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    Decline in sales of Al Fatah

    By

    Iqtidar Sukhers

    Thesis submitted to the Lahore School of Economics

    in partial fulfillment of the requirements for the degree of

    Business Administration in Marketing & Media

    2013

    Supervised by: Shamila Khan

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    Contents

    Chapter 1: Introduction ................................................................................................................... 5

    1.1 An overview of the topic:...................................................................................................... 5

    1.2 Managerial concerns: ............................................................................................................ 6

    1.4 Scope of the study: ................................................................................................................ 6

    1.5 Contribution: ......................................................................................................................... 8

    1.6 Research in Pakistan: ............................................................................................................ 8

    1.7 Major definitions: .................................................................................................................. 9

    Chapter 2: Literature Review ........................................................................................................ 11

    Chapter 3: Methodology & analytical Choices ............................................................................. 18

    3.4: Theoretical Framework & Variables under Consideration: ............................................... 20

    3.4.1: Reference list of Variables under consideration:......................................................... 20

    3.4.2 Theoretical Framework: ................................................................................................... 23

    3.5: Information Gathering & Sampling: ................................................................................... 24

    3.5.1. Survey Design: ............................................................................................................. 24

    3.5.2.Population and Planned Sample .................................................................................. 24

    Sampling size consideration .................................................................................................. 24

    3.5.3Sample size: ................................................................................................................... 25

    3.5.4 Choice of sampling techniques: .................................................................................... 25

    3.5.5. Questionnaire development: ...................................................................................... 26

    3.6 Data analysis tools and techniques: ..................................................................................... 29

    3.6 Data Analysis Tools & Techniques: ................................................................................... 30

    Chapter 4: Analysis....................................................................................................................... 32

    4.1 Description of statistical data: ............................................................................................. 32

    4.1.1: Description of Demographics ...................................................................................... 32

    4.1.2: Data testing .................................................................................................................. 33

    Appendix....................................................................................................................................... 42

    Questionnaire (Customers) ........................................................................................................... 42

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    Chapter 1: Introduction

    1.1 An overview of the topic:

    The industry catering to whole sellers and retailers is very wide with humongous scope at its

    disposal. Pakistan has huge potential for the growth and establishment of such market due to the

    consumer preferences and varying trends. The research caters to the problems and issues faced

    by Al Fatah, in the current scenario due to various factors which have been extensively

    discussed. The changing scenario of the country with the political and economic upheavals has

    significantly affected all the industries of the country. The economy is rapidly moving towards

    urbanization which has affected the consumer choices to a large extend. People today, prefer

    using branded products rather than commoditized items. Al Fatah is facing a decline in their

    sales which can be contributed to a large number of factors. The extensive competition in the

    market and market clustering can be a huge factor resulting in the decline in sales. Moreover, Al

    Fatah mostly host standardized grocery items which can be available at any competitor outlet.

    There are innumerable competitors who are entering the market like Green Valley and Hyper

    Star which are offering high value products and thus people are switching to those brands from

    Al Fatah. Therefore, the sales of the company are at risk and brand loyalty is reducing due to

    increasing entrants in the industry. Retailers are focusing on the creation of brand image and

    personality so that they could evoke brand loyalty within the consumers and increase their

    market share and sales in the market. Consumer preferences are changing with each passing day

    and the trend is shifting so the firms even have to deal with the demographic and psychographic

    trends of the potential and existing consumers. There are innumerable factors which can even

    effect the consumer behavior of the people and affect the decision making process of the

    consumers as well.

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    1.2 Managerial concerns:

    Al Fatah store was initially growing at a commendable pace but recent trends have led to a

    decrease in its sales which can be contributed to a number of reasons. Although the company has

    earned a marvelous reputation and has an experience of many years but still the sudden decline

    in sales was quite unanticipated. The company has strived hard to maintain and increase its brand

    loyalty but still many customers switch brands which led to the problem of decline in sales. The

    management of Al Fatah is eager to evaluate those factors which are contributing to the decrease

    in sales of Al Fatah.

    The decline in sales of Al Fatah is the result of various factors which can affectively contribute

    to its downfall. Consumer behavior and their preferences can also significantly alter the buyingdecision of the consumers resulting in a decline in sales.

    Decline in sales is a major issue that affects the overall revenue generation of any company and

    thus it must be dealt with utmost care. Proper analysis and market research can aid the company

    to depict the reasons resulting in this problem. Extensive analysis of consumer behavior and their

    proper segmentation must be carried out in order to determine the factors which may contribute

    to the problem of decline in sales. The research is specifically designed to answer the queries of

    the company regarding the analysis of all the factors which could contribute to the decline in

    sales of the products of Al Fatah.

    Objectives:

    To identify all the factors contributing to the decline in sales of Al Fatah To identify the various factors affecting the consumer behavior an their buying decision To identify and analyze the consumer market segments and to properly target them

    1.4 Scope of the study:1. What is the relationship between decline in sales and brand loyalty?2. What is the relationship between decline in sales and consumer demographics?3. What is the relationship between decline in sales and consumer psychographics?:4. What is the relationship between decline in sales and price?5. What is the relationship between decline in sales and brand personality?

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    6. What is the relationship between decline in sales and product placement?7. What is the reason between decline in sales and proximity to the consumers?8. What is the relationship between decline in sales and product quality?9. What is the relationship between decline in sales and market research?10.What is the relationship between decline in sales and advertising?11.What is the relationship between decline in sales and word of mouth?12.What is the relationship between decline in sales and promotions?13.What is the relationship between consumer behavior and brand loyalty?14.What is the relationship between consumer behavior and consumer demographics?15.What is the relationship between consumer behavior and consumer psychographics?16.What is the relationship between consumer behavior and price?17.What is the relationship between consumer behavior and brand personality?18.What is the relationship between consumer behavior and product placement?19.What is the relationship between consumer behavior and proximity to consumers?20.What is the relationship between consumer behavior and product quality?21.What is the relationship between consumer behavior and market research?22.What is the relationship between consumer behavior and advertising?23.What is the relationship between consumer behavior and word of mouth?24.What is the relationship between consumer behavior and promotions?25.What is the relationship between consumer preferences and brand loyalty?26.What is the relationship between consumer preferences and consumer demographics?27.What is the relationship between consumer preferences and consumer psychographics?28.What is the relationship between consumer preferences and price?29.What is the relationship between consumer preferences and brand personality?30.What is the relationship between consumer preferences and product placement?31.What is the relationship between consumer preferences and proximity to consumers?32.What is the relationship between consumer preferences and product quality?33.What is the relationship between consumer preferences and market research?34.What is the relationship between consumer preferences and advertising?35.What is the relationship between consumer preferences and word of mouth?36.What is the relationship between consumer preferences and promotions?

