CHAPTER 9 RESEARCH HYPOTHESES: HYPOTHESIS 1 AND HYPOTHESIS 2

Transcription

1 CHAPTER 9 RESEARCH HYPOTHESES: HYPOTHESIS 1 AND HYPOTHESIS Background of Hypothesis 1: Brand is an identity any product or services. Brand helps the consumers to categorize the product as low priced, high priced, low quality or high quality etc. In an increasingly complex world, individuals and business are faced with more and more choices but seemingly have less and less time to make those choices. The ability of a strong brand to simplify consumer decision making, reduce risk, and set expectation is thus invaluable. With the help of brand name consumers can find out what type of product they were looking. According to Keller (2001), establishing proper brand identity, creating brand meaning through strong favorable and unique brand association, eliciting positive brand responses and creating brand relationship with customers that characterizes intense Loyalty finally lead to the development of six brand building blocks, namely brand salience, Brand Preference, Brand Imagery, Brand Judgment, Brand Feelings and brand resonance. Brand managers consider the last building block most important as they feel that high Brand Resonance would lead to high Loyalty. Many researchers like (Aaker 1991; Assael 1998; Beatty and Kahle 1988; Jacoby and Chestnut 1978) have worked on Brand Loyalty stating that Brand Loyalty includes some degree of predisposition commitment towards a brand. Again several authors have tried to prove relationship between Brand Loyalty and other factors like trust and affect. Current literature on research indicates that marketers could be more certain 152

2 about the Brand Loyalty of consumers if two dimensions are strongly indicated namely behavioural Loyalty and Attitudinal Loyalty (Choudhuri and Holbrook 2001). If consumers purchase a brand repeatedly without attachment it is then called behavioural Loyalty. Generally behavioural Loyalty deals with the aspects like intention to buy, re-ordering etc. and Attitudinal Loyalty includes advocating the brand to others, top of mind awareness, trust, psychological trust and propensity to pay a Premium. When a consumer purchases repeatedly and with attachment then the consumer is both behaviorally and attitudinally loyal (Agarwal, 2009). According to Keller (1998) the bottom line is that repeat buying is a necessary, but not sufficient condition being a brand loyal buyer in an attitudinal sense. In other words, someone can repeat-buy but not be brand loyal in a literal sense. Under these circumstances it is important to prove the following hypotheses: H 1 : Brand Trust is positively related to both (a) Purchase Loyalty and (b) Attitudinal Loyalty.. Testing of Hypothesis 1 Durables: To test our first hypothesis, H 1 : Brand Trust is positively related to both (a) Purchase Loyalty and (b) Attitudinal Loyalty, the Brand Trust scale has been estimated by averaging consumer responses regarding L.G. and Godrej from the four statements: (i) I trust this brand (ii) I rely on this brand (iii)this is an honest brand (iv)this brand is safe. 153

3 The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). The reliability of this Brand Trust Index L.G. has been found to be high as Cronbach s is i.e. higher than traditional cut off of 0.60 as defined by Nunnally (1978).This has also been done Godrej and the reliability of the scale has also been found to be satisfactory as Cronbach s is Table 9.1: Brand Trust Index L.G. and Godrej: Statement Score (For Cronbach s Score Cronbach s L.G.) (For (For (For L.G.) Godrej) Godrej) I trust this brand I rely on this brand This is an honest brand This brand is safe Average score Purchase Loyalty Index (PL) and Attitudinal Loyalty Index (AL) are used as independent variables to test the first hypothesis.the Purchase Loyalty Index has been estimated by averaging consumer responses regarding L.G. and Godrej from the following four statements: I will buy this brand next time I buy. I intend to keep purchasing this brand. I am committed to this brand. I would be willing to pay higher price this brand over other brands. 154

4 The Attitudinal Loyalty Index has been calculated averaging consumer responses regarding L.G. and Godrej from the following four statements: I feel good when I use this brand. This brand makes me happy. This brand gives me pleasure. The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). The reliability of Attitudinal Loyalty Index both L.G. and Godrej has been found to be high, as Cronbach s being and respectively (Nunnally, 1978). Table 9.2: Purchase Loyalty Index and Attitudinal Loyalty Index L.G. and Godrej: Statement Purchase Loyalty Score (For Cronbach s Score (For Cronbach s L.G.) Godrej) (For (For L.G.) Godrej) I will buy this brand next time I buy I intend to keep purchasing this brand I am committed to this brand I would be willing to pay higher price this brand over other brands Average score Statement Attitudinal Loyalty I feel good when I use this brand This brand makes me happy This brand gives me pleasure Average score

