Group7 Research Methodology
Transcript of Group7 Research Methodology
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THE INFLUENCE OF BRANDCONCEPT AND STYLES OFTHINKING ON BRANDEXTENSION EVALUATION
H a r i S h a n k a r - 1 2 3
H a r s h G a u t a m - 1 4 1
D h a w a l B h i m a n i - 1 4 7
T a n u s h r i v a s t a v a - 1 5 0
S a p t a r s h i D a t t a - 1 6 5
J y o t i s i k h a - 1 7 2
A n a n d V i j a y - 1 8 5
Submitted to
Dr. Sangeeta Trott
Submitted By
Group 7
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CONTENTS
Abstract- around 200 words 1
1. Introduction 2
2. Literature Review 5
3. Research Gap 6
4. Objective Of The Study 8
5. Data Collection 11
6. Questionnaire 13
7. Questionnaire Info 14
8. Pilot Study 17
9. Data Analysis 18
10. Hypothesis 28
11. Managerial Implications 29
12. Limitation 30
13. Conclusion 36
14. Acknowledgement 37
15. Bibliography 38
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ABSTRACT
Our research topic was Influence of Brand Concept and Styles of Thinking on Brand Extension
Evaluation . The ob jective of the research was to cite out different factors affecting brand
extension. We tried to evaluate the consumers perception towards brand extension. For the same
purpose, we prepared a questionnaire which covered other aspects of consumer behavior towards
brand extension such as style of thinking, innovativeness and income level. We also evaluated
the brand extension concept by analyzing the populations demographics such as gender and age
group. We tested consumers loyalty, brand consciousness, their buying approach and probability
of making wrong choices as part of our research. The research also covered the brand extension
in various sectors such as service, durables and non-durables.we compared the consumers
acceptance for the brand extension across these sectors. We emphasized specifically on theservice sector as limited research had been conducted in this sector.we framed a few hypothesis
based on the extensive literature review done on the past research conducted on this topic and
tried to test the framed hypothesis. We arrived at various inferences on the basis of several tests
conducted using statistical tools such as SPSS(Statistical Package for Social Sciences) on the
data collected.
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1. INTRODUCTION
Introduction
The research tries to explore the consumers behavior towards brand extension. It also tries to
identify the factors influencing the consumers acceptability or rejection of an extended brand. .
Key among them is the degree to which a brand extension fits with the parent brand, which
consumers judge in a variety of ways, including whether the extension is in a product classsimilar to other products produced by the parent brand and whether an attribute associated with
the parent brand could be beneficial in the extension product class.
The research has covered the aspect of positioning of the brands on the basis of prestige and
functional attributes. Prestige brands have abstract brand concepts that are more elastic and can
successfully expand into a variety of product categories whereas functional brands less elasticand are more successful if they extend to offerings that conform to the functional nature of the
brand.
In one of the research, while evaluating brand extension,
consumers engage in a certain style ofthinking. Consumers with an analytic style of thinking focus on the specific attributes or
products usually associated with the parent brand and try to match these features with those ofthe extension. Consumers with holistic styles of thinking seek out alternative ways to relate the
extension to the parent brand, such as overall brand reputation, regardless of whether the
extension conforms to the same attribute or product category profile as the parent brand. Indifferent studies, the authors infer that styles of thinking influence a brands acceptance amongst
consumers when it has a functional brand concept. For prestige brands, analytic and holistic
thinkers respond similarly to distant extensions of these brands. However, for functional brands,
holistic thinkers evaluate distant extensions more favorably than analytic thinkers.
The managerial strategies are applied to increase the acceptance of distant extensions offunctional brands among analytic thinkers. To meet this challenge, the researchers offer severalstrategies, including (1) using a sub brand (Excer wallets by Toyota) instead of a direct brand
(Toyota wallets) to reduce analytic thinking; (2) using elaborational communications, which
address potentially problematic features of the extension, to reduce analytic thinking; and (3)matching extension information with the consumers style of thinking, which increases thepersuasiveness of ad messages. Thus, contrary to prior research, functional brands can be
extended widely, even into distant product categories, as long as managers employ strategies to
address the potential objections of analytic thinkers.
Now for understanding the topic in more absolutely the understanding of the three key words i.e.
Brand Extension, Brand Concept & Styles Of Thinking is a must so that a proper researchstudies can be prepared. So, given below is explanation of the given terminologies:-
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Brand extension
The changing market dynamics and heightened competition of the global economy has amplified
the role of brands to an unsurpassed level. Brand marketers seek ways to achieve growth while
reducing both the cost of new product introductions as well as the risk of new product failure. Apopular way of launching new products has therefore been to leverage the equity of an existing
brand into a new sector, market, or product categorya so-called brand extension.