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    Delimitation of the study:

    The study has been conducted mainly in Lahore and surrounding areas and in some largecities of Pakistan. The entire country has not been subjected to this research.

    Less response rate of questionnaires. The data was collected in Feb. 2013.

    Assumptions of the study:

    All the candidates have answered the questionnaires with full interest and honesty.

    All the questionnaires have been designed specifically to address the problem that isunder consideration and all the questions are completely relevant and appropriate.

    The entire candidates were aware of the brand.

    1.5 Contribution:

    The study is conducted for the Al Fatah stores to analyze their situation with respect to the

    changing scenario and sales of the store. The declining sales of Al Fatah have become a major

    concern of the company. The research has been conducted keeping in mind the current issue

    faced by the management. Different variables including the psychographics of the customers and

    advertisement and many other have been tested against the decline in sales of Al Fatah. The

    research would aid the company in performing better by improving their services and all those

    factors which could affect the sales of Al Fatah.

    1.6 Research in Pakistan:

    The consumer behavior is rapidly changing in Pakistan as the consumers are getting more

    conscious of their where about. Moreover, the westernization has changed the consumer

    preferences to a large extend. The economic crisis has also impacted the current scenario to a

    large extend.

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    1.7 Major definitions:

    1. Advertisement:The non personal form of communication in which persuasive information is provided to the

    potential consumers in order to attract them, is called advertisement (Bovee & Arens, 1992).

    2. Urbanization:The increase or growth of population in the urban or developed area of a country is regarded as

    urbanization ((Misilu Mia Nsokimieno Eric, Professor Chen Shouyu, Professor Zhang li Qin,

    2010).

    3. Brand loyalty;When the consumer keeps their preferences to just a single brand then it depicts their loyalty

    towards that brand (Aaker and Keller, 1990).

    4. Quality:The meaning of this term is very vast and it varies from person to person according to the

    consumer criteria (Jinea Akhtar, 2011).

    5. Proximity:Proximity is the nearness or closeness between the product outlet or availability and the potential

    consumers (Susan L. Cornish, 2012).

    6. Word of mouth:The advice passed on from one experienced consumer to another is regarded as the word of

    mouth statement (East, Hammond, and Lomax, 2008).

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    7. Market research:

    The changes in trends and situation of the market and the competitors is analyzed and gained

    through market research (Malecki 1990; Ewers and Wettman 1980).

    8. BrandpersonalityThe set or group of all the human characteristics that are associated with a certain brand are

    regarded as brand personality (Jennifer L. AAker, 1997).

    9. Consumer demographics:Consumer demographics incorporate a large number of factors which may include: age, gender,

    occupation, education, marital status, cultural factors and other personal factors this can affect

    the buying decision of a consumer. (Manrai 1996; Kahle, 1999, 2003).

    11. Psychographics:

    The varying preferences of the consumers in accordance with their personalities and lifestyles

    are referred to as psychographics (Morgan, 1993).

    12. Promotions:

    Its a form of communication tool and components of the marketing mix which enables to attract

    the consumers (Lovelock, 2010).

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    Chapter 2: Literature Review

    The following literature begins with a detailed introduction of the three dependent variables. It

    then proceeds by identifying and explaining the effect of independent variables on the three

    dependent variables.

    Consumer behavior:

    Consumer earnings, demographic and psychographics and many cultural factors are involved in

    shaping the consumer behavior (Jalal, 2011). The external motivators combined with the

    awareness regarding a brand or product can together affect the consumer behavior and

    preference of the consumer (Mansoor, 2011). Consumer behavior holds immense importance for

    the marketers as it gives them an insight into the consumers mind and make them aware of theneeds and wants of the consumers and fulfilling their expectations at the same time . Desired

    consumer behavior can aid in the success of a business (Hansen, 2004). Consumer behavior is

    usually reflected in the purchase decision of the consumers and sometimes also in the

    preferences of the consumers regarding the specific brands or products that the consumers are

    willing to choose. Consumer behavior is due to their own perception regarding a product or it

    can even be shaped due to their past experiences regarding that product or other similar products

    and even substitutes (Tahemejad, 2012).

    Consumer preferences:

    The preferences of the consumers regarding the purchase of a product are dependent on a variety

    of different factors. As the world has turned into a global village, many new players have entered

    the market making the completion even fiercer than ever m (Ching, Ng, Wong, & Altman, 2004;

    Tse, Sin, Yau, Lee, & Chow, 2004). This has largely benefited the consumers as they are

    provided with a variety of products to choose from (Voss & Voss, 2000). The consumers these

    days have set criteria, for buying product and they weigh different alternatives on the basis of

    their own criteria. Its highly important for the marketers to hit the sensitive points of the

    consumers in order to manipulate their preferences and choices regarding different products.

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    Decrease in sale:

    The sales of a product can be affected by a large number of factors. Most of the time, consumers

    are unable to access the product in the, market and are thus unable to purchase (Lee, 2004).

    Other times the demographics and psychographics of the consumers do not allow them to but a

    certain commodity. Thus sales can decline or rise on a variety of factors. Sales are the source of

    revenue and profit or a product (Chow, 2004).

    The inappropriate use of market research can lead to business failure as the company will be

    oblivious to its market and consumers (Crawford, 2010). The data of the market research must be

    connected with the critical decision under consideration or it will be completely futile (Crawford.

    2010). Market research must be conducted in the early development stage of the products so it

    will lead to a rise in sales (Crawford, 2010). Market research conducted with full determinationcan offer an insight into the consumers mind and their buying pat tern and behavior can be

    extensively analyzed through it. Thus a major market research can have a positive impact on the

    growth of a product or industry as a whole, because it provides help in market segmentation.

