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FACTORS ASSOCIATED WITH ALCOHOLIC BEVERAGE
PREFERENCE IN SPORTS: A CASE OF RUGBY FANS IN KENYA
BY
OWORA CAMILLA SUMBA
UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA
SUMMER 2019
FACTORS ASSOCIATED WITH ALCOHOLIC BEVERAGE
PREFERENCE IN SPORTS: A CASE OF RUGBY FANS IN KENYA
BY
OWORA CAMILLA SUMBA
A Research Project Submitted to The Chandaria School of Business in
Partial Fulfillment of the Requirement for the Degree of Masters in
Business Administration (MBA)
UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA
SUMMER 2019
ii
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International University-
Africa in Nairobi for academic credit.
Signed: Date:
Owora Camilla Sumba- (School ID number- 635679)
This research project has been presented for examination with my approval as the
appointed supervisor.
Signed: Date:
Dr. Peter Kiriri
Signed: Date:
Dean-Chandaria School of Business
iii
DEDICATION
I would like to dedicate this research project to GOD for giving me the grace to successfully
complete this project in due time and to my loving family and friends.
iv
ACKNOWLEDGEMENT
First and foremost, I would like to thank my loving family, who have been my pillar of
strength throughout my academic life. Many thanks to my siblings who kept me entertained
during sleepless nights and emotional breakdowns as I raced with time to complete this
project. I would also like to thank my friends, colleagues, classmates and lecturers who
constantly encouraged me along the way. Finally, to my supervisor Dr. Peter Kiriri, your
invaluable knowledge and support has been immeasurable, thank you for your patience and
continuous support. May God bless you all!
v
ABSTRACT
The general objective of this study was to establish the factors that are associated with
alcoholic beverage preference in sports: a case of rugby fans in Kenya. The research study
was guided by the following specific objectives; to determine the effect of advertising on
brand preference, to determine the effect of price on brand preference and to determine the
effect of socio-cultural factors on brand preference.
The study adopted a descriptive research design which sought to allow the researcher to
gather information, summarize, analyze, and present the findings to be able to draw
conclusions and finally give insightful recommendations. The target population was 220
rugby fans in Kenya derived from the Kenya Rugby Union’s ticketing department database.
A sample size of 140 respondents was drawn from the target population using simple
random sampling. The main tool used for data collection was a questionnaire which was
administered online using Google forms. Thereafter, the data was cleaned, edited, coded
and entered into the Statistical Package for Social Sciences (SPSS) software, which was
also used to analyze the data. The data was analyzed using descriptive and inferential
statistics techniques to capture the mean, standard deviation, correlation and regression
analysis of the study. Thereafter, the data was presented in the form of graphs, charts and
tables.
It was found that a majority of the respondents were aged 28-32, at 25%. The findings
further revealed that local rugby matches are majorly attended by males at 78% and females
at 22%. The respondents’ occupation status was tied with majority being employed and
self-employed. The findings revealed that advertising has a significant effect on brand
preference with majority of the respondents considering it an important factor when making
decisions on the alcoholic beverage brand to purchase during rugby matches. However, the
messaging played a minor role in influencing their purchase decision. The advertising
media and channels used majorly revealed that there was minimal effect on influencing the
respondents’ brand preference; be it visual, print or online channels. Nonetheless, there is
need for the channels to be used interchangeably so as to reach a larger population and
create more impact. Majority of the respondents were of the opinion that the credibility,
influential power and use of a celebrity or influencer to market the product did not influence
their purchase decision.
vi
The findings further revealed that the respondents’ do not consider price a major factor in
influencing their brand of choice. However, interest becomes more apparent when there is
a discounted offer. Furthermore, the classification of whether the brand is premium based
on the price and the decision to switch to lower priced brands further highlight the
revelation that price was a minimal factor in determining brand preference among rugby
fans in Kenya.
Socio-cultural factors revealed that the most effect was recorded when friends/peers and
family recommend an alcoholic beverage brand, the respondents are more inclined to
purchase it. However, majority of them differ with regards to brand tastes. The decision of
the respondents to purchase an alcoholic beverage brand based on their social class
recorded neutral responses and further disagreed that they are more inclined to purchase
the same in order to fit in a particular social class. Their level of income and preference of
premium brands also elicited neutral responses. Culture, cultural value/beliefs, practices as
factors influencing alcoholic beverage preference recorded strong levels of disagreement.
The study concluded that advertising, price and socio-cultural factors are directly correlated
to brand preference. However, it is important to note that they vary on different levels, some
more than others. Nonetheless, they are important factors to consider with regards to
understanding the preference of alcoholic beverage brands among rugby fans in Kenya.
The study thereafter recommended that there is need to structure the messaging
appropriately and incorporate the use of various media channels to get the adequate and
relevant advertising messaging across taking into consideration that the industry remains
highly competitive, with each trying to outdo the other and capture an increasingly growing
market. Alcoholic beverage manufacturers should continue to price their products as they
are currently in the market and incorporate more discounted offers when marketing their
brands during rugby matches. There is a higher probability of the fans purchasing more of
their products then. Ultimately this will create a sense of top of mind awareness.
Consideration should highly be placed on the togetherness of peers/friends and family
because it creates more inclination for an alcoholic beverage brand to be purchased as
drinking is considered a social activity. While making decisions on alcoholic beverage
brands, it is important to take into consideration the global cultural changes and adapt to
them effectively and efficiently.
vii
TABLE OF CONTENTS
STUDENT’S DECLARATION ..................................................................................................... ii
DEDICATION ............................................................................................................................... iii
ACKNOWLEDGEMENT ............................................................................................................ iv
ABSTRACT .................................................................................................................................... v
LIST OF TABLES ......................................................................................................................... ix
LIST OF FIGURES ........................................................................................................................ x
ACRONYMS AND ABBREVIATIONS ..................................................................................... xi
CHAPTER ONE ............................................................................................................................. 1
1.0 INTRODUCTION .................................................................................................................... 1
1.1 Background of the Study ........................................................................................................ 1
1.2 Statement of the Problem ....................................................................................................... 7
1.3 General Objective ................................................................................................................... 9
1.4 Specific Objectives ................................................................................................................. 9
1.5 Importance of the Study ......................................................................................................... 9
1.6 Scope of the Study ................................................................................................................ 10
1.7 Definition of Terms .............................................................................................................. 11
1.8 Chapter Summary ................................................................................................................. 12
CHAPTER TWO .......................................................................................................................... 13
2.0 LITERATURE REVIEW ...................................................................................................... 13
2.1 Introduction .......................................................................................................................... 13
2.2 The Effect of Advertising on Brand Preference ................................................................... 13
2.3 The Effect of Price on Brand Preference .............................................................................. 24
2.4 The Effects of Socio-Cultural Factors on Brand Preference ................................................ 29
2.5 Chapter Summary ................................................................................................................. 33
CHAPTER THREE ..................................................................................................................... 34
3.0 RESEARCH METHODOLOGY .......................................................................................... 34
3.1 Introduction .......................................................................................................................... 34
3.2 Research Design ................................................................................................................... 34
3.3 Population and Sampling Design ......................................................................................... 35
3.4 Data Collection Methods ...................................................................................................... 37
3.5 Research Procedures ............................................................................................................. 37
3.6 Data Analysis Methods......................................................................................................... 38
3.7 Chapter Summary ................................................................................................................. 39
CHAPTER FOUR ........................................................................................................................ 40
4.0 RESULTS AND FINDINGS .................................................................................................. 40
viii
4.1 Introduction .......................................................................................................................... 40
4.2 Demographic Review ........................................................................................................... 40
4.3 The Effect of Advertising on Brand Preference ................................................................... 44
4.4 The Effect of Price on Brand Preference .............................................................................. 46
4.5 The Effect of Socio-Cultural Factors on Brand Preference .................................................. 48
4.6 Inferential Statistics .............................................................................................................. 50
4.7 Chapter Summary ................................................................................................................. 53
CHAPTER FIVE .......................................................................................................................... 54
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATION ......................................... 54
5.1 Introduction .......................................................................................................................... 54
5.2 Summary .............................................................................................................................. 54
5.3 Discussion ............................................................................................................................ 55
5.4 Conclusion ............................................................................................................................ 60
5.5 Recommendation .................................................................................................................. 61
REFERENCES ............................................................................................................................. 63
APPENDICES .............................................................................................................................. 80
APPENDIX I: RESEARCH LETTER ....................................................................................... 80
APPENDIX II: NACOSTI PERMIT .......................................................................................... 81
APPENDIX 1II: RESEARCH COVER LETTER .................................................................... 83
APPENDIX 1V: RESEARCH QUESTIONNAIRE .................................................................. 84
ix
LIST OF TABLES
Table 3. 1: Results of the Reliability Test of the Study variables ...................................... 38
Table 4. 1: The Effect of Advertising Message on Brand Preference………………….... 45
Table 4. 2: The Effect of Advertising Media on Brand Preference ................................... 45
Table 4. 3: The Effect of Advertising Source on Brand Preference .................................. 46
Table 4. 4: The Effect of Market Penetration Pricing on Brand Preference ...................... 47
Table 4. 5 The Effect of Psychological Pricing on Brand Preference ............................... 47
Table 4. 6: The Effect of Competitive Pricing on Brand Preference ................................. 48
Table 4. 7: The Effect of Peers, Friends, Family on Brand Preference ............................. 48
Table 4. 8: The Effect of Role of Status on Brand Preference .......................................... 49
Table 4. 9: The Effect of Culture on Brand Preference ..................................................... 50
Table 4. 10: Correlation between Factors and Brand Preference ...................................... 51
Table 4. 11: Regression Analysis Summary ...................................................................... 51
Table 4. 12: Anova Test ..................................................................................................... 52
Table 4. 13: Regression of Coefficient .............................................................................. 53
x
LIST OF FIGURES
Figure 4. 1: Respondent’s Age........................................................................................... 40
Figure 4. 2: Respondents’ Gender Distribution ................................................................. 41
Figure 4. 3: Respondents’ Occupation Status .................................................................... 41
Figure 4. 4: Respondent’s Alcohol Consumption .............................................................. 42
Figure 4. 5: Respondents’ Frequency of Alcohol Consumption........................................ 42
Figure 4. 6: Respondents’ Frequency of Attendance of Local Rugby Matches ................ 43
Figure 4.7: Respondents’ Preferred Companionship ......................................................... 43
Figure 4. 8: Respondents’ Preferred Drink ........................................................................ 44
xi
ACRONYMS AND ABBREVIATIONS
ANOVA Analysis of Variance
CAGR Compound Annual Growth Rate
CAK Communications Authority of Kenya
EABL East Africa Breweries Limited
GDP Gross Domestic Product
KFCB Kenya Film Classification Board
KNBS Kenya National Bureau of Statistics
KRU Kenya Rugby Union
KWAL Kenya Wine Agencies Ltd
NACADA National Authority for the Campaign against Alcohol and Drug Abuse
OOH Out of Home
SES Socioeconomic Status
SPSS Statistical Package for Social Sciences
UN United Nations
UNESCO United Nations Educational, Scientific and Cultural Organization
USD United States Dollar
WHO World Health Organization
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
The study of Strategic Management and its influence on company success has been widely
researched on by different scholars. Porter (1980;1985;1990) indisputably set the premise
for work on strategy. Probably the most acknowledged guru in this field of study, Porter
(1996), defined strategy as being ‘different’, by intentionally selecting a diverse set of
activities to deliver a distinctive mix of value. Mintzberg, Lampel and Ahlstrand (1998) in
their book ‘Strategy Safari’ defined strategy in varied ways, however their most
acknowledged is strategy as a plan- means of getting to where you want to be; strategy as
a pattern-actions over a period of time; strategy as a position- entails the decision making
process to offer value to the consumers and strategy as a perspective- the vision and
direction.
Over the years, strategic management has been perceived to be a complex field. In the face
of rapid globalization and turbulence, the increasing levels of competition have led to
managers seeking innovative tactics to gain competitive advantage (Otache & Mahmood,
2015). As such, different scholars share elements of strategic management that can be used
by organizations. Steiner (2010) covered the importance of strategic planning as a
component of strategic management. He referred to strategic planning as the ‘backbone’ of
strategic management. He posited that there is no distinction between the two, however
they work in tandem and provide a basis to successfully implement the functions of
management within the organization.
Undoubtedly so, the study of strategic planning has snowballed into other academic fields
such as marketing. The strategic planning process usually begins with the organization
defining its overall mission, vision and setting of strategic goals and objectives (Kotler &
Armstrong, 2018). Marketing strategies are extensively important for every organization
especially in the turbulent and ever-changing business world that is being witnessed.
Likewise, the fight to remain competitive is prevalent in the business world (Ali &
Hamidreza, 2018).
The food and beverage industry is the epitome of such turbulence, plus capital-intensive
operations, an extremely disjointed industry particularly in demographics and the
competitive landscape (Njambi, Lewa, & Katuse, 2015). As a result, a strong focus on
2
efficiency to remain competitive and profitable is recommended (Simms, 2012). In 2015,
the global alcoholic beverage industry was valued at US $ 1,375 Billion with the projection
that it is expected to reach $1,594 billion by 2022, meaning that it will register a Compound
Annual Growth Rate (CAGR) of 2.1% between 2016 and 2022. Factors that have attributed
to this projected growth include; increase in disposable income, expansion of the global
youth population and demand for premium products (PR Newswire, 2018).
In the same year, the largest market share was reported to have been occupied by Asia-
Pacific and trailed by North America largely attributed to the disposable income and the
large demographic of alcohol-consuming population. This trend is expected to continue to
2022 as significant growth has been witnessed in the commonly populated countries; China,
India and Japan (PR Newswire, 2018). Additionally, the efforts by manufacturers to
incorporate innovation and technology in their production process have favored the growth
of products. Furthermore, there has been an increase in consumerism which have caused a
shift in the demand for products i.e. a more health conscious society. Ultimately this has
compelled the manufacturers to incorporate these demands in their products as market
growth for the alcoholic beverage industry is expected to be restricted in the future, if the
trend continues (Modor Intelligence, 2018). Some of the key industry players include;
German powerhouse Anheuser-Busch, Bacardi Limited, Diageo, Heineken NV, Pernod
Ricard SA and SABMiller Ltd (PR Newswire, 2018).
The African market has also contributed to the statistics of the alcoholic beverage industry.
In 2016, the South African industry was valued at an estimated R106.1Billion, with the
beer sales accounting for 56.1%. Furthermore, the World Health Organization (WHO)
ranked the country as the third largest consumer of alcohol on the continent (PR Newswire,
2017). In the same year, the Nigerian alcoholic beverage industry was valued at US $6.5
billion, with majority of the share being occupied by beer sales at 55%. The rise in
consumption and purchasing power in Africa’s most populous country has driven global
firms to set-up operations in the country, which has shown considerable growth
opportunities for the firms (Euromonitor International, 2018).
It is evident that the changes faced in the global market can be narrowed down to East
Africa. A report published by global audit firm KPMG (2016), revealed that the food and
beverage sector is projected to grow rapidly, particularly in Middle East and Africa which
is driven by key powerhouses; Nigeria, Egypt, Ghana and Kenya. Urbanization and the
3
rising middle class have been attributed to this growth. The alcoholic beverage industry in
Kenya has been on the rise in the past few years. A report published by Euromonitor
International (2018) credited this growth to the increase in disposable incomes- ‘the rise of
the middle class’, tied with the growth in the youth population who have reached the
minimum age for alcohol consumption. According to the United Nations, a person is
categorized as youth between leaving compulsory education and attaining the age which
he/she finds their first employment. Additionally, those who fall in the age-groups of 15-
24 (UNESCO, 2017). The ‘Kenyan’ categorization of youth is persons aged between 18-
35 years (The Youth Congress, 2017). This was reiterated by Otuki (2017), where he noted
that Kenya’s youth are ranked among the highest globally, with the ratio of those between
(15-24) standing at 20.3 percent, which is above the world’s average of 15.8 percent and
19.2 percent in Africa respectively. Furthermore, the millennials contribute to 10.1 million
out of Kenya’s estimated population of 49.7 million. These statistics are the reasons why
alcohol manufacturers continue to invest heavily in the sector and more so create marketing
content that is skewed to the ever-growing youth population in the country.
