A STUDY OF BRAND IMAGE, BRAND TRUST, BRAND AFFECT ON BRAND EXTENSION ATTITUDE, BRAND LOYALTY TOWARDS FMCG: A MEDIATING ROLE OF ADVERTISING

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1 A STUDY OF BRAND IMAGE, BRAND TRUST, BRAND AFFECT ON BRAND EXTENSION ATTITUDE, BRAND LOYALTY TOWARDS FMCG: A MEDIATING ROLE OF ADVERTISING Dr. Suranj Bhan Prajapati Assistant Professor in Govt. KRG (Autonomous) PG College, Gwalior Dr. Neetu S. Yadav Guest Faculty, Makhanlal Chaturvedi National University of Journalism and Communication Dr. Kapil R. Chandoriya Assistant Professor, Makhanlal Chaturvedi National University of Journalism and Communication Ms. Manisha Verma Assistant Professor, Makhanlal Chaturvedi National University of Journalism and Communication ABSTRACT This quantity research study is focused to identify and established the impact of Branding i.e. brand image, brand trust and brand affect on brand extension attitude and brand loyalty. Further it investigates if advertising mediates the relationship of brand image, trust, and affect to consumer brand extension attitude. The primary data was collected through 100 male and 100 female respondents the total is 200 respondents from Bhopal city and analyzed through regression. Results revealed that brand image, trust and affect are positively associated with the brand loyalty and brand extension attitude. Further it is found that advertising mediates the relationship of brand image, trust and affects to brand loyalty and brand extension attitude. KEYWORDS: Brand Loyalty, Brand Trust, Brand Image, Brand Affect, Brand Extension Attitude and Advertising. 1. INTRODUCTION Advertising was not used until about 200 years ago. The form of advertising was used for the transmission of information dates back to ancient Greece and Rome. Criers and signs were used to carry information for advertising goods and services well before the development of printing. The upsurge in advertising came after the development of printing in the 1450s. Advertising play as a mediating role among brands affects, brand sales & brand trust and brand extension attitude & brand loyalty since ancient time period. In today s scenario ads are very essential medium to circulate any information about particular thing among people. Keeping in view the demand and liking of brand we have studied the attitude of consumers towards the brand and towards the extension through advertising. In the so many cases consumers were found to be very loyal. On the other hand Consumer Brand Extension attitude and loyalty has become widely accepted as an essential issue for all organization, it is used as a marketing standard for the company performance (Bennett & Rundle -Thiele, 2004). In fact we can say that brand image, brand affect and brand trust and consumer loyalty all are important for preparing consumer brand extension attitude and advertising work as mediator. It is also to 23

2 be noted that if the consumer is loyal then he would be interested to buy another extension product of same brand. 2. REVIEW OF LITERATURE Arjun & Morris (2001) according to both researcher brand trust is a consumer would like to trust on his/her own initiative, and trust the product that brand provides. Trust can reduce the consumer s uncertainty, because the consumer not only knows that brand can be worth trusting, but also thinks that dependable, safe and honest consumption scenario is the important link of the brand trusts. Hiscock (2001) explored the The ultimate goal of marketing is to generate an intense bond between the consumer and the brand, and the main ingredient of this bond is trust, but trust is an elusive concept. The ultimate goal of marketing is to generate an intense bond between the consumer and the brand, and the main ingredient of this bond is trust. Blackston (1992) defi ned that trust is one component of consumer relationships with brands. Rotter (1980) explored that trust is an important variable affecting human relationships at all levels. Deutsch (1973) explained that Trust is also a confi dence that makes one brand preferred another. Urban et al. (1996) found that Brand trust is undoubtedly one of the most strongest tools of making the relationships with the consumers on internet. Chaudhri & Holbrook (2002) suggested that brand affect is a derivation of a positive response of consumer after its usage. Chaudhuri & Holbrook, (2001) narrated that The main difference between brand trust and brand affect is; brand trust is viewed as a long process which can be occurred by thought and consideration of consumer experiences about store while brand affect is consisted of impulsive feelings which can be formed, spontaneously. Chaudhuri and Holbrook (2001) define brand affect as brand s potential to elicit a positive emotional response in the average consumer as a result of its use. In other words it can be described as consumers emotional response towards a brand in consequence of having an experience with the brand. Therefore we suggest that brand affect occurs under favor of close relationship with brand. Likewise, literature suggests that favorable and positive emotions are associated with high level of brand loyalty (Chaudhuri & Holbrook, 2002). Keller, (1993) defined brand image as summation of brand associations in the memory of consumer which leads him towards brand perception and brand association including brand attributes, brand benefits and brand attitude. Hsieh, Pan, & Setiono (2004) argued, brand image helps consumer in recognizing their needs and satisfaction regarding the brand, it also distinguishes the brand from other rivals motivating consumer to buy the brand. Kotler (2001) defined image as the attitude, thought and feelings of person for a particular thing or object. Roth, (1995) defined that The essential part of company s marketing program is to sustain brand image and strategy of the brand (Keller, 1993; Aaker, 1991).found the Image can create importance and it helps consumer in gathering information, distinguish the brand, creates reason to purchase, and also creates constructive feelings and provides basis for brand extension. Brown (1952) showed importance of two dissimilar dimensions of brand loyalty: behavioral and attitudinal loyalty. Cunningham (1956) found the Frequency of repeat purchase has been considered as behavioral loyalty or percentage of purchase, and Mellens, Dekimpe & Steenkamp (1996) showed that attitudinal loyalty is defi ned as, priority, dedication or purchase aim of the consumers. Reichheld and Sasser (1990) found that If consumer is loyal to brand then company can increase its productivity by offering brand s further extension without the fear of failure. 24

3 Oliver (1999) pointed out that the consumer loyalty mainly contains an idea to lie in whether consumer wills keep on purchasing the product of the same shop for a long time or not, that meaning can extend for the shop the competition ability in the market. High loyalty consumer has the possibility of attracting more latent consumers, therefore most operators usually will promote a brand loyalty to list as a main operation target. Aaker & Keller s (1990) model of consumer brand extension attitude formation has triggered additional brand extension research in various countries. Their exploratory research provided valuable insight into which extension constructs infl uence the attitude of consumers toward the extended brand. Subsequent replications (Sunde & Brodie, 1993; Nijssen & Hartman, 1994; Bottomley & Doyle, 1996) have yielded inconsistent results, indicating that attitude formation constructs remain elusive. Related studies (Park, Milberg & Lawson, 1991; Brozniarczyk & Alba, 1994; Roux, 1995) incorporated additional concepts into brand extension research, but have failed to clarify which constructs are important to consumer attitude formation. 3. VARIABLE OF STUDY There are total five variables of this study these are: BRAND IMAGE Brand image is the current view of the consumers about a brand. It can be defined as a unique bundle of associations within the minds of target consumers. BRAND TRUST This is the emotion of security held by the consumer in his/her interaction with the brand, that it is based on the perceptions that the brand is reliable and responsible for the interests and welfare of the consumer. BRAND AFFECT Brand affect is defined as the potential in a brand to elicit a positive emotional response in the average consumer as a result of its usage ADVERTISING Advertising is a form of communication for marketing and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. BRAND EXTENSION ATTITUDE When the new extension is launched, consumers evaluate it on the basis of their attitude towards the parent brand and the extension category. If a consumer does not know the parent brand and its products at all, she will evaluate the new extension solely on the basis of her experience with the extension category BRAND LOYALTY Brand loyalty can be defined as relative possibility of consumer shifting to another brand in case there is a change in product s features, price or quality. As brand loyalty increases, consumers will respond less to competitive moves and actions. Brand loyal consumers remain committed to the brand, are willing to pay higher price for that brand, and will promote their brand always. 4. OBJECTIVES a. To established out causal effect relationship between Brand Image, Brand Trust, Brand Affect and Advertising b. To established causal effect relationship between Advertising and Brand Extension Attitude, Brand Loyalty c. To established causal effect relationship between Brand Image, Brand Trust, Brand Affect and Brand Extension Attitude d. To established causal effect relationship between Brand Image, Brand Trust, Brand Affect and Brand Loyalty 25

4 5. RESEARCH METHODOLOGY (A) DATA COLLECTION; i. The primary data has been collected with the help of questionnaire and personal interviews of shop owners as well as consumers. Questionnaire has been prepared to know the advertising effectiveness of branding. Some questions will be close ended with multiple choices to save the time. While some are open ended questions. The sample size is 200 questionnaires distribute and 193 were returned with proper response hence the valid sample size for this research is 193. Likert type scale has been used in questionnaire. ii. The secondary data has been obtained from different sources as published research papers, books, articles, television news. (B) STATISTICAL ANALYSIS: Statistical analysis of obtained data has been done with the help of SPSS software. 6. FINAL RESEARCH MODEL Table Reliability Measurement It is considered that the reliability value more than 0.7 is good and it can be seen in table that almost the reliability values is quite higher than the standard value. Hence all items in the questionnaire are highly reliable. NORMALITY ANALYSIS The table below presents the results from two wellknown tests of normality, namely the Kolmogorov- Smirnov Test and the Shapiro-Wilk Test. 7. DATA ANALYSIS & RESULTS The responses of respondent were collected on a 1 to 5 Likert type scale for all the six variables. Need to be analysis by the using of different types of statistical analysis and generate final results. RELIABILITY MEASUREMENT Reliability Analysis for All Items The Cronbach s Alpha, Split Half, Guttman, Parallel and Strict Parallel tests for reliability had been applied to calculate reliability of all items of all variables from the questionnaire. Data Was Normally Distributed tested through insignificant value of K-S and Shapiro-Wilk for all six variables the P values of entire table are greater than level of significance. (P>.05 = normally distribute) and (P<.05 Not Normal). Hence the data is normal and there is no outliers exist in data. REGRESSION ANALYSIS LINEAR REGRESSION BETWEEN BRAND IMAGE, BRAND TRUST, BRAND AFFECT AND ADVERTISING In this analysis we are taking the sum of all variable i.e. brand image brand trust, brand affect as independent variables and advertising as a depended variable. 26

