International Journal of Management (IJM), ISSN (Print), ISSN (Online), Volume 4, Issue 6, November - December (2013)

Transcription

1 INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) International Journal of Management (IJM), ISSN (Print), ISSN (Online), ISSN (Print) ISSN (Online), pp IAEME: Journal Impact Factor (2013): (Calculated by GISI) IJM I A E M E RETAILER S BRAND AWARENESS: AN EXPLORATORY APPROACH Mr. IRFAN MUMTAZ K.S. MBA, NET, (PhD) Research Scholar & Faculty, Al-Ameen Institute of Management Studies, Opp. Lalbagh Main Gate, Hosur Road, Bangalore ABSTRACT Purpose of the study: This research paper intended to know how the consumer reacts to the retailer s brand. This is also an attempt that to distinguish the effect of retailers brand on the purchasing decision of the consumers. Approach/ Design: A sample of 500 respondents was drawn from the hypermarkets who are the frequent buyers of groceries. Convenience sampling technique will be used to collect the data from the customers. The selected locations of the hypermarket are based on the 5 major precinct /zones in Bangalore city, namely East precinct, West precinct, North precinct, South precinct and central precinct. Findings: According to this survey, it s been observed that the customers are interested to know retailer s brand especially who are the manufacturer/ producer of the products. The customers are aware of the products and the brand and also have the clear picture of the rightly associated brand with the particular product. Conclusion: As customers are interested in purchasing the branded products and thereby branded products are enjoying the profit in the market. The good profit margin is anticipated in the groceries segment; even local retailers are also seeking good profit in the market. Type: Research Paper Keywords: Brand, Brand Equity, Retailer s Brand, Local/Private tags, Customer loyalty. 92

2 INTRODUCTION In today s competitive environment customers are keen observer of market, marketers and of course on the products and services as customers have more number of alternatives to move upon. It has been observed that the marketers are trying different tactics to attract the customers and also by offering best products and the services to satisfy the customer. Even though this is the situation where the marketers are providing more alternatives to the customer, it is difficult to expect the good response by the customers. Brand plays very pivotal role in the purchasing of products. Customers are keen interested in buying the branded products rather than the local/ private labels or tags. Few of the customers perceive that if they own branded products, it increases the standard of living and projects the high status. It has been noticed that the concept of brand is more effective when the consumers make a purchase, consumers show interest in buying the branded products especially when it comes to the less/ affordable prices. Brand awareness is an important factor where the potential customers identify the brand and they will be rightly associated with the particular product of the brand. Normally customers are cleverer in this type of the situation where their past experiences make the purchase of the desired products under the brand and brand image. In brand development, brand awareness is an essential tool which helps the brand to stand out in the marketplace. This is an attempt that to know whether the customers are aware of the retailer s brand. It also focuses on the demographic variables are effective enough to switch the customers buying decision behavior on the retailer s brand. This research paper follows the below pattern. The first level will be focused on the Demographic variables effectiveness which switches the customers buying behavior of the retailer s brand. Second level is projected on the effect of the brand awareness of retailer s brand on customer s buying behavior. And final level proposed on the findings and suggestions. REVIEW LITERATURE This section focuses on the previous researches, and divided into two main phases namely Consumer Buying Behavior, Brand Equity. 2.1: Consumer Buying Behavior K. Rama Mohan Rao. et. al (2013) observed that there is a boom in organized retailing that won t be affect the consumer opinion and perception of the individuals. The factors of ambience, especially lighting, cleanliness plays add on benefit to the retailing where most of the consumers feel satisfied. Manju Malik (2012) noticed that the combination of store convenience, Product quality, availability of new products and service quality are considered more by the Indian consumers. It s also evidenced that combining these factors helps in manning the customer satisfaction. 2.2: Brand Equity Dabija Dan Cristian et. al. Revealed that the Brand awareness, together with other behavioral indicators (sympathy, trust, image, pleasure or faithful), is one of the major vectors that has a vital contribution to the outline of brand equity in general and to that of retail brand. The perception on the stated indicators must be taken into consideration by service or retail companies, production in order to be able to identify their position on focused markets, and to create an adequate strategy that would help them reach the desired positioning. 93