A brand extension strategy can be beneficial because it reduces the new product introduction
costs and also increases the chance of success. The rationale behind brand extensions is simple:when a strong brand has been established, the brand has moved beyond the functional product
into a realm of values. It makes economical sense to try to deliver the same emotional benefits in
a different market. Since awareness of a certain brand already exists, costs of launching a new
product will, ceteris paribus, be lower than in the absence of a strong brand. The main objectiveof brand extensions is hence to leverage the intangible qualities of a brand since the functional
benefits can generally be imitated.
The Brand Concept
A brand is backed by an intangible agreement between a consumer and the company selling the
product/services under the brand name. A consumer who prefers a particular brand basically
agrees to select that brand over others based primarily on the brand's reputation. The consumermay stray from the brand occasionally because of price, accessibility, or other factors, but somedegree of allegiance will exist until a different brand gains acceptance by, and then preference
with, the buyer. Until that time, however, the consumer will reward the brand owner with dollars,
almost assuring future cash flows to the company. The buyer may even pay a higher price for the
goods or services because of his commitment, or passive agreement, to buy the brand.
In return for his brand loyalty, the company essentially assures the buyer that the product willconfer the benefits associated with, and expected from, the brand. Those numerous benefits may
be both explicit and subtle. For example, the buyer of a Mercedes-Benz automobile may expect
extremely high quality, durability, and performance. But he will also likely expect to receiveemotional benefits related to public perception of his wealth or social status. If Mercedes licenses
its nameplate to a manufacturer of cheap economy cars or supplies an automobile that begins
deteriorating after only a few years, the buyer will probably feel that the agreement has been
breached. The value of the brand, Mercedes-Benz, will be reduced in the mind of that buyer andpossibly others who become aware of the breach.
Styles of Thinking
The consumers engagement in certain styles of thinking has a great impact in the evaluation ofbrand extension of any given brand. In context to our topic there are basically two styles of
thinking that consumers possess in their analysis for the brand extension evaluation. These are:
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Holistic style of thinking Analytic style of thinking
Consumers with an analytic style of thinking focus on the specific attributes orproducts usually associated with the parent brand and try to match these features
with those of the extension. Consumers with holistic styles of thinking seek out alternative ways to relate the
extension to the parent brand, such as overall brand reputation, regardless of
whether the extension conforms to the same attribute or product category profile
as the parent brand.
The managerial strategies are applied to increase the acceptance of distant extensions offunctional brands among analytic thinkers. To meet this challenge, the researchers offer several
strategies, including (1) using a sub brand (Excer wallets by Toyota) instead of a direct brand
(Toyota wallets) to reduce analytic thinking; (2) using elaboration communications, which
address potentially problematic features of the extension, to reduce analytic thinking; and (3)
matching extension information with the consumers style of thinking, which increases thepersuasiveness of ad messages. Thus, contrary to prior research, functional brands can be
extended widely, even into distant product categories, as long as managers employ strategies to
address the potential objections of analytic thinkers.
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reputation, thus creating a perception of better extension fit that forms the basis for more
favorable extension evaluations. We explore these themes in five studies. In the first two studies,we find support for our main predictions. For functional brands, consumers who think
holistically evaluate extensions in distant product categories more favorably than analytic
thinkers. For prestige brands, analytic and holistic thinkers evaluate distant brand extensions
equally favorably. Thus, functional brands are not disadvantaged in terms of leveraging for alltypes of consumers; rather, we identify analytic thinkers as the roadblocks for functional brands
trying to extend into distant product categories. In three subsequent studies, we turn our attention
to managerial strategies to increase the acceptance of distant extensions of functional brandsamong analytic thinkers. We find that brand architecture and communication strategies are
effective ways to reduce or harness analytic thinking, which results in more positive extension
evaluations. Thus, contrary to prior research, functional brands can be extended widely, eveninto distant product categories, as long as managers employ strategies to address the potential
objections of analytic thinkers.