5 By perming multiple regression analysis by using Brand Trust Index of L.G. as dependent variable and corresponding Purchase Loyalty Index and Attitudinal Loyalty Index as independent variables, it has been found that R=0.628 implying medium correlation existing among the variables. The multiple regression relationship has been found to be significant (F= , p ). R 2 = 0.39, which state that influences of Purchase Loyalty index and Attitudinal Loyalty index on Brand Trust being 39%. The adjusted R 2 is equal to which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. From the table 9.3.1, it is clear that in case of Global brand L.G. the intercept is equal to and is found to be significant at 5% level, implying that L.G. has a high Brand Trust, even in the absence of Attitudinal Loyalty and Purchase Loyalty. The D.W. values which represents, serial correlation test, which is equal to As by the rule of thumb, if D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. The multiple regressions have been found to be significant thus supporting the first hypothesis. Further the beta coefficient of Attitudinal Loyalty Index is (p 0.00) and the beta coefficient of Purchase Loyalty Index is (p 0.005). It can be inferred that both Attitudinal Loyalty and Purchase Loyalty have significant relationship with Brand Trust and in fact Attitudinal Loyalty is having a greater influence than Purchase Loyalty. 156

6 Multiple Regression Tables Attitudinal Loyalty and Purchase Loyalty on Brand Trust Global brand (L.G.) and Indian brand (Godrej) Table 9.3.1: For Global Brand L.G. (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Unstandardized Coefficients Standardize Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty LG average of purchase loyalty LG 157

7 Similarly by perming multiple regression analysis by using Brand Trust Index of Godrej as dependent variable and corresponding Purchase Loyalty Index and Attitudinal Loyalty Index as independent variables, it has been found that R=0.700 implying medium correlation among the variables. Influences of Purchase Loyalty Index and Attitudinal Loyalty Index on Brand Trust have been found to be 49%. The adjusted R 2 is equal to which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. The D.W. values which represents, serial correlation test, which is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. From the table 9.3.2, it is clear that in case of the Indian brand Godrej the intercept is equal to and is found to be significant at 5% level, implying that Godrej has a high Brand Trust, even in the absence of Attitudinal Loyalty and Purchase Loyalty. The beta coefficient of Attitudinal Loyalty Index is (p 0.00) and the beta coefficient of Purchase Loyalty Index is (p 0.004). It can be inferred that both Attitudinal Loyalty and Purchase Loyalty have significant relationship with Brand Trust and in fact Attitudinal Loyalty is having a greater influence than Purchase Loyalty. Hence the present findings support the first hypothesis that Durable goods Brand Trust is positively related to (a) Purchase Loyalty and (b) Attitudinal Loyalty. 158

8 Table For Indian Brand Godrej (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Godrej average of purchase loyalty Godrej 9.3: Testing of Hypothesis 1 FMCG: As discusses earlier in Chapter 3, the detergent powder marketers namely HUL and PG India segmented the Indian market on the basis of three price categories: Popular Mid Priced, and 159

9 Premium segment Based on the market shares, the following detergent brands have been selected testing hypothesis 1 - Surf Excel, Ariel, Tide, Henko, Ghari, Nirma and Rin. The Brand Trust Index has been estimated the different Global and Indian detergent brands by averaging consumer responses regarding the following four statements: I trust this brand I rely on this brand This is an honest brand This brand is safe. The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). Cronbach s s have been estimated Brand Trust Index of the seven brands separately. The Cronbach s of Ariel s 0.995,Surf Excel s 0.992, Tide s 0.998, Henko s 0.995, Rin s 0.997, Ghari s and Nirma s establishing that reliability of Brand Trust Index each brand being much higher than the acceptable level of Cronbach s of 0.60 ( Nunnally, 1978). Table 9.4: Brand Trust Index Premium Segment (Ariel and Surf Excel): Statement Score Chronbach s Score Chronbach s Ariel Surf Excel Ariel Surf Excel I trust this brand I rely on this brand This is an honest brand

10 This brand is safe Average score Table 9.5: Brand Trust Index Mid Priced Segment (Tide, Rin and Henko): Statement Score Chronbach s Score Chronbach s Score Chronbach s Rin Tide Tide Rin Henko Henko I trust this brand I rely on this brand This is an honest brand This brand is safe Average score Table 9.6: Brand Trust Index Popular Segment (Ghari and Nirma): Statement Score Chronbach s Score Chronbach s Ghari Nirma Ghari Nirma I trust this brand

