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Effect of brand image on consumer choice or consumer purchase

portfolio of beverage industry in Pepsi and coke in Pakistan

The basic purpose of research is to find out and investigate the role of brand image on consumer

choice or purchase portfolio. In this respect three hypothesis have been developed. This research

is limited to beverage industry and in beverage industry research focus on two neck to neck

competing products Pepsi and Coke. In carrying out this first questionnaire filled by the students

of UCP, we also conduct a blind test on this sample. Consistency and study show that brand

image can be differentiated based on intrinsic attributes and extrinsic attributes. Result was

analyzed by SPSS software and all hypotheses examined and the result was in the line with all

three hypotheses. It means there is a significant relationship between brand image and consumerchoice. There is a significant relationship between intrinsic brand attribute on consumer choice.

There is a significant relationship between extrinsic brand attribute and consumer choice.

Introduction

Now a days most of the organization focuses on branding rather than marketing. Branding is not

a new concept but it is very efficient in many active companies especially the new entrant

companies. So most of the companies take brand construction as a major task now a days. It is

very difficult decision for the companies whether to invest in branding or not. Branding is an

intangible asset for the organization. This topic attempts to determine which brand characteristic

effect on consumer choice and purchase intention. In other words is consumer choice depending

upon brand function, product choice and brand characteristic. A brand is basically a unique tag,

mark, or symbol that makes the products both goods and services distinctive from one company

to another (Asadollah et al, 2011). A brand played very important role in the consumer decision

making process, with most important relating as a reference to psychological, sociological, and

also as an economic indicator (Hsin and Hamid, 2011). Branding is a process of filling the goods

and services with optimistic characteristics and these characteristics carefully designed to

increase the appeal of that product to consumers (Asadollah et al, 2011). Create an effect

Branding give organization reorganization and loyalty such as logo\image helps to create a

favorable image in the mind of the customer. And most of the companies define what they want


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from their customer when they see its brand logo or message deliver to them when they

experience the brand. Brand is basically intangible feature of the product and services but many

customer consider brand as a part of the product which enhance the value of these.it also help the

customer to predict its higher quality. For example, if the bottale of perfume is labeled by a very

strong brand most of the consumer consider this bottle of perfume as expensive product and high

quality. But if the same bottle of perfume in not marked by good brand most of the consumer

perceived as a low quality product (Kotler et al.,1999). Strong brand name has a greater impact

on consumer choice because if the consumer is satisfied with the brand they reject the entire

substitute as well even if the offer its product at low price. Brand management basically tries to

communicate a specific and constant image to the market, consumer may have different mindset

to the brand and from that mind set they built a relation with some specific brand. Brand

management and research may be well advised to acknowledge the relationship between

knowledge, attitude and behavior (Koll and Wallpach, 2009). Brand image have a greater impact

on consumer choice because brand is basically a promise to the customer and when the company

fulfill this promise the consumer is satisfied. So this feeling enhance their choice and buying

intention and will guide there decision of buying as well. So this research basic purpose to

indentify the effect of brand on consumer choice.

Consumer choice is measure through the perceived value that leads the person toward purchase.

Band image is the main factor that affecting perceived value. According to many outers

information about the product brand image directly influence on consumer choice and consumer

purchase intention. In addition they concluded that the perceived value is positively associated

with consumer choice and purchase intention (Shafiq et al 2010).

Literature Review

Literature review gives an idea that few studies are focuses on how the brand image influence on

consumer choice. But Literature review provide sufficient knowledge about brand image

One study shows that because of saturation in the market, lot of advertisement and brand

maturity pushes more of the organization to think about brand image and relation brand in order

to protect its market share so now a days more consumer relay on brand image which is develop

in their mind in contrast with the inherent characteristic or attributes of the product Achouri and

Bouslama (2010)


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According to Imtiaz and Osman (2009) Customers basic perceptive of brand is to relate and

consider with easy information processing about products purchasing and being certain about

the brand to build their trust with time. Brand image play an important role in the attitude

towards the product development. According to Hsin Chang (2011) there is direct and significant

relationship between corporate brand image and consumer product evaluations that play an

important role in new product development. Strong brand give the organization recognition and

loyalty. One study use conjoint analysis to measure brand effects, defined the difference between

the brand on bases of brand evaluations associated with deliberate and un deliberate attributes;

other study estimated the effects of brands on consumer utility from brand-specific constants in

scanner panel brand choice models Erdem (2001)

Akhter at el (2011) define consumer loyalty as more of the business use brand image to attract

new customers, try to build long-term relationship and developing a big network of loyal

customer for the survival of many corporations.