    Different scholars have given utmost importance to market research and orientation in the

    success of a new product in the market (Wong, Kam Sing, 2011). There are innumerable factors,

    affecting the success of the any product, which have attracted the marketers and researchers

    (Song & Parry, 1997; Calantone, Schmidt, & Song, 1996; Denison, Hart, & Kahn, 1996;

    Dougherty, 1992; Kazanjian, 1988).

    Brand personality:

    Through the establishment of brand personality firms enable themselves to engender a brand

    perception and image in the minds of the consumers. In this way, the consumers develop a

    certain form of affiliation with the brand and its traits (Akin, 2011). Brand personality is

    responsible for engendering brad loyalty and it even differentiates a product from its competitors

    on the basis of its personality traits which are associated with the consumer needs and

    preferences. A suitable image of the brand must be chalked out so that the consumers could

    relate with them and set a perceived image related to that brand, in their minds (Akin, 2011).

    Brand personality plays a very major role in the purchase decision of the consumers and it can

    even increase the sales of a particular commodity (Kurtulus, 2008).

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    The brand personality is an indicator in itself as to whether the brand must be purchased or not

    (Nart, 2008). Consumer preferences and intentions are strongly connected with the brand

    personality and they can have a strong impact on the sales (Shavitt, 1989). Brand personality is a

    major form of communication with the consumers (Akin, 2011). One of the most significant

    forms of brand personality is brand value (Aaker, 1996). Store personality and character is also

    very important for the increase in sales of the product (Pandey, 2009). The personality of a

    product or brand also develops s according to the needs of the consumers (Onaran, 1981).

    Moreover, the strong brand personality of a product may also have a significant effect on its

    sales. Consumers readily buy those products which they consider good and superior to other

    alternatives (Pandey, 2009).

    Promotion:

    The consumer attitude towards the product is altered through promotions of the brand and in this

    way the sales of a product also rises. Image, believes and attitude of a brand can be changed

    through the tool of promotion (Lovelock, 2010). Marketing strategy is another factor which

    includes promotion and other factors (AAker, 2010). Product offering is another form of

    promotions through which a firm can attract its consumers (Salim, 2011). Promotions are usually

    given to the customers in the form of discounts and they are actually price incentives to attract

    customers (Madley, Teel, 1988). Consumer behavior is significantly affected by promotions.

    Promotions even have a positive effect on the preferences of the consumers regarding a certain

    product or service.

    Promotions also include displays and couponing to enhance consumer interest (Edward J. Fox,

    1995). Branded consumer goods are increasingly using sales promotions to attract customers and

    to increase sales (Bowman, 1988). Sales promotions have a significant impact on the sales of any

    product and it can even effect the growth of any product in the market. It can have both positive

    and negative effect on the sales of the product (Blattberg and Neslin, 1989).

    Advertising:

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    Advertisement even plays an integral role in increasing the sales of any product and can be used

    as an effective tool and medium of communication as well. It can even facilitate the competitors

    to gain information about a new product and the different features that its offering (Tai, 2007).

    Brand loyalty can also be evoked through successful and aggressive advertisement as it helps to

    trigger a response from the consumers and even channels their desires and needs (Agrawal,

    1996). Advertisement is also used to create knowledge about the product and to channel

    consumer demand (Morden, 1991). Advertisement even engenders brand recognition and brand

    awareness among the targeted consumers and thus can increase the sales of the product (Yan,

    2004). Both consumer behavior and consumer preferences are positively affected by advertising.

    The sales of a product can be increased through proper and aggressive advertising. It aids in

    increasing the brand awareness of the consumers and even help them in gaining information

    regarding the product (Yan, 2004)

    Brand loyalty:

    Brand loyalty and brand awareness are few of the most viable variables which ca directly affects

    the sales of any product within the industry. Howard and Sheth (1969) came forward with the

    theory of brand loyalty for the first time. There can be emotional or cognitive reasons for brand

    loyalty which also affects the consumer response and preferences (Rose Leahy, 2008). Low

    brand loyalty and lack of awareness on the part of the consumers may lead to brand switching

    and decrease in sales of the product. Thus, it positively affects the consumer preferences and

    behavior.

    Distribution and product placement are directly related to brand awareness as proper placement

    and distribution enhances brand exposure and results in rise in sales. A convex relationship has

    been depicted between distribution coverage and the market share of that product (Reibstein and

    Farris, 1995). Brand loyalty, brand trust and brand affect are interdependent (Chaudhuri &

    Holbrook, 2001). Loyalty has been divided into two types; attitudinal loyalty and purchase

    loyalty (Morgan, 2000; Chaudhuri & Holbrook, 2001). The loyal customers promote the

    companys reputation through a positive word of mouth while dissatisfied customer spreads a

    negative word of mouth against the company (Zahra Seyed Ghorban, Hossein Tahernejad, 2012).

    Thus it has a significant effect on the sales of a product.

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    Word of mouth:

    Sales of a product can also show remarkable increase though the contribution of positive word

    of mouth. When the customers are satisfied and contend with the product, that satisfaction

    engenders a positive word of mouth which has a positive impact on sale s (Sderlund &

    Rosengren, 2007). But in some case it is observed that explicit recommendations are formed due

    to word of mouth (Fullerton & Taylor, 2002; Gremler & Brown, 1999; Hartline & J., 1996).

    Word of mouth is even regarded as an experience and information sharing process (Maru,

    Cermak, & Prince, 1994; Mikkelsen, Van Durme, & Carrie, 2003; Westbrook, 1987).

    Online reviews have gained immense popularity and they have a strong impact on consumer

    preferences (Kung Hsin Shao, 2012). Product sales are directly affected by word of mouth

    especially valence of word of mouth (Chevalier & Mayzlin, 2006; Chintagunta, Gopinath,

    &Venkataraman, 2010; Dellarocas, Zhang, & Awad, 2007; Duan, Gu, & Whinston, 2008; Liu,

    2006; Moon, Bergey, & Iacobucci, 2009; Zhu & Zhang, 2010). Sales of a product are positivey

    affected by word of mouth of the consumers.