11 I rely on this brand This is an honest brand This brand is safe Average score Again Purchase Loyalty Index (PL) being estimated by averaging consumer responses regarding the following five statements: I will buy this brand next time I buy. I intend to keep purchasing this brand. I am committed to this brand I would be willing to pay higher price this brand. I will miss the brand if it disappears. The Attitudinal Loyalty Index (AL) also estimated by averaging consumer responses regarding the following three statements: I feel good when I use this brand. This brand makes me happy. This brand gives me pleasure. Table 9.7: Attitudinal and Purchase Loyalty Index the Premium Segment (Ariel and Surf Excel): Statement Purchase Loyalty Score Chronbach s Score Chronbach s Ariel Surf Ariel Excel Surf Excel I will buy this brand next time I

12 buy I intend to keep purchasing this brand I am committed to this brand I would be willing to pay higher price this brand I will miss the brand if it disappears Statement Attitudinal Loyalty Score Chronbach s Score Chronbach s Ariel Surf Ariel Excel Surf Excel I feel good when I use this brand This brand makes me happy This brand gives me pleasure Table 9.8: Attitudinal and Purchase Loyalty Index the Mid Priced segment (Tide, Rin and Henko): Statement Purchase Score Chronba Score Chronba Score Chronbac Loyalty Tide ch s ch s h s Rin Henko Tide Rin Henko I will buy this brand next time I buy 163

13 I intend to keep purchasing this brand I am committed to this brand I would be willing to pay higher price this brand over other brands I will miss the brand if it disappears Statement Score Chronba Score Chronba Score Chronbac Attitudinal Loyalty Tide ch s ch s h s Rin Henko Tide Rin Henko I feel good when I use this brand This brand makes me happy This brand gives me pleasure Table 9.9: Attitudinal and Purchase Loyalty Index the Popular segment (Ghari and Nirma): Statement Purchase Score Chronbach s Score Chronbach s Loyalty Ghari Ghari Nirma Nirma 164

14 I will buy this brand next time I buy I intend to keep purchasing this brand I am committed to this brand I would be willing to pay higher price this brand over other brands I will miss the brand if it disappears Statement Attitudinal Score Chronbach s Score Chronbach s Loyalty Ghari Ghari Nirma Nirma I feel good when I use this brand This brand makes me happy This brand gives me pleasure Analysis Premium Detergent Brands: Multiple regression analysis has been carried out in order to test Hypothesis 1 by using Brand Trust Index as dependent variable, Purchase Loyalty Index and Attitudinal Loyalty Index as independent variables. (i) By perming multiple regression analysis Ariel, it has been found that R=0.985 implying high correlation existing between Brand Trust Index with the two independent variables i.e Purchase Loyalty Index and Attitudinal Loyalty Index. 165

15 The value of adjusted R 2 is which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. However only the Attitudinal Loyalty Index (β = 0.639, p 0.00) has been found to be significant (at 5% level of significance) and contributing to the relationship. It can be inferred that Attitudinal Loyalty have significant relationship with Brand Trust but Purchase Loyalty is not having any influence Brand Trust in case of Ariel. Multiple Regression Analysis Premium Detergent Brands: Table : For Ariel (Hypothesis 1): R R Square Adjusted R Square Std. Error of the Estimate Durbin- Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Ariel average of purchase loyalty Ariel 166

16 (ii) Similarly the multiple regression analysis in case of Surf Excel finds R = 0.984, thus indicating very high correlation among the variables. The value of adjusted R 2 is which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. The D.W. value Surf excel is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. Both the Attitudinal Loyalty Index (β = 0.797, p 0.00) and Purchase Loyalty Index (β = 0.492, p 0.00) are found to be significant at 5% level of significance. However the impact of Attitudinal Loyalty Index seems to be moderately higher than Purchase Loyalty Index (β = > β = 0.492). Table : For Surf excel (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of