3 Mohammed Reza Jalilvand et al. (2011) says that if the consumer wants to purchase the product; perceive quality, brand awareness, brand loyalty, brand associations are most important on the purchasing decisions. He also suggested that the marketers take initiatives on implementing Brand strategies which will be remain focused on the Brand Equity. Ranga Chimhundu et. al (2010); explores the impact of manufacturer brand innovation on retailer brands in grocery product categories, It is argued that the consumer packaged goods literature has largely portrayed manufacturer brand innovation in relation to retailer brands as a competitive tool that is employed against the retailer brands. It also offers a fresh perspective in explaining the coexistence of manufacturer brands and retailer brands in grocery retail categories. Somnath Mukherjee et. al. (2013) tries to portray the influence of physical evidence on the dimensions of brand image and consumers experience with the service firm is a determinant to brand equity an image perception. Tsui-Yii Shih (2010) chosen the various brand portfolio structures for the business performances based on the manufacturers and Retailers. He focused on the consumers attitude on the manufacturer and retailers brand from the retailing outlets. It s revealed that the manufacturer brand is high priced and high quality to purchase intention of the consumers. Objectives of the research To comprehend the effect of demographic variables on customer s buying behavior To know the effect of the brand awareness of retailer s brand on customer s buying behavior Hypothesis 1) H 0 : There is no the effect of demographic variables on customer s buying behavior H 1 : There is an effect of demographic variables on customer s buying behavior 2) H 0 : There is no effect of the brand awareness of retailer s brand on customer s buying behavior H 1 : There is an effect of the brand awareness of retailer s brand on customer s buying behavior RESEARCH METHODOLOGY Survey Instrument: In this research, a survey method has adopted for data collection from a sample size of 500 respondents. The sampling technique used was Convenience Sampling method. Data collection: The researcher visited the consumers personally for the extraction of data. All the 500 consumers are responded to the questionnaire. The response from 500 consumers is considered for the primary data. Magazines, journals and Internet (web) are used to gather secondary data for this study. Tools for Analysis: The tools are used in this research paper is Simple Percentage for the clear and précised analysis of demographic variables, and Chi Square is used for the analysis of post purchase behavior based on retailer s brand. 94

4 Table 1: Demographic Distinctiveness of the Respondents Demographic Distinctiveness of the Respondents (N=500) Sl. No. Characteristics Sub Categories Respondents Percentage 1. Age years years years & Above Gender Male Female Marital Status Married Unmarried Qualification Matriculation 20 4 Graduate Post Graduate Professional/ Techies Others Occupation Housewife Professional Private Employee Government Employee Business 40 8 Others Income &Above Type of Family Joint Nuclear Size of the Family 1-3 Members Members Members 20 4 Above Locality Bangalore North Bangalore East 40 8 Bangalore West 20 4 Bangalore South Bangalore Central Others Source: Compiled from primary data Hypothesis Testing 1) H 0 : There is no effect of demographic variables on customer s buying behavior H 1 : There is an effect of demographic variables on customer s buying behavior 95

5 Table 2: Analysis of Variance (ANOVA) for the grouped demographic variables Basis of Sum of Squares Degree of Mean Square Variance Ratio Discrepancy Freedom (df) Between Groups F Treatment = Within Groups F Block = Residual Error Total Source: Compiled from primary data Since the calculated value of F Treatment = at df 1 = 4, df 2 = 12 and α =0.05 is greater than its table value F= , we reject the null hypothesis and accept the alternative hypothesis. Hence we can say that there is an effect of demographic variables on customer s buying behavior. 2) H 0 : There is no effect of the brand awareness of retailer s brand on customer s buying behavior H 1 : There is an effect of the brand awareness of retailer s brand on customer s buying behavior Brand Awareness of the Retailers Brand 5- Strongly Agree, 4- Agree, 3- Neither agree nor disagree, 2- Disagree, 1- Strongly Disagree Sl. Proclamation No. 1 I prefer to know the manufacturer/ producer before I purchase retailers brand 2 I have the knowledge of the other retailers brands 3 Appreciation of the Retailers Brand is based on the performance 4 Appearance of the retailers brand creates the impact on consumers awareness 5 I can distinguish retailers brand from one and others 6 Physical significance of the retailers brand makes more awareness 7 Retailers promote their own brands For commemoration of the retailers brand good exposure is required 9 I like the retailers brand if freebies/discounts are offered 10 The retailers brand is affirmed in my mind I feel retailer brand lasts long in memory due to usage 12 From my past experience I am able to differentiate the retailers brand from others

