Impact of Brand Related Attributes on Purchase Intention Of

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 194

JULY 2012

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IMPACT OF BRAND RELATED ATTRIBUTES ON PURCHASE INTENTION OF

CUSTOMERS. A STUDY ABOUT THE CUSTOMERS OF PUNJAB, PAKISTAN.

Imran Khan, Tauqir Ahmad Ghauri and Salman Majeed

Department of Management Sciences, The Islamia University of Bahawalpur, Bahawalnagar Campus.

Abstract

Many studies have been conducted on the purchase intention of consumers in the world but

few studies are there in Pakistan. This study shows the brand related factors (Brand

knowledge, brand relationship, behavioral intention, brand advertisement and past experience

about the brand) on the purchase intention of the customers. It establishes the relationship

among these variables. This research also concentrates on the demographics attributes impact

on purchase intention of customers. Current study results identify that brand knowledge and

brand advertisement has same impact on both male and female. Behavioral intention, past

experience and purchase intention is high in female then male customer. But male customers

have stronger brand relationship then female customers. Behavioral intention and purchase

intention of upper Punjab employees is high. Impact of advertisement and knowledge about

brand increases as customer age increase. All the brand related factors shows positive

relationship with purchase intention of customers. Companies operating in Pakistan should

have improve their brand related attributes to increase purchase intention of their customers,

which is a key to their value generation. Keywords: Brand awareness; brand knowledge; behavioral intention; advertisement; Pakistan.

1. Introduction

A number of researches have been conducted on the purchase intention and the factors affecting purchase

intention. Most of these researches are in the consideration of developed countries. Few researches are done on

developing countries. Consumer purchase intention is the decision making process used by consumers relating

to a market deal in the form of purchase of products and services from one seller or group of sellers. Consumers

go through different decision criteria when making any purchase decision like brand, prices, quality,

performance, features, convenience and user friendliness.

2. Literature Review

2.1-Purchase Intention

Purchase intention can be defined as individual’s intention to buy a specific brand individuals who want to buy a

specific brand which they has chosen for themselves after certain evaluation; there are variables by which we

can measure purchase intention for instance consider the brand for purchasing and expecting to purchase the

brand in the future (Laroche and Zhou, 1996; Laroche and Sadokierski, 1994; MacKenzie and Belch, 1986).

Doing purchase intention for a specific brand requires assessment of all brands available in market (Teng,

Laroche and Huihuang, 2007).

It is shown that approaches toward a specific brand have great effect on brand purchase intention (Brown and

Stayman, 1992; Homer, 1990; MacKenzie, 1986), and brand attitude has positive relation with purchase

intention. It is also found that a consumer’s intention is settled by attitude toward the same and other brands

which are present in his consideration set (Laroche and Sadokierski, 1994; Laroche and Zhou, 1996).

2.2-Brand Knowledge

Brand knowledge consists of Brand awareness and Image (Agarwal and Rao, 1996; Mackay, 2001; Pappu and

cooksay, 2005). Current purchases of customers are affected by brand knowledge and we have found that brand

image has direct effect on customer purchases and brand awareness have indirect affect on customer purchases

(Franz-Rudolf Esch et al. 2006). We suppose there are two consumer behaviors which are current and planned

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future behavior. Current behavior is buying the brand and using the brand and having experience about the

brand, and future behavior is intended to consider the brand to buy in the future (Franz-Rudolf Esch et al. 2006).

2.2.1 Brand Awareness

Brand awareness is defined as the extent to which how consumer can easily memorize the brand when he is

going to buy a product. For the formation of brand awareness, brand image is an essential condition (Keller,

1993). To evaluate brand awareness brand recall is a tool by which we can easily measure and predict brand

awareness (Franz-Rudolf Esch el al. 2006).

2.2.2 Brand image

when consumers strongly recommend the brand, and have unique relations with a brand, that generates positive

attitude toward the brand (Keller, 2003). We consider brand image as an important factor because it adds to the

consumer's decision process either he should purchase the brand or not (Dolich, 1969). Brand image has a great

effect on consumers' next behavior (Johnson and Puto, 1987; Fishbein, 1967), and have great contribution in the

brand equity (Biel, 1992).

2.3-Brand Relationship

The process of relationship has positive emotions and cognitive benefits that can generate bond between the

consumer and the brand, so we come to know that if brand fulfill the customer’s need and provides benefits to

customer then there is a strong bond between consumer and brand (Fournier, 1998). If consumers have actually

participated or imagination in communities of brands then brand relationships are formed (Fournier, 1998;

Fournier and Yao, 1997; McAlexander et al, 2002; Muniz and O’Guinn, 2001). There are exchange and

communal relationships found in Brand relationships (Franz-Rudolf Esch et al. 2006).