CONCEPTUAL BACKGROUND
Consumer Styles of Thinking
Styles of thinking emerge from a persons social environment, which promotes certain cognitive
processes more than others. People embedded in many social relationships have beliefs aboutfocusing on the field and paying attention to relationships between objects. In contrast, people
with fewer social relationships have beliefs that the world is discrete and discontinuous and that
an objects behavior can be predicted using rules and proper In this way, people become holistic
or analytic thinkers. Holistic thinking is defined as involving an orientation to the context orfield as a whole, including attention to relationships between a focal object and the field, and a
preference for explaining and predicting events on the basis of such relationships , and analytic
thinking involves a detachment of the object from its context, a tendency to focus on attributesof the object to assign it to categories, and a preference for using rules about the categories to
explain and predict the objects behavior. Substantial research supports these distinctions. For
example, Ji, Peng, and Nisbett (2000) find that holistic thinkers focus more on relationshipsbetween an object and its environment than analytic thinkers. Similarly, Masuda and Nisbett
(2001) find that when exposed to scenes of animals and other animated objects, holistic thinkers
recalled more statements than analytic thinkers about the background environment and
relationships between the animal and the environment. Furthermore, Norenzayan and colleagues
(2002) show that analytic thinkers are more likely to engage in rule-based categorization thanholistic thinkers. Finally, Chiu (1972) finds that analytic thinkers group objects according to
category membership or attributes (e.g., a jeep and boat are grouped together because both havemotors). However, holistic thinkers group objects according to functional or thematic
interdependence between objects (e.g., a table and chair are grouped together because people sit
on the chair to eat at the table). In summary, holistic thinkers and analytic thinkers detect
different kinds of connections between objects. Most research to date has focused on culturalinfluences, with people from Eastern (Western) cultures characterized by holistic (analytic)
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thinking, which is believed to arise from being embedded in many (relatively few) social
relationships. More recent research finds differences in styles of thinking within cultures, whichemerge as a result of individual differences or contextual cues. In this article, we examine styles
of thinking within the United States, focusing on individual differences between consumers with
a chronic tendency to think analytically or holistically, as well as consumers who are influenced
by contextual cues to think analytically versus holistically.
Prestige versus Functional Brand Concepts
An important decision brand managers face is how to position a brand to take advantage of its
distinctive appeal, differentiate it from competitors, and resonate with target consumers.Although brands can be positioned in several ways, a basic distinction is a prestige versus a
functional brand concept. Prestige brand concepts are more abstract than functional brand
concepts, allowing prestige brands to accommodate a wider range of products that share few
physical features. A prestige brand, such as Rolex, can be successful launching distant
extensions, such as scarves and neckties, because consumers are able to use the concept ofprestige to connect the brand and the extension. In contrast, a functional brand, such as Timex,
with associations tied to specific attributes and a product category, is not as likely to besuccessful launching scarves and neckties. For functional brands, consumers have more
difficulty finding a connection or basis of fit for extensions in distant product categories that do
not serve the same function. These observations are consistent with marketplace behavior.Prestige brands, such Armani and Vera Wang, offer items as diverse as luggage, car mats, bed
mattresses, and dinnerware under their brand names. Functional brands, such as Delta (durable
faucets) and Maytag (reliable washers/ dryers), find it difficult to extend into other product
categories. Delta has launched an extensive advertising campaign promoting Delta faucets as aprestigious design element in homes, which is intended to move the brand more toward a
prestige/style platform that will support extensions into distant categories, such as countertops,flooring, and appliances.
Joint Influences on Brand Elasticity
We propose that differences in elasticity for functional versus prestige brands vary by the
consumers style of thinking. Analytic thinkers focus on attributes and categories to draw
inferences and make judgments, thus making it difficult for these consumers to perceive how anextension fits with the parent brand unless the brand extension is in a similar product category
serving a similar function. However, holistic thinkers focus on broader connections betweenobjects, which make it easier for these consumers to find a way to link a parent brand and
extension in a distant category. For example, holistic thinkers often focus on the context(situation) rather than the focal object, suggesting complementarity of use as a basis of fit
between a brand extension and products sold by the parent brand. They can also consider the
relationships between the extension and the parent brand in terms of the overall reputation of orfeeling they have for the parent brand. These differences in foci of thinking result in judgments
of greater brand extension fit and evaluations among holistic thinkers than among analytic
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thinkers. We expect these individual differences in styles of thinking to be a factor in how
consumers respond to distant extensions of functional, but not prestige, brands. Analytic thinkersfocus on attributes and categories to make judgments, and in the case of functional brand
extensions, they are unlikely to evaluate extensions favorably unless the extension is close in
terms of functional attributes or product categories. Holistic thinkers focus on finding
relationships between objects in their environment, making it more likely that they will be able tofind an alternative way to connect the extension and parent brand. However, for prestige brands,
abstract brand associations are readily accessible to both analytic and holistic thinkers, thus
providing a basis of fit for distant extensions, which allows for more positive brand extension
evaluations for both analytic and holistic thinkers.