6 Chi Square Test Value Significance Level Degrees of freedom Table Value Calculated Value 5% The critical (or Table) value of χ 2 = at α=0.05 and degree of freedom= 44. Since the calculated value of χ 2 = is greater than its table value, the null hypothesis is rejected. Consequently we can say that there is an effect of the brand awareness of retailer s brand on customer s buying behavior Findings According to this survey, it s been observed that the customers are interested to know retailer s brand especially who are the manufacturer/ producer of the products. The customers are aware of the products and the brand and also have the clear picture of the rightly associated brand with the particular product. Most of the customers are interested in purchasing the retailer s brand only if they are satisfied with the previous purchase and performance of the same. It is believed that the physical appearance of the product is also the way to get attracts and customers think it is one of the ways to make the awareness of the product in the market. It has been observed that the customers differentiate the particular product and brand from the other. And customers are clever enough to differentiate between branded products and retailer s brand. Customers are interested to know more about the retailer s brand only if it is visual and physical available. And customers are awareness most of the retailers promote their own brands. The customers are attracted towards the retailer s brand only the retailer promotes their product with the good discount or the freebies. CONCLUSION As customers are interested in purchasing the branded products and thereby branded products are enjoying the profit in the market. The good profit margin is anticipated in the groceries segment; even local retailers are also seeking good profit in the market. Retailers are launching with their own brands to tap the untapped market which results more profit to the retailers. The most important task is that to make the product awareness under the retailer s brand. Retailers are keeping on following the Aided awareness, type of awareness which is engendered in the mind of the customers/ consumers. When the customers have been asked for the particular product, first brand name appears in the mind and then they visualize the product this is the main factor which was observed in the study. By this we can conclude that the Brand awareness of the retailer s brand is positive and retailers will be the new entrants to the existing major players in the sector. Limitation of the study Focusing on the groceries segment is one of the major limitation of this research as many other related FMCG products are available under the retailer s brand. Due to the dearth of resource and time, this research is limited only to the Bangalore region. Even though there are many retailer s brand are available in the market only Big Bazaar, Spar, Reliance and More hypermarkets are considered for this study. 97

7 Scope for future research A further research can be conducted on the different type of products under the retailer s brand. An analogous research can be carried out in different cities to know the effectuality of the brand awareness of the retailer s Brand on customer s buying behavior. A study can also be conducted to know the customer s interest on the quality and the perception of the retailer s brand. Further the comparative study can be performed between the retailer s brand and the local brands. REFERENCES 1) 2) Dabija Dan Cristian et. al; Study On Retail Brand Awareness In Retail, pp ) K. Rama Mohan Rao. et. al (2013); Customer s Opinion on small scale retail stores: A case study; Indian Journal of Marketing; vol.43 No.5, pp ) Manju Malik (2012); A study in customer s satisfaction towards service quality of organized Retail stores in Haryana; Indian Journal of Marketing; vol.42 No.2, pp ) Mohammed Reza Jalilvand et al. (2011); The Effect of Brand Equity Components on Purchase Intention: An Application of Aaker s Model in the Automobile Industry; International Business and Management; Vol. 2, No , pp ) Ranga Chimhundu et. al (2010); Impact of Manufacturer Brand Innovation on Retailer Brands; International Journal of Business and Management Vol. 5, No. 9. 7) Somnath Mukherjee et. al. (2013); Influencing of physical evidence on service brand image dimensions and brand equity; Indian Journal of Marketing; vol. 43 No. 6, pp ) Tsui-Yii Shih (2010); Comparative Analysis of Marketing Strategies for Manufacturers and Retailers Brands; International Journal of Electronic Business Management, Vol. 8, No. 1, pp ) Sandip Dhakecha, A Study on Effectiveness of Cause Related Marketing [CRM] as a Strategic Philanthropy in Terms of Brand Popularity & Sales, International Journal of Marketing & Human Resource Management (IJMHRM), Volume 4, Issue 1, 2013, pp , ISSN Print: , ISSN Online: X. 10) Dr.Nandhalal.B, An Empirical Study on Customers Attitude Towards Service Level and Brand Loyalty - Special Reference to Aviva India, International Journal of Management (IJM), Volume 4, Issue 3, 2013, pp , ISSN Print: , ISSN Online: ) R. R. Raval, Brand Endorsement through Celebrity, International Journal of Management (IJM), Volume 1, Issue 2, 2010, pp , ISSN Print: , ISSN Online: ) Prof. Ass. Dr. DritaKruja and AlkidaHasaj, Branding in Nonprofit Organizations- The Case of Albania, International Journal of Management (IJM), Volume 3, Issue 3, 2012, pp , ISSN Print: , ISSN Online: ) Dhivya Sathish and Dr. D. Venkatramaraju, Satisfaction of Buyers Towards Retail Outlets, International Journal of Management (IJM), Volume 3, Issue 1, 2012, pp , ISSN Print: , ISSN Online: