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1 Student First Name: Ali Student Second Name: Almakrami Copyright subsists in all papers and content posted on this site. Further copying or distribution by any means without prior permission is prohibited, except for the purposes of non-commercial private study or research, as defined in the Copyright, Designs and Patents Act 1988, or as otherwise authorised by statute. To obtain permission, please contact the author of the relevant paper in the first instance or with details of your request.

2 Modelling Consumer s Brand Perceived Value Abstract The highly brand-driven competitive world today strives to optimise consumer base loyalty and satisfaction. However, an apparent obstacle faced by brand consultancies is how to maximise the value gained by brand consumers in a brand. Ranging from mere economicvalue for money perspective, to the abstract nature of brand symbolism, the literature has presented various frameworks to define consumer value. This research contributes to the field by means of investigation and operationalisation of under-researched value construct; i.e. epistemic value. This paper presents the theoretical and empirical settings of developing the construct. Research background Consumer value has been a very active area of research it is still developing. In a recent report by the renowned Forbes, value is the deal was on the top list of consumer loyalty battle predictors, and hence: Differentiated and believable brand meaning emotional, rational, functional, and experiential becomes a more effective and profitable surrogate for value than low-lower-lowest pricing strategies. But only the consumer gets to say how valuable is actually defined. (Forbes, 2011). From academic point of view, refreshing and novel approaches are called for to cover the breadth of customer value and its richness for marketing implications (Gallarza, Gil- Saura, & Holbrook, 2011). Although various theories have been applied for the measurements of consumer value construct, there is still room for conceptual and operational development (Gallarza et al. 2011). For instance, at brand level, the Consumption Value Theory developed by (Sheth, Newman, & Gross, 1991) is suggested to measure consumer value at a brand level due to its level of comprehensive (Sweeney & Soutar, 2001). The

3 theory suggests that value obtained by consumer from an object is broken down to five dimensions. These include functional, social, emotional, epistemic (knowledge-related), and conditional value. Previous studies have utilised the theory to develop a brand perceived value (Sweeney & Soutar, 2001; Tsai, 2005). However, these studies could not find operational measures for the epistemic value dimension. Hence, this study aims to fill in this void in the academic literature by examining different brand categories in a different context. Saudi Arabia has been selected due its potential strong market for the selected product type, laptop brands. Research aim and objectives In summary, this research aims to: Extend the existing consumers brand perceived value measurement scale and test a conceptual framework aimed at piecing together brand value antecedents, perceived value and consumer-brand engagement. Based on this research aim, the key research objectives are to: 1) develop appropriate constructs and measurement items relating to the notion of epistemic value 2) piece together and validate a hybrid model that contains both brand value antecedents and consequences 3) examine the differentiated weights of value dimensions on consumer loyalty and repurchase intention 4) explore the brand perceptions of consumers from under-researched affluent market, i.e. Saudi Arabia Research philosophy and methodology This research takes on positivist-deductive approaches. Figure 1 presents a schematic representation of the approach which is followed in this doctoral study. The principal study will be carried out by survey questionnaire methods. However, a preliminary qualitative approach is highly demanded when testing western-based theories in culturally distinct

4 contexts (Malhorta, Agarwal, & Peterson, 1996). Therefore, this research concurs with mixed methods technique. Figure 1: Positivist-dedutive process Conceptual framework and research hypotheses Figure 2: The conceptual framework Brand Perceived Leadership Brand Perceived Globalness Brand Perceived Risk Brand Perceived Value Functional Social Emotional Epistemic Repurchase Intention Brand Loyalty Brand Perceived Difficulty Figure 2 presents the hypothetical framework as it supported by relevant branding literature. The research hypotheses are: H1: Brand perceived leadership is positively associated with brand functional, social and epistemic value

5 H2: Brand perceived gloablenss is positively associated with brand functional and social value H3: Brand perceived risk is negatively associated with brand functional, emotional and epistemic value H4: Brand perceived difficulty is negatively associated with brand emotional and epistemic value H5: All brand value dimensions associate positively with brand loyalty, but the pathway via functional value is the most important overall H6: All brand value dimensions associate positively with repurchase intention, but the pathway via social and epistemic value is the most important overall H7: The relationship between repurchase intentions is not reciprocity, i.e. they are independent variables Preliminary study Given that brand value studies conducted in Saudi Arabia and the region are severely rare (Whitelock & Fastoso, 2007), exploratory research was applicable to this study at this stage. Focus group discussions are utilised to fulfil this task and form the preliminary study as suggested by the focal theory and consequent studies (Sheth, Newman, & Gross, 1991; Sweeney & Soutar, 2001). Twenty-four university students were recruited with the help of university professors in city of Jeddah, Saudi Arabia. Four focus groups were conducted, two males and two females (six participants each). The reason behind selecting student samples is that this segment is widely known as the biggest potential consumer segment for electronics, and laptops in particular (Gulek & Demirtas, 2005). The major purpose of conducting this preliminary research in the Saudi context is four-fold. Firstly, it aimed to validate the existing items proposed in the literature to measure a brand value in the Saudi context. Next objective is to develop new items for epistemic and conditional brand value. Epistemic value is related to measures such as brand s capacity to inspire novelty, curiosity and knowledge, whilst conditional value is aligned with specific circumstances facing the choice maker and acquired by endorsing the brand (Sheth et al. 1991). Beside, this exploratory research also intended to further clarify the directional linkages amongst the overall constructs presented in the conceptual framework (see Figure

6 2). Finally, the research also planned to identify suitable laptop brands and relevant attributes to be tested in the principal study. Each focus group lasted between one and one-and-a-half hours. The entire process of all focus group discussions were tape-recorded, transcribed and saved as word files. Findings and Discussion The focus group discussion data was coded and analysed manually. The aim of the coding is to bring together all extracts of data that are pertinent to a particular theme and/or topic (Coffey & Atkinson, 1996). In this section, the findings relating to the four focus groups are presented based on the order of the research objectives. - Validating brand value constructs in the Saudi context In order to further enhance the measures of functional, social, emotional, conditional, and epistemic value, participants were asked to give their opinions regarding the notion of these constructs and the measures that they would use to evaluate the constructs. Participants feedback in terms of functional value was similar to those found in the western literature. However, product-specific attributes were extracted from the discussion as suggested by the focal theory Sheth et al. (1991). On the social value turn, participants emphasise the impact of family, friends, peers and the whole society on perceived brand social value. There is no doubt that this is related to the collectivist nature of the Saudi society (Hofstede, 1991). Finally, less attention is paid, though, to emotional value. Participants find it hard to see these brands as friend-like or having affective bonds with the brands. This result contrasts the popular emotional branding expressed by brand communities and brand-centred relationships in the west (Tsai, 2005). However, participants pose special feelings with regards to security and relaxation, which are two indicators of the emotional value construct (Sweeney & Soutar, 2001). - Developing new items for conditional and epistemic value

7 Sweeney & Soutar (2001) did not find support for the conditional value dimension in an Australian city when testing consumer durables and clothing. In parallel, this study has not found support either. According to the participants, conditional value is too product specific and has little to do at the brand name level. With regards to the epistemic value scale the results were interesting. Participants acknowledged that laptop brands can carry epistemic value, which relates to enhancement of novelty, innovation and knowledge enactment Sheth et al. (1991). Table 1 exhibits sample of participants comments on the epistemic value of laptops at brand level. Table-1 Focus group examples on the epistemic value - Clarifying the directional linkages amongst the overall constructs This part of the research is not trying to work out any casual relationship. However, generally speaking, the hypothetical framework presented in Figure 2 was conceptually supported by the discussion. The recruited students have mentioned frequently that they have chosen their laptop brands because of their superiority in the relevant market (brand leadership). Construct such as brand perceived globalness differentiates the perceived value of brands as well. In terms of brand value dilution, participants find the ease of use (or perceived difficulty) is a major issue in this brand sector. Finally, magnitude of perceived risk accounted for by

8 adopting specific brands due to various sources of loss diminishes the perceived value of brands. - identifying suitable laptop brands and relevant attributes The fourth objective of conducting the exploratory study was to find out the set of brands used by Saudi university students. It has been explored that, alphabetically ordered; Apple, Dell, Hp, Toshiba are the dominant brands in the Saudi student market. Another objective was to define the features that are used by students to evaluate the predefined value dimensions; functional, social, emotional and epistemic value (Consumption Value Theory; Sheth et al. 1991; Sweeney & Soutar, 2001). In this sense, in addition to the epistemic value elements presented in Table 1, similar procedures were followed with other value dimensions. For instance, functional value on laptop brand level was associated to features such as battery life, reliable charger, fast start up, speed download and durability. Alike, social value embraced meanings of universal recognition (when travel) and ability to be distinguishable. Emotional value, in turn, includes notion of respect, longevity and understanding. Those findings will assist in ensuring a user-friendly research instrument which will follow this stage of research. Conclusion The purpose of this paper is to provide a summary of the ongoing doctoral research progress. The focal theory, research aim and objectives, research philosophy and the conceptual framework were first presented. The qualitative part of this research was then described. Findings support the preliminary research objectives in that 1) existing constructs adapted from western brand value literature are holding up with the Saudi context, 2) new items for the epistemic value at brand level are developed, 3) directional pathways presented in the research framework are piecing together, and 4) relevant brands and criteria used by Saudi students to evaluate laptop brands are identified for the use in the principal study. To

9 conclude, this study contributes to the increasing significance of consumer s brand perceived value by operationalsing the epistemic value construct as a major value dimension.

10 References Coffey, A., & Atkinson, P. (1996). Making Sense of Qualitative Data. London: Sage Publications. Forbes. (2011, 12 13). The Brand Keys 12 for 12: brand and marketing trends for Retrieved 12 13, 2011, from Gallarza, M. G., Gil-Saura, I., & Holbrook, M. B. (2011). The value of value: Further excursions on the meaning and role of customer value. Journal of Consumer Behaviour, 10, Gulek, J. C., & Demirtas, H. (2005). Learning With Technology: The Impact of Laptop Use on Student Achievement. The Journal of Technology, Learning, and Assessment, 3(2), Hofstede, G. (1991). Cultures and Organizations: Software of the Mind. London: McGraw- Hill. Malhorta, N. K., Agarwal, J., & Peterson, M. (1996). Methodological issues in cross-cultural marketing research: a state-of-the-art review. International Marketing Review, 13(5), Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why We Buy What We Buy: A Theory of Consumption Values. Journal of Business Research, 22, Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77 (2), Tsai, S.-p. (2005). Utility, cultural symbolism and emotion: A comprehensive model of brand purchase value. International Journal of Research in Marketing, 22 (3), Whitelock, J., & Fastoso, F. (2007). Understanding international branding: defining the domain and reviewing the literature. International Marketing Review, 24 (3),