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3. RESEARCH GAP
In the research paper studied by us, we found the gap that brand perception amongst Indian male
and female is on a different line. The research papers on Styles of Thinking on Brand ExtensionEvaluation have not covered the difference between Indian men and women. As per our finding,
we infer that Indian male focus more on brand equity and on other hand women are more
inclined towards the functional value while deciding to purchase any product or service. Forexample, while purchasing household electronic women suggest for a product offering reliability
and the counterpart gender i.e. men prefer to go for a branded product.
Talking about the prevailing conditions of Indian consumer, their taste and choice varies with thelevel of income and their age group. Thus brand extension should consider the demographic
divide prevailing in the nation which has a lot to say that the consumers choice changes with
their age and amount of earnings.
The next most important point that the existing research has not covered is the schizophrenicnature of Indian consumers which talks about the fact that if our preferred brand is not available
in vicinity, we go for the brand which is readily available. The brand extension concept fails
here, where a schizophrenic Indian consumer opts for the more readily available brandirrespective of being loyal to some other brand for the past years. Thus seeing the Indian sub-
continent conditions, brand extension should also consider the availability factor.
Another domain where the existing research has not touched upon is the segmentation of the
durables and non-durables. The purchasing decision of a consumer is greatly influenced by
his/her economic status .So it is very critical to evaluate perceptions separately for differentrange of products. For example, a high-range mobile phone would be perceived for the
functionalities by a rich consumer but it would not be the same in case of a middle-classconsumer. The perception of a middle consumer will not be the same for low-range, mid-range
and high-range products.
From analyzing our existing research papers, we also conclude that there has been very limitedresearch in service sector, this gap could be taken as a course for the future research. This
research can cover various inputs from consumers regarding a brands image and their
acceptance for an extension into similar or distant categories. For example, Virgin is in airlinesas well as in tourism along with its telecom service and products which belong to distant
categories. And in case of an Indian-based group Ramky, which has its presence in varied sectors
like infrastructure, pharmaceutical and laboratories.
There has been limited research into the effects of consumer innovativeness on brand extension
evaluations. As per Keller and Aaker (1997), a common observation is that individuals high in
innovativeness are more venturesome and more willing to try new brands. The responsedifferences between highly innovative and less innovative consumers reflect to some extent,
differences in risk-taking propensity. Innovators tend to be less risk averse than other consumers.
According to Rogers (1983), one of the most salient traits of consumer innovators is the comfortthey gain from taking risk.
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4. OBJECTIVE OF THE STUDY
Our objective was to find out the factors that influence consumers evaluation on brand
extension. The consumers factors which we undertook were their styles of thinking and
perception. We considered all these factors w.r.t Indian consumer.
One of our objective was also to see that for functional brands, holistic thinkers will
evaluate distant brand extensions more favorably than analytic thinkers.
We also looked for prestige brands, how the holistic and analytic thinkers will evaluate
distant brand extensions.
5. DATA COLLECTION
Population
This is any complete, or the theoretically specified aggregation of study element or simply we can say that
the area under study is called as popuation. In our research we have chosen population to be
kharghar city.
Sample unit
A set of elements drawn from and analyzed to estimate the characteristics of a population .
Sampling unit may be a geographical one, construction unit, social unit or an individual. In our research
we have chosen sampling unit to be all the business schools in kharghar. And out of which we selected
ITM business school. So, here we can say that we have used the method of multistage sampling.
Sampling frame
It is the database from where the information is collected for the purpose of drawing the sample. As the
sample is been drawn from the kharghar region and mostly from the ITM College, hence sampling frame
here was the database of the entire student from our college.
Sample size
It refers to the number of items to be collected from the obtained sample. We have covered a sample size
of 106.
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Sampling procedure:
This is referring to the procedure or the technique to be used in selecting the items for the sample which
also refers to the sample designing.
We have used convenience sampling in our research. Convenience sampling which is also known as
deliberate sampling is a type on non probability sampling .This method of sampling involves purposive or
deliberate selection of particular units of the universe for constituting a sample which represents a
universe.
The reason for choosing convenience sampling as our sampling method is -
Time constraint due to tight schedule of college ,and
A good mix of students present in the college from different parts of country belonging to
different culture, styles of thinking and economic classes which will prove to be beneficial for
our data collection.
We have surveyed through internet e-mails, survey monkey.com, and structured questionnaire method inprinted format.
Type of respondents
The respondents were all students and divided into two age groups i.e. 15-20years, 21-30 years. There
income level was nil. The sample was both work experienced as well as freshers. As the research was
confined to our college only, the reliability of the sample collected was weak to 0.452.