2.4-Behavioral Intention

There are two things in Behavioral intention which are Brand Switching and Brand Loyalty (Paurav, 2009). In

today business settings, conversion of intention into purchase decision has become the major challenge (Mittal

and Kamakura, 2001; Sniehotta et al. 2005).

2.4.1 Brand Loyalty

Operations of loyalty lie in how much consumer actually consumes the goods or services of brand we measure it

by measuring consumer purchasing frequency (Lin et al. 2000; Veloutosou et al. 2004). It determines the level of

utilization of goods and services from particular/specific retail location or seller (Driver, 1996; East et al. 1995).

Loyalty is a process of evaluating consumers switching from one to another brand or adopting another brand

(Hsiu-Yuan and Li-Wei, 2005). There are several ways to evaluate Brand Loyalty i.e., how much brand is

familiar among consumers (Dick et al. 1996; Wood, 2004; Feltham, 1998), using the brand and level of positive

experience and convenience (Rowley, 2005; Lin, 2000), social cost, self concept and brand image (Abendoth,

2001; Auty, 2001), satisfaction and perceived value (Baltas, 1997; Ness et al. 2002; Wood, 2004).

2.4.2 Brand Switching

When there is drop in brand loyalty or customer choosing other brands for their use then brand switching occurs

(Paurav, 2009). Two factors affect consumer behavior i.e., intrinsic and extrinsic motivations. More variety and

preference for other brands have a major role in case of Intrinsic motivation (McAlister and Pessemier, 1982). In

case of extrinsic motivation it is avoiding or getting another brand for their consumption purpose or purchasing

the brand (Van Trijp et al. 1996).

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2.5-Brand Advertisement

When consumer place attention to an advertisement that produce feelings toward brand which is promoted in the

advertisement and those individuals who have favorable and good feelings regarding brand have favorable

attitude toward brand (Edell and Burke, 1987; Gardner, 1985). It is found that as positive response increases

towards specific brand or advertisement, chances of positive evaluations also increase, on the other hand

evaluation of other competing brands and advertisements have negatively influence of that evaluation (Teng,

Laroche and Huihuang, 2007).

2.6-Past experiences

If a consumer considers his past purchases and experiences for deciding his future purchases, it can better

predict his purchase intentions for future purchases (Conner and Armitage, 1998). This phenomenon is based on

behavioral learning theories. (Bentler and Speckar, 1979). If consumer gets benefits by purchasing a product or

service then it is sure that consumer will purchase again and also tell other about their positive experience to

others (D'Souza et al. 2006).

3. Theoretical Framework

Independent Variables Dependent Variable

4. Methodology

4.1 Questionnaire

Questionnaire contains seven sections. First section contains the demographic information of responsents. Next

two sections contain elements about the brand knowledge and brand relationship respectively. These elements

are extracted form the study of Franz R Esch et al. (2006). Section four and five are related to the elements

about consumer’s behavioral intention and purchase intention which are taken from the study of Paurav, (2009).

Section six contains elements of brand advertisement extracted from the research of Lafa Tang, Michel Laroche

and Huihuang Zhu (2007). The last section of questionnaire is about past experience and its elements are

extracted from the study of Hee Yeon Kim and Fac-Eun Chung (2011). All these authors have tested reliability

and consistency of these elements of questionnaire well in every aspect. All sections contain alpha between

acceptable range of 0.65 to 0.84.

Five point likert scale is used to collect response from respondents. (5= Strongly Agree and point 1 = Strongly

Disgree)

4.2 Sampling

750 questionnaires were distributed among eight different districts of province Punjab of Pakistan (4 districts

from upper Punjab and four districts from lower Punjab). 620 questionnaires were got back fully filled, which

Country of origin

Brand Relationship

Behavioral Intention

Past Experiences

Brand Knowledge

Purchase Intention

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gave response rate of 82%, which is a sufficient sample size for analysis. Questionnaires were filled with

personal assistance.

5. Results & Discussion

Under the demographic analysis, gender analysis shows that both male and female has equal knowledge about

brand as mean scores are shown in the table-1 (male=3.84, Female= 3.91). Male customers have higher brand

relationship (4.08) then female customers (3.87). Behavioral intention of the female customer about the product

is slightly higher (3.98) then the male customers (3.84). Impact of brand advertisement is same irrespective of

gender (male = 3.988, female = 3.89). Past experience shows more impact on female (3.72) then male (3.34).