Erdem and Swait et al (1999), in their research they explore the links between brand equity,

consumer learning and consumer choice processes in general and considering two recent trends

in the market place: store brands and the Internet. And there result shows that brand equity be

the incremental effect of the brand on all aspects of the consumer's evaluation and choiceprocess.

One study show product quality is derived from the difference between actual products and the

alternative products that could be made available or provided by the particular industry (focus is

on motorcycle), It can also be determined by the way customers perceive product quality in the

market Shaharudin et al (2011)

Imtiaz and Osman (2009) find out the relationship of brand awareness on consumer purchase

intention in the packaged milk brands in the urban Pakistan and they said that most of the

marketers update their understanding the role of brand awareness and consumer purchase

intention.

There is a consensus in the literature that customer choice is determined by customers

perceptions. brand iamge about the product play a vital role in product purchase decision


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Shafiq(2011). product quality is another factor who play an important role to perceivd value of

it. A products quality has a significant impact towards the product or service performance, thus

it is linked to a customers value and satisfaction Shaharudin and Mansor et al (2011)

Consumer buy those brand who personality match with the consumer personality or self image

so brand personality allow the consumer to express its certain consumption of himself it helps

understand the impact of the correspondence between the brand personality and the consumers

self-image. Achouri and Bouslama (2010)

Research Objective

Main objective

The main objective of this research to investigate the role of brand image in consumer choice of

customer of beverage industry (Pepsi & Coke) in Pakistan market

Secondary objective

These include the role of price, user image, usage image, and brand personality on consumer

choice.

Research Hypotheses

Considering the variables in order to check the effect of brand image on consumer choice in

beverage industry of Pakistan.

H1: There is a significant relationship between brand image and consumer choice.

H2: There is a significant relationship between intrinsic brand attribute on consumer choice

H3: There is a significant relationship between extrinsic brand attribute and consumer choice.

H3a: There is a significant relationship between price and consumer choice.

H3b: There is a significant relationship between user image and consumer choice.

H3c: There is a significant relationship between usage image and consumer choice.

H3d: There is a significant relationship between brand personality and consumer choice.


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Conceptual Frame Work

There is a significant relationship between extrinsic brand attribute and consumer choice.

Intrinsic brand attribute

Intrinsic brand attributes are basically built in product characteristic and they directly related to

the goods physical composition. These attributes can be provable on predetermine standard.

Intrinsic brand attributes are mandatory for our customer and on the behalf of these attributes the

consumers distinguish one product to another. Intrinsic brand attribute are higher-level prompts

directly related to the product Teas and Agarwal, (2000)

According to Shaharudin, Mohd Rizaimy (2010) the relationship between satisfaction and

loyalty is to be dependent on the intrinsic characteristics of the focal products and services itself.

Consumer Choice

Brand Image

Intrinsic Brand

Attribute

(Product Related

attribute)

Extrinsic Brand

Attribute

(Price, user & usage

imagery, Brand

Personality


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intrinsic brand attribute are the basic tools used by the consumer to distinguished branded

product basic elements and features, which determine the product overall performance and these

attribute also simplify the consumer choice process Wang and Tang (2011)

Extrinsic brand attribute

Extrinsic brand attributes are symbolic in nature these attributes are non-physical but related to

the product such as brand name, quality, product information and brand personality.

According to Teas and Agarwal (2000) extrinsic brand attributes of the branded product are

lower level prompts that can be changed without changing the core product such as price,

packaging, brand name, One specific use of some extrinsic brand attributes are like price, brand

name, and packaging, , is as risk reduction information when purchasing products.