Nature of the respondents
As the sampled consumers were young, the consumers were high in innovativeness. Also the consumers
were brand conscious as the family income level is in SEC A, B.
The respondents were too casual in filling the questquestionnaires. As all the students were assigned the
same task of doing a market research project in our college, so the respondents were reluctant to fill the
forms and support as a whole. Through survey monkey and online questionnaires, the approaches of the
students were limited and informal.
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6. QUESTIONNAIRE
1. Are you brand conscious?
Yes No
Durables --------- -----------
Non-durables --------- -----------
Service --------- -----------
2. With increase in your income level, will you go for premium brands?
Yes No
Durables --------- -----------
Non-durables --------- -----------
Service --------- -----------
3. Should NOKIA extend its brand into wrist watch categoryas NOKIA watches?
Yes___ No___
4. In the following sectors, in case your preferred brand is not available, what will you
do?
Durables
Non-
durables Service
Options banking
Telecomm
service hospitality
Wait for the specific
brand
Place an order, if not
available
Alternate brand
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5. Your suggestions towards the following extensions. Should these brands be extended
into these category?
Airtel Kingfisher Nokia Dove
nking
Broadband
service theatres hotels perfumes
music
players Watches Handwash
washing
powder
rongly agree
gree
eutral
sagree
rongly disagree
6. Rate the following statements related to undecided change in buying approach.
In case, if I have to choose a brand within the following sectors, I always feel unsure.
Strongly agree Agree Neutral Disagree Strongly
disagree
Durables ________ _______ _____ _______ ________
Non-durables ________ _______ _____ _______ ________
Service ________ _______ _____ _______ ________
7. When I buy a product in the following sector, it is easy to make a wrong choice.
Strongly agree Agree Neutral Disagree Strongly
disagree
Durables ________ _______ _____ _______ ________
Non-durables ________ _______ _____ _______ ________
Service ________ _______ _____ _______ ________
8. Rate your price perception about the following core brands.
HIGH _____ _____ _____ _____ _____ LOW
1 2 3 4 5
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SONY HIGH _____ _____ _____ _____ _____ LOW
VIDEOCON HIGH _____ _____ _____ _____ _____ LOW
LG HIGH _____ _____ _____ _____ _____ LOW
AKAI HIGH _____ _____ _____ _____ _____ LOW
MICROMAX HIGH _____ _____ _____ _____ _____ LOWNOKIA HIGH _____ _____ _____ _____ _____ LOW
9. Rate the following brands in the order of preference for brand extension into wrist
watches category (If brand value is 1st
preference for Sony, then put 1 in front of Sony
across brand value).
SONY VIDEOCON AKAI
Brand Value
Price
After sale service
Design
10. Rate the following questions in terms of innovativeness.
I like to experience new features and brands and prefer to use new products.
Less Innovative______ ______ _____ _____ _____ Highly Innovative
Age:
21 30 31 40 41 50
50 and Above
Occupation:
Student Salaried Business
Professional
Gender
Male Female
Income
10,00020,000 21,00030,000 31,000 40,000
41,000 -60,000 60,000& above
15-20
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7. QUESTIONNAIRE INFORMATION AND SCALING
Questionnaire scales used
Dichotomous Ordinal
Interval
Dichotomous
We had three dichotomous scale questions to know the status the consumers on brand
consciousness. This will give us the idea of whether the sample is brand conscious. The second
and the third questions which were dichotomous and on a brand called NOKIA gave us the idea
of upto how the sample is cared about brand fit in a brand extension.
Q. Are you brand conscious?
Yes No
Durables --------- -----------
Non-durables --------- -----------
Service --------- -----------
Q. With increase in your income level, will you go for premium brands?
Yes No
Durables --------- -----------
Non-durables --------- -----------
Service --------- -----------
Q. Should NOKIA extend its brand into wrist watch category as NOKIA watches?
Yes___ No___
Interval scale
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Also different sector are been considered while putting up these questions, as the consumers
perception changes for different sector.
We have got three on the Likert scale (interval scale) where one is to know the limit of
consumers buying approach while in a brand extension fit i.e. up till how much fit in brand
extension the consumers are not reluctant in consuming.
So we have segregated the different sector companies and taken each example brand from each
sector and given two choice of brand extension. One is for close fit band extension and one is for
distanced brad extension. With the help of the Likert scale (interval scale), we can analyze
whether the respondents are willing to buy the closed fit and far fit brand extension products.
We have taken the brands like Kingfisher, Airtel and Dove with extension in different sectors
and different valued fit.