17 attitudinal loyalty Surf excel average of purchase loyalty Surf excel Analysis Mid-Priced Detergent Brands: Perming multiple regression analysis the mid priced detergent brands, it has been found that the brands Tide, Rin and Henko are having high correlation among the measuring variables with R = 0.978, R= and R =0.901 respectively. The value of adjusted R 2 these three brands are 0.977, and respectively which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. For the brand Tide, the Attitudinal Loyalty Index (β = 0.248, p 0.00) and Purchase Loyalty Index (β = 0.745, p 0.00) have been found to be significant at 5% level, hence positively contributing towards the relationship between Brand Trust with Purchase and Attitudinal Loyalty. It is important to note that Tide, impact of Purchase Loyalty Index is much higher than Attitudinal Loyalty Index (β = > β = 0.248). Similarly the brand Henko, Attitudinal Loyalty Index (β = 0.646, p 0.00) and Purchase Loyalty Index (β = 0.272, p 0.00) have been found to be significant at 5% level of significance, but impact of Attitudinal Loyalty Index is high compared to Purchase Loyalty Index (β = > β = 0.272). For the brand Rin, both the Attitudinal Loyalty Index (β = 0.458, p 0.00) and Purchase Loyalty Index (β = 0.892, p 0.00) are also found to be 168

18 significant at 5% level of significance. However the impact of Purchase Loyalty Index seems to be higher than Attitudinal Loyalty Index (β = > β = 0.458). Thus the Hypothesis 1 only holds true the brand Tide, Henko and Rin in the Midpriced Segment of Detergent. Multiple Regression Analysis Mid-Priced Detergent Brands Table : For Tide (Hypothesis 1): R R Square Adjusted R Square Std. Error of the Estimate Durbin- Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Tide average of purchase loyalty Tide 169

19 The D.W. values which represents, serial correlation test, which is equal to the detergent brand Tide. As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. Table : For Rin (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Rin average of purchase loyalty Rin 170

20 The D.W. value the detergent brand Rin is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. Table : For Henko (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Henko average of purchase loyalty Henko 171

21 The D.W. value the detergent brand Henko is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. Analysis Popular Brand of Detergents: Multiple Regression Analysis has been done the Popular brands Nirma and Ghari by using the same dependent variable and independent variables. The findings highlight that R = Nirma and R = Ghari implying high correlation among Brand Trust and the two independent variables Attitudinal Loyalty Index and Purchase Loyalty Index. The value of adjusted R 2 Nirma and Ghari are and respectively which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Trust. Both the Attitudinal Loyalty Index (β = 0.681, p 0.00) and Purchase Loyalty Index (β = 0.310, p 0.00) are found to be significant at 5% level of significance. However the impact of Attitudinal Loyalty Index seems to be moderately higher than Purchase Loyalty Index (β = > β = 0.310) Nirma. The D.W. value the detergent brand Nirma is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. 172

22 Multiple Regression Analysis Popular Brand Detergents: Table : For Nirma (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Nirma average of purchase loyalty Nirma Surprisingly the brand Ghari has R= indicating medium relationship of Brand Trust Index with Purchase and Attitudinal Loyalty Index. Again both Attitudinal Loyalty Index (β = 0.352, p 0.170) and Purchase Loyalty 173

23 Index (β = 0.226, p 0.121) have been found to be insignificant explaining that these two independent variables have no impact on Brand Trust. The D.W. values which represents, serial correlation test, the brand Ghari lies between 1 and 2. As by the rule of thumb, if D.W. value is less than 2, we may expect some kind of serial positive correlation. Table : For Ghari (Hypothesis 1): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) average of attitudinal loyalty Ghari average of purchase loyalty Ghari 174

24 From the above analysis FMCG, it has been found that the intercept value is insignificant at 5% level, implying that the influence of Brand Trust is not significant in the absence of Attitudinal Loyalty and Purchase Loyalty. 9.4 Conclusion Hypothesis1: The first hypothesis 1 examines the impact of Attitudinal Loyalty and Purchase Loyalty on Brand Trust. The result of multiple regression analysis shows that both Global and Indian brand under Durable sector, the influence of Attitudinal Loyalty and Purchase Loyalty on Brand Trust has a positive relation. Hence our findings support our hypothesis that Durable goods Brand Trust is positively related to (a) Purchase Loyalty and (b) Attitudinal Loyalty. Further Attitudinal Loyalty is having a greater influence than Purchase Loyalty in case of both Global brand and the Indian brand in the Durable sector. Similarly the FMCG sector, the result of multiple regression analysis all the brands shows that both Global and Indian brand under FMCG sector, the influence of Attitudinal Loyalty and Purchase Loyalty on Brand Trust is positive supporting our hypothesis. Except the Global brand Ariel, where Purchase Loyalty is not significant on Brand Trust, and the brand Ghari, study could not find any relationship of Brand Trust with Attitudinal and Purchase Loyalty. Further Attitudinal Loyalty is having a greater influence than Purchase Loyalty in case of both Global brand and Indian brand in the FMCG sector Premium detergent brands. Purchase Loyalty is having a greater influence than Attitudinal Loyalty in case of both Global brand and Indian brand in the FMCG sector under Mid Price Segment except 175