Purchase intention of female customer is higher (3.90) then male customers (3.46).

Brand knowledge and Brand relationship is same in the upper and lower Punjab customers (Brand knowledge

(upper Punjab= 3.89, lower Punjab = 3.84), brand relationship (Upper Punjab = 4.00, Lowe Punjab = 3.99)).

Behavioral intention of the upper Punjab customer is high (4.08) as compared to the lower Punjab (3.69). which

shows the higher brand loyalty and higher brand switching of the upper Punjab customers. Past experience

shows same impact irrespective of the location of customer ( upper Punjab = 3.51, lower Punjab = 3.48).

According to the results purchase intention of the upper Punjab customers is high (3.75) than the lower Punjab

customers (3.51).

Table-1

Brand

Knowledge

Brand

Relationship

Behavioral

Intention

Brand

Advertisement

Past

Experience

Purchase

Intention

Male 3.84 4.08 3.84 3.88 3.34 3.46

Female 3.91 3.87 3.98 3.89 3.72 3.90

Upper

Punjab 3.89 4.00 4.08 3.98 3.51 3.75

Lower

Punjab 3.84 3.99 3.69 3.78 3.48 3.51

20-25 Year 3.74 4.16 4.08 3.76 3.20 3.55

26-30 Year 3.90 3.87 3.80 3.88 3.65 3.68

Above 30

Year 4.02 4.14 3.92 4.19 3.52 3.64

Impact of brand advertisement increases as customer age increases shown in result (20-25Years = 3.76, 26-30

Years = 3.88, more then 30 Years = 4.19). Behavioral intention of the 20-25 year age group customer is highest

(20-25Years = 4.08, 26-30 Years = 3.80, more then 30 Years = 3.92). Brand relationship is also highest in same

age group and above 30 year age group customers (20-25Years = 4.16, 26-30 Years = 3.87, more then 30 Years =

4.14). Knowledge about the Brand increases as age of the customers increases, as results shows (20-25Years =

3.84, 26-30 Years = 3.90, more then 30 Years = 4.00). Purchase intention among different age groups is

approximately same (20-25Years = 3.55, 26-30 Years = 3.68, more then 30 Years = 3.64). Past experience

impact more on second age group. (20-25Years = 3.20, 26-30 Years = 3.65, more then 30 Years = 3.52).

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Table-2

Correlations

Brand

Relationship

Behavioral

Intention

Brand

Advertisement

Purchase

Intention

Past

Experience Brand Knowledge

Brand

Relationship 1 .573** .492** .296** .110 .511**

Behavioral

Intention 1 .564** .636** .128 .554**

Brand

Advertisement 1 .405** .271** .415**

Purchase

Intention 1 .179* .546**

Past Experience 1 .125

Brand

Knowledge 1

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Brand Knowledge has moderate positive relationship with Purchase intention of customers shown in Table-2

(0.546). As we increase Brand intention, Purchase intention of customer also increase (0.636). Brand

advertisement also increase the purchase intention of customers (0.405). brand relationship and past experience

shows week positive relationship with purchase intention (0.296, 0.179). Results show that all these

relationships are significant.

Conclusion

This research has many implications for the organizations operating in Pakistan. First they should focus on

gender based brand activities. They must improve the brand knowledge among customers and develop effective

brand advertisement which could increase the purchase intention of both male and female customers. Secondly,

Brand knowledge is same in lower and upper Punjab but behavioral intention and impact of advertisement is

high is upper Punjab. Organizations should focus on this aspect and must build appropriate strategies to increase

brand loyalty of lower Punjab customers as well. Modifications are required in promotion strategies for lower

Punjab consumers. Purchase intention of upper Punjab customer is high because of high brand loyalty. This can

be attributed to the level of education, in upper Punjab; level of education is high then lower Punjab customers.

That’s why they prefer to purchase branded products then the lower Punjab customers. Companies have to take

proper actions to improve the brand loyalty of lower Punjab customers. Thirdly, results show the direct

relationship among the brand advertisement, brand knowledge and age of the customers. Companies have to

focus on all age group customers, especially the middle age group (26 to 30 years old). They have lowest

behavioral intention means lowest brand loyalty. That’s why their switching behavior is high but they have

highest purchase intention. Companies have to stop their flight and make them among the loyal customers that

to improve revenues and profitability.

Lastly, organizations have to focus more on the improvement in brand loyalty and brand knowledge because

they have the highest positive relationship with purchase intention of customer. Intensive care on brand

advertisement can also increase the customers for the companies.

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Impact of Brand Related Attributes on Purchase Intention Of