Airtel Kingfisher Nokia Dove
ankingBroadband
service theatres hotels perfumesmusicplayers watches Handwash
washingpowder
rongly agree
gree
eutral
sagree
rongly disagree
The next question is on undecided change in the buying approach, to know the schizophrenic
approach of the respondents. This question was in Likert scale (interval scale) where highlyagreed approach would direct the consumers as high in schizophrenic approach means they tend
to buy a different brand by an impulse reaction.
Q. In case, if I have to choose a brand within the following sectors, I always feel unsure.
Strongly agree Agree Neutral Disagree Strongly disagree
Durables ________ _______ _____ _______ ________
Non-durables ________ _______ _____ _______ ________
Service ________ _______ _____ _______ ________
The next question was also to make a wrong approach while a specific brand; again we have
segregated the sectors to analyze the respondents and their buying approach and wrong choices
in the following sector. As we have mentioned in the research gap about the previous research
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were all done outside India and they have not covered the schizophrenic approach of the Indian
consumers which will be covered in these two questions.
Q. When I buy a product in the following sector, it is easy to make a wrong choice.
Strongly agree Agree Neutral Disagree Strongly disagree
Durables ________ _______ _____ _______ ________
Non-durables ________ _______ _____ _______ ________
Service ________ _______ _____ _______ ________
The above two questions were on the basis of factor scales in the scale construction techniques.
This technique is used to have the basis of correlation of items which indicate hat a common
factor has a relationship between items.
The next questions were on semantic differential scale to know the consumers innovativeness,
with the left and right side with the extremes as highly innovativeness and low innovativeness
.
Q. Rate the following questions in terms of innovativeness.
I like to experience new features and brands and prefer to use new products.
Less Innovative______ ______ _____ _____ _____ Highly Innovative
We have framed two questions on semantic differential scaling, the next is to know the price
perception of different respondents on different brands, with the help of correlations between the
consumers buying of these brands and their price perception will give us their thinking about the
brands and their buying approach regarding it that whether considering these brands as high
priced still they go for these brand as they are brand conscious or whether due to the highlypriced brands they often change their brands.
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Ordinal scale
One question is on ordinal scale where the ranking is done to the attributes of a brand. This
question is covered by taking three example brand of durables sector of different segment, one is
SONY, VIDEOCON, AKAI. Each is in different segments of pricing. In this, we want to test the
respondents approach or their perception to a brand and in which brand what are the attributesthey prefer while buying.
SONY VIDEOCON AKAI
Brand Value
Price
After sale service
Design
In this, within a brand there is an option of ranking the preference of their regarding each brand.
Scale construction techniques
The scaling techniques used are factor scaling and item analysis scaling. The construction of the
scales are depended on the analysis and changes according to the questions.
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8. PILOT STUDY
We did a pilot study of conducting a survey of 30 respondents. Then, we checked the factor
analysis and the value of its factor, also correlations within different questions. We selected 6questions out of 10 where the value of the factor analysis was high to .7 to .8. So, we considered
these questions and checked the correlation within these questions. As the correlations within
these questions were up to 60%, so we considered these 6 questions as our final questionnaire.
In the above figure, we can see the questions the factor analyses of the questions were high to be
considered in the final questionnaire.
Then also the reliability in the pilot response was conducted and we have checked that how much
reliable is the questions and the response from the questionnaire. Accordingly, we have framed
the final questionnaire removing some of questions to increase the reliability of the responses.
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With the removal of these questions to increase the reliability, factor and the correlations within
the questions and responses. We have tried to frame our final questionnaire and then took a
survey of 160 respondents.
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9. DATA ANALYSIS
Reliability Test
Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of items
are as a group. A "high" value of alpha is often used (along with substantive arguments andpossibly other statistical measures) as evidence that the items measure an underlying (or latent)
construct. However, a high alpha does not imply that the measure is one-dimensional. If, in
addition to measuring internal consistency, you wish to provide evidence that the scale in
question is one-dimensional, additional analyses can be performed. Exploratory factor analysis is
one method of checking dimensionality. Technically speaking, Cronbach's alpha is not a
statistical test - it is a coefficient of reliability (or consistency).
Reliability statistics reveals that cronbachs alpha value is 0.452 which is below standardacceptable value of 0.5 and above. This can be reasoned for our conducting the collecting data
through the method of convenient sampling. Most of respondents adopted a casual approach to
the survey, so it can be one of the factors responsible for a lower value of cronbachs alpha.