    Price:

    The sales of any product can be considerably affected through price. Price elasticity plays a

    major role in the increase or decrease of product sales. When the consumers are price sensitive

    then decline in price generally results in increase in sales of that product and vise versa. The

    buying behavior of the consumers and their preferences are positively affected by the price of a

    product.

    People tend to think more carefully if they are price elastic towards a certain product or

    commodity (Bose and Shukla, 1999). Price elasticity can greatly vary from rural to urban areas

    (Haanyika, 2008). Apart from high or low prices, urbanization can also have a vital impact on

    the sales of product. The sales of a product is directly linked to its price.

    Quality:

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    The competitiveness and reputation of an organization is influenced by its quality of products

    (Jinea Akhtar, 2011). The quality of a product is gaining importance for the consumers and

    marketers in terms of success, growth and survival of a product (Aldlaigan & Buttle, 2002;

    Angur et al. 1999; Bath, 2005; Sharma & Mehta, 2004; Bahia & Nantel, 2000). Thus the quality

    of a commodity can have a direct and strong effect on the sales of a product.

    These factors greatly influence the sales of any product therefore; strong and valid market search

    is incumbent on organizations, along with the other major variables, to increase the sales of their

    products, in the current competitive market.

    Urbanization:

    Urbanization can lead to achievement and innovation at the same time due to modernization

    (Wu, 2010). Due to urbanization, the population size and growth rate increases tremendously

    within the developing areas and as a result the sale of different products rises as consumption

    rates rise (Wu, 2010).

    But excessive accumulation of the population within a single region can have adverse effect on

    the demand and supply equilibrium (Wu, 2010). Extreme urbanization can even lead to industry

    clustering (Wu, 2010).

    Proximity:

    The image of a retailer depends on the geographic proximity with the customer, the delivery

    time, the merchandising and etc (Blumenthal & Bergstrom, 2003). Proximity and consumer

    attitude are directed related as they facilitate the transaction between the consumers and the

    retailers and thus improves the sales of the product (Cacho, 2010).

    Demographics:

    The demographics of the consumers that have to be catered by the industry, holds immense

    importance as they provide an insight of consumer preferences. These demographics include the

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    income of the targeted customers, their marital status and it even captures the demographics and

    cultural aspects of the target market which aids in developing the right customer profile for the

    product (Morgan, 1993). Demographics affect both the consumer behavior and their preferences.

    Moreover it also significantly affects the sales of a product.

    All of the above extensively discussed variables are the main driving forces leading to a change

    in consumer preferences and a decrease in sales. These factors must be critically analyzed and

    evaluated in order to reduce the risk of brand switching and changing consumer perception and

    behavior. A company can incur losses due to reduction in sales and negative consumer

    perception. Therefore, it is mandatory for their success that the companies properly position its

    brand and categorize its customers very carefully.

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    Chapter 3: Methodology & analytical Choices

    3.1 Research type:

    The research has been following the Positivist philosophy as the data has maintained an objective

    stance and samples have been used to measure quantitative research. Moreover, qualitative data

    has also been analyzed.

    3.2 Data & Type of Research methods:

    Different independent variables have been determined and their effect on the dependent

    variables; consumer behavior regarding purchases and decline in sales of Al Fatah, has been

    closely observed through hypothesis formulation by using deductive approach. Deductive

    approach incorporates theory testing and determines the cause and effect relationship between

    the variables.

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    3.3 Research Hypothesis:

    Decline in sales:

    Ho1: There no a relationship between decline in sales and brand loyalty

    Ho2: There is no relationship between decline in sales and consumer demographics.

    Ho3: There is no relationship between decline in sales and consumer psychographics.

    Ho4: There is no relationship between decline in sales and price.

    Ho5: There is no relationship between decline in sales and product placement.

    Ho6: There is no reason between decline in sales and proximity to the consumers.

    Ho7: There is no relationship between decline in sales and product quality.

    Ho8: There is no relationship between decline in sales and advertising.

    Ho9: There is no relationship between decline in sales and word of mouth.

    Ho10: There is no relationship between decline in sales and promotions.

    Consumer behavior:

    Ho1: There no a relationship between consumer behavior and brand loyalty

    Ho2: There is no relationship between consumer behavior and consumer demographics.

    Ho3: There is no relationship between consumer behavior and consumer psychographics.

    Ho4: There is no relationship between consumer behavior and price.

    Ho5: There is no relationship between consumer behavior and product placement.

    Ho6: There is no reason between consumer behavior and proximity to the consumers.

    Ho7: There is no relationship between consumer behavior and product quality.

    Ho8: There is no relationship between consumer behavior and advertising.

    Ho9: There is no relationship between consumer behavior and word of mouth.

    Ho10: There is no relationship between consumer behavior and promotions.

    Consumer preferences:

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    Ho1: There no a relationship between consumer preference and brand loyalty

    Ho2: There is no relationship between consumer preference and consumer demographics.

    Ho3: There is no relationship between consumer preference and consumer

    psychographics.

    Ho4: There is no relationship between consumer preference and price.

    Ho5: There is no relationship between consumer preference and product placement.

    Ho6: There is no reason between consumer preference and proximity to the consumers.

    Ho7: There is no relationship between consumer preference and product quality.

    Ho8: There is no relationship between consumer preference and advertising.

    Ho9: There is no relationship between consumer preference and word of mouth.

    Ho10: There is no relationship between consumer preference and promotions.

    3.4: Theoretical Framework & Variables under Consideration:

    3.4.1: Reference list of Variables under consideration:

    Promotion includes a lot of factors which could attract the consumers; sales promotion, personal

    selling and publicity (Lovelock, 2010). It aids in the establishment of preferences in the minds of

    the consumers and thus companies focus on them a lot. Promotion is regarded as an important

    marketing strategy (Clow, 2010).

    Quality of the product should correspond with the expectations of the consumers (Lovelock,

    2010). Service quality is a mean of direct contact with the potential consumers and it is a

    medium of personal selling (Salim, 2011).

    Loyalty associated with a brand is actually engendered through a nice brand experience (Aaker

    & Keller, 1990). Even when the switching barriers are high people stay loyal to the brand and do

    not switch their brands (Fornell, 1990).