Muchira (2017), gave an analysis of how alcoholic beverage manufacturers in Kenya are
battling to cater to the rising demand for spirits and low-end brands. The factors credited
to this are the increase in taxes, intense competition, economic growth, emergence of the
influential consumers- millennials. Figuratively, the statistics show that there was a 6%
increase in the country’s GDP whereas the population and per capita income grew by 3%
and 4% respectively in 2017 (Euromonitor International, 2018). In addition, the rise was
also attributed to the increase in industry players, (both local and international), and
successful implementation of market expansion strategies traversing the country.
The largest local manufacturer, East African Breweries (EABL) remains the market leader
with their expansive product portfolio attracting different market segments and customer
preferences. The company’s half year profit rose by 33% to Kshs. 6.6 Billion which was
attributed to the strong performance of bottled beer, mainstream spirits and Senator Keg
(Alushula, 2019). In 2018, the company officially commissioned its second major brewery
in the country at an estimated cost of Kshs. 15 billion in the lakeside city of Kisumu. Not
only does the new plant facilitate job opportunities for about 15,000 sorghum farmers but
also contributes to the government’s endless fight on illicit brews, by offering low-cost
brands targeted at this segment of the population (Capital Business, 2018). Furthermore,
4
the investment by the brewer significantly contributes to the increased demand for alcoholic
beverage products.
Sporting has been acknowledged as huge phenomena globally. Studies have revealed that
the sporting industry is valued at an estimated USD 600-700 billion. This comprises
infrastructure, events, training and the manufacturing of retail sports goods. These figures
are bigger than some countries’ GDP (KPMG, 2016). Likewise, the trend trickles down to
the branding aspect of the sponsorship which has been regarded as the second fastest
growing sector (Lu, 2017). A global ranking of the most popular sports in the world was
conducted, with soccer, cricket, field hockey, tennis and volleyball securing the top five
slots, with soccer having a staggering 4.0 billion followers around the world (Sawe, 2018).
It is for this reason that varied organizations have been seeking to capture consumers using
these platforms. For instance, in 2018 the biggest football event, the World Cup noticed a
ten percent decline in sponsorship from notable brands in comparison to the period 2011-
2014 where the governing body FIFA recorded USD 1.62 billion in sponsorship (Chiaruáin,
2018). On the other hand, Wimbledon, the biggest tournament in tennis recorded USD 289
million in revenue in 2017 which was a 6.5 percent increase from 2016 (Chiaruáin, 2018).
Rugby in Kenya is regarded as a game of high-intensity, power and a legion of fans globally
and locally who throng stadiums to cheer on their favorite teams. The game which is
segmented into sevens (7s), tens (10s) and fifteens (15s) meaning seven, ten and fifteen
players respectively has garnered huge following over the years and manages to attract a
number of fans. The word ‘fan’ is derived from the Latin word ‘fanaticus’ which means
“insanely but divinely inspired” (Do & Weaver, 2018, p. 220) a perfect description of the
Kenyan rugby fan (Ireri, 2017). Statistics show that an estimated 29 percent of women
make up the fan base with 78 percent of fans aged 18-30 years. A majority of the fans have
a steady income (about 74 percent) and on average willing to spend a minimum of Kshs.
2,612 on food and drinks eliminating gate and transport costs (Ireri, 2017). Locally, the
country has various championships that keep fans engrossed throughout the year. These
include Kenya Cup, Safari 7s and the national circuit which is spread across different
counties (KRU, 2018).
The game that has brought excitement and disappointment in equal measure has witnessed
tremendous strides in development of the sport. In 2018, the Kenya 7s team reached their
highest ranking in the 2017/2018 season on the international scale by securing 8th position
5
and an accompanying 104 points- the highest in the history of Kenyan rugby (Ayodi, 2018).
Aside from these achievements, the sport has also been faced with boardroom battles and
misappropriation of funds allegations that threaten the success of the sport. Some of these
have escalated to the point of sponsors such as SportPesa and Brand Kenya withdrawing
their sponsorship (Daily Nation, 2018). Contrary to this, it is not all gloom and doom for
the sport. In 2011, manufacturer EABL through its flagship brand, Tusker returned to the
sport and injected Kshs. 45million sponsorship set to run for three years (Ayodi, 2011).
This was a sign of great things to come as the previous 13 year run between the two ended
in 2009. In 2018, the 15’s side popularly known as the ‘simbas’ were on a quest to qualify
for the 2019 Rugby World Cup set to take place in Japan. The brewer came on board with
a Kshs 53 million sponsorship which saw the brewer becoming the official shirt sponsor
for the team (Olobulu, 2018). Additionally, marketing campaigns such as ‘Rugby Na
Tusker’ have not only positioned the brand, but led to an increase in consumption during
the matches.
In 2018, the rugby union stirred a heated debate online when they declared that alcoholic
beverages would not be sold at rugby matches. Their viewpoint was based on what was
termed as ‘sideshows’ rather than the actual support of the game, however tends to be the
highest income generator of the tournaments (Zach, 2018). In the same breath, the increased
competition has led to various stakeholders formulating policies and operating guidelines
for the manufacturers, distributors and by extension those who communicate on their
behalf. For instance, the Alcoholic Drinks Act (2010) which stipulates a number of trading
practices such as licensing. Additionally, bodies such as National Authority for the
Campaign against Alcohol and Drug Abuse (NACADA) have lobbied at both local and
international level for stricter measures to be taken against those who do not adhere to the
law. Other policies that regulate the industry include; supermarkets setting aside a separate
area for the sale of alcohol and also regulation of standard operating hours for bars, which
was put forward by then Member of Parliament, John Mututho (Weru & Gathura, 2010).
Also, the government’s determination to acquire breathalyzers to curb drinking and driving
(Mwambonu, 2018).
The advertising industry in Kenya was valued at $1 billion in 2016 and estimated to grow
at an average of eight percent over the next five years, this according to a report published
by global audit firm PriceWaterhouse Coopers. The report delved further into the industry,
where it was conveyed that in the same year, the entertainment and media market was
6
valued at $2.1 billion a significant improvement of 13.6 percent from 2015
(PriceWaterhouse Coopers, 2017). Important to highlight from the report is the significant
increase in internet advertising with an estimated revenue of US $ 227 million by 2021. A
contribution to these statistics is the penetration of mobile internet subscribers which hit 19
million in 2017 and expected to surge to 32 million in 2021 (PriceWaterhouse Coopers,
2017). Aside from the ‘new-age’ methods of advertising i.e. digital, the ‘traditional’ forms
still play a major role in the dissemination of information. For instance, TV which has been
regarded as the single most effective channel in Kenya accounting for about 40% of
revenues in 2012 and Radio generating US $339 million in 2017. This, was more than the
other used methods i.e. newspapers and Out of Home (OOH) advertising (PriceWaterhouse
Coopers, 2017).
Inevitably, combining these two ‘powerhouses’ in their respective industries comes with
the need for legislation. A report published by World Health Organization (WHO) in 2011
pointed out that countries use some extensive policies to regulate marketing of alcoholic
beverages. The most common being self-regulation where the responsibility to regulate
alcoholic beverage marketing solely lies with the alcoholic beverage industry. Furthermore,
some of the self-regulation happens at a regional level as opposed to the country level (for
example across the European Union by the European Forum on Responsible Drinking)
(World Health Organization, 2011). The effects of the regulation have also trickled down
to the Kenyan market. In 2017, a new law stirred serious debate between industry
lawmakers and regulatory body Kenya Film Classification Board (KFCB). The latter put
forward new laws regulating the airing of content during prime time, that pertained to
alcohol, contraceptives and betting (The Star, 2016).
In 2017, KFCB issued an ultimatum for manufacturers to air their adverts in the watershed
time period which falls between 1100hrs-0500hrs, which are believed to be hours when
children would ideally not have access to material of an alcoholic nature. This goes to show
that the ‘war’ was far from over, with the regulators having an upper hand (KFCB, 2017).
In November 2018, this author was part of another group of stakeholders who convened at
Panafric Hotel in Nairobi to review and amend the draft policy on Alcohol and Drug abuse.
The outcome, similar to all the other was that more ought to be done to regulate the industry,
amendments on what constitutes drug and alcohol abuse, in addition to increasing the
accountability of manufacturers.
7
Likewise, Kenya continues to grapple with the rising cases of illicit brews, which not only
leave a trail of distraction for consumers but also affects the different industry players. As
such, the fight to end the manufacture, distribution and illegal sale of the products, has
brought different stakeholders on board to charter a way to fight the menace. There has also
been the fight against counterfeit products which has resulted in both manufacturers and
regulators putting in place measures to curb the same (Michira, 2018).
With the above overview and statistics, the question still lingers on how the companies are
gaining competitive advantage and being able to position their products in the mind of their
consumers. As a result, many companies have invested heavily in marketing
communication, especially in sporting. Also, assessing the returns of their investments. For
an industry that is vulnerable to backlash and susceptible to intense competition, it has
managed to beat the odds and continues to rake in revenues in the billions both globally
and locally.
1.2 Statement of the Problem
Alcoholic beverage manufacturers have played a major role in the economic growth of the
country. They generate revenue for the government through taxes, create employment-
whether directly or indirectly for those in the supply chain. The companies have
significantly grown with an estimated number of ten companies being listed by
(Euromonitor International, 2018). The outcome of this has been reduced market share as
a result of stiff competition, thereby forcing the companies to craft strategies to sustain the
market share, expand to new territories and markets, acquire enhanced technology and
reduce risks (Mwangulu, 2014). Consumers expect that their choice of alcoholic beverages
will offer the right match with regards to the product offering, quantity price, size, time,
place and the right appeal.
The global alcohol industry continues to significantly record revenues year in, year out.
These statistics seem to be on the rise with most countries attributing the growth to the rise
in disposable income of a rapidly growing middle class, emergence of technological
innovation and the demand for more premium products, just to name a few reasons
(Euromonitor International, 2018). Through the right adoption of efficient and effective
strategies, companies are able to charter a clear path to beat the competition, increase sales
and profits ultimately creating customer loyalty.
8
A report published by NACADA in early 2018 revealed that Nairobi has the highest rate
of alcohol consumption in the country. A further report by the Interior Ministry shared
shocking statistics that the country is losing at least 5000 people a year to alcoholism
(Mutua, 2018). Nonetheless, manufacturers have been on overdrive when it comes to their
marketing communication. We remain alive to that fact that it is mandatory for the same
companies to derive campaigns that are centered on ‘responsible drinking’ as much as they
also advocate for more purchase through their marketing tactics.
Biddiscombe (2018) noted that a new form of marketing using sporting platforms has
emerged, raising the competition stakes higher. Moreover, he acknowledged that brands
globally are seeking to be attached to more sporting content, specifically if it connects to
the much-sought after digital savvy audience between the ages of 18-34 years old. Contrary
to this, the increase in marketing spend regarding sports has faced criticism from a varied
group. In his article on the heated debate, Swannix (2018) captured some of the concerns
of marketing of alcohol and sports in New Zealand- which also happens to be the
powerhouse country for rugby globally. Be it branding of jerseys, advertisements during
games, the evident concern is that it creates more harm than good.
As a result, this study is crucial in many different forms. The need to understand the reasons
as to why alcoholic beverage companies continue to invest heavily in their marketing
campaigns. Secondly, the impact that this has on their target market. In retrospect, the
companies spending more should automatically translate into sales and more profits for
them. However, the increase in marketing of alcoholic beverages and inclination towards
the brands ought to be understood and analyzed on a greater scale, despite calls by different
stakeholders to ban the investment. Several studies have been done to understand the
consumer buying behavior, but limited research has been carried out to understand the
relation between factors; advertising, socio-cultural and price have an effect on brand
preference. This research paper seeks to carry out a study on the factors associated with
alcoholic beverages on brand preference among rugby fans in Kenya.
A report published in 2017 by Communications Authority of Kenya (CAK) showed that
the number of internet subscriptions in the country stood at 29.6 Million (Communications
Authority of Kenya, 2017). This goes to show that Kenyans have access to more content
from wherever they are, as opposed to the standard forms that they were accustomed to.
More often than not, majority of those users are the youth. An article by (Omondi, 2018)
9
revealed that the usage of smartphones drove Kenya’s internet penetration. Moreover,
companies such as Jumia contributed to the statistics by offering low-cost smartphones.
Undoubtedly so, companies have noticed this trend and are quickly adapting to it. As a
result, new ways are being derived to promote alcoholic brands such as intense digital
campaigns, incorporating local and international celebrities and also using touchpoints that
appeal to the young such as music concerts and festivals. Likewise, these messages have to
be communicated in some marketing communication form. Mosongo (2016), on her part
noted that the companies are investing heavily in these new forms of promotion to gain
competitive advantage.
1.3 General Objective
The general objective of the study was to determine the factors associated with alcoholic
beverage preference in sports with a specific focus on rugby fans in Kenya.
1.4 Specific Objectives
1.4.1 To determine the effect of Advertising on Brand Preference.
1.4.2 To determine the effect of Price on Brand Preference.
1.4.3 To determine the effects of Socio-Cultural Factors on Brand Preference.
1.5 Importance of the Study
This study will benefit different stakeholders such as; alcohol manufacturing companies,
consumer research firms, advertising and public relations agencies, sporting unions,
government and policy makers in addition to academicians and researchers.
1.5.1 Alcoholic Beverage Manufacturing Companies
This study will help alcohol manufacturing companies in making strategic plans with
regards to their marketing plans, financing decisions- especially budgeting. The increase in
competition within the market will act as a guide to these companies on whether their
investment is giving a return.
1.5.2 Consumer Research Firms
To better understand the consumer market and whether the marketing communication
tactics influence brand preference and or buying behavior, the consumer research firms are
able to use this study to give informed decisions to those seeking the information. The data
can further be used as an assessment of the alcoholic beverage industry at large.
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1.5.3 Advertising and Public Relations Agencies
Advertising and PR agencies play a key role in disseminating information to the general
public. They are tasked by alcoholic beverage companies to come up with the most creative
communication that will appeal to their target audiences. As a result, the study will provide
a basis of the impact of the marketing campaigns by the firms to their target markets.
Moreover, it will also highlight whether the new forms of communication are creating a
larger impact as opposed to the traditional methods that the agencies have been accustomed
to over the years, setting the pace for more strategic decisions to be made.
1.5.4 Government and Policy Makers
For the government and policy makers, this study will assist in formulating policies and
regulations for the industry. The study will offer a vivid view on the true impact of the
advertising campaigns. Additionally, it will seek to highlight the key areas that need to be
addressed especially when it comes to the access of information by those who are underage.
1.5.5 Kenya Rugby Union
The regulating body for rugby in Kenya can use the information gathered in this study to
pitch to potential firms/sponsors to show the impact that the sport has in the country, and
reasons as to why they should invest their monies.
1.5.6 Academicians and Researchers
This study aims to add to the body of knowledge of work pertaining to the study. It will
also act as a base and provide room for further study by researchers in the near future to
better understand the trends and statistics and recommend the way forward.
1.5.7 Retailers and Wholesalers
These are the people who form a key part of the distribution and supply chain for the
manufacturing companies. They are the link between them and the final consumer. The
study will explore the preferred brands which will act as a guide when it comes to stocking
products at their respective outlets.