25 Henko, where Attitudinal Loyalty is having a greater influence than Purchase Loyalty. Further Attitudinal Loyalty is having a greater influence than Purchase Loyalty the brand Nirma and it is insignificant the brand Ghari. The study supports the findings of following literature: Tolba and Hassan (2009) found that (by using Aaker s model of CBBE, 1991), Attitudinal Loyalty and Satisfaction are the primary drivers of Brand Preference and Intention to re purchase among brand users. This is an important finding companies that need to emphasize Loyalty programmes and after sales services, specially in a luxury market, where brand switching is high. This study provides a link between CBBE and Brand Market Perofrmance. Chaudhuri and Holbrook, (2001), found that Purchase Loyalty leads to greater market share and Attitudinal Loyalty leads to higher relative market price the brand. They also found that there exists a relationship between Brand Trust with Attitudinal Loyalty and Purchase Loyalty, supporting our hypothesis. 176

26 Analysis of Hypothesis 2: 9.5: Background of Hypothesis 2: In the context of maintaining brand relationships, the emotional determinants of Brand Loyalty or commitment need to be considered separately. Gundlach, Achrol, and Mentzer (1995) suggest that commitment is associated with positive affect and that though this may prevent the exploration of other alternatives in the short run, steady customer benefits are likely to accrue from such affective bonding in the long run. In particular, these authors view such a relationship or "affective attachment" (pp. 79) to be most beneficial in uncertain environments. Choudhuri and Holbrook (2001) stated that a positive relationship between Brand Affect and brand commitment or Loyalty is further predicated on the ties between positive emotional feelings and close interpersonal relationships (Berscheid 1983, cited by Choudhuri and Holbrook 2001). In this connection, Berscheid (1983) isolates two critical aspects of a close emotional relationship- namely, the magnitude of the affect (intensity) and its hedonic sign (positive/negative). Choudhuri and Holbrook (2001) suggest that the close relationship of a brand with its consumers (i.e., commitment) also tends to reflect the level of positive affect generated by that brand. Strong and positive affective responses will be associated with high levels of brand commitment. According to Dick and Basu (1994), affect is a descriptor of a valenced feeling state which influences Brand Loyalty in terms of both attitudinal and Purchase Loyalty. Positive emotional mood or affect enhances Brand Loyalty. Under these circumstances, it is very important to establish the following hypothesis the Indian consumer Durable market. 177

27 H 2 : Brand Affect is positively related to both (a) Purchase Loyalty and (b) Attitudinal Loyalty. 9.6: Testing of Hypothesis 2 Durables: To test the second hypothesis, i.e, H 2 : Brand Affect is positively related to both (a) Purchase Loyalty and (b) Attitudinal Loyalty, Brand Affect index has been estimated by averaging consumer responses regarding L.G. and Godrej from the four statements in five point rating scale (1= strongly disagree, 5= strongly agree) on the following statements : 1. This is the best quality brand 2. This brand is very Popular. 3. I will recommend this brand to others 4. This brand is very unique. The reliability of this Brand Affect index has also been found to be high and acceptable both L.G. and Godrej, i.e. higher than traditional cut off of 0.60 as defined by Nunnally (1978) with Cronbach s of L.G. and Godrej respectively. Table 9.13: Brand Affect index of L.G. and Godrej Statement Score (For Cronbach s Score Cronbach s L.G.) (For (For (For L.G.) Godrej) Godrej) This is the best quality brand

28 This brand is very Popular I will recommend this 3.56 brand to others This brand is very unique Average score Purchase Loyalty Index (PL) and Attitudinal Loyalty Index (AL) are used as independent variables to test the second hypothesis. The reliability of Purchase Loyalty Index both L.G. and Godrej has been found to be high, as Cronbach s being and respectively (Nunnally, 1978). The Purchase Loyalty Index has been estimated by averaging consumer responses regarding L.G. and Godrej from the following four statements: I will buy this brand next time I buy. I intend to keep purchasing this brand. I am committed to this brand. I would be willing to pay higher price this brand over other brands. The Attitudinal Loyalty Index has been calculated averaging consumer responses regarding L.G. and Godrej from the following four statements: I feel good when I use this brand. This brand makes me happy. This brand gives me pleasure. 179