    Price is the most important factor when it comes to the preferences of the consumers (Cadogan &

    Foster, 2000). Consumers which are loyal to the brand are usually ready to pay even premium

    prices for the product (Salim, 2011).

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    Brand personality is used for managing the status and reputation of the brand. Brands with

    suitable personality are preferred by the consumers (Keller, 2003). Brand image depends on the

    personality of the brands (Dursun, 2009).

    Psychographic segmentation aids in developing proper understanding of the targeted consumers

    and their preferable brand and even the reasons as to why they favor a particular brand over This

    evokes and determines the consumer buying behavior and their decision making patterns

    (Morgan, 1993). So the sales of the product can be altered through the evaluation of

    psychographics.

    The demographics of the consumers that have to be catered by the industry, holds immense

    importance as they provide an insight of consumer preferences. These demographics include the

    income of the targeted customers, their marital status, gender and it even captures the

    demographics and cultural aspects of the target market which aids in developing the right

    customer profile for the product (Morgan, 1993).

    Word of mouth is one of the most crucial factors affecting the consumer preferences and their

    buying decision and thus its extensively used by the marketers to create and evoke brand value

    among the consumers (Heskett et al., 1994). Word of mouth is majorly responsible for creating

    brand awareness among consumers as it increases brand exposure. Thus it can have a major

    impact on the sales of the product, on the whole.

    Market research is of extreme importance when it comes to the sales of any product especially in

    a competitive market. Internal analysis and research of the companys sales can lead to

    profitability and revenue generation and an extensive market research of the segmented market

    can also aid in molding consumer buying decision by using strategic and promotional tool which

    can have a significant impact on the sales of any product (Nittaya McNeil, 2009).

    Advertising is a medium through which brands can channel the desires of the targeted consumers(Kotler, 1988). Advertising is regarded as a non-personal form of interactive communication

    with the targeted audience which evokes reaction in the form of purchases and as a result it can

    majorly affect the performances and sales of a product or store (Bovee & Arens, 1992).

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    Urbanization in some areas, may also lead to chaos in this situation it will impact the buying

    pattern differently (Batty &Longley, 1994; Chen and Zhou, 2003; Frankhauser, 1994; White &

    Engelen, 1994). But in case of systematic urbanization, the trend is entirely different. People

    prefer branded products even commodities instead of unknown and unlabelled products.

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    3.4.2 Theoretical Framework:

    Framework:

    Decrease in sales

    Price Sensitivity

    Demographics

    Ps cho ra hics

    Word of mouth

    Brand

    personality

    Brand Lo alt

    ualit

    Promotions

    Proximit

    Urbanization

    Advertisement

    Consumer

    behavior

    Causes fordecrease in sales

    of Al-Fatah

    Consumer

    Buying preferences

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    3.5: Information Gathering & Sampling:

    3.5.1. Survey Design:

    Surveys have been used to gather appropriate information and data regarding the impact of

    different variables like price, proximity, advertisements, promotion, demographics,

    psychographics and quality, on consumer buying decision and the declining sales of Al Fatah.

    Time Horizon:

    A cross-functional approach has been used to collect all the information through the surveys, at a

    single time. The data would not be revised or improvised after intervals and the sample would be

    questioned only once with a single time horizon.

    3.5.2.Population and Planned Sample

    A mixed method approach would be used for the analysis of both qualitative and quantitative

    data. The selected sample from the population would be taken from upper class and middle class.

    Posh areas of Lahore would be targeted for the research. Structured questionnaires would be

    circulated among the correspondents, in different areas of Lahore, so that the result could be

    generalized. The two main areas of Lahore which host the branches of Al Fatah, namely, DHA

    and Liberty would be approached and potential or current customers would be selected as

    correspondents from these above mentioned location.

    Sampling size consideration:

    Structured questionnaires would be circulated among the correspondents, in different areas of

    Lahore, so that the result could be generalized. The two main areas of Lahore which host the

    branches of Al Fatah, namely, DHA and Liberty would be approached and potential or current

    customers would be selected as correspondents from these above mentioned location.

    Stratified sampling would be used with a sample of 100 correspondents, for the purpose of this

    research and the data would be collected by dividing the population into two strata on the basisof their income. The upper class and the upper middle class would be the two main strata of the

    sample. The correspondents would then be randomly selected from among the two strata.

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    Upper class Upper middle class Middle class

    3.5.3Sample size:

    Stratified sampling would be followed on the basis of income groups. Upper class, upper middle

    class and middle class would be catered and included in the survey. The respondents would then

    be randomly chosen from the strata. In this way the results could be generalized and the

    accuracy of the population could be justified. A sample size of more than 200 would have

    increased the cost of the research and a sample size of less than 200 would reduce accuracy.

    Therefore, 200 correspondents have been taken to maintain accuracy.

    3.5.4 Choice of sampling techniques:

    Stratified sampling would be followed on the basis of income groups. Upper class, upper middle

    class and middle class would be catered and included in the survey. The respondents would then

    be randomly chosen from the strata. In this way the results could be generalized and the

    accuracy of the population could be justified. A sample size of more than 200 would have

    increased the cost of the research and a sample size of less than 200 would reduce accuracy.

    Therefore, 200 correspondents have been taken to maintain accuracy.