1.6 Scope of the Study
This project focused on analyzing the factors associated with alcoholic beverage preference
in sports with a specific focus on rugby fans in Kenya. The geographical scope was
narrowed down to the capital city Nairobi. According to a report by Kenya Rugby Union
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(2017), the population of rugby fans in Kenya are estimated to be 10,000 in the country,
with majority of those fans based in Nairobi (KRU, 2017). The report further lists various
characteristics of the fans; their interactions on social media, reasons why they attend rugby
matches and with and their estimated expenditure on food, drinks and entertainment. The
population size for the study was derived from the Union’s database which had 220
registered fans. Out of this number, the researcher selected a sample of 140 respondents to
represent the general population. The study was conducted between May and June 2019 on
respondents within Nairobi city.
The main limitation of the study was getting a high response rate due to the fact that the
rugby season in Kenya had a break within these months. Nonetheless, the researcher put in
place measures such as incorporating online techniques to reach a higher number of people
who fit in the population scope.
1.7 Definition of Terms
1.7.1 Brand Preference
This refers to the ability of the consumers to assess, prioritize and decide on goods and/or
services offered in the market on definite terms (Baier & Werecke, 2005).
1.7.2 Alcoholic Beverage
According to WHO, alcoholic beverage is defined as a ‘psychoactive substance with
dependence producing properties’ such as ethanol or ethyl alcohol. They can be classified
as wine, beer or distilled spirit (WHO, 2018).
1.7.3 Advertising
Advertising refers to any paid form of non-personal promotion and presentation of ideas
through different channels such as Television, newspapers, billboards, radio and mobile
phones (Kotler & Keller, 2016).
1.7.4 Price
According to Kotler & Keller (2016), price is defined as the ‘amount of money charged for
a product or service.’ It is the total amount of money being exchanged by the customer to
be able to obtain that product or service.
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1.7.5 Social Cultural Factors
Kozenkow (2018) define social cultural factors as customs, lifestyles and values which
characterize a society. Some of these include religion, education, language, role of status,
peers, friends & family, nationality, aesthetics and so on.
1.8 Chapter Summary
This chapter served as an introduction to the proposed study. The background of the study
covered the link between strategic management, strategic planning and marketing.
Additionally, it gave an overview of the alcoholic beverage industry on a global, regional,
national and local scale, with particular focus on the latter. Also, a synopsis of the global
sporting industry and its contribution to brand positioning, marketing and adoption. With
the increase in investment by companies in the industry, it was vital to put forth the study
and gain a deeper understanding. The objectives, importance and scope of the study were
clearly outlined.
Chapter two covered the literature review, which assessed, compared and concluded
research work carried out by various scholars pertaining to the specific objectives of this
study. Chapter three focused on the research methodology used to carry out the research
effectively. Chapter four captured, analyzed and concluded the results and findings from
the data collected. Chapter five provided the discussion, conclusion and recommendation.
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CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter sought to review and analyze work that has been previously researched on by
different scholars on a local, regional and global scale. It sought to provide insight on the
gaps within the specific factors associated with consumer’s brand preference (advertising,
price and socio-cultural factors) and provided a platform for the researcher to carry out the
study.
2.2 The Effect of Advertising on Brand Preference
Over the years, marketers have been faced with long standing enthusiasm to perceive how
consumers structure their preference towards a specific brand. Brand preference is
decisively connected with brand choice that can support the customer decisions and trigger
brand purchase. Familiarizing the pattern of customer preferences over the general public
is a fundamental contribution for outlining in addition to generating creative marketing
tactics. Likewise, it uncovers the heterogeneity of customer choices, provoking capable
market segmentation tactics (Baier & Werecke, 2005).
Many scholars have sought to establish the impact that advertising has on brand preference.
Grace and O ’Cass (2005) deduce that advertising a major component of communication is
acknowledged as a crucial avenue for marketers inform and persuade consumer, while also
taking into consideration the perceived risks associated with consumer purchases. Ingavale
(2013), as cited by Onyango, Bwisa and Odhiambo (2017) argues that advertising is a
crucial key for building, creating and sustaining brands. His line of thought coincides with
that of Silberstein and Nield (2008) who validated a relationship between encoding the long
term memory pertaining to brand information in television advertisements among females
and an alteration in brand preference to the advertised brand. Nonetheless, Fam, Waller,
Cyril De Run and He (2013) disagreed with this viewpoint and rather posit that research
has revealed that advertising generally is hated by consumers. This conclusion was reached
based on the consumers ‘switching off’, yet for the opposite to take precedence, consumers
must like the advertisements.
According to an article published by Gallegos (2016), he noted the significance changes in
advertising that have taken place over the years. He further highlighted that the history can
be traced back to the 1440s with the emergence of the printing press or the impact of the
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television. The biggest impact to date has been the emergence of the world wide web, that
has created a significant shift from the traditional methods to the new forms; the internet.
The first newspaper advert in the United States dates back as far as 1704, followed by the
first recruitment advertisement in 1776 and billboard in 1835 respectively. Subsequently,
the emergence of the first advertising agency in 1843 (Adobe, 2014).
Kotler defines advertising as any ‘non-paid form of non-personal presentation and
promotion of ideas’ (Kotler & Keller, 2016). According to The Advertising Practitioners
Council of Nigeria, (APCON) defined advertising as ‘a form of communication through
the media about products, services, ideas paid for by an identified sponsor’ (APCON,
2005). From the two definitions, it can be agreed that the definition of the advertising
practice is similar across board.
2.2.1 Advertising Message
Advertising message is defined as the ‘meat’ of an advertisement, intended to express what
the marketer intends. It can be conveyed through images, words and symbols that clearly
orchestrate the set out message for the brand (Kotler & Armstrong, 2018).
Many scholars have acknowledged the contribution that the advertising message has on
brand preference. Leonidou et. al (2011) determined that the sustainable messaging in
advertising is aimed at creating brand differentiation and furthermore standing out from the
clutter of the media. Furthermore, other authors share similar thoughts regarding the
correlational relationship between social causes or sustainability production and the value
of the brand. Buda and Zhang (2000) on their part established that consumers are exposed
to a number of advertising messages, portrayed on different mediums and conveying
different messaging. As such, marketers are increasingly concerned with the effectiveness
of these messages. They further identify that researchers agree on factors that influence the
processing of the various messages by the consumers i.e. labeled, framed and ultimately
influence the purchase decision (Buda & Zhang, 2000).
Message appeals have been defined as communication strategies that marketers use to seize
the attention of the consumers in addition to persuading them to buy. This approach dates
back to Aristotle, who recognized three main communication appeals i.e. ethos, pathos and
logos- more defined as language, credibility, emotion and logic (The VCG, 2019). This has
been referred to as the rhetorical triangle. The concept argued that if a brand was able to
identify itself as credible (ethos), it’s highly likely that you would persuade the consumer.
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Similarly, pegging the brand on the consumer’s emotion (pathos) would have a significant
impact on their response. In reality, messaging appeals have been used by marketers to
convey the ‘right’ message to their audiences.
According to Albers-Miller and Stafford (1999) as cited by Akbari (2015), the proposition
that consumers make their buying decisions for rational and/or emotional reasons has been
accountable for a substantial amount of research among consumer psychologists.
Inescapably, the point of contention has attracted interest from both advertising scholars
plus practitioners, as message appeals provide an effective tool for stimulating buyer
behavior and brand preference through the diffusion of informational or experimental
features to their consumers (Edell, 1990). Kotler (2003) postulated that rational appeal is
based on logic and products and/or services are sold by highlighting their attributes, quality
and solution capacity. Albers-Miller & Stafford (1999) as cited by Akbari (2015) affirm his
theory by stating that even though rational appeals are founded on the facts and reason,
information and logic, emotional appeals largely tend to form positive emotions and
cultivate brand personality. The emotional appeals are those that appear to generate either
positive or negative feelings to generate a positive emotional connotation with a product.
A study by Moriarty (1991) revealed 11 types of emotional appeals; excitement, fear,
family, guilt, family, love, nostalgia, pleasure, poignancy, pride, relief and sorrow. This is
affirmed by Newbold (2017) who covers the importance of the emotional appeal in
persuading consumers to buy a product or pay for a service. Different scholars have put
forward their contribution on the importance of advertising appeals. Mattila (2001) sought
to understand the relative effectiveness of emotional versus rational appeals in advertising
services to potential consumers. A study by Moon and Chan (2005) explored the
differences in Hong Kong and Korea on the advertising appeals. On their part, Leonidou
and Leonidou (2009) studied the rational versus emotional appeals using newspaper
advertising as a base; copy, art and the differences in layout. Lin’s (2011) contribution to
the study focused on the impact of the advertising appeals and advertising representatives
on advertising attitudes and consequently their buying intentions.
The concept of ethos is used as a credibility approach. More often than not, the advertisers
use celebrities to affirm their brand. A campaign by brewer Anheuser-Bush proved this in
their ‘born the hard way’ campaign. The goal was to communicate the turbulent journey
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the brewer faced from Germany to St. Louis, and highlights the importance of immigration
plus multiculturalism (Detisch, 2018).
Buda and Zhang (2000) put forward the argument that few scholars have investigated the
effects presentation order and the framing of advertising message. Questions such as
whether the framing of the message is any way affected by the way it is presented to the
consumers, be it first or last. Further, investigation as to whether the perceived source is
credible. In retrospect, Buda and Zhang (2000) conclude that answers to those questions
will contribute greatly to copywriters and brand managers who creatively design the
message structure and approve the artwork respectively. Bhasin (2018) on his part also
agrees that the advertising message is a critical part of the advertisement. He puts forward
his contribution by stating that the business environment is extensively competitive and
thus firms ought to put forth creative, unique and captivating messaging to position their
brand above the rest. Some of his reasons are differentiation of the brand- the ability to
stand out from the rest, increasing consumerism- consumers have become brand conscious
and selective on their preference plus making a personal contact with their target market
(Bhasin, 2018).
Mellinger (2018) noted that there needs to be a step-by-step plan, setting of clear and
concise objectives before an advertising message is put forward. Thereafter, what the brand
intends to communicate will come out clearly and become entrenched in the mind of the
consumer. Some brands have over the years managed to position their messaging
effectively. Additionally, some brands have used their platform to create advertising
messaging aimed at the competitor. Mellinger (2018) shared an example of global brands
Starbucks and McDonalds where the former was promoting their coffee to high-end
clientele (an estimated $4 for coffee)- which was evident in their messaging, targeting their
consumers. McDonalds on the other hand, took a jab at the messaging and put out an
advertisement saying ‘Four bucks is dumb’. In reality, the two brands are targeting different
consumers. However, the powerful messaging has an effect on the brand preference of the
consumers. They also tend to invoke a lot of emotion (Mellinger, 2018).
Arora (2007) sought to emphasize the importance of message framing in both a negative
and positive way. He defined positively framed messages as those that bring about
competitive advantage to the brand in addition to consumer gains. Additionally, it creates
the perception in the mind of the consumers of the positively framed message, for example
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showing that the product is more superior than that of the competitor. Many firms, if not
all, have once in their marketing strategies have used this technique. Conversely, the
negatively framed messages do not entirely push customers away, but are centered on the
foregone benefits of not purchasing the particular product (Arora, 2007). Similarly, to Buda
and Zhang (2000), Arora (2007) pinpoints to another variable in the framing of messages
which is credibility. He notes that the message credibility is an imperative aspect of
influencing the processing of information and consequently leading to the communication
being effective. It is a key tactic that has been used in various marketing strategies by book
publishers, producers, marketers, brand managers to obtain endorsements from notable
experts to augment credibility of the messaging.
An article by Greenwald (2014) on Forbes sought to analyze the ‘secrets’ of 7 advertising
campaigns in the United States. She reiterated the significance of powerful, evocative and
inspirational messages conveyed in ways that appeal to the target audiences. He maintained
that great advertising campaigns are established on deep psychological perceptions.
Messages that are conveyed in a unique, thought-provoking way increase the probability
that they will be shared virally by consumers contributing to credibility and awareness.
Subliminal messaging has also been incorporated as a tactic to stay ahead of the
competition. Nonetheless, this form can have either positive or negative consequences for
the brand. Subliminal messages are not necessarily negative, but has a way of
communicating the intended message. Through the subtle effects that are used, which are
usually not visible to the naked eye, the aim is to encourage purchase of the products or
service. The same can also be said for logos that have hidden messages, but are there for a
reason (MDirector, 2017). Furthermore, the article notes that most of the subliminal
messaging denote either sexual or religious content, which tend to cause a lot of
controversies.
Some advertising messaging has not only created controversy, but resulted in consumers
boycotting brands or pushing the firms to issue an apology. A recent case that resulted in
public outcry globally was that of global clothing giant H&M that portrayed a young black
boy in a hoodie with the messaging ‘coolest monkey in the jungle.’ The messaging which
was perceived as racist forced the company to take down the advertisement and issue a
public apology (Brennan & Feldman, 2018). Additionally, some of their stores in South
Africa were trashed by angry protesters in retaliation to the advertisement (BBC, 2018). A
similar occurrence in response to cryptic messaging took place in 2016 where global drink
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manufacturer Diageo under their Captain Morgan brand was forced to pull down an
advertisement that implied alcohol has the ability to increase confidence. The message was
in contrast to what the Advertising Standards Authority said the audience would interpret
from the advertisement (Clarke, 2016). Similarities can be witnessed across board, even in
sporting. The NFL which is the biggest sporting event in the United States of America, was
faced with controversy and sparked calls for boycott over a Budweiser advertisement that
depicted an immigrant storyline, with allegations that it supports the president’s fight
against illegal immigrants (ABC News, 2017).
Over the last couple of years, laws have been passed regulating advertising, more so alcohol
and tobacco. As a result, the firms have taken an alternative route and exploiting the use of
subliminal messaging (MDirector, 2017). An online survey carried out by Nielsen in 2015
revealed that on top of identifying the right communication channel, the right message
delivery is equally important. Furthermore, the successful advertisements scored highly
based on attention, conversion and emotional engagement (Nielsen, 2015). Furthermore,
advertisements that depict real-life circumstances resonate most with audiences.
Surprisingly so, humor resonates more in the western countries with 51% and 50% of the
respondents in Europe and North America citing so. Whereas, health-driven advertisements
resonate sturdily in Latin America, with family-oriented advertisements have a stronger
appeal in Africa, Middle East and Latin America (Nielsen, 2015). Buda and Zhang (2000)
suggest that understanding the effect of message framing from researchers in the field of
information processing is imperative. They stipulate that the cognitive process has a level
of contribution to the consumer’s purchasing habits, greatly influenced by the way the
information is conveyed.
2.2.2 Advertising Media
Kotler and Keller (2016) define advertising media as the different means of conveying the
advertisement. These include billboards, magazines, newspaper, radio, television and
internet. The advertising media is the vehicle to deliver the message to the intended
audiences. Remi (2014) posited that there is not particular form of media that is above the
rest. She proposed for firms to consider using different forms of media to optimize the
response rate. On the other hand, Naveed (2013) highlighted a few factors that ought to be
considered prior to the selection of the media to be used. Some include the firm’s
objectives, financial position, intended reach, past experience to name a few. These factors
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are aimed at giving some form of direction to the firm to aide in the decision-making
process.
Forms of advertising can be classified as traditional and modern. Examples of traditional
forms include; television, radio, billboards, newspapers (Arrazola, Hevia, Reinares, &
Lara, 2013). Whereas, those classified as new forms include; digital marketing, social
media advertisements, e-mail marketing, podcasts, blogs & vlogs and video advertisements
among others (LaMarco, 2018). The new forms mostly incorporate the digital age and
exploit the internet to reach a wider consumer base.