29 The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). The reliability of Attitudinal Loyalty Index both L.G. and Godrej has been found to be high, as Cronbach s being and respectively (Nunnally,1978). By perming multiple regression analysis by using Brand Affect index of L.G. as dependent variable and corresponding Purchase Loyalty index and Attitudinal Loyalty index as independent variables, it has been found that R=0.631 implying medium correlation existing among the variables.influences of Purchase Loyalty and Attitudinal Loyalty on Brand Affect have been found to be 39.8 %. The value of adjusted R 2 L.G. is which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Affect. The D.W. values LG which represents, serial correlation test, which is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. From the table , it is clear that in case of Global brand L.G. the intercept is equal to and is found to be significant at 5% level, implying that L.G. has a high Brand Affect, even in the absence of Attitudinal Loyalty and Purchase Loyalty. The beta coefficient of Attitudinal Loyalty is (p 0.000) and the beta coefficient of Purchase Loyalty is (p 0.000). It can be inferred that both Attitudinal Loyalty and Purchase Loyalty have significant relationship with Brand Affect and in fact Purchase Loyalty is having a greater influence then Attitudinal Loyalty. Hence our findings support our hypothesis that Durable goods Brand Affect is positively related to (a) Purchase Loyalty and (b) Attitudinal Loyalty 180

30 Multiple regression tables Attitudinal Loyalty and Purchase Loyalty on Brand Affect L.G. and Godrej Table : For LG (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty LG Purchase Loyalty LG Similarly by perming multiple regression analysis by using Brand Affect Index of Godrej as dependent variable and corresponding Purchase Loyalty Index and Attitudinal Loyalty Index as independent variables, it has been found that R=

31 implying medium correlation among the variables. Influences of Purchase Loyalty Index and Attitudinal Loyalty Index on Brand Affect have been found to be 19.8% only. The value of adjusted R 2 Godrej is which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Affect. The D.W. value Godrej is equal to As the D.W. value is more than 2, we expect the regression to be adequate as there is absence of serial positive correlation. From the table , it is clear that in case of Godrej the intercept is equal to and is found to be significant at 5% level, implying that Godrej has a high Brand Affect, even in the absence of Attitudinal Loyalty and Purchase Loyalty. The beta coefficient of Attitudinal Loyalty Index is (p 0.00) and the beta coefficient of Purchase Loyalty Index is (p 0.003). It can be inferred that both Attitudinal Loyalty and Purchase Loyalty have significant relationship with Brand Affect. Hence the present findings support the second hypothesis that Durable goods Brand Affect is positively related to (a) Purchase Loyalty and (b) Attitudinal Loyalty. Table : For Godrej (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression

32 Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Godrej Purchase Loyalty Godrej Hence from the above analysis, we can infer that Brand Affect is positively associated with both Attitudinal Loyalty and Purchase Loyalty the Durable sector supporting our second hypothesis. 9.7: Testing of Hypothesis 2 FMCG: To test hypothesis H 2, Brand Affect is taken as the dependent variable. Brand Affect (BA) Index has been estimated the different Global and Indian detergent brands by averaging consumer responses regarding the following four statements: 1. This is the best quality brand 2. This brand is very popular 3. I will recommend this brand to others 4. This brand is very unique. The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). Cronbach s s have been estimated Brand Affect Index of the seven brands separately. The Cronbach s of Ariel s

33 ,Surf Excel s 0.993, Tide s 0.994, Rin s 0.993, Henko s 0.994, Ghari s and Nirma s establishing that reliability of Brand Affect Index each brand being much higher than the acceptable level of Cronbach s of 0.60 ( Nunnally, 1978). Table 9.15: Brand Affect index the Premium brand Ariel and Surf excel: Statement Score Chronbach s Score Chronbach s Ariel Surf Excel Ariel Surf excel This is the best quality brand This brand is very Popular I will recommend this brand to others This brand is very unique Table 9.16: Brand Affect Index the Mid Priced Segment (Tide, Rin and Henko): Statement Score Chronbac Score Chronbach s Score Chronbach s Tide h s Rin Tide Rin Henko This is the best

34 quality brand This brand is 0.52 very Popular I will recommend this brand to others This brand is very unique Table 9.17: Brand Affect Index the Popular Segment (Ghari and Nirma): Statement Score Ghari Chronbach s Score Chronbach s Ghari Nirma Nirma This is the best quality brand This brand is very Popular I will recommend this brand to others This brand is very unique