    50 75 75

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    3.5.5. Questionnaire development:

    Variable Creator Year No. of

    items

    Consumer behavior Wang 2010 4

    Consumer preferences Jonston & Donath 2001 3

    Decline in sales Ridgway 1994 3

    Brand loyalty Yoo, Donthu 2002 3

    Quality Yoo, Donthu 2002 2

    Brand personality Kim 2005 3

    Advertisement Lee & Edward 2002 5

    Word of mouth Hong & Ha 2006 3

    Price Ridgway & Netemeyer 1993 5

    Psychographics Martinez & Montaner 2006 5

    Urbanization Poel & Donnell 2009 4

    Promotion Martines & Montaner 2006 3

    Proximity Martines & Montaner 2006 4

    Variables Constructive definition Operational definition

    Consumer

    behavior

    The behavior exhibited by the consumers

    while purchasing a brand

    The mean of item 1-4 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Consumer

    preference

    The liking of the consumers towards a

    brand

    The mean of item 5-7 ismeasured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Decline in sales The decline in the sales of the product The mean of item 8-10 is

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    due to various behaviors exhibited by the

    consumers

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Brand loyalty

    When the consumer keeps their

    preferences to just a single brand then it

    depicts their loyalty towards that brand

    The mean of item 11-13 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Quality

    The meaning of this term is very vast and

    it varies from person to person according

    to the consumer criteria

    The mean of item 14-15 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Brand

    personality

    the set or group of all the human

    characteristics that are associated with a

    certain brand are regarded as brand

    personality

    The mean of item 16-18 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Advertisement

    The non personal form of communicationin which persuasive information is

    provided to the potential consumers in

    order to attract them, is called

    advertisement

    The mean of item 19-23 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Word of mouth

    The advice passed on from one

    experienced consumer to another is

    regarded as the word of mouth statement

    The mean of item 24-26 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    PriceThe monetary value of the brands or

    products

    The mean of item 27-31 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

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    Psychographics

    The varying preferences of the

    consumers in accordance with their

    personalities and lifestyles are referred to

    as psychographics

    The mean of item 32-36 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Urbanization

    The increase or growth of population in

    the urban or developed area of a country

    is regarded as urbanization

    The mean of item 37-40 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Promotion

    Its a form of communication tool and

    components of the marketing mix which

    enables to attract the consumers

    The mean of item 41-43 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Proximity

    Proximity is the nearness or closeness

    between the product outlet or availability

    and the potential consumers

    The mean of item 44-47 is

    measured on a 5 pointer scale

    1= strongly disagree

    5= strongly agree

    Demographics

    Consumer demographics incorporate a

    large number of factors which may

    include: age, gender, occupation,

    education, marital status, cultural factors

    and other personal factors this can affect

    the buying decision of a consumer

    The mean of item of gender is

    measured through

    Male Female

    and for income:

    Rs. 30,000Rs. 60,000

    Rs. 60,000Rs. 90,000

    Rs. 90,000 and more

    Reverse coded items Average

    Independent variable

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    Brand loyalty Average (Item 11, R12, 13)

    Quality Average (Item 14, 15)

    Brand personality Average (Item 16, 17, 18)

    Advertisement Average (Item 19, 20, 21, 22, 23)

    Word of mouth Average (Item 24, 25, 26)

    Price Average (Item R27, 28, R29, R30, R31)

    Psychographics Average (Item 32, 33, 34, R35, R36)

    Urbanization Average (Item 37, 38, 39, 40)

    Promotion Average (Item 41, 42, R43)

    Proximity Average (Item 44, 45, 46, 47)

    Dependent variables

    Consumer behavior Average (Item 1, 2, 3, 4)

    Consumer preference Average (Item 5, 6, 7)

    Decline in sales Average (Item 8, 9, R10)

    3.6 Data analysis tools and techniques:

    Regression

    It aids in statistically measuring the relationship among the variables of the research. It depicts

    the relationship between the dependent variables and one or more of the independent variables of

    a certain research. It expresses the relationship between the dependent and one or more

    independent variables in the form of regression equations.

    Dependent Variable 1:

    Consumer behavior = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price)

    + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Word of Mouth)

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    Dependent Variable 2

    Decline in sales = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price) +

    (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Word of Mouth)

    Dependent Variable 3

    Consumer preference = + (Brand loyalty) + (Advertising) + (Brand personality) +

    (Price) + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) +

    (Promotions) + (Quality) + (Word of Mouth)

    Apart from the regression test other statistical test would also be conducted to verify the results

    of different forms of data gathered through the questionnaires. t- test is another form of analytical

    tool that would be used in the research, for those questions which have two options in the

    answer. Its basically a Two-sample test which determines that whether the two population

    means are equal or not, within a specific research. t- Test is calculated through ratio in which the

    difference between the two means is divided by the variability.

    ANOVA would be used for those questions of the survey in which more than two options or

    choices are available for the correspondent, to answer from. It is basically used for experimental

    data analysis. in this research the question related with the income group and target market

    would be justified by using ANOVA.

    3.6 Data Analysis Tools & Techniques:

    Regression

    It aids in statistically measuring the relationship among the variables of the research . It depicts

    the relationship between the dependent variables and one or more of the independent variables of

    a certain research. It expresses the relationship between the dependent and one or more

    independent variables in the form of regression equations.

    Dependent Variable 1:

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    Consumer behavior = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price)

    + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Market Research) + (Word of Mouth)

    Dependent Variable 2

    Decline in sales = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price) +

    (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Market Research) + (Word of Mouth)

    Dependent Variable 3

    Consumer preference = + (Brand loyalty) + (Advertising) + (Brand personality) +

    (Price) + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) +

    (Promotions) + (Quality) + (Word of Mouth)

    Apart from the regression test other statistical test would also be conducted to verify the results

    of different forms of data gathered through the questionnaires. t- test is another form of analytical

    tool that would be used in the research, for those questions which have two options in the

    answer. Its basically a Two-sample test which determines that whether the two population

    means are equal or not, within a specific research. t- Test is calculated through ratio in which the

    difference between the two means is divided by the variability.

    ANOVA would be used for those questions of the survey in which more than two options or

    choices are available for the correspondent, to answer from. It is basically used for experimental

    data analysis. in this research the question related with the income group and target market

    would be justified by using ANOVA.

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    Chapter 4: Analysis

    The analysis has been performed to depict the relationships between different variables of the

    frame work. In this analysis three dependent and all the independent variables are analyzed

    extensively to support or reject the hypothesis formulated on the basis of secondary research.

    Three dependent variables; consumer behavior, consumer preference and decline in sales have

    been considered along with the independent variables which includes, psychographics,

    accessibility, word of mouth, advertisement, brand personality, price. The analysis begins by the

    analysis of demographics frequencies; it then proceeds by conducting a correlation, then a T test

    and ANOVA. Finally regression analysis is performed.

    4.1 Description of statistical data:

    4.1.1: Description of Demographics

    Gender and income has been takes as the demographic variables which are analyzed through the

    tables below.