As much as there has been proliferation of media and advertising from 1970s to 2000s,
resultant in dissonance of marketing static. Evident response has been to up-scale their
efforts and increase the volume to safeguard the dwindling response rate (Degraffenreid,
2006). His viewpoint alluded that people are the new forms of media and should be
harnessed, for what it’s worth. The power of word-of-mouth advertising i.e. referrals,
endorsements ought to be regarded as vital media for transmitting advertisements.
Additionally, he posits that buying decisions by the consumers such as restaurant selection,
movie choice is most likely to come from close circle of friends, family and colleagues.
However, this doesn’t mean that traditional forms of media should be neglected. They work
in tandem and each possess their respective strengths and weaknesses (Degraffenreid,
2006).
The debate on the relevance of the traditional, vis-à-vis new forms of advertising continues
to stir serious contention by various scholars. According to Dyck (2014), brands that have
had success in the past by invoking emotion from their consumers continue to gain
competitive advantage. Contrary to this, research further indicates that brands ought to
invest and adapt to innovation which ultimately provides the consumer with the ‘best of
both worlds.’ The same is also witnessed in the advertising world where the marketers are
moving from the traditional to new forms or enhancing the traditional forms. On their part,
Rajendran and Thesinghraja (2014) postulated that the print media model flourished in the
pre-internet era where the instant access to information wasn’t easily within the reach of
the audience as is the case today.
Studies by various researchers seek to understand the reasons and impact from media
selection. In his study, Rotfeld (2006) found that consumers were able to avoid mass media
advertising. This was the ideal time for television breaks to be taken. In addition to the
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emergence of on-demand and subscription channels, viewers are able to skip the
advertisements and continue with their commercial-free viewing. Yet, radio, magazines
and newspapers also have an equally large amount of advertisements, just that delivery is
diverse. It also pegs the question on whether the advertisements are aired at the appropriate
time, and using the most suitable channel. Another worrying trend that threatened the
credibility of media selection was the clutter that was formed by increasingly aggressive
marketers fighting for the top spot in the audiences mind (Rotfeld, 2006).
Di Wet (2017) revealed that TV as a medium of communication still has the highest reach
in the Kenyan market with about 99% of the respondents indicating that they watch either
one or more of the local plus international channels. In the same breadth, an estimated 24%
don’t watch broadcast television but opt for the newer medium such as YouTube and
streaming, particularly young adults aged 18-24. A remarkable 90% still listen to traditional
radio, the higher percentage being women at 60 percent.
According to Kaplan and Haenlein (2010) social media is defined as a collection of
internet-based applications that build on the conceptual and practical foundation of web 2.0
which permit the conception and exchange of user generated content. To fully understand
the spectrum of social media, in 2009 it was established that Facebook registered more than
175 million active users. To further understand this, it is only slightly less than the
population of Brazil which stood at 190 million, and twice the population of Germany; 80
million (Kaplan & Haenlein, 2010). It was established that in 2014, 74 percent of adults
worldwide use social networking sites Duggan et. al (2015). It has played a big role in the
lives of users and facilitates the ease of communication, especially among peer groups
(Ahuja & Galvin, 2003). It was further established that an estimated 50 percent of social
media users follow brands on social media globally (Van Belleghem, Eenhuizen, & Veris
, 2011). Out of the statistics, about 29 percent keep an eye on trends, with a further 20
percent commenting on the latest trends (Gallup, 2014).
These statistics are supported by Disalvo (2016) who indicated that a study found that
advertising alcohol on social media succeeds in inspiring people to drink. The study
involved respondents’ reaction to advertisements on Facebook- one for beer and the other
for bottled water. The results undoubtedly showed that those who viewed the beer
advertisement opted for the bar gift card whereas only 55% of their counterparts who
viewed the bottle water advertisement selected the bar gift card.
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Globalization has created a major shift to online advertising especially social media.
Researchers have posited that social media will be a governing force for businesses and
individuals, forcing them to either participate or get left behind on the trends (Laudon &
Traver, 2017). A study by Fisher and Reuber (2011) revealed that if social media tactics
are implemented effectively within the organization, it brings about substantial changes in
sales, growth, brand image and the reputation of the company. Furthermore, it was
established that there was a direct correlation between social media and the same attributes.
Research conducted by Pew Research Center in 2018 revealed that Facebook and YouTube
are the dominant players in the social media landscape in the United States. However, a
majority of the young adults 18-24 embrace a varied number of platforms and use them
frequently (Smith & Anderson, 2018). These statistics are no different from that of the
Kenyan market. A consumption survey in 2017 pinpointed Facebook as the most-used
social media platform across board on the age spectrum, with an average 78 percent using
the platform daily and 17 percent weekly (Di Wet, 2017).
Digital media has been referred to as content that can be transmitted over the internet and
computer networks (Dyck, 2014). It is a platform that has opened up an opportunity for
firms to develop and sustain a relationship with their current and potential consumers. Some
of the methods encompassed in this spectrum include; websites, interactive screens, digital
display billboards and trucks, music streaming applications among others (Bjarke, 2016).
Through these methods, firms are in a position to develop brand loyalty with the consumers
plus a chance to gain their preference and develop a strong brand figure (Ahmed, et. al
2016). A study carried out by Terui, Ban and Allenby (2011) revealed that there was a
direct correlational between advertising and brand consideration. However, the study was
limited to mature packaged goods, which may not necessarily be representative of other
products. Nonetheless, the study was concluded by noting that advertising has a
dichotomous outcome i.e. it either appears in the mind of the consumer or it does not.
Bergemann and Bonatti (2011) also take into consideration the emergence of the internet
which has ultimately had an effect on what is now regarded as traditional media. These
forms; newspapers, television and so on face extinction because of the rise of the internet
and advertising placement. Additionally, internet advertising particularly through
technological advances has contributed tremendously to wider audience reach as opposed
to the traditional forms that are more or less limited. Their contribution is buoyed by
(Henning-Thurau, et al., 2010)who noted that consumers were spending more time on the
22
internet, making the traditional forms less accessible (Valos et. al, 2016). Without a doubt,
social media offers unique characteristics, posing challenges to the traditional
communication frameworks. Firms are being driven to adapt to the innovation by creating
brand pages to interact with both current and potential consumers to increase the awareness
of the products/services being offered (Tsimonis & Dimitriadis, 2014). Digital media has
been regarded as an amalgamation of most forms of media that exist in the world today
(Rajendran & Thesinghraja, 2014).
An article in one of Kenya’s leading dailies by Wairimu (2015) articulated the magnitude
that digital advertising and particularly digital media has had in the country. The
penetration of internet usage stood at 78.2 percent with the prospects of it growing at an
even faster rate. Her sentiments are affirmed by Murphy (2018) who witnessed the
significant change in sporting arenas that have adopted virtual advertisements, giving space
for digital signage to be undertaken. The National Hockey League (NHL), National
Basketball League (NBA) and NFL have been the biggest sporting events that have
capitalized on this new form. Marketers are able to use these platforms to engage with their
audiences on a larger scale. Pratt (2015) captured the shift to digital media and the impact
it has on influencing the brand preference. His study covered the Rugby World Cup in 2015
and how a number of renowned sponsors opted for the digital space as opposed to
traditional media.
It is evident that recent studies allude to the great impact that new media forms have on
influencing consumer’s brand choice. The classical ways that were familiar are now being
overtaken by the enhanced technological ways. The world wide web has provided a
platform that is easily accessible, efficient and effective (Calisir, 2003). This has resulted
in the medium being a large portion of the media mix for the marketing strategies.
Previously, large firms commanded competitive advantage over smaller firms because of
the financial muscle that enabled them to capture target audiences through more channels
(Lynn, et. al, 1999). But this trend has been overtaken by the cannibalizing of the internet
(Calisir, 2003).
2.2.3 Advertising Source
According to Belch and Belch (2017), the advertising source as the person who
communicates the advertising message directly or indirectly. A direct source is one who
appears in the advertisement to promote the brand. An indirect source on the other hand
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only uses channels available to them to draw attention to the advertisement, however they
do not directly appear in the advertisement. Nonetheless, some organizations neither use
direct nor indirect sources to promote their advertisements. It is imperative to note that
companies spend huge sums of money to have a particular personality push their brand.
They recognize that the characteristic of the source ultimately has an impact on the
advertising message. For instance, the highest paid celebrity endorsement to date has been
that of retired boxer, George Foreman who was approached by a small grill manufacturer
during the prime of his career. At that time, George declined the offer up until his wife used
the grill and this altered his decision. The immense success in the sales led the company to
buyout the athlete for USD 150 million and also stock to use his name for perpetuity. The
product is now named after him and 90% of his USD 250 million net worth comes from
the sales for the grill (McCann, 2017).
In the selection of individuals who become the source, organizations endeavor to select
those whose traits will maximize the influence of the message. The chosen source may be
knowledgeable, popular, physically attractive or have the power to reward or punish the
message receiver. Three basic categories were developed by Herbert Kelman to further
distinguish the source; credibility, attractiveness and power. Each of these has an influence
on the recipients behavior through a diverse process (Belch & Belch, 2017).
Belch and Belch (2017) define credibility as the magnitude to which the recipient views
the source as having relevant knowledge, skill or experience and further trusts the source
to give the right information. An individual who is perceived as knowledgeable or an expert
in the particular field is more likely to persuade the audience as opposed to one with less
expertise. Then again, the source has to be trustworthy, honest, ethical and believable. If
the audience perceives the source to have characteristics of bias, then the credibility is
lessened. Information from credible sources has an influence on beliefs, opinions, attitudes
and behavior through a process called internalization.
Source attractiveness encompasses similarity, familiarity and likability. Source
attractiveness leads to persuasion through a process known as identification. This occurs
when the receiver is motivated to pursue some type of relationship with the source thereby
adopting beliefs, attitudes, preferences or behavior that are similar. The continued support
of the receiver will determine the maintenance in addition to the receiver’s continued
identification with the source. As a result, if the source changes position, the receiver may
24
also change. Contrasting with internalization, identification does not integrate information
from an attractive source and direct to the belief system of the receiver (Belch & Belch,
2017).
Research has shown that receivers of persuasive communication are more probable to
identify with individuals who are likeable or similar to them. In terms of similarity,
marketers have recognized that individuals are more impelled to be influenced by a
message that comes from someone who is similar to them. This can be in their needs, goals,
interests and lifestyles which contributes to the advocated position being better understood
and well received (Belch & Belch, 2017). Likeability has been used as tactic by companies,
using celebrities as the key touchpoint. In 2015, the highest top celebrity endorser was
tennis star Roger Federer who grossed in USD 58 million in endorsements with second
place being secured by golfer Tiger Woods at USD 50 million. Women too are not left
behind with some of the big names such as Maria Sharapova, Serena and Venus Williams,
securing some of the top slots in endorsement rankings (Dawson, 2018).
A source is deemed to have power when the endorser can administer both rewards and
punishments to the receiver. Because of this power the source has the ability to induce
another person to respond to the request or position that is being advocated. This process
is known as compliance. Power however is a challenging characteristic to apply in a non-
personal situation such as advertising. The source is unable to exert any sanctions through
the advertisement that will invoke response from the consumer. A more viable way to apply
this is using indirect methods by using an individual who has an authoritative demeanor.
Actors such as Clint Eastwood who has earned recognition for the rugged, tough guy in
varied movie roles was a perfect fit for Take Pride America which was enforcing the
campaign against pollution and damage of public lands.
Likewise, former CNN journalist and Citizen TV host, Jeff Koinange landed a lucrative
endorsement deal with local manufacturer EABL for their high-end beer Tusker Malt. This
is because of the authoritative, classy and premium characteristics that he possesses
(Mbuthia, 2015).
2.3 The Effect of Price on Brand Preference
The path to get loyal consumers and sustain them has been a long one. It has not been an
easy task, because of the immense competition for a fight of vital market share (Al-Salamin
& Al-Hassan, 2016). According to Kotler and Armstrong (2018), price refers to the
25
monetary value for a good or service. Pricing forms one of the four P’s of marketing;
product, promotion and place being the other three (Kotler & Armstrong, 2018). Out of the
four elements, pricing is the only one that produces money in addition to providing the
indicator of success or failure of the products or services being sold by a firm (Al-Salamin
& Al-Hassan, 2016). Hanna and Dodge (2017) agree with the level of importance that
pricing plays as a determinant of the level of profitability. Regardless of the nature of
business, success is measured by the revenues that exceed the costs.
Pricing has been attributed as the most flexible attribute of the four p’s in the sense that it
can be changed rapidly, unlike product features, promotion and distribution channels.
Therefore, it can be exploited as a competitive tool and changed swiftly in the face of a
competitive onslaught (Kagira & Kimani, 2010). Moreover, careful consideration must be
done in selecting the most appropriate pricing strategy in-line with the objectives of the
organization; financial objectives, state of the market, competitor’s pricing and also perhaps
their future goals. Furthermore, it is also vital to formulate objectives and pricing strategies
that position the product or service for success. Selecting objectives or strategies that are
feasible at the current time does not hinder changes being made or different strategies being
adopted in the future, as the business grows or changes (Kotler & Armstrong, 2018).
There is no doubt that consumers are price conscious in their selection of products or
services. The questions then linger in the mind of those tasked with setting prices for the
same. Questions on how much to charge, the value of the product and other factors to be
considered. According to Kotler and Keller (2016), three major things should be covered
when selecting the appropriate price for a product or service; achieve the organization’s
financial goals (for example profitability), fit the realities of the market (the viability of
consumers buying the product or purchasing the service at the agreed price) and support a
product’s positioning plus ensure consistency with the other marketing mix variables.
2.3.1 Market Penetration Pricing
Customers cannot purchase products or services that they are unaware about. Furthermore,
there can be uncertainty to try out new products or switch from what they are familiar with.
Market penetration pricing comes in. It is a form of pricing that introduces the consumer to
a new product at a discount and often the seller goes at a loss. Penetration pricing creates
the hope that the consumers will respond to the lower priced new product and in the long
run switch (Intelligence Node, 2016).
26
Baker (2011) on his part points out that penetration pricing involves trade-offs of higher
revenue in order to sell more volumes, which is more effective for new entrants in the
market. The company offers undifferentiated services, targeting price sensitive consumers
specifically in mass. In addition to this, the pricing strategy aims at edging out the
competition. The organization’s ability to reduce the unit cost as the volume increases also
comes into play (Indounas & Avlonitis, 2011). Kotler and Armstrong (2018) point out that
lowering of prices can also have a downside to it. Rather than selling the value of the
product or service to the consumer at the high price, the organizations work to reducing the
price to capture the market. Increasing this price later on can be an uphill task, because the
consumers have already positioned it to be of a lower price.
In his argument, Bhasin (2018) suggested that this pricing strategy is mostly used by late
comers in the market. Also, it is ideal when the market is saturated or there’s presence of
many variants for similar products. Nonetheless, it gives an edge to the company, simply
for the reason that consumers are attracted to the product or service on the basis of price,
or value for money. As a result, they are more inclined to switch brands and adopt the one
that’s offering low pricing on products that are similar. Lower prices inevitably increase
the sales volume and market share for the company. Lower prices can also act as a barrier
to entry for the new entrants in the market. Although the competition may adopt the same
pricing strategy, once the penetration pricing strategy is put in place, only the profitability
and efficiency of the product can dictate their success factor since the aim will be
minimizing unit costs from the start (Bhasin, 2018). Contrary to this view, Piercy and
Cravens (2011) suggest that this pricing strategy characterizes the behavior of the products
in their specific fields. Different brands such as Wal-Mart have created a niche for
themselves when it comes to lower-priced products. They agree however on tapping into
the price sensitive buyers who seek out lower-priced products, citing it as a highly effective
method especially during situations such as the economic downturn. Importantly so,
lowering the prices of products should also cover the company’s costs and profit-margins.