Cronbach's Alpha if item Deleted: the below given table displays Cronbach's alpha that would
result if a given item were deleted. Like the item-total correlation presented above , this column
of information is valuable for determining which items from among a set of items contributes to
the total alpha. The value presented in this column represents the alpha value if the given itemwere not included.
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.
Note: *ba-undecided buying approach,*bc-brand conscious,*wc-wrong choice.
From the above table we see that last column indicates that eliminating certain items, we could
bring the value of cronbachs alpha closer to the standard level . It suggests that eliminating
items like nokia music players and wc-nondurables ,the value of cronbachs alpha can get close
to 0.49.
Hypothesis Testing
Schizophrenic
H0: The Indian schizophrenic consumers perception on brand extension does not change fromone sector to other.
H1: The Indian schizophrenic consumers perception on brand extension changes from one sector
to other.
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From the correlation test performed to test the correlation between brand consciousness and
undecided buying approach in different sectors we found different values.
Nondurables Sector
Note: *ba-undecided buying approach,*bc-brand consciousness
In non-durables sector, we find that significance levels value is 0.344 which indicates
that there is a relation between brand consciousness and undecided buying approach. It further
indicates that even a brand conscious customer would have difficulty in deciding while
purchasing a non-durable product because of some or other reason. They consider the options of
purchasing other brands which dilutes their loyalty towards a single brand.
Service Sector
Note: *ba-undecided buying approach,*bc-brand consciousness
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In service sector, we that significance levels value is 0.33 which indicates that there is a relation
between brand consciousness and undecided buying approach. It further indicates that even a
brand conscious customer would have difficulty in deciding while selecting a service product
because of some or other reason. They consider the options of other service brands which dilutes
their loyalty towards a single brand.
Durable Sector
Note: *ba-undecided buying approach,*bc-brand consciousness
In service sector, we see that significance levels value is 0.33 which indicates that there is no or
negative relation between brand consciousness and undecided buying approach. In other words,
we can say that brand conscious consumers are loyal towards their preferred brands and do not
have hesitancy while purchasing a product. With all the options available, their loyalty stays
intact.
Therefore, we can infer from above explanations and observations that it is not same case
for every sector. Hence, null hypothesis is rejected and we conclude that the Indian
schizophrenic consumers perception on brand extension changes from one sector to other.
Hypothesis testing
Gender
H0: Indian customers brand extension evaluation is not gender dependent.
H1: Indian customers brand extension evaluation is gender dependent.
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Independent Sample t-tests
We conducted separate Independent Sample t-tests in 3 sectors to test customers perception
towards brand consciousness as per gender. The results are stated below for all 3 sectors:
Durable Sector
We find that the significance level is found to be 0.115 of Independent sample test on male and
females perception towards brand consciousness. The significance value suggest that in
durables sector male and females perception towards brand consciousness is on simi lar lines .It
is not gender dependent in this case.
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Nondurables Sector
We find that the significance level is found to be 0.867 of Independent sample test on male and
females perception towards brand consciousness. The significance value suggest that in non-
durables sector male and females perception towards brand consciousness is on similar lines .It
is not gender dependent in this case.
Service Sector
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We find that the significance level is found to be 0.000 of Independent sample test on male and
females perception towards brand consciousness. The significance value suggests that in service
sector male and females perception towards brand consciousness is not on similar lines . It is
inferred that they perceive service sector from their own way. Hence we can say that it is gender
dependent in the service sector.
From above results, we finally infer that Indian customers brand extension evaluation is not
gender dependent in all sectors. The consumers perception is inconsistent and varies according
to gender in various sectors. Hence we reject the null hypothesis that Indian customers brand
extension evaluation is not gender dependent.
Hypothesis testing
Brand Acceptance-fit with parent brand
H0: Extended brands acceptance increases with increase in fit with the parent brand.
H1: Extended brand is accepted irrespective of the fit with the parent brand
We conducted paired sample t-test to find the brand acceptances dependency on fit with parent
brands. To support our test, we conducted the test on various extensions in different product and
service categories.
Extension In case of Kingfisher
Individual Means
We see that the mean for acceptance of hotels as an extension is much greater than that of
kingfisher perfumes as an extension.
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Paired Sample t-test
We find that the significance level is 0.000 which states that the respondents acceptance towardsextensions in different segments in case of kingfisher is not same. Thus we infer that the
acceptance is not similar for various extensions. The respondents who may have accepted
extension into hotels (which is a closer fit with parent brand, Kingfisher) may not accept the
extension into hotels(which is a distant fit with parent brand, Kingfisher).
Extension In case of Airtel
Individual Means
We see that the mean for acceptance of broadband as an extension is much greater than that of
airtel theatres as an extension.