35 Again Purchase Loyalty Index (PL) being estimated by averaging consumer responses regarding the following five statements: I will buy this brand next time I buy. I intend to keep purchasing this brand. I am committed to this brand I would be willing to pay higher price this brand. I will miss the brand if it disappears. The ratings have been based on a five point ratings of agreement, (1= strongly disagree, 5= strongly agree). Cronbach s s have been estimated Purchase Loyalty Index of the seven brands separately. The Cronbach s of Ariel s 0.990,Surf Excel s 0.984, Tide s 0.986, Rin s 0.862, Henko s 0.995, Ghari s and Nirma s establishing that reliability of Brand Affect Index each brand being much higher than the acceptable level of Cronbach s of 0.60 ( Nunnally, 1978). The Attitudinal Loyalty Index (AL) also estimated by averaging consumer responses regarding the following three statements: (i)i feel good when I use this brand. (ii)this brand makes me happy. (iii)this brand gives me pleasure. Similarly, Cronbach s s have been estimated Attitudinal Loyalty Index of all the seven brands separately. The Cronbach s of Ariel s 0.994,Surf Excel s 0.987, Tide s 0.992, Rin s Henko s 0.996, Ghari s and Nirma s

36 establishing that reliability of Brand Affect Index each brand being much higher than the acceptable level of Cronbach s of 0.60 ( Nunnally, 1978). Analysis Premium Detergent Brands: i. Multiple regression analysis has been carried out in order to test Hypothesis 2 by using Brand Affect Index as dependent variable, Purchase Loyalty Index and Attitudinal Loyalty Index as independent variables. ii. The value of adjusted R 2 both Ariel and Surf excel are and respectively which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Affect. iii. The D.W. values are equal to and both Ariel and Surf Excel respectively. As by the rule of thumb, if D.W. value is less than 2, we may expect some kind of serial positive correlation. iv. By perming multiple regression analysis Ariel, it has been found that R=0.993 implying high correlation existing between Brand Affect Index with the two independent variables i.e Purchase Loyalty Index and Attitudinal Loyalty Index. Influences of Purchase Loyalty and Attitudinal Loyalty on Brand Affect have been found to be 98.6 %. Both the Attitudinal Loyalty Index (β = 0.590, p 0.00) and Purchase Loyalty index ( β = 0.407, p 0.00) has been found to be significant (at 5% level of significance) and contributing to the relationship. It can be inferred that both Attitudinal Loyalty and Purchase Loyalty have significant relationship with Brand Affect in case of Ariel. 187

37 Multiple Regression Analysis Premium Detergent Brands: Table : For Ariel (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Ariel Purchase Loyalty Ariel The multiple regression analysis in case of Surf Excel finds R = 0.981, thus indicating very high correlation among the variables. Influences of Purchase Loyalty and Attitudinal Loyalty on Brand Affect have been found to be 96.2 %. Both the Attitudinal Loyalty Index (β = 0.604, p 0.00) and Purchase 188

38 Loyalty Index (β = 0.384, p 0.00) are found to be significant at 5% level of significance. However the impact of Attitudinal Loyalty Index seems to be moderately higher than Purchase Loyalty Index (β = > β = 0.384). Table : For Surf excel (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Surf excel Purchase Loyalty Surf excel 189

39 Analysis Mid-Priced Detergent Brands: Similarly by perming multiple regression analysis the Mid Priced detergent segment, it has been found that the brands Tide, Rin and Henko are having high correlation among the measuring variables with R = 0.984, R =0.992 and R =0.991 respectively. i. The value of adjusted R 2 Tide, Henko and Rin are 0.961, and respectively which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Affect. ii. The D.W. values which represents, serial correlation test, which is equal to 1.904, and 2.09 Tide, Henko and Rin respectively. Hence we may expect some kind of serial positive correlation Tide and as the D.W. value is more than 2 Rin and Henko, we expect the regression to be adequate as there is absence of serial positive correlation. iii. For the brand Tide, the Attitudinal Loyalty Index (β = 0.597, p 0.00) and Purchase Loyalty Index (β = 0.425, p 0.00) have been found to be significant at 5% level, hence positively contributing towards the relationship between Brand Affect with Purchase and Attitudinal Loyalty. It is important to note that Tide, impact of Attitudinal Loyalty Index is slightly higher than Purchase Loyalty Index (β = > β = 0.425). Multiple Regression Analysis Mid Priced Detergent Brands: Table : For Tide (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of df Mean F Sig. 190