It is a more striking option when the company has a strong position in the market, cost
advantages or the competition within the industry is not as strong.
For some time now, top Danish cider bran Mokai has been interested in entering the East
African market, with particular focus on Tanzania. As part of their research, they have been
studying the competition, Savannah- which is under Kenya Wine Agencies Ltd. (KWAL)
is perceived as the strongest cider brand in the country. The company intended to get into
27
the market through penetration pricing to increase market share and sales volume in the
long run. However, the company’s plans were unsuccessful because the product failed to
integrate into the Tanzanian market because of not adequately utilizing the penetration
pricing strategy convoyed with other factors such as investment in creating brand
awareness coupled with unreliable distribution partners (Bhasin, 2018).
2.3.2 Psychological Pricing
Psychological pricing attempts to make the pricing of a product or service more appealing
and attractive to the consumers (Pride & Ferrell, 2010). The pricing strategy aims at taking
advantage of the consumer’s emotional response usually through the use of rare pricing
conventions to make products or services appear more affordable than they actually are. It
has a strong focus on the emotional side as opposed to the rational side (Anastasia, 2015).
Some of the strategies in psychological pricing include; charm pricing, buy one get one free
(BOGOF) and prestige pricing. Boachie (2016) explains charm pricing as a strategy where
the digits of the price of a product or service is reduced from a round number by a cent. For
instance, the brain tends to process USD 3.00 and USD 2.99 differently, with the latter
being the more affordable option in the consumers’ mind. Bhasin (2018) on his part refers
to this as odd pricing.
Ellsworth (2018) in his article ‘does psychological pricing work?’ sought to demystify the
uncertainty that is brought about with this pricing strategy. In his conclusion, he posited
that although psychological pricing is a tactic employed to manipulate the consumers, it is
one that actually works. Research in 2012 by strategic advisors AMG revealed that 66
percent of American shoppers surveyed preferred BOGOF as a tactic by organizations with
money discounts securing the second slot (AMG, 2012). Mittal and Sethi (2011) as cited
in Salvi (2013) found that buy one get one free was effective in prompting brand switching.
Furthermore, there was effective moderation in purchase acceleration and new product trial.
On the other hand, Farag (2010) as cited by Salvi (2013) postulated that there is a profound
effect on the piling of stock plus purchase acceleration, however, there is a significant limit
on the impact of brand switching, product trial and consumer spending. Raciti, Ward and
Dagger (2013), discovered that there was a direct correlational relationship between price
promotions and alcohol consumption that has been apparent over time and across a number
of countries.
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2.3.3 Competitive Pricing
There is no doubt that competition plays a big role in determining the pricing strategies of
an organization’s product or service. It is for this reason that organizations seek to price
their products competitively so as to gain advantage. Nonetheless, having lower prices may
not necessarily result in more customers, as some may perceive the product or service to
be of lower quality. Ultimately it doesn’t necessarily mean that it will lead to higher market
share. Competitive pricing involves setting the price for goods and services based on the
competitor’s pricing structure (Hanna & Dodge, 2017). It is imperative to note that other
factors such as inflation, income level, interest rates, disposable income are also
contributors to the decision that a consumer will make with regards to price sensitivity
(Groucutt, Leadley, & Forsyth, 2004).
An estimated 81% of consumers compare prices of different brands in search of a better
bargain. The competitive pricing strategy is a key tactic to attract many consumers by price
optimization using the competitor’s pricing data. Successfully implementing this can
increase sales significantly and ultimately boosting revenue (Phillips, 2019). However,
smaller companies particularly start-ups tend to sacrifice the short term profitability for
long term market share. Global beverage manufacturer Coca Cola is one such company that
has incorporated competitive pricing as a strategy to remain ahead. Their closest competitor
Pepsi, which is the direct competitor of Coca Cola have been in serious price wars. The
beverage industry is oligopolistic, hence the stakeholders forming a cartel to ensure that a
mutual balance in pricing is met (Bhasin, 2017).
Evidence in previous research has indicated that traditional pricing decisions were made
primarily based on that of the competitor- whether simple or complex. Additionally, new
products also tend to set their prices based on other products that are already in the market
(Piercy & Cravens, 2011). Price fairness becomes a critical success factor in this type of
strategy. This is where the consumers assess whether the selling price of a product or
service is reasonable, acceptable or justifiable. Some studies have shown a correlational
relationship between charging a ‘fair price’ and customer satisfaction and brand preference.
Piercy and Cravens (2011) suggest that pricing decisions should be made using a value-
based pricing strategy, thereafter designing the strategy to adapt to competitor and market
changes, by ensuring there is a stronger emphasis on the customer’s value as opposed to
the price alone.
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2.4 The Effects of Socio-Cultural Factors on Brand Preference
Other factors that have affected brand preference are socio-cultural. Kotler and Keller
(2016) posit that the sociocultural environment allows us to absorb relationship to
ourselves, others, the organizations and society as a whole. The view of ourselves
encompasses individuals who seek pleasure and those who are more conservative. The view
of others is concerned about social problems and also seek out alike individuals and get
together at social clubs or connect on networking sites. The view of society segments
individuals based on their role within society. Some are givers, takers, seekers, makers,
escapers but each have a separate role in the society. Core cultural values play a vital role
in socio-cultural factors. They comprise the core beliefs and values that are shared in a
society. Most of them are passed down from parents to children and carried out through
generations.
2.4.1 Peers, Friends and Family
Socialization of an individual begins with the family unit. This is where he/she learns the
norms, values and beliefs. Studies carried out in the 1970s and 80s highlighted that parents
exert the most influence on their children up until their adolescent stage. As time goes by,
peers and friends start to have an impact on the individual (Sancho, Miguel, & Aldas, 2011).
The age of the child is a key determinant in the parental commitment towards the child’s
socialization process in addition to the influence they exert. Young people model the
behavior of their parents, and are more inclined to also adopt similar alcohol consumption
patterns. Additionally, the presence of the products within the household can be an outlying
cue to brand recall, awareness which lead to brand usage and increased accessibility
(Sancho et. al, 2011).
A cross-sectional research study by Moos et. al (2011) revealed that older adults who
engage in social activities and social drinking are inclined to drink more. Additionally,
those who have family members and friends who espouse positive drinking behaviors tend
to engage in more recurrent and heavier alcohol consumption. In the same breath, another
study revealed that if a partner in a married couple consumes alcohol frequently and in
excess, it would influence their significant other to also partake as opposed to a couple
where abstinence altogether is the order of the day. Studies have indicated that the strongest
effect on drinking among adolescents stems from the people that they spend the most time
with; family and friends (Sudhinaraset, Wigglesworth, & Takeuchi, 2016). Higher alcohol
30
use amongst peers has closely been associated among adolescents and young adults. A
major reason attributed to this is the need to belong and be accepted by the peer group.
They tend to trust their peers more on decisions pertaining to alcohol choice as opposed to
their parents (Sancho et. al, 2011).
Contrariwise, White, McMorris and Catalano (2006) postulate that family support and
bonding in addition to monitoring by parents results in lower alcohol use. Social networks
and support also tend to have elements of protective measures (Ramirez, Hinman, &
Sterling, 2012). The study by White et. al (2006) delved into the effects of leaving home
and attending college and what impact it has on the consumption of alcohol. Furthermore,
it revealed that the higher level of parental monitoring resulted in lower use of alcohol and
marijuana. Additionally, a stronger family structure where the family’s needs are placed
above those of the individual served as a protective factor among adolescents (Ewing, et
al., 2015).
At this stage of a young adult’s life, peer norms play a vital role (Jackson, Roberts, &
Colby, 2014). The role of the parents begins to diminish as the adolescent individual seeks
to find an identity, with peer influence taking preeminence (Schwinn & Schinke, 2014);
(Zehe & Colder, 2014). Recent studies have attempted to assess the synergistic influence
of peers and families. Although majority of the research have centered their studies on the
negative results of social networks, nonetheless greater parental support and monitoring
can lead to a more prosocial affiliation amongst peers.
2.4.2 Role of Status
The role of status plays an important in human behavior and the consumption of products
and services. Consumers globally have used material artifacts as a driver in defining their
status in society. This can be done through a variety of products such as houses, cars, yachts,
jewelry and so on that signify a higher role status in the society. Likewise, the same applies
to the service industry where belonging to member clubs, flying first or business class,
children attending prestigious and expensive schools and so on (Millan & Mittal, 2017).
The term used to describe this caliber of individuals is middle class. A research study
carried out by Lount Jr. and Pettit (2012) sought to understand the role of status in society.
The study revealed that individuals who possessed high status were more trusting.
According to African Development Bank Group, (AFDB), middle class are regarded as
individuals or households that fall between the 20th and 80th percentile of consumption
31
distribution or spend an average of USD 2-20 daily. Furthermore, they classify the middle
class as upper, lower and floating classes with the latter being closest to the line of poverty
(Kellie, 2016). On the other hand, Kenya National Bureau of Statistics (KNBS) defines
middle class as persons who spend on average between Kshs. 23,670 and Kshs. 199,999
per month. By using this definition, there’s an underlying assumption that the approximate
gross monthly income in this category is between Kshs. 26,000 and Kshs 270,000 a month
(Kellie, 2016). According to Collins (2016), a person’s socioeconomic status (SES) is one
of the major factors that influence an individual’s alcohol consumption and other related
outcomes. Research has revealed that individuals with a higher SES have the potential of
consuming similar or greater amounts of alcohol compared to those who are from a lower
SES. Although the latter are more often than not faced with the detrimental effects of excess
alcohol consumption and related consequences (Collins, 2016).
Bryden et. al (2013) in their relatively small study revealed that adult unemployment was
associated with increased alcohol consumption. The same was witnessed in the
correlational relationship between homelessness and alcohol consumption. The preference
of those in higher status in the society are evident by their selection of food and drinks,
social hangouts and even down to the destinations where they go on holiday. Status can be
achieved or ascribed, with the latter being the most common in Kenya (Omondi, 2014).
2.4.3 Culture
Approaches to the study and concept of culture has varied between different academic
disciplines, with some agreeing that there is no single definition that can be acknowledged
as the most precise (Minkov, 2013). Brooks (1994) defined culture as collectively held
beliefs, values, assumptions, attitudes, norms, behavior which distinguish one group from
another. Hofstede (2001) as cited by Hakala, Latti and Sandberg (2011, pp. 447-456), on
his part referred to it as a ‘collective programming of the mind.’ As a result, purchasing
and consumption of alcoholic beverages would be more prevalent in collectivist societies
(Hernandez, Vila, Kuster, & Rodriguez , 2019). Attitudes towards alcohol consumption
varies among different cultures. Some see it as taboo, others as pleasurable and part of the
tradition (Maclachlan, 2016). For instance, forgetting to carry vodka and a mixer to a
business meeting in Russia can jeopardize the business deal. Contrary, Jews, Israeli’s and
majority of Muslim countries avoid drinking alcohol based on their religious views, with
countries such as Saudi Arabia and Iran arresting and prosecuting any individual bringing
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in alcohol (Maclachlan, 2016). Hakala, et. al (2011) posited that the cultural heritage of a
target country plays a vital role on the individuals who live in that country. Particularly
because of globalization and the massive impact it has on today’s society. Over a period of
time, societies develop their distinctive cultures. For instance, wine was once perceived as
a premium drink in Japan, however with time it has become more accessible in terms of
price and accessibility whereas beer and whisky have been the most popular (Bruwer &
Buller, 2012). Brooks- Russell, Simons-Morton and Haynie (2012) suggest that cultural
norms and beliefs play a big role in predicting the current and frequent drinking patterns.
A study by LaBrie, Atkins & Neighbors (2012) revealed that Latinos and African-
Americans portray a more conservative view towards alcohol consumption in comparison
to their Caucasian counterparts. As a result, lower rates were recorded among Latinos and
African-Americans compared with Caucasians.
Research carried out in Munich in 2015 sought to find out the drinking culture among
young people with the results recording a significant decrease across about 20 countries.
Given this decline, researchers have sought to understand the reasons attributed to this, with
traditional reasons such as changes in pricing, policy plus availability not accounting for
these changes in different societies (Pennay & Room, 2016).
In African societies, alcohol was majorly consumed during marriage ceremonies,
clan/family festivities, rituals and gifts during bride price ceremonies. Furthermore,
statistical data revealed that consumption was more prevalent among Christians and non-
religious people compared to Muslims. In most African cultures, alcohol consumption was
majorly done by males who have attained the right age of initiation into being an adult.
Preference was more on the traditionally brewed alcoholic beverages. Nowadays, it is
generally open to the population at large regardless of the person’s age (Welcome &
Pereverzev, 2010). The thoughts are echoed by Savic et. al (2016) as cited by Pennay &
Room (2016) who posits that it is almost impossible to pin down the traditional social
practices and norms relating to drinking among different cultures in the society because of
increased globalization. Furthermore, their research revealed that cultures have transcended
from national and whole culture level to a more district one. Also the realization that culture
has the potential to change and fluctuate over a period of time.
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2.5 Chapter Summary
Several factors are associated with the brand preference of consumers. Nevertheless, the
study only focused on advertising, price and socio-cultural factors and sought to clearly
understand the role that each of these attributes play in the brand preference of consumers
in the alcoholic beverage industry. Furthermore, the study gathered insight and reviewed
literature from different authors who had diverse opinions on the stated objectives. The
analysis of the contribution by these authors enabled the researcher to understand the
magnitude of work that has been carried globally and ultimately shortlisting areas that have
a gap. It gave an insight on how the independent variables; advertising, price and socio-
cultural factors have a direct or indirect correlational impact on the dependent variable-
brand preference.
Chapter three focused on research methodology and captured the research design,
population, sample size, research procedures, data collection methods, techniques and
procedures.
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CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter describes the research methodology and specific procedures that were used to
conduct this study. In addition, it describes the research design, population and sampling
design that were undertaken for this study. Under the sampling design, the sampling frame,
sampling technique, sampling size were defined. The chapter also covers the data collection
and analysis methods that were used during the course of the study.
3.2 Research Design
A varied number of researchers have put forward their definitions of research design. It has
been defined by Akhtar (2016) as the structure of research, ‘glue’ that holds all the
components in a research together. According to Cooper and Schindler (2014), there is no
specific definition of research design. Collectively, research design can be defined as a
“blueprint for the collection, measurement and analysis of data,” (Cooper & Schindler,
2014, pp. 84, 86) a framework that aids the researcher to allocate limited resources by
posing fundamental choices in methodology, a plan and structure that seeks to provide
answers to research questions. There are three main types of research design; exploratory,
descriptive and causal (Cooper & Schindler, 2014).
Saunders, Lewis and Thornhill (2016) posit that exploratory studies are used by the
researcher when they are interested in discovering an occurrence, the reasons and gain
insight on the topic of interest. More often than not, this method is used to understand an
issue, problem or phenomenon. On the other hand, descriptive studies are used by
researchers to gain a precise profile of events, persons or situations. In some cases,
descriptive studies can be considered an extension of exploratory studies. Causal studies
posit that for an outcome to occur, one element must take place for the other to occur; ‘A
produces B or A forces B to occur’ (Cooper & Schindler, 2014).
It is for the reasons stated above that this study adopted the descriptive research design.
The specific study on sporting, particularly rugby fans in Kenya and alcoholic beverage
preference sought to give more insight on the study with the phenomena of study being the
independent variables; advertising, price and socio-cultural factors and dependent variable;
brand preference. The focal data collection method that was adopted by the researcher was
the survey method.
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3.3 Population and Sampling Design
3.3.1 Population
According to Sekaran (2013), population is defined as a group of people, events or items
that the researcher is interested in investigating. The target population are the people, events
or records that comprise the preferred information and can answer the measurement
questions (Cooper & Schindler, 2014). Saunders, et. al (2016) refer to the target population
as a subset of the population, which is the actual focus or target of the research inquiry.
