Key Features:
Chapters: 5
No of Pages: 142
Introduction:
1.1 BACKGROUND TO THE STUDY
In a highly intense marketplace, brands are regarded as an important source of capital and they are the key drivers of competitiveness for most businesses. Brands are the basis of customers buying decisions and they are becoming the most valuable assets that a business can possess. The study of brand equity is increasingly popular as some researchers have concluded that brands are one of the key components of marketing strategies. High brand equity levels are known to lead to higher consumer preference and buying decisions as well as higher stock returns (Cobb-Walgren, Ruble and Donthun, 1995). Besides, high brand equity also brings an opportunity for successful brand extensions, resilience against competitors’ promotional pressures, and the creation of barriers to competitive entry (Farquhar, 1989).
Aaker (1991) is of the view that establishing and managing a brand should be taken to be the core operating target for an organization and should be seen as a source of competitiveness. In other words, the value should be added in order for it to be able to compete successfully with other brands. Many researchers (Aaker, 1991, Keller, 1993, Lassar, Mittal and Sharma, 1995, Yoo and Donthun, 2001 and Prasad & Dev, 2000 etc.) have been interested in the concept and measurement of brand equity because of the necessity in today’s market place, to develop, maintain and use product branding to acquire a certain level of competitive advantage. According to Aaker, (1991) this has led to various points of view of brand equity dimensions, the factors that affect it, and the perspective from which it should be studied as well as how to measure it.
A powerful brand will enhance a customer’s attitude strength of the product association of a brand. Attitude strength is developed by experience with the product. According to Keller (1993) customer awareness and association influence inferred attributes, perceived quality, and finally result in brand loyalty. He went further to say that the advantage of this dimensionality of customer based-brand equity is that it allows marketing managers to study how marketing programs enhance their brand values in the minds of customers.
The traditional framework for analysis of the buyer decision process is a five-step model, the model progresses firstly from a state of felt deprivation (problem recognition), to the search for information on problems solutions. The information gathered provides the basis for the evaluation of alternatives. The development and comparison of purchase evaluation criteria result in the actual decision to buy. Finally, post-purchase is critical in the marketing perspective, as it eventually affects consumers’ perception and satisfaction/dissatisfaction with the product/service (Kotler and Armstrong, 2010). Marketing activities of any organization revolve or should revolve around the needs of the consumer or user. In other words, the notion of consumer kingship underlines the supreme power of the consumer or user determining indirectly the survival or demise of a business. He wields the power through his/her decision to buy or not to buy the product of any enterprise, (Agbonifoh, Ogwo, Nnolim and Nkamnebe, 2007). Brand name and what a brand stands for are the core values for most fast-food restaurants. If properly managed, it will increase the competitive advantages of fast-food restaurants. The basic attribute of a fast-food restaurant is also important for a fast food restaurant to excel because the strength of a brand commonly provides the fundamental steps for differentiating between several competitors. The majority of fast-food restaurants have distinguishable brand identifiers.
In summary, strong brand equity means that customers have high brand name awareness, maintain a favorable brand association, perceive that the brand is of high quality, and are loyal to the brand.
1.2 STATEMENT OF THE RESEARCH PROBLEM
It can be rightly said that a sale can only take place if the consumer or client has a want or could be made to appreciate the need for the products or services (Prasad & Dev, 2000). Therefore, marketing activities are aimed at bringing the right products/services into contact with the consumers/clients for the purpose of effecting the transfer of title and ownership. Selling is an aspect of marketing it is concerned with the conversion of an organization’s products or services to money or other relevant resources. Selling essentially focuses on the company’s interest, while marketing focuses on the customers’/clients’ interest.
Building strong brand equity is the topmost priority of many fast-food restaurants, but attaining this objective is not always an easy task due to the fact that many fast-food restaurants in the Nigerian business environment are producing similar brands of products. Thereby causing confusion in the mind of consumers on how to differentiate this fast food, these have indeed not created the necessary brand awareness in the mind of consumers.
Brand equity has advanced beyond as a field in marketing (Keller, 1993). It, therefore, creates decisions for organizations to develop effective and efficient strategies that will create the required brand association about their product from other competing products, which indeed is a problem. It is on this note that this study intent to bridge the knowledge gap of fast-food restaurants between brand association and consumer’s buying decision.
The inability for fast restaurants to formulate measures for perceived quality, in order to capture a strong market share and growth rate is a major issue to survive in the vastly dynamic and competitive business environment of Nigeria.
Lastly, the introduction of fast restaurants by individuals or organizations without the knowledge of consumer’s buying behavior has led to a lack of product acceptability which indeed, has not created brand loyalty.
1.3 OBJECTIVES OF THE STUDY
The broad objective is to examine the impact of brand equity on Consumer’s buying decisions.
The specific objectives are to determine;
1. the relationship between brand awareness and consumer’s buying decision.
2. the relationship between the brand association and consumer’s buying decision.
3. the relationship between perceived quality and consumer’s buying decision
4. the relationship between brand loyalty and consumer’s buying decision.
1.4 RESEARCH QUESTIONS
1. What is the relationship between brand awareness and consumer’s buying decisions?
2. What is the relationship between the brand association and consumer’s buying decision?
3. What is the relationship between perceived quality and consumer’s buying decision?
4. What is the relationship between brand loyalty and consumer’s buying decision?
1.5 SIGNIFICANCE OF THE STUDY
First and foremost, this study will contribute to knowledge and its results will be of importance in the fast-food industry, customers, suppliers, and government agencies, the owners of the companies, general stakeholders as well as researchers and students of marketing and allied courses. Also, the research will help to generate the roles brand equity plays in influencing the customer’s buying decision, which is the issue under discussion.
However, this study seeks to highlight the influence of brand equity on the buying habit of consumers, who patronize fast food restaurants in Benin City. Also to identify other factors that are responsible for the buying habits and decisions of consumers.
The finding of this study would be of great relevance to fast food restaurants, since it will serve as a repository of information and base for subsequent research work on brand strategies and how it can influence buying decisions. It will assist them in knowing how effectively and efficiently their strategies are making, on the impact on their customers and how they really feel about their products. This will help them improve on those products features, they are lacking. Also, it is intended to be of immense help to organizations in reducing uncertainties in decisions making and also assist them to be informed and respond to their customers’ needs.
Results of this study will also constitute data that will be useful to researchers. There may be a need to replicate the study with or without modification of the problem, others may wish to validate the result of this study.
1.6 SCOPE OF THE STUDY
Geographically, this study is limited to Benin metropolitan city (Oredo, Ikpoba- Okha and Egor Local Government Areas) of Edo State in Nigeria. The aim of this study is to conduct comprehensive research on consumer’s buying decisions in two fast foods restaurants, Mr. Biggs and MAT-ICE. It is desired to find out how the branding activities carried out by these organizations have influenced them in their competitive edge.
1.7 LIMITATIONS OF THE STUDY
It is pertinent to mention here that, there is no study without constraints and this study is no exception. Some of the constraints that may be encountered in carrying out this study include:
i. Factor of time: If there had been enough available time, more fast-food restaurants would have been surveyed to gather more primary data.
ii. Sample size is small: It may be considered small in relation to actual consumers’ of fast food.
iii. Financial constraints: Cost of collecting data, transportation, and other miscellaneous expenses.
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