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We conducted regression test to test the dependence of the independent variable (i.e
innovativeness) and dependent variable (i.e. airtel broadband).
Regression Test
From the results of the regression test ,we find that the significance level much above the
standard level of 0.05.Therefore , it can be inferred that there is a strong relationship between
innovativeness and extension acceptance in case of airtel broadband. Those respondents who
were innovative evaluated the above extension positively.
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From the results of the regression test ,we find that the significance level much below the
standard level of 0.05.Therefore , it can be inferred that there is no relationship between
innovativeness and extension acceptance in case of airtel theatres. Those respondents who were
innovative did not evaluate the above extension positively.
Therefore we can conclude that the innovativeness on part of the customer does a play a role but
not to the extent that they accept the extension into distant category. Hence we can reject the null
hypothesis which states that there is a positive relationship between consumers innovativeness
with the consumers evaluation.
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10.HYPOTHESISInnovativeness
H0: There is a positive relationship between consumers innovativeness with the
consumers evaluation.
H1: There is a negative relationship between consumers innovativeness with the
consumers evaluation.
Brand Acceptance-fit with parent brand
H0: Extended brands acceptance increases with increase in fit with the parent brand.
H1: Extended brand is accepted irrespective of the fit with the parent brand
Gender
H0: Indian customers brand extension evaluation is not gender dependent.
H1: Indian customers brand extension evaluation is gender dependent.
Schizophrenic
H0: The Indian schizophrenic consumers perception on brand extension does not change
from one sector to other.
H1: The Indian schizophrenic consumers perception on brand extension changes from one
sector to other.
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11. MANAGERIAL LEARNING
Indian consumers are more brand conscious when it comes to durables.
o While doing this project we came to know that consumer are more brand
conscious in durables rather than non durable or sevices.
Brand extension is accepted when the extended brand is more close to the parent brand.
o Indian consumers accept product which is more closer to their parent brand.
In case of service sector buying approach of Indian consumers varies with gender.
o Indian consumer s have different approach in service sector. Male approach is
different from female approach.
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12. LIMITATION OF THE RESEARCH
The limitations of the project was
The time was the biggest constraint of the project.
Since we chose Convenience Sampling, most of the respondents were from our college
only and thus it was difficult to get the reliability of more than 0.5.
Persuading respondents to fill the questionnaire was also one of the limitations of our
study.
The interpretation of the data and its analysis was also a constraint.
In the study the scenario provided information for brand factor at 2 levels viz., familiar or
unfamiliar. This is not true in every case as in reality a consumer is exposed to multiple
brands during pre purchase.
Area of survey was confined.
Different demographics were not covered
Short span of time to cover the survey.
No diversified samples.
No proof for the samples that they will provide true data.
Samples chosen based on convenience.
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13. CONCLUSION
Marketing research by itself does not arrive at marketing decisions, nor does it guarantee
that the organization will be successful in marketing its products. However, whenconducted in a systematic, analytical, and objective manner, marketing research can
reduce the uncertainty in the decision-making process and increase the probability and
magnitude of success.
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14. ACKNOWLEDGEMENT
We hereby thank our classmates and faculty of ITM BUSINESS SCHOOL for lending their
support throughout our research and making it successful. We are very much obliged to our
research methodology faculty guide Dr.sangeeta trot for assigning us such a learning assignment.
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15. BIBLIOGRAPHY
1. www.learnmarketing.net/consumer.html
2. http://www.csom.umn.edu/assets/164421.pdf
3. www.uni-hamburg.de/fachbereiche-einrichtungen/fb03/.../rp10.pdf
4. www.iupindia.in/307/IJBrM_Consumer_Evaluation_22.html\
5. bai2006.atisr.org/CD/Papers/2006bai6330.doc
6. www.csom.umn.edu/assets/88162.pdf
http://www.learnmarketing.net/consumer.htmlhttp://www.csom.umn.edu/assets/164421.pdfhttp://www.uni-hamburg.de/fachbereiche-einrichtungen/fb03/.../rp10.pdfhttp://bai2006.atisr.org/CD/Papers/2006bai6330.dochttp://www.csom.umn.edu/assets/88162.pdfhttp://www.csom.umn.edu/assets/88162.pdfhttp://bai2006.atisr.org/CD/Papers/2006bai6330.dochttp://www.uni-hamburg.de/fachbereiche-einrichtungen/fb03/.../rp10.pdfhttp://www.csom.umn.edu/assets/164421.pdfhttp://www.learnmarketing.net/consumer.html