This is because it is impossible to study the entire population. According to statistics
provided by Kenya Rugby Union, Kenya has an estimated number of 10,000 rugby fans
spread across the country, and 220 of these are registered in their official database (KRU,
2017). The researcher used the number of registered fans to make up the population eligible
to take part in this study.
3.3.2 Sampling Design
3.3.2.1 Sampling Frame
The sampling frame is closely related to the population. It is the list of components from
which the sample is actually drawn (Cooper & Schindler, 2014). The sampling frame for
this study constituted rugby fans in Kenya. It was derived from the Kenya Rugby Union’s
database that captured data of fans who are officially registered under the union. The
sampling units were drawn from the database of the union’s ticketing department, with the
sample elements being the fans who attended the rugby matches in May and June 2019.
3.3.2.2 Sampling Techniques
Sampling techniques are the methods used by researchers in collecting their data. Saunders
et. al (2016) suggest two forms of sampling techniques; probability or representative
sampling and non-probability sampling. With probability sampling, the selected sample has
an equal chance of being selected for the study, whereas non-probability sampling the target
population is unknown and it is impossible to answer the research questions that require
the researcher to make statistical inferences about the characteristics of the population. For
this study, the researcher adopted probability sampling, with specific interest on simple
random sampling which selected respondents randomly. The main reason for selecting this
method was informed by the nature of the population; homogeneity and also providing an
opportunity where each respondent had an equal chance of being selected, in addition to
36
the simplicity of incorporating the method based on the size and sample of the target
population.
3.3.2.3 Sample Size
It is rather impossible to carry out research on the entire population, hence the need for
sampling. It is the process of segmenting the larger population into subgroups so as to get
representative feedback on the research area of the whole population (Saunders, Lewis, &
Thornhill, 2016). Kerry (2018) reiterates the impossibility of carrying out research on the
entire population and highlights the need to sample providing an avenue for researchers to
generalize their outcome if the sample size is representative. Determining the sample size
forms, a crucial part in the research process and researchers seek to find the appropriate
methods (Dworkin, 2012).
Saunders, et al., (2016) posit that the selection of the sample size is governed by the
assurance needed in the data, the accepted margin of error and the type of analyses to be
undertaken plus the population from which the sample will be drawn. This study adopted
Krejcie & Morgan (1970) formula to select the representative sample size:
S= X2 NP(1-P) + d2 (N-1) + X2P(1-P)
S= Sample size
X2= table value of chi-square for 1-degree freedom at the desired confidence level
(3.841)
N= population size (220)
P= population proportion (assumed to be 50 since this would provide the maximum
sample size)
d= degree of accuracy expressed as a proportion (.05)
From the above formula, a sample size of 140 was derived:
S= X2 NP(1-P) + d2 (N-1) + X2P(1-P)
S= 3.841 x (220*50) (1-50) + .052 (220-1) + 3.8412 50(1-50)
S= 140
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3.4 Data Collection Methods
Data according to Oso and Onen (2011) is defined as a point given or admitted upon which
an inference in research may possibly be based. There are two types of data; primary and
secondary. Persaud (2012) defines primary data as an original source, where the researcher
collects data firsthand from the respondents. A drawback to this method is the time it takes,
nonetheless, provides a vivid representation of the situation on the ground. More often than
not, different sources of data are used so as to generate a profounder and comprehensive
insight on the area being studied, in addition to the validation and reliability of the data
(Persaud, 2012). Due to the scarcity of information and prohibitive cost, this research
employed primary data as the main method.
The data collection tool that the researcher used was a questionnaire. Cohen, Manion and
Morrison (2013) define a questionnaire as a tool for collecting primary data. Questionnaires
are most notably used to discover what the larger population are thinking. Some of these
include; market research, political polls, customer feedback, opinion polls and social
science research (O'Leary, 2014). Questionnaires provide the respondents with liberty to
express their views, opinions and also give suggestions. Furthermore, it is anonymous
which helps to produce more candid answers, which is rather impossible in interviews
(Jwan, 2010). This research adopted a closed-questionnaire structure, which made it easier
for the respondents to answer, and easier for the researcher to statistically code and analyze
the data.
Through the primary data collection, the questionnaire addressed the research objectives
discussed in the previous chapters. The questionnaire was broken down into two sections;
A and B; The first section captured the background information of the respondents such as
key demographics; (Age, Gender, Occupation etc.) and section B which was further divided
into three sections with specific questions based on the specific research objectives. The
questionnaire was based on a five-point likert scale (Strongly Disagree to Strongly Agree).
3.5 Research Procedures
To assess the reliability, validity and effectiveness of the questionnaire, the researcher
conducted a pilot study. Pilot testing was key in detecting or revealing weaknesses in the
research design, in addition to providing alternative data for selection of a sample (Cooper
& Schindler, 2014). Prior to the commencing of the official research, a pre-test was carried
out. This is where a small number (estimated 15) of the potential respondents were selected
38
to be a part of the pilot study. The questionnaire was administered to them via google forms.
Pre-testing allowed for the researcher to analyze the feedback garnered and inform on
which areas ought to be amended, modified clarified or deleted before embarking on the
research. The results of the pre-test are shown in table 3.1 below:
Table 3. 1: Results of the Reliability Test of the Study variables
Variables Cronbach Alpha No. of Items
Advertising 0.874 12
Price 0.877 10
Social Cultural Factors 0.721 11
Average 0.824 11
The test revealed that price had the highest reliability (α= 0.877) followed by advertising
(α= 0.874) and finally social cultural factors (α= 0.721). We can conclude that all variables
passed the reliability test, as they fall above the minimum accepted value of 0.7; thereby
meeting the reliability criteria of (α= 0.7). The results from Cronbach Alpha’s reliability
test revealed that all the elements in the questionnaire passed the minimum accepted value,
thus there was no need to change the elements in the questionnaire.
After the pre-test, the final questionnaire thereafter was administered online through google
forms to the selected respondents from the database provided by the ticketing department
at Kenya Rugby Union. The respondents were given a time frame of two weeks to complete
the questionnaire. To ensure a higher response rate, the researcher put in place measures
such as follow-up.
3.6 Data Analysis Methods
Cooper and Schindler (2014) posit that data analysis comprises the reduction of the
collected data to a manageable size, developing summaries, sourcing for patterns and
applying statistical techniques. Researchers are compelled to interpret the results in relation
to their research objectives, questions or hypothesis. On their part, De Leon & Chough
(2013) postulated that the advent of measurement tools has given rise to new methods of
data collection. Over the last 20 years, remarkable developments have been witnessed in
the analysis of data. The advancement of statistical software and packages have given
researchers access to sophisticated tools to analyze both simple and complex data. In this
39
stage, the researcher used Microsoft Excel and Statistical Package for Social Sciences
(SPSS) software to code, clean, analyze and report the findings. Descriptive and inferential
statistics were used to analyze the data. This captured the mean, standard deviation,
correlation and regression analysis of the data. This data was presented in the form of tables
and figures.
3.7 Chapter Summary
This chapter explains the procedures that the researcher applied in carrying out the study
in order to achieve the objectives of this study. The researcher discussed the research
design, sampling techniques, population and sampling designs, data collection methods and
the analysis methods. Furthermore, the chapter covered the questionnaire that was used in
effectively carrying out this research and its importance to answering the research
objectives. In the subsequent chapter, the collected data will be arranged, coded and
analyzed to reveal the results from the study.
40
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter presents the results and interpretation of findings derived from the analysis of
the collected data. The findings have been visually presented through the use figures and
tables to provide a more aesthetical representation.
4.1.1 Response Rate
A total of 140 questionnaires were administered to the target population sample derived
from the Kenya Rugby Union’s database. Of these, 115 were valid for analysis which
represented a response rate of 89%, with 25 respondents failing to submit their responses
to the questionnaire. This chapter provides detailed information on the demographics, the
context of the study, findings and analysis of the study from each of the research questions
and chapter summary.
4.2 Demographic Review
The demographic attributes play a critical role in understanding the population under the
study pertaining to their character, culture and behavior patterns. This study collected
information from respondents from diverse backgrounds.
4.2.1 Respondents’ Age
The study sought to highlight the age representation of rugby fans in Kenya. It was found
that 25% of the respondents were aged 28-32 followed closely by age group 33-37 at 22%.
The data was captured among the respondents and is presented below in Figure 4.1.
Figure 4. 1: Respondent’s Age
1%
19%
25%22%
10%
4%
18%
0%
10%
20%
30%
1
Age Representation
18-22
23-27
28-32
33-37
38-42
41
4.2.2 Respondents’ Gender Distribution
It was observed that majority of the respondents were male (78%), while females made up
22% of the respondents. This is reflective of the statistics provided by Kenya Rugby Union
that indicate a higher percentage of fans are male (KRU, 2017). As a result, the number of
male respondents corresponds with the population characteristic. Additionally, the study
was representative of both genders, eliminating the potentiality of gender bias. The study
sought to highlight the gender representation of rugby fans in Kenya which was captured
among the respondents and is presented below in Figure 4.2.
Figure 4. 2: Respondents’ Gender Distribution
4.2.3 Respondents’ Occupation Status
The respondent’s occupation status is important in depicting the ability of the population
to spend. A report by Consumer Insight in 2018 revealed that 93% of rugby fans in Kenya
have a source of income from either employment/self-employment (Ndirangu, 2018). This
study therefore sought to highlight the occupation status of rugby fans in Kenya which was
captured among the respondents and is presented below in Figure 4.3.
Figure 4. 3: Respondents’ Occupation Status
Female, 25, 22%
Male, 90, 78%
Gender Distribution
Female
Male
3%
44%
3%
44%
5%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Occupation Status
Retired
Self-Employed
Un-Employed
Employed
Student
42
4.2.4 Respondents’ Alcohol Consumption
This study sought to understand the alcoholic beverage preference among rugby fans,
however taking into consideration that there are those who attend rugby matches and don’t
necessarily partake in consumption of alcohol. As a result, it was important to highlight
where the respondents fall; 90% consume alcohol whereas 10% don’t consume alcohol.
The data is represented in figure 4.4 below.
Figure 4. 4: Respondent’s Alcohol Consumption
4.2.5 Respondents’ Frequency of Alcohol Consumption
As presented in figure 4.5, the study revealed that while watching rugby matches, 50% of
respondents consume alcohol occasionally, followed by 41% who consume it often, 7%
never and 3% who always do.
Figure 4. 5: Respondents’ Frequency of Alcohol Consumption
Yes90%
No10%
Alcohol Consumption
Yes
No
7%
50%
41%
3%
0% 10% 20% 30% 40% 50% 60%
Frequency of Alcohol Consumption
Always
Often
Ocassionally
Never
43
4.2.6 Respondents’ Frequency of Attendance of Local Rugby Matches
The diagram below reveals that 39% of the respondents watch rugby matches often,
followed closely by those who watch occasionally at 36%. The respondents who attend
matches always are 22% and those who never attend any matches were 3%.
Figure 4. 6: Respondents’ Frequency of Attendance of Local Rugby Matches
4.2.7 Respondents’ Preferred Companionship
Analysis of the respondents’ preferred companion revealed that attending rugby matches
with friends/peers accounted for 88%, followed by alone at 7%, attending with family 3%,
with spouse and other each at 1% as indicated in figure 4.7 below.
Figure 4.7: Respondents’ Preferred Companionship
3%
36%
39%
22%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Frequency of Attendance of Local Rugby Matches
Always
Often
Ocassionally
Never
7%
88%
3%
1%
1%
0% 20% 40% 60% 80% 100%
Respondents' Preferred Companionship
Other
Spouse (Husband/Wife)
Family
Friends/Peers
Alone
44
4.2.8 Respondents’ Preferred Drink
Imperative to the study was to analyze the respondents’ preferred drink while watching
rugby matches. As presented in figure 4.8 below, 58% of respondents preferred beer, 20%
accounted for spirits, 10% preferred soft drinks, 5% preferred spirits whereas water and
other drinks accounted for 3% each and wine at 1%.
Figure 4. 8: Respondents’ Preferred Drink
4.3 The Effect of Advertising on Brand Preference
In this section, data was collected to show the effect between advertising and brand
preference. The respondents were required to rate their level of agreement/disagreement
related with the various statements under the independent variable. The study incorporated
a five-point Likert scale; 1-Strongly Disagree, 2-Disagree, 3- Neutral, 4-Agree and 5-
Strongly Agree. The results are presented in the subsequent sections.
4.3.1 The Effect of Message on Brand Preference
As shown in table 4.1 below, the study revealed that respondents were neutral on their
attention towards advertisements that are skewed to alcoholic beverages (M=2.50,
SD=1.334). It was observed that the understandability of the advertising message in
addition to the relevance and also the believability was neutral (M=3.39, SD=1.126),
(M=2.56, SD=1.193) and (M=2.59, SD=1.203) respectively.
58%
1%
20%
5%
3%
10%
3%
0% 10% 20% 30% 40% 50% 60% 70%
Respondents' Preferred Drink
Other
Soft Drinks
Water
Cider
Spirits
Wine
Beer
45
Table 4. 1: The Effect of Advertising Message on Brand Preference
Variable N Mean SD
I pay attention to the advertising message of alcoholic beverages 115 2.50 1.334
The advertising message for alcoholic beverages is
understandable
114 3.39 1.126
The advertising message of alcoholic beverages is relevant to me 115 2.56 1.193
Advertisements promoting alcoholic beverages are believable 114 2.59 1.203
4.3.2 The Effect of Media on Brand Preference
The results established that respondents were neutral on their decision purchase based on
television advertisement (M=2.52, SD=1.266). Similarly, the influence of their purchase
decision by online advertisements was also neutral (M=2.63, SD=1.287). Majority of the
respondents however disagreed on the media channel influencing their brand preference
(M=2.34, SD=1.282). It was agreed that there was neutrality between the influence of
visual advertisements in relation to print (M=3.41, SD=1.401). This is displayed in table
4.2 below.
Table 4. 2: The Effect of Advertising Media on Brand Preference
Variable N Mean SD
I am more inclined to purchase an alcoholic beverage product that
has been advertised on television
115 2.52 1.266
I am more inclined to purchase an alcoholic beverage that is
advertised online
115 2.63 1.287
The advertising media will influence my purchase decision of an
alcoholic beverage
114 2.34 1.282
I prefer alcoholic beverage advertisements that are visual as
opposed to print advertisements
115 3.41 1.401
46
4.3.3 The Effect of Source on Brand Preference
Majority of the respondents however disagreed that the source of an advertisement had an
effect on their brand preference (M=2.36, SD=1.227). It was observed that a celebrity or
influencer would not have an effect on the purchase decision of the respondents which is
revealed by how strongly they disagreed (M=1.99, SD=1.210). The respondents disagreed
that the credibility and influential power of the source had an effect on their brand
preference (M=2.45, SD=1.410) and (M=2.45, SD=1.333) respectively.
Table 4. 3: The Effect of Advertising Source on Brand Preference
Variable N Mean SD
The advertising source influences my purchase decision of an
alcoholic beverage
114 2.36 1.227
A celebrity/influencer endorsing an alcoholic brand will influence my
purchase decision
115 1.99 1.210
The credibility of the endorser would influence my purchase decision 115 2.45 1.410
The influential power of the source will influence my purchase
decision
115 2.45 1.333
4.4 The Effect of Price on Brand Preference
4.4.1 The Effect of Market Penetration Pricing on Brand Preference
It was observed that majority of the respondents were neutral (M=2.94, SD=1.320) on the
effect of a lower priced alcoholic beverage brand influencing their brand preference.