Extrinsic brand attributes basically fulfill the consumer basic needs for social approval or self-

esteem.

Extrinsic brand attributes allow predicting optimistic feeling about the product and also

encouraging them to help others about their values and feature and create a good word of mouth

and in classification of, Keller (1993) distinguished them to price information, packaging or

product appearance information, user imagery, and usage imagery Wang and Tang (2011)

Price

According to the tilrature review most of the time the consumer take price as an important

ingredient to predict the quality. The consumer brand likings are directly correlated with the

price and quality of branded product and in its all other categories Yu and Zhao(2011). A

products quality has directly coralated to the product performance and its also linked with the

consumer value and satisfaction Shaharudin el al (2011)

Consumer reservation prices exposed the value of brand names in designed choice experiments.

It also reveals the fact that consumers are more liking to pay higher price or premium price for

the higher quality brands and the brands they personally like, if the non-price components of the

product are highly positive for a brand, they should compensate for the disutility of higher prices


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if consumer price sensitivity is constant for all brands, one should observe that stronger brands

command price premiums. Many firms try to affect consumer price valuations by varying their

Marketing mix, which is well-documented in both economics and marketing in the literature on

the effects of advertising and price promotions on price sensitivity Erdem al el (2001)

Price is a very important tool because consumers categorize their product knowledge in terms of

the price ranks of different brands, and Price is very important determinate of weather the brand

is include in a consumer consideration set or not. Wang and Tang (2011)

User imagery and Usage imagery

In the mid of 1960s concept of self image come and appear in marketing and this concept

become popular in the mid of 1970s. the result of these studies shows the consumer behavior

were concentrating to develop a link between image of the product and his or her self image.

Self-image means how the person precieved himself, to a set of distinctiveness, personal

features, roles and values, etc. Achouri and Bouslama (2010)

User and usage imagery depend upon consumers own experiences or in other words consumer

own experience is the greater source of User and usage imagery and contact with brand users. Itcan be formed through advertisement and word of mouth Wang and Tang (2011)

Consumersself-image can be inferred from the brands they use, their attitudes toward different

brands and the meanings brands have for them. The perceptions consumers have of themselves

influences their brand decisions. Consumers form favorable attitudes toward those products

which possess images most similar to the images they either prefer or wish of themselves.

Brand Personality

All the individual behave and performe accordinging to the image they have about themselves or

they wish to convey to others. Brand personality is a medium of consumer self-expression and

showing different characteristics of his or her self Bouhlel (2009)


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It is very important to understand the brand-consumer relation. The best way to predict brand-

consumer relation is the correspondence between the brand personality and the consumers self-

image. Consumer behavior can be assume on the basis of the self reinforcement theory and

relationship between brand personality and self image that consumer behavior is resolute by the

consumer personality and perception about the product which they like to purchase Achouri and

Bouslama (2010)

Brand having perfect personality in the eye of the consumer then the consumer are more willing

to develop ood relationship with that brand and develop a friendship with that brand. Brand

personality is an important source of self-expressive and affecting benefits for consumers and

Consumers prefer brands which march its personality and self image Therefore, brand preference

increases if there are a lot of similarities present between the brand personality and consumer

personality Wang and Tang (2011)

Managers rely on consumer self image and human attribute. slogan , symbol, name and other

attribute associated with brand develop the association of brand personality, individuals

information on behaviors about other human being in terms of personality traits, consumers may

might develop personality traits to brands Bouslama (2010)

Consumer choice

Generally, product quality has an impact towards the purchase/repurchase intentions. The result

from the past research findings on the impact of perceived product quality on purchase intentions

were contradictory to some which reported a direct positive impact of perceived product quality

towards purchase intentions and also unsupported the relationships exist Shaharudin el al 211

Product packaging/product design has strong influence on consumer perceived value, resulting in

intention to purchase (Ann, 2008)


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Khalid et al. (2006) suggest that customer attraction obtained through emotions is often extracted

by products packaging/ design, art, clothing, and consumer goods; therefore, designers must

consider emotions in packaging/product design. Shafiq el al 2010

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