5 H 0 1. There is no significant impact of brand image on advertising (Null) H 0 2. There is no significant impact of brand trust on advertising (Null) H 0 3. There is no significant impact of brand affect on advertising (Null) Results: According to R 2 Value i.e indicating that 72.4% Brand Image affects directly to Advertising. And Similarly R 2 Value i.e indicating that brand trust 65.9% affects to Advertising directly and finally R 2 Value i.e indicating that 55.5% brand affect impact to advertising. Overall brand image, brand trust, brand affect have positive relationship between advertising. LINEAR REGRESSION BETWEEN ADVERTISING AND BRAND LOYALTY and BRAND EXTENSION ATTITUDES In this analysis we are taking the sum of all variable i.e. advertising as independent variable and brand loyalty and brand extension attitude as depended variables. H 0 4. There is no significant impact of advertising on brand loyalty (Null) H 0 5. There is no significant impact of advertising on brand extension attitude (Null) Similarly R 2 Value i.e indicating that advertising 73.5% also affects to brand extension attitude. Overall advertising have positive relationship between brand loyalty and brand extension attitude. LINEAR REGRESSION BETWEEN BRAND IMAGE, BRAND TRUST, BRAND AFFECT AND BRAND LOYALTY, BRAND EXTENSION ATTITUDE In this analysis we are taking the sum of all variable i.e. advertising as independent variable and brand loyalty and brand extension attitude as depended variables. H 0 6. There is no significant impact of brand image on brand loyalty (Null) H 0 7. There is no significant impact of brand trust on band loyalty (Null) H 0 8. There is no significant impact of brand affect on brand loyalty (Null) H 0 9. There is no significant impact of brand image on band extension attitude (Null) H There is no significant impact of brand trust g on brand loyalty (Null) H There is no significant impact of brand affect on brand extension loyalty (Null) Results: According to R 2 Value i.e indicating that 83.8% advertising directly to Brand Loyalty and The obtain value of R 2 Value i.e at level of significance indicating that there is brand image affect 52.5% to brand loyalty, another R 2 Value i.e at level of significance indicating that there is brand trust affect 57.3% to brand loyalty and 27

6 last R 2 Value i.e at level of significance indicating that there is brand affect have positive 50.0% relationship to brand loyalty. Rest of R 2 values i.e for brand image, for brand trust and for brand affect have positive relationship al the level of sig indicating that 49.9% brand image affected to brand extension attitude, and 45.3% affected brand trust to brand extension attitude and 53.3% affected brand affect to brand extension attitude. Hence the null hypotheses 06.07, ,11 have been rejected. 8. CONCLUSION The findings of this study are: all six variables were found to be consistent reported reliability more than 0.7 in all the cases. An impact of variables such as brand trust, image and affect and control variables such as advertising on brand loyalty and brand extension attitude was studied. Since, most of the brands keep on launching their new products. In this research we have tried to find out whether the image, trust and affectivity towards brand also influence the consumer to but its extension. Regression analysis were prove that there brand trust, brand image, and brand affect have positive relationship between advertising and advertising have positive relationship between brand loyalty and brand extension attitude, values of F & T found very high in all case and indicating that strongly relationship between advertising it mean advertising play mediating role between brand trust, brand image, and brand affect and brand loyalty and brand extension attitude. 9. REFERENCES Aaker, D. A. 1991, Managing Brand Equity, New York: The Free Press. Aaker, D.A.; Keller, K.L. 1990, Consumer Evaluations of Brand Extensions, Journal of Marketing, Vol. 54, No. 1, pp Berry, L. L. 1993, Playing Fair in Retailing, Arthur Anderson Retailing Issues Newsletter March, 5, 2 Berry, L. L. and. Parasuraman, A.A. 1991, Marketing Services: Competing Through Quality. New York, NY: Free Press. Blackston, Max 1992, A Brand with an Attitude: A Suitable Case for the Treatment, Journal of the Market Research Society, 34 3, Bottomley, P.A.; Doyle, J.R The Formation of Attitudes Towards Brand Extensions: Testing and Generalising Aaker and Keller s Model, International Journal of Research in Marketing, Vol. 13, No. 4, pp Brown, G. H. 1952, Brand loyalty-fact or fi ction, Advertising Age, 23, Brozniarczyk, S.M.; Alba, J.W. 1994, The Importance of the Brand in Brand Extensions, Journal of Marketing Research, Vol. 31, pp Chaudhari, Arjun and Holbrook, Morris B. ; 2002, How Brand Reputation Affects the Advertising-Brand Equity Link, Journal of Advertising Research, 42 3, 33 Chaudhuri A. Holbrook M.B 2001, The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing 2001; 65 April: Chaudhuri Arjun & Holbrook Morris 2001, The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 652, Chen, A. C, 2001, Using free association to examine the relationship between,the characteristics of brand associations and brand equity, Journal of product and brand management, 107,

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