Similarly, the decision to purchase a lower-priced alcoholic beverage brand in comparison
to their preferred brand was neutral (M=3.12, SD=1.452). The idea that lower-priced
alcoholic beverage brands are of low quality was also recorded as neutral (M=2.61,
SD=1.273). In the same breadth, the respondents were neutral on whether they have
changed their preferred brand of choice because of another brand having a lower price
(M=2.64, SD=1.464).
47
Table 4. 4: The Effect of Market Penetration Pricing on Brand Preference
Variables N Mean SD
A lower priced alcoholic brand will influence my
purchase decision
115 2.94 1.320
I have purchased an alcoholic brand that had a lower
price than my preferred brand
115 3.12 1.452
Lower priced alcoholic beverages are of low quality 114 2.61 1.273
I have changed from my preferred alcoholic beverage
brand of choice because of the price
115 2.64 1.464
4.4.2 The Effect of Psychological Pricing on Brand Preference
It was revealed that majority of the respondents agreed that they would be influenced to
purchase a certain brand based on the discounts that are being offered (M=3.63, S=1.428).
Changes in price and the inclination to purchase a specific brand however, recorded a
neutral response from the majority of the respondents (M=3.34, SD=1.413). Likewise, the
effect of higher priced alcoholic beverage brands also recorded a neutral response (M=2.74,
SD=1.241).
Table 4. 5 The Effect of Psychological Pricing on Brand Preference
Variables N Mean SD
A discounted alcoholic brand will influence my
purchase decision such as; Pay for 4 and get 5
114 3.63 1.428
Changes in price influence my purchase decision 114 3.34 1.413
Higher priced alcoholic brands are high in quality 114 2.74 1.241
4.4.3 The Effect of Competitive Pricing on Brand Preference
Findings showed that a competing alcoholic beverage brand that had a lower price would
rarely have an effect, with neutral responses from majority of the respondents (M=2.83,
SD=1.382). Lower-priced competing alcoholic beverage brands and those that offer
merchandise also revealed neutral recordings (M=3.29, SD=1.450) and (M=3.11,
SD=1.339) respectively.
48
Table 4. 6: The Effect of Competitive Pricing on Brand Preference
Variables N Mean SD
A competing alcoholic brand with a lower price will
influence my purchase decision
114 2.83 1.382
A competing alcoholic brand with a discounted offer
will influence my purchase decision
114 3.29 1.450
A competing alcoholic brand offering additional value
e.g. merchandise will influence my purchase decision
114 3.11 1.339
4.5 The Effect of Socio-Cultural Factors on Brand Preference
4.5.1 The Effect of Peers, Friends and Family on Brand Preference
It was established that friends/peers did not really influence the respondents’ brand
preference, recording neutral responses (M=2.90, SD=1.376) in addition to them having
the same brand preference tastes as the respondents (M=2.89, SD=1.267). Majority of the
respondents strongly disagreed that their family members had an influence on their
alcoholic beverage brand preference (M=1.92, SD=1.146). However, they agreed that they
would purchase an alcoholic beverage brand based on the recommendation of their
peers/friends/family (M=3.56, SD=1.407).
Table 4. 7: The Effect of Peers, Friends, Family on Brand Preference
Variables N Mean SD
My peers/friends influence my alcoholic beverage brand of
choice
114 2.90 1.376
My peers/friends have the same alcoholic beverage brand
tastes as me
114 2.89 1.267
My family members influence my alcoholic beverage brand
choice
114 1.92 1.146
I am more inclined to try an alcoholic beverage brand if my
peers/family/friends recommend it
113 3.56 1.407
49
4.5.2 The Effect of Role of Status on Brand Preference
The response for the influence of the respondents ‘social class was neutral (M=2.82,
SD=1.435). On the other hand, the decision to purchase a particular alcoholic beverage
brand to fit into a particular social class recorded a strongly disagree response from majority
of the respondents (M=2.15, SD=1.435). The preference of premium alcoholic beverage
brands was recorded as neutral (M=3.16, SD=1.294). The same was observed for
purchasing alcoholic beverage brands based on the level of income which was neutral
(M=3.41, SD=1.504).
Table 4. 8: The Effect of Role of Status on Brand Preference
Variables N Mean SD
My social class determines the alcoholic beverage
brand I purchase
112 2.82 1.435
I am more inclined to buy an alcoholic beverage
brand so that I can fit into a particular social class
113 2.15 1.262
I prefer premium alcoholic beverage brands 114 3.16 1.294
I purchase alcoholic beverage brands based on my
level of income
114 3.41 1.504
4.5.3 The Effect of Culture on Brand Preference
Alternatively, the respondents disagreed that their cultural values/beliefs influenced their
purchase decision (M=2.01, SD=1.271) in addition to their cultural practices (M=2.06,
SD=1.271). Finally, the respondents strongly disagreed that their cultural beliefs/values do
not allow consumption of alcohol (M=1.80, SD=1.206).
50
Table 4. 9: The Effect of Culture on Brand Preference
Variables N Mean SD
My cultural values/beliefs influence my choice on an
alcoholic beverage brand
113 2.01 1.271
My cultural practices influence my purchase decision of
an alcoholic beverage brand
114 2.06 1.271
My cultural beliefs/values do not allow consumption of
alcohol
114 1.80 1.206
4.6 Inferential Statistics
The purpose of the study was to determine the factors associated with alcoholic beverage
preference in sports, with a focus on rugby fans in Kenya. The study employed quantitative
analysis including correlation and regression to determine the relationship between the
variables.
4.6.1 Correlation Analysis
A two-tailed Pearson correlation was carried out on the variables; advertising, price and
socio-cultural factors to establish the relationship between these factors and brand
preference. It was observed that advertising had a statistically significant positive
correlation with brand preference (r=0.767; p<0.01). This indicated that holding all other
factors constant, there is a significant correlation between advertising and brand preference
77% of the time. It was also found that there was a significant positive correlation between
price and brand preference (r=0.518; p<0.01) and socio-cultural factors (r=0.736, p<0.01)
meaning that holding all factors constant there is a significant correlation between price
and brand preference 52% of the time, between socio-cultural factors and brand preference
74% of the time. These highly positive correlations indicated that the higher the presence
of three factors (advertising, price and socio-cultural) in the alcoholic beverage industry,
the more likely rugby fans would purchase the brand. Furthermore, it also indicated that
presence of advertising and socio-cultural factors would draw the highest level of the
consumers’ brand preference. The outcome is outlined in table 4.10 below:
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Table 4. 10: Correlation between Factors and Brand Preference
Brand Preference
Advertising Pearson Correlation .767**
Sig. (2-tailed) .000
N 111
Price Pearson Correlation .518**
Sig. (2-tailed) .000
N 111
Brand Preference Pearson Correlation .736**
Sig. (2-tailed) .000
N 110
**. Correlation is significant at the 0.01 level (2-tailed).
4.6.2 Regression Analysis
The study analyzed the association of the variables advertising, price and socio-cultural
factors on the rugby fans’ brand preference using linear regression analysis. In the summary
below of the regression analysis, it was observed that there was a high positive correlation
coefficient of 0.890 indicating that there is a significantly well-defined relationship
between brand preference and the chosen factors; advertising, price and socio-cultural
factors. Furthermore, the coefficient of determination (R2) of 0.792 revealed that the
independent variables that formed the study can explain 79% of the variability within the
dependent variable (brand preference). In view of this, a conclusion can be made that there
is a significantly strong relationship between the dependent and independent variables in
the alcoholic beverage industry among rugby fans. The outcomes are presented in table
4.11, 4.12 & 4.13 below.
Table 4. 11: Regression Analysis Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .890a .792 .786 .36338
a. Predictors: (Constant), Socio-Cultural, Advertising, Price
52
4.6.2.1 Anova Test
An Analysis of Variance (ANOVA) test for the regression model was carried out to
determine the variability between the independent variables (advertising, price and socio-
cultural factors) and the dependent variable (brand preference) in the alcoholic beverage
industry among rugby fans. According to the outcome of the test, the statistics value was
128.217 whereas the p-value (significance) was 0.00 (p<0.05), which implied that the three
independent variables had a statistically significant effect on brand preference.
Additionally, it revealed that the influence of advertising, price and socio-cultural factors
on brand preference displayed in table 4.12 (goodness of fit test) was statistically
significant.
Table 4. 12: Anova Test
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regression 50.791 3 16.930 128.217 .000b
Residual 13.336 101 .132
Total 64.128 104
a. Dependent Variable: Brand Preference
b. Predictors: (Constant), Advertising, Price, Socio-Cultural
4.6.2.2 Regression of Coefficient
To establish the extent and nature of the relationship between the independent variables
(advertising, price & socio-cultural factors) and the dependent variable (brand preference),
the final inferential analysis was undertaken. In the below table, the results for the
regression of coefficient analysis model are displayed. As indicated, advertising (0.363,
p<0.05), price (0.482, p<0.05) and socio-cultural factors (0.290, p<0.05) indicates that the
variables are statistically significant in the alcoholic beverage industry among rugby fans
in Kenya because their p-values are 0.000 which is lower than the common alpha level of
0.05. The constant in the test was established not to be significantly different from zero
intercept attributed to the statistical significance of the results. This indicates that there is a
positive correlation between the three independent variables and the dependent variable.
53
Table 4. 13: Regression of Coefficient
Model Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std.
Error
Beta
1 (Constant) -.333 .161 -2.061 .042
Advertising .330 .049 .363 6.795 .000
Price .458 .051 .482 8.905 .000
Socio-
Cultural
.296 .050 .290 5.877 .000
a. Dependent Variable: Brand Preference
The coefficient regression model of this relationship at 95% confidence level is represented
as;
Y= β0 + β1 +X1 + β2X2 + β3X3 + ε
Y= -0.333+0.330 X1+0.458X2+0.296 X3 + …27252
Where:
Y is the dependent variable (brand preference)
β0 is the regression constant
β1, β2, β3 are the coefficients of independent variables;
X1 is advertising, X2 is price, X3 is socio-cultural factors and ε is the error term.
4.7 Chapter Summary
This chapter presented the results and findings from the analysis of the collected data,
which included the demographics and research objectives to establish the factors associated
with alcoholic beverage preference in sports: a case of rugby fans in Kenya. Consequently,
the data presented was in line with the three specific research objectives. Chapter five
covers the discussions, conclusions and recommendations of the research study.
54
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Introduction
This section has provided a summary of the research findings, discussions, conclusion and
recommendation of the research study. Furthermore, the findings are derived from the
reviewed literature and organized on the research objectives to determine the factors
associated with alcoholic beverage preference in sports, with a focus on rugby fans in
Kenya.
5.2 Summary
The general objective of the study was to determine the factors associated with alcoholic
beverage preference in sports, a case of rugby fans in Kenya. The study was guided by three
specific objectives; to determine the effect of advertising on brand preference, to determine
the effect of price on brand preference and to determine the effects of socio-cultural factors
on brand preference.
The study adopted descriptive research design. The target population for the study was 220
rugby fans sourced from Kenya Rugby Union’s database. Probability sampling, specifically
simple random sampling was used to select a sample size of 140 rugby fans. Prior to the
collection of data, a pilot study was carried out to test the reliability test was conducted
using Cronbach’s Alpha. Data was then collected using a questionnaire which was
administered online via google forms. The collected data was then cleaned, edited, coded
and entered using Statistical Package for Social Sciences (SPSS). The study used Pearson’s
and multilinear regression model to analyze the data. The descriptive statistics used for
analysis comprised of mean, standard deviation, percentages and frequencies. Out of the
140 administered questionnaires, 115 were valid for analysis, with this representing 89%
response rate, with 25 questionnaires not being returned. The demographic data revealed
that most of the rugby fans fell in the age group 28-32 and majority of them were males.
They were also aware on the subject matter, considering that 39% often attend local rugby
matches.
The study revealed that there was a significant relationship between advertising and brand
preference. Although majority of the respondents were neutral on the effect it has on their
preference, comparison with correlational and regression analysis revealed that there was
55
a significant relationship, meaning that the respondents consider it an important factor when
making their purchasing decisions. Messaging which plays a significant role in the
dissemination of the intended information to the target audience also elicited neutral
responses by the respondents’. Although it is considered vital, majority do not pay attention
to it. The advertising media and channels used also recorded neutral responses on the
influence it had on brand preference. In regards to the advertising source, majority of the
respondents felt that the credibility, influential power and use of a celebrity or influencer
to market the product did not influence their purchase decision.
It was observed that majority of the respondents agreed that they are more inclined to
purchase an alcoholic beverage brand when the price has a discount. Conversely, the
respondents were neutral on the influence that price has on their purchasing decision, more
so in respect to lower priced brands. Likewise, the probability of respondents switching
from their preferred brand to competitively priced alcoholic beverage brands, even if the
latter offered value addition also elicited neutral responses. Similarly, to advertising, the
findings from the effect price had on brand preference was evident, as respondents consider
it a slightly important factor when making decisions on the brand of choice.
The findings revealed that peers, friends and family had a minimal effect on the
respondent’s decision to purchase a certain alcoholic beverage brand. Moreover, they were
neutral on the aspect of having similar brand tastes with their peers/friends and family.
With regards to role of status, the decision of the respondents to purchase an alcoholic
beverage brand based on their social class and intent to purchase so as to fit into a particular
social class further revealed minimal relationship. Culture, cultural value/beliefs, practices
as factors influencing alcoholic beverage preference recorded minimal relationship with
brand preference among the respondents.
5.3 Discussion
5.3.1 Advertising and Brand Preference
A summary of the descriptive statistics discovered that the respondents were neutral with
regards to the role advertising has on brand preference, however the correlation analysis
revealed that rugby fans consider it an important factor when making decisions on the
alcoholic beverage brand to purchase during rugby matches. Many scholars sought to
establish the impact that advertising has on brand preference in addition to the role that it
plays from viewing an advertisement to actually purchasing it. Grace and O ’Cass (2005)
56
inferred that advertising is and continues to remain a major component of communication
and is also acknowledged as a crucial avenue for marketers inform and persuade consumer,
while also taking into consideration the perceived risks associated with consumer
purchases. Ingavale (2013), as cited by Onyango, Bwisa and Odhiambo (2017) on his part
argued that advertising is a crucial key for building, creating and sustaining brands. His line
of thought coincides with that of Silberstein and Nield (2008) who validated a relationship
between encoding the long term memory pertaining to brand information in television
advertisements among females and an alteration in brand preference to the advertised
brand. On the other hand, not all scholars believed in the notion that advertisements play a
vital role in consumer conversion. Fam, et. al (2013) disagreed with the sentiments in
support of advertising, and rather posit that research over the years has revealed that
advertising generally is hated by consumers. This conclusion was reached based on the
consumers ‘switching off’, yet for the opposite to take precedence, consumers must like
the advertisements.
The advertising message was recorded as neutral implying that it did not really have an
effect on their purchasing decision. It disagrees with the study by Albers-Miller and
Stafford (1999) as cited by Akbari (2015), who put forward their view that consumers make
their buying decisions for rational and/or emotional reasons and as a result, has been
accountable for a substantial amount of research among consumer psychologists.
Inescapably, the point of contention has attracted interest from both advertising scholars
plus practitioners, as message appeals provide an effective tool for stimulating buyer
behavior and brand preference through the diffusion of informational or experimental
features to their consumers (Edell, 1990). Mellinger (2018) noted that there needs to be a
step-by-step plan, setting of clear and concise objectives before an advertising message is
put forward. Thereafter, what the brand intends to communicate will come out clearly and
become entrenched in the mind of the consumer.
The advertising media and channels used also recorded neutral responses on the influence
it has on brand preference. There was also neutrality on between the influence visual
advertisements played in relation to print. This supports the view by Remi (2014) urging
firms to adapt all forms of media channels to market their products as opposed to leaning
towards a specific one. Other researchers have posited that social media will be a governing
force for businesses and individuals, forcing them to either participate or get left behind on
the trends (Laudon & Traver, 2017).