40 Squares Square Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Tide Purchase Loyalty Tide Similarly the brand Henko, R= indicating high relationship of Brand Affect Index with Purchase and Attitudinal Loyalty Index. Attitudinal Loyalty Index (β = 0.989, p 0.00) have been found to be significant at 5% level of significance, but the Purchase Loyalty Index (β = 0.001, p 0.985) found to be non significant. It can be inferred that Attitudinal Loyalty have significant relationship with Brand Affect but Purchase Loyalty is not having any influence Brand Affect in case of Henko. Table : For Henko (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. 191

41 Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Henko Purchase Loyalty Henko Similarly the brand Rin, the beta coefficient of Attitudinal Loyalty (β = 0.675, p 0.00) and Purchase Loyalty Index ( β = 0.320, p 0.00) are also found to be significant at 5% level of significance. However the impact of Attitudinal Loyalty Index seems to be higher than Purchase Loyalty Index (β = > β = ). Table : For Rin (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual

42 Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty LG Purchase Loyalty LG Thus the Hypothesis 2 holds true the entire brand Tide, Henko and Rin in the Midpriced Segment of Detergent. Analysis Popular Brand of Detergents: Multiple Regression Analysis has also been done the Popular brands Nirma and Ghari by using the same dependent variable and independent variables. The findings highlight that R = Nirma and R = Ghari implying very high correlation among Brand Affect and the two independent variables Attitudinal Loyalty Index and Purchase Loyalty Index. i. The value of adjusted R 2 Nirma and Ghari are and respectively which states that the second independent variable Purchase Loyalty makes a contribution in explaining the variation in Brand Affect. 193

43 ii. The D.W. values which represents, serial correlation test, which is equal to and Nirma and Ghari respectively. Hence we expect the regression to be adequate as there is absence of serial positive correlation. iii. Both the Attitudinal Loyalty Index (β = 0.716, p 0.00) and Purchase Loyalty Index (β = 0.265, p 0.004) are found to be significant at 5% level of significance the Popular brand Nirma. However the impact of Attitudinal Loyalty Index seems to be much higher than Purchase Loyalty Index (β = > β = 0.265) Nirma. Similarly the brand Ghari has R= indicating high relationship of Brand Affect Index with Purchase and Attitudinal Loyalty Index. Again both Purchase Loyalty Index (β = 0.671, p 0.00) and Attitudinal Loyalty Index (β = 0.330, p 0.00) have been found to be significant explaining that these two independent variables have strong impact on Brand Affect. However the impact of Purchase Loyalty Index seems to be much higher than Attitudinal Loyalty Index (β = > β = 0.330) Ghari. Multiple Regression Analysis Popular Detergent Brands: Table : For Nirma (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total

44 Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal Loyalty Nirma Purchase Loyalty Nirma Table : For Ghari (Hypothesis 2): Adjusted R Std. Error of Durbin- R R Square Square the Estimate Watson Sum of Squares df Mean Square F Sig. Regression Residual Total Standardize Unstandardized Coefficients d Coefficients t Sig. B Std. Error Beta (Constant) Attitudinal

45 Loyalty Ghari Purchase Loyalty Ghari From the above analysis FMCG, it has been found that the intercept value is insignificant at 5% level, implying that the influence of Brand Affect is not significant in the absence of Attitudinal Loyalty and Purchase Loyalty. The D.W. values which represents, serial correlation test, most of the values different FMCG lies between 1 and 2. As by the rule of thumb, if D.W. value is less than 2, we may expect some kind of serial positive correlation. Hence the present findings support the second hypothesis that FMCG goods (both Global and Indian) Brand Affect is positively related to (a) Purchase Loyalty and (b) Attitudinal Loyalty. 9.8 Conclusion Hypothesis 2: The second hypothesis examines the impact of Attitudinal Loyalty and Purchase Loyalty on Brand Affect. The result of multiple regression analysis shows that both Global and Indian brand under Durable sector, the influences of Attitudinal Loyalty and Purchase Loyalty on Brand Affect have positive relation, thus supporting our hypothesis. Similarly the FMCG sector, the second hypothesis examines the impact of Attitudinal Loyalty and Purchase Loyalty on Brand Affect the seven detergent brands which are Global and Indian brands. The result of multiple regression analysis all the brands shows that both Global and Indian brands under FMCG sector, 196

46 the influences of Attitudinal Loyalty and Purchase Loyalty on Brand Affect are positive, thus supporting the hypothesis. Except the Global brand Henko, where Purchase Loyalty has no relationship with Brand Affect. The study supports the findings of following literature: Chaudhuri and Holbrook, (2001), found that there exists a relationship between Brand Affect with Attitudinal Loyalty and Purchase Loyalty, supporting our second hypothesis. 197