    Gender:

    Table 4: Frequency of Gender

    Frequency Percent

    Male 25 25.0

    Female 75 75.0

    Total 100 100.0

    Table 4 gives an accurate count of the males and females in the sample. There are 25 males and

    75 females in the sample. So it can be said that there are more females than males.

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    Income:

    Table 5 Frequency of Income

    Income Frequency Percent

    Rs. 20, 000 to Rs. 40,

    000 9 9.0

    Rs. 40, 000 to Rs. 80,

    00054 54.0

    Rs. 80, 000 and more 37 37.0

    Total 100 100.0

    The table shows the categories of income in which the respondents were divided. It also shows

    that 54% of the respondents lie in the 2nd

    income bracket, while 37% lie in the third income

    group.

    4.1.2: Data testing

    Correlation:

    It is done to deduce the relationship between all the variables under consideration, by

    considering the significance value of all the variables in comparison to each others.

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    Table: 6 Correlation

    Consu

    mer

    behavi

    or

    Consum

    er

    preferen

    ce

    Declin

    e in

    sales

    Brand

    loyalt

    y

    Qualit

    y

    Brand

    persona

    lity

    Advertis

    ements Price

    Psyc

    hogra

    phics

    Urbani

    zation

    Promot

    ions

    Pr

    onsume

    behavior1 -.031 .015 -.013 -.042 .046 .010 -.114 .015 -.134 -.076

    .22

    onsume

    referenc-.031 1 .021 -.139

    -

    .246(*

    *)

    .026 .013 -.055 -.134 .016 .023

    ecline

    sales.015 .021 1 .108 .148 -.022 .124 .004 -.117 .074

    -

    .203(*) .20

    uality

    -.042

    -

    .246(**

    )

    .148 .016 1 .000 .120 .002 -.145 .215(*) -.155

    rand

    ersonalit .046 .026 -.022 .159 .000 1 .040 -.106 -.051 -.118 .099 .1

    dvertise

    ents.010 .013 .124 -.121 .120 .040 1 -.159 .011 .043 -.140

    .23

    Word of

    outh.072 .101

    -

    .185(*).052 -.090 .098 -.141 -.046 -.032 -.090 .005

    rice -.114 -.055 .004 .002 .002 -.106 -.159 1 .060 .172(*) .007

    sychogr

    phics.015 -.134 -.117 .054 -.145 -.051 .011 .060 1 -.029 .198(*)

    rbanizat

    n-.134 .016 .074 -.137

    .215(*

    )-.118 .043

    .172(

    *)-.029 1

    -

    .202(*)

    romotio -.076 .023 - .035 -.155 .099 -.140 .007 .198( - 1 .1

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    s .203(*) *) .202(*)

    roximity -

    .222(*)-.013

    -

    .202(*)-.078 -.004 -.181(*) -.230(*) .046 .108 .024 .195(*)

    * **Correlation is significant at the 0.01 level (1-tailed).

    **Correlation is significant at the 0.5 level (1-tailed)

    *Correlation is significant at the 0.1 level (1-tailed)

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    Consumer behavior has a significant relationship with consumer preference as it has a p value of

    0.031. Decline in sales also has a significant relationship with consumer behavior. Quality has a

    significant relationship with consumer behavior (0.041). Consumer preference has a very

    significant relationship with consumer preference. Decline in sales has a significant relationship

    with consumer behavior as it has a p value of less than 0.05.

    Brand personality has a highly significant relationship with quality with a p value of 0.00.

    Advertisement has a significant relationship with brand personality. Price has a negative

    relationship with brand personality. Promotions have a significant but negative relationship with

    decline in sales (p=0.022). Urbanization has a significant relationship with quality with a p value

    of 0.016.

    T test:

    The t test is done to analyze the difference in gender with respect to different variables.

    Table: 7 Independent Samples Test for gender

    F Sig. t Df

    Sig. (2-

    tailed)

    Consumerbehavior

    Equal variancesassumed

    .001 .977 .559 98 .578

    Equal variances notassumed

    .573 43.071 .569

    Consumerpreference

    Equal variancesassumed

    .039 .845 -.639 98 .524

    Equal variances not

    assumed-.633 40.542 .530

    Decline in sales Equal variances

    assumed.864 .355 -.023 98 .982

    Equal variances not

    assumed -.020 34.441 .984Brand loyalty Equal variances

    assumed.028 .867 -.479 98 .633

    Equal variances not

    assumed-.483 41.857 .632

    Quality Equal variances

    assumed

    5.28

    0.024 2.645 98 .010

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    Equal variances not

    assumed3.239 63.074 .002

    Brand personality Equal variances

    assumed.710 .402 -.627 98 .532

    Equal variances not

    assumed

    -.591 37.457 .558

    Advertisements Equal variancesassumed

    .560 .456 .562 98 .576

    Equal variances notassumed

    .596 45.797 .554

    Word of mouth Equal variances

    assumed.545 .462 -1.294 98 .199

    Equal variances notassumed

    -1.429 49.744 .159

    Price Equal variancesassumed

    4.075

    .046 .000 98 1.000

    Equal variances notassumed

    .000 53.867 1.000

    Psychographics Equal variances

    assumed.235 .629 -.158 98 .875

    Equal variances not

    assumed-.164 43.906 .871

    Urbanization Equal variances

    assumed.649 .422 1.925 98 .057

    Equal variances not

    assumed2.043 45.889 .047

    Promotions Equal variances

    assumed

    1.49

    9.224 .102 98 .919

    Equal variances not

    assumed.114 51.268 .910

    Proximity Equal variances

    assumed.229 .633 -.084 98 .933

    Equal variances not

    assumed-.080 38.570 .936

    * **Correlation is significant at the 0.01 level (1-tailed).

    **Correlation is significant at the 0.5 level (1-tailed)

    *Correlation is significant at the 0.1 level (1-tailed)

    The above table shows that only quality and urbanization can have significant difference in

    gender as they have a p-value of less than 0.05.

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    Table 8: Group Statistics

    Gender N Mean

    Quality Male 25 3.4200

    Female 75 2.6667

    Urbanization Male 25 3.8600

    Female 75 3.5300

    The males are more affected by quality than females as they have a higher mean. With respect to

    urbanization, the males are more affected than females as the mean for males is high.