57
The advertising source plays a vital role in the dissemination of information to the intended
audience. Majority of the respondents felt that the credibility, influential power and use of
a celebrity or influencer to market the product did not influence their purchase decision.
This finding supports that of Belch and Belch (2017) who revealed that if the credibility of
the source is bias, then it impacts the purchase decision. However, they also take into
consideration that the process to get a credible and influential source takes time and other
factors such as honesty and trustworthiness should be taken into account. Herbert Kelman
developed three key categories that espouse the advertising source; credibility,
attractiveness and power. Each of these traits has the power to reward or punish the receiver
and has an influence on their behavior through a diverse process. This selection is made by
organizations to select those whose traits will maximize the influence of the message (Belch
& Belch, 2017).
5.3.2 Price and Brand Preference
Out of the four p’s of marketing, pricing is the only one that produces money in addition to
providing the indicator of success or failure of the products or services being sold by a firm
(Al-Salamin & Al-Hassan, 2016). Hanna and Dodge (2017) agree with the level of
importance that pricing plays as a determinant of the level of profitability. Regardless of
the nature of business, success is measured by the revenues that exceed the costs.
Market penetration pricing creates the hope that the consumers will respond to the lower
priced new product and in the long run switch (Intelligence Node, 2016). This supports the
findings of Baker (2011) who pointed out that penetration pricing involves trade-offs of
higher revenue in order to sell more volumes, which is more effective for new entrants in
the market. Indounas and Avlonitis (2011) further revealed that companies that use this
pricing strategy seek to offer undifferentiated services, targeting price sensitive consumers
specifically in mass. In addition to this, the pricing strategy aims at edging out the
competition. The organization’s ability to reduce the unit cost as the volume increases also
comes into play. However, the findings in this study, revealed otherwise. Majority of the
respondents were neutral on the influence that a lower priced brand had on their purchasing
decision in addition to their perception of lower priced goods being low in quality.
Additionally, the respondents were neutral based on whether they have changed from their
preferred alcoholic beverage brand to a lower priced one.
58
On the other hand, Kotler and Armstrong (2018) pointed out that lowering of prices can
also have a downside to it. Rather than selling the value of the product or service to the
consumer at the high price, the organizations work to reducing the price to capture the
market. Increasing this price later on can be an uphill task, because the consumers have
already positioned it to be of a lower price. In his argument, Bhasin (2018) suggested that
this pricing strategy is mostly used by late comers in the market. Also, it is ideal when the
market is saturated or there’s presence of many variants for similar products, which is a
prime example of the alcoholic beverage industry in Kenya.
It was observed that majority of the respondents agreed that they are more inclined to
purchase an alcoholic beverage brand when the price has a discount. This supports the
premise of Mittal and Sethi (2011) as cited in Salvi (2013) who revealed that buy one get
one free was a very effective tactic in prompting brand switching. Conversely, the
respondents were neutral on the influence that price has on their purchasing decision, more
so in respect to lower priced brands. Piercy & Cravens (2011) posited that using a market
penetration pricing strategy does not necessarily work for all brand types, some have
created a niche and witnessed their successes such as Wal-Mart, whereas others tend to
struggle in implementing this pricing strategy successfully.
Likewise, the probability of respondents switching from their preferred brand to
competitively priced alcoholic beverage brands, even if the latter offered value addition
also elicited neutral responses. Traditionally, setting prices based on the competitor’s
strategy was practiced widely. However, Piercy and Cravens (2011) postulated that price
fairness surpasses that strategy because consumers nowadays assess whether the selling
price of the product or service is reasonable, acceptable or justifiable. Additionally, there
ought to be more emphasis on value-based pricing to be able to adapt to increasing market
changes and put stronger emphasis on the consumer’s value instead of the price alone. It is
also imperative to note that the beverage industry at large tends to be oligopolistic, thus
industry players converge to create cartels and set standard pricing to ensure there is a
mutual balance in price and also for each achieve their targeted profit margins (Bhasin,
2017). In support of this claim, majority of the respondents were neutral in the possibility
of switching to another brand even if the competitor’s pricing was lower compared to their
preferred brand. This contradicts the findings of Phillips (2019) who observed that an
estimated 81% of consumers compare prices of different brands in search of a better
bargain. The competitive pricing strategy is a key tactic to attract many consumers by price
59
optimization using the competitor’s pricing data. Successfully implementing this can
increase sales significantly and ultimately boosting revenue.
5.3.3 Socio-Cultural Factors and Brand Preference
The sociocultural environment allows us to absorb relationship to ourselves, others, the
organizations and society as a whole (Kotler & Keller, 2016). The family unit is the first
place an individual’s socialization takes place. As time goes by, peers and friends start to
have an impact on the individual (Sancho, Miguel, & Aldas, 2011). These views however
contradict those by the respondents who strongly disagreed on the influence that their
peers/friends and family had on their decision to purchase a certain alcoholic beverage
brand.
The respondents were neutral on the aspect of having similar brand tastes with their
peers/friends and family. This is contrary to a study by Sudhinaraset et. al (2016) that
revealed the strongest effect on drinking among adolescents stems from the people who
they spend the most time with; family and friends. His claim was further supported by
Sancho et. al (2011) who revealed that young people model the behavior of their parents,
and are more inclined to also adopt similar alcohol consumption patterns. Additionally, the
presence of the products within the household can be an outlying cue to brand recall,
awareness which lead to brand usage and increased accessibility. He further added that
higher alcohol use among peers has over the years been associated with the need to be
accepted by the peer group, thus they trust their peers on alcoholic beverage related
decisions as opposed to getting the same from their parents. This claim is in line with the
observations in the study that recorded majority of the respondents strongly agreed when it
came to considering brand-switching if their peers/friends and family recommended it.
The decision of the respondents to purchase an alcoholic beverage brand based on their
social class recorded neutral responses. They further disagreed that they are more inclined
to purchase the same in order to fit in a particular social class. Their level of income and
preference of premium brands also elicited neutral responses. Conversely, in his study,
Collins (2016) observed that a person’s socioeconomic status (SES) is a major factor that
influences an individual’s alcohol consumption in addition to other related outcomes.
Research further revealed that individuals with a higher SES had the potential of consuming
similar or greater amounts of alcohol compared to those who are from a lower SES.
60
Although the latter are more often than not faced with the detrimental effects of excess
alcohol consumption and related consequences.
Culture, cultural value/beliefs, practices as factors influencing alcoholic beverage
preference recorded strong levels of disagreement. The respondents held the view that their
cultural values/ beliefs and practices did not have an influence on their decision to purchase
an alcoholic beverage brand. Furthermore, they strongly disagreed with the claim that their
cultural practices prohibit the consumption of alcohol. These results contradict the study
by Brooks-Russell et. al (2012) who found out that cultural norms and beliefs played a
major role in predicting the current and frequent drinking patterns. Their views were echoed
by Savic et. al (2016), cited by Pennay and Room (2016) where traditionally, the hierarchy
within the cultural group only allowed for the ‘elders’ to partake in drinking. Nowadays, it
is relatively more accepted by the general population because of the effects of globalization.
Furthermore, their research revealed that cultures have transcended from national and
whole culture level to a more district one. Also the realization that culture has the potential
to change and fluctuate over a period of time.
Bruwer and Buller (2012) also identified that societies develop over a period of time and
their cultural practices become distinctive. What may have been perceived as a premium
alcoholic beverage in one culture, may be more accessible in another and vice versa. In
addition, Brooks- Russell, Simons-Morton and Haynie (2012) suggested that cultural
norms and beliefs play a big role in predicting the current and frequent drinking patterns.
These viewpoints majorly contradict the findings of the study on the influence of culture
on brand preference.
5.4 Conclusion
5.4.1 The Effect of Advertising on Brand Preference
The use of advertising as a marketing tool is imperative when it comes to marketing
alcoholic beverage brands to rugby fans in Kenya. It is evident that they create continued
awareness and relative influence in their brand selection during rugby matches. The study
also concludes that the media channels used should supplement each other, as opposed to
selecting a specific one to market the product. Additionally, it is imperative to note that the
messaging and source may not necessarily have a great impact, nonetheless play a
significant role in driving the intended agenda by alcoholic beverage manufacturers to
make their brands the brand of choice for rugby fans in Kenya.
61
5.4.2 The Effect of Price on Brand Preference
From the findings, we can conclude that the price has a minimal effect in the choice of
brand preference among rugby fans in Kenya. However, it is important to note that the
largest impact is when alcoholic beverage brands offer a discount on their brands. This
increases the probability of the fans purchasing their product at rugby matches. It can also
be concluded that pricing products similarly to the competitor does not necessarily have an
influence on the consumer’s brand choice, although it remains an important factor that they
use to assess the value and trustworthiness of the selected brand.
5.4.3 The Effect of Socio-Cultural factors on Brand Preference
From the findings, we can conclude that friends/peers and family had a minimal effect on
the respondents’ brand preference in addition to them having the same brand tastes.
Additionally, the responses revealed that their friends/ peers and family members did not
have an influence on their preferred alcoholic beverage brand. However, they would be
more inclined to purchase a brand if it was recommended by their friends/peers and family
members, which can be considered as a touchpoint for the manufacturers especially in their
marketing campaigns skewed to this target population. With the emergence of
globalization, there has been more accommodation of drinking patterns especially with the
cultures that were not open to it in the past.
5.5 Recommendation
5.5.1 Recommendation for Improvement
5.5.1.1 The Effect of Advertising on Brand Preference
The use of advertising as a tool remains imperative for alcoholic beverage manufacturers
to get their message across to the intended population, in this case rugby fans in Kenya. In
as much as the sector remains competitive, with each trying to outdo the other and capture
an increasingly growing market, there is need to structure the messaging appropriately and
incorporate the use of various media channels to get it across.
5.5.1.2 The Effect of Price on Brand Preference
Pricing is one of the most important factors under the four p’s of marketing. Alcoholic
beverage manufacturers should continue to price their products as they are currently in the
market. This researcher highly recommends that the manufacturers should incorporate
62
more discounted offers when marketing their brands during rugby matches. There is a
higher probability of the fans purchasing more of their products then. Ultimately this will
create a sense of top of mind awareness in the mind of those consumers.
5.5.1.3 The Effect of Socio-Cultural factors on Brand Preference
Socio-cultural factors play an integral part in the society, because they create the
functionalities of what is accepted and not accepted. Consideration should highly be placed
on the togetherness of peers/friends and family because it creates more inclination for an
alcoholic beverage brand to be purchased as drinking is considered a social activity.
Additionally, taking into consideration the global cultural changes and adapting to them
effectively and efficiently.
5.5.2 Recommendation for Further Studies
This study focused on the factors associated with alcoholic beverage preference in sports;
a case of rugby fans in Kenya. Being a case study, the study was limited in scope. Therefore,
this study recommends that a more extensive research should be carried out countrywide
and a comparative analysis done on the subject topic. This will enable the generalization of
the study findings of the effect of varied factors on the alcoholic beverage industry among
rugby fans.
63
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APPENDICES
APPENDIX I: RESEARCH LETTER
81
APPENDIX II: NACOSTI PERMIT
82
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APPENDIX 1II: RESEARCH COVER LETTER
Camilla Owora
P.O. Box 34782-00100
Nairobi, Kenya
Dear Respondent,
RE: MBA THESIS SURVEY
My name is Camilla Owora, a graduate student at United States International University-
Africa (USIU) pursuing a Master’s in Business Administration- Strategic Management.
As partial fulfillment of the Master’s Degree I am conducting research seeking to
understand factors associated with alcoholic beverage preference in sports, with a focus
on rugby fans in Kenya.
Please note that any information you give will be treated with utmost confidentiality and
at no instance will it be used for any other purpose other than for this project.
Your assistance will highly be appreciated.
Sincerely,
Camilla Owora
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APPENDIX 1V: RESEARCH QUESTIONNAIRE
The questionnaire below is aimed at collecting information on the factors associated with
Brand Preference in the alcoholic beverage industry with a focus of sporting particularly
rugby fans in Kenya. The information is solely being sought for academic purposes and
will be treated with utmost confidentiality. Kindly answer the questions to the best of your
ability.
SECTION A: Background Information
1. Age
18-22
22-37
28-32
33-37
38-42
43-47
48+
2. Gender
Male
Female
3. Occupation
Student
Employed
Un-Employed
Self-Employed
Retired
Other
4. Do you consume alcohol?
Yes
No
5. How often do you consume alcohol?
Never
Occasionally
Often
85
Always
6. How often do you attend local rugby matches?
Never
Occasionally
Often
Always
7. Who do you attend the rugby matches with?
Alone
Friends/Peers
Family
Workmates
Spouse
Others
8. What is your preferred drink while watching local rugby games?
Beer
Wine
Spirits (Whisky, Cognac, Vodka, Gin, Rum etc.)
Cider
Water
Soft Drinks (Soda, Juice, Energy Drinks)
Other
SECTION B: This section will focus on three parameters brand
preference; Advertising, Price and Social-Cultural Factors. Please
select the choice that best suits your situation from the choices
provided by the Likert scale;
(1.) Strongly Disagree (2.) Disagree (3.) Neutral (4.) Agree (5.) Strongly Agree
Kindly answer ALL questions.
EFFECTS OF ADVERTISING ON BRAND PREFERENCE
1 2 3 4 5
Advertising Message
86
I pay attention to the advertising message of
alcoholic beverages
The advertising message for alcoholic beverages
is understandable
The advertising message of alcoholic beverages
is relevant to me
Advertisements promoting alcoholic beverages
are believable
Advertising Media
I am more inclined to purchase an alcoholic
beverage product that has been advertised on
television
I am more inclined to purchase an alcoholic
beverage brand that is advertised online
The advertising media will influence my
purchase decision of an alcoholic beverage
I prefer alcoholic beverage advertisements that
are visual (digital) as opposed to print
advertisements
Advertising Source
The advertising source influences my purchase
decision of an alcoholic beverage
A celebrity/influencer endorsing an alcoholic
brand will influences my purchase decision
The credibility of the endorser influences my
purchase decision
The influential power of the advertising source
will influence my purchase decision
EFFECTS OF PRICE ON BRAND PREFERENCE
Market Penetration Pricing
A lower priced alcoholic brand will influence
my purchase decision
I have purchased an alcoholic brand that had a
lower price than my preferred brand
Lower priced alcoholic beverages are of low
quality
I have changed my preferred alcoholic beverage
brand of choice because of the price
Psychological Pricing
A discounted alcoholic brand will influence my
purchase decision such as; Pay for 4 and get 5
87
Changes in price influence my purchase
decision
Higher priced alcoholic beverage brands are
high in quality
Competitive Pricing
A competing alcoholic beverage brand with a
lower price influences my purchase decision
A competing alcoholic beverage brand with a
discounted offer will influence my purchase
decision
A competing alcoholic beverage offering
additional value e.g. merchandise will influence
my purchase decision
EFFECTS OF CULTURE ON BRAND PREFERENCE
Peers, Friends and Family
My peers/friends influence my alcoholic
beverage brand of choice
My peers/friends have the same alcoholic
beverage brand tastes as me
My family members influence my alcoholic
beverage brand choice
I am more inclined to try an alcoholic beverage
brand if my peers/family/friends recommend it
The Role of Status
My social class determines the alcoholic
beverage brand I purchase
I am more inclined to buy an alcoholic beverage
brand so that I can fit into a particular social
class
I prefer premium alcoholic beverage brands
I purchase alcoholic beverage brands on my
level of income
Culture
My cultural values/beliefs influence my choice
of an alcoholic beverage brand
My cultural practices influence my purchase
decision of an alcoholic beverage brand
My cultural beliefs/values do not allow
consumption of alcohol
Thank you for taking time to fill out this survey!
