5 point liker scale ranging 1-

strongly disagree, 2-disagree, 3-neither agree nor disagree, 4-agree, 5-strongly agree. The

questionnaire will be close ended because the research will be quantitative research. Ask the

question form male and female both to understand the significant impact of effectiveness of

advertisement on brand equity form Lahore, Punjab Pakistan.



3.4 Data Analysis

To collect data structured questionnaire method was used. In order to obtain correct info from

consumers a number of closed ended questions were made-up. Correlation and regression

analysis were used to analyze the data and to measure the hypothesis which were not mediation

based. Sobel test was used to check the mediation and measure the hypothesis of mediation.

Correlation analysis was used as a prerequisite of Sobel test. The questionnaire consists of two

parts .The first one is the Demographical Background while the second one includes the

dependent variable (Brand Equity) and independent Variables such as (Advertising, Brand

Loyalty, Awareness of the Brand and Perceived Quality). Five Point Likert Scale methods were

used to reveal the consumers‟ agreement/disagreement regarding the items mentions in this

proposal. Factor analysis, cronbach alpha and ANOVAs multiple regression analysis are the

statistical tools.

4. Ethical Considerations

Before conduct our study we have set ethical standard for our research and ensured that we must

follow this during our research because this standard makes our study purpose very clear and

meaningful and readers easily understand our intentions we must take the permission before any

video conferencing data collection the privacy of respondent keep safe till the end of research

and under highly confidentiality. Ensure and guide about the purpose of research for which the

data is collected from them also ensure them their personal data should not be shared with others

without their prior permission.

5. Limitation and Delimitation

Limitation and delimitation are that which has affect our research due to different reasons are

following:

We have only focus high learning students of Lahore.

The research topic that we have to select there much work already done so we delimit our

research to specific demographic place.

We are still university students so we can’t afford heavy budget for this research largely

We have limited time with limited resources



6. Reference

BILAL, M., KHAN, A., & KHAN, S (2013). 42. The Impact of Brand Features on Brand

Equity.

Jalilvand, M. R., Samiei, N., & Mahdavinia, S. H. (2011). The effect of brand equity

components on purchase intention: an application of Aaker’s model in the automobile

industry. International Business and Management, 2(2), 149-158.

Yaseen, Nazia; Tahira, Mariam; Gulzar, Amir; Anwar, Ayesha December 2011

Interdisciplinary Journal of Contemporary Research in Business;Dec2011, Vol. 3 Issue 8,

p833

Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009). The impact of brand awareness on

consumer purchase intention: The mediating effect of perceived quality and brand

loyalty. Journal of International Management Studies, 4(1), 135-144.

Dhurup, M., Mafini, C., & Dumasi, T. (2014). The impact of packaging, price and brand

awareness on brand loyalty: Evidence from the paint retailing industry.Acta

Commercii, 14(1), 9-pages.

Mubushar, I. H., & Kamran Iftikhar, M. (2013). The Effect of Integrated Marketing

Communication on Customer Based Brand Equity with Mediating Role of Corporate

Reputation in Cellular Industry of Pakistan. Global Journal of Management And Business

Research, 13(6).

Aarabi, N., & Bromideh, A. A. (2006). The impact of e-commerce on the Iranian

insurance companies. University essay from Luleå tekniska universitet/Industriell

ekonomi och samhällsvetenskap/Industrial marketing and e-commerce.



Nasim Roustapisheh Mahmood Zohoori, Shabnam Mousavi Khesal, Shahriar JUNE

2013VOL 5, NO 2

Tariq M.I., Humayon A.A., Bhutta M.H. and Danish R.Q., Res. J. Recent Sci., 3(6),40-

45(2014)

Ramezani, M. R., & Heidarzadeh, K. (2014). THE IMPACT OF MONETARY AND

NON-MONETARY PROMOTIONS ON BRAND EQUITY IN INDUSTRIAL

MARKET (CASE STUDY:"IRANPOTK"COMPANY). International Journal,3(5), 2307-

227X.

Ahmed, K., Mehmood, N., Irum, S., & Sultana, A. (2012). INTERDISCIPLINARY

JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS.

Dolatabadi, H. R., Kazemi, A., & Rad, N. S. (2012). The Impact of Brand Personality on

Product Sale through Brand Equity (Case Study: Cosmetic Products

Retailers). International Journal of Academic Research in Business and Social

Sciences, 2(11), 294-309.

Irshad, N., & Irshad, W. Service Based Brand Equity, Measure of Purchase Intention,

Mediating Role of Brand Performance. About Academy of Contemporary Research

Journal (AOCRJ), 58.

Dr. Hsin Kuang Chi, Nanhua University, Taiwan Dr. Huery Ren Yeh, Shih Chien

University, Kaohsiung, Taiwan Ya Ting Yang, Graduate Student, Nanhua University,

Taiwan

Qi, Guoqin Zhao, and Shengliang Zong Journal of Economics, Business and

Management, Vol. 1, No. 4, November 2013


The Impact of Brand Features on Brand Equity

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