    ANOVA:

    The ANOVA has been conducted to see the significant difference between the income groups

    with respect to different variables.

    Table 9: ANOVA for Income

    Sum ofSquares df MeanSquare F Sig.

    Consumer

    behavior

    Between

    Groups.090 2 .045 .098 .906

    Within

    Groups44.238 97 .456

    Total 44.327 99

    Consumer

    preference

    Between

    Groups1.110 2 .555 .910 .406

    Within

    Groups59.162 97 .610

    Total 60.271 99Decline in sales Between

    Groups1.088 2 .544 .774 .464

    Within

    Groups68.213 97 .703

    Total 69.301 99

    Brand loyalty Between

    Groups.136 2 .068 .129 .879

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    Within

    Groups51.326 97 .529

    Total 51.462 99

    Quality Between

    Groups3.447 2 1.723 1.070 .347

    WithinGroups

    156.201 97 1.610

    Total 159.648 99

    Brand

    personality

    Between

    Groups1.133 2 .566 .968 .383

    Within

    Groups56.746 97 .585

    Total 57.879 99

    Advertisements Between

    Groups.362 2 .181 .545 .582

    Within

    Groups32.205 97 .332

    Total 32.566 99

    Word of mouth Between

    Groups1.048 2 .524 .720 .489

    Within

    Groups70.591 97 .728

    Total 71.639 99

    Price Between

    Groups.982 2 .491 .978 .380

    WithinGroups

    48.698 97 .502

    Total 49.680 99Psychographics Between

    Groups1.142 2 .571 1.078 .344

    Within

    Groups51.378 97 .530

    Total 52.520 99

    Urbanization BetweenGroups

    .838 2 .419 .737 .481

    Within

    Groups55.208 97 .569

    Total 56.047 99

    Promotions BetweenGroups

    1.997 2 .999 1.127 .328

    WithinGroups

    85.970 97 .886

    Total 87.968 99

    Proximity Between

    Groups22.047 2 11.023 .937 .395

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    Within

    Groups

    1141.34

    397 11.766

    Total 1163.39

    099

    * **Correlation is significant at the 0.01 level (1-tailed).

    **Correlation is significant at the 0.5 level (1-tailed)

    *Correlation is significant at the 0.1 level (1-tailed)

    The p value for all the variable is greater than 0.05 suggesting that there is no significant

    difference between the incomes groups with respect to any of the variables.

    Regression:Consumer behavior:

    Consumer behavior = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price)

    + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Market Research) + (Word of Mouth)

    Table 10

    R square 0.089

    F-value .864

    The value of R square is greater than 0.05 proving that there is no significant relationship

    between the dependent and the independent variables. The value of R square is 0.089 > 0.05.

    This proves that the dependent variable is not affected by any of the selected independent

    variables.

    Consumer preference:

    Consumer preference = + (Brand loyalty) + (Advertising) + (Brand personality) +

    (Price) + (Proximity) + (Psychographics) + (Demographics) + (Urbanization) +

    (Promotions) + (Quality) + (Market Research) + (Word of Mouth)

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    Table 11

    R square .121

    F-value 1,227

    The p value is greater than 0.05. it is 0.285 which is much greater than the desired p value.

    Therefore, the null hypothesis is accepted. The R square value further proves the fact that there is

    no significant relationship between the dependent and the independent variables.

    Decline in sales:

    Decline in sales = + (Brand loyalty) + (Advertising) + (Brand personality) + (Price) +

    (Proximity) + (Psychographics) + (Demographics) + (Urbanization) + (Promotions) +

    (Quality) + (Market Research) + (Word of Mouth)

    Table 12

    R square .134

    F-value 1.381

    The above values indicate that there is no significant relationship between the dependent and the

    independent variables.

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    Appendix

    Questionnaire (Customers)

    The questionnaire has been designed to observe the satisfaction levels and preferences

    regarding the consumer preferences towards Al Fatah. The information provided wouldremain confidential. Your sincere cooperation would be appreciated. Circle your choice.

    1 2 3 4 5 7

    Strongly

    Disagree

    Disagree Neutral Agree Strongly

    Agree

    No

    Opinion

    Consumer behavior (Wang, 2010)

    Comparing with other brands which factors aid in choosing Al Fatah

    1 Brand identity 1 2 3 4 5 7

    2 Variety 1 2 3 4 5 7

    3 Fashion trend 1 2 3 4 5 74 Social status 1 2 3 4 5 7

    Consumer buying preferences (Jonston & Donath, 2001)

    1 I have purchased products which are more expensive but have a long life 1 2 3 4 5 7

    2 I have purchased a house hold appliance as it consumes less energy than others 1 2 3 4 5 7

    3 I do not buy products that harm the environment 1 2 3 4 5 7

    Decrease in sales (Ridgway, 1994)

    1 I would start purchase more if I have more money 1 2 3 4 5 7

    2 I would start buying more if I have more time 1 2 3 4 5 7

    3 I would not buy if I want to save money 1 2 3 4 5 7

    4

    Brand Loyalty (Yoo, Donthu, 2000)

    1 When it comes to buying Al Fatah would be my first choice 1 2 3 4 5 7

    2 II will not buy other brands if they are not available at the Al Fatah 1 2 3 4 5 7

    3 I consider myself to be loyal to Al Fatah 1 2 3 4 5 7

    Quality (Yoo, Donthu, 2000)

    1 The likely quality of products in the store is very high 1 2 3 4 5 72 The likelihood that Al Fatah products would be functional is very high 1 2 3 4 5 7

    Brand personality (Kim, 2005)

    1 My brand offers a high value of service 1 2 3 4 5 7

    2 My brand is expensive 1 2 3 4 5 7

    3 My brand has a differentiated image from other brands 1 2 3 4 5 7

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    Advertisements (Lee & Edward, 2002)

    When the modern Al Fatah ads were shown, they were:

    1 Distracting 1 2 3 4 5 72 Disturbing 1 2 3 4 5 7

    3 Forceful 1 2 3 4 5 7

    4 Interfering 1 2 3 4 5 7

    5 Attractive 1 2 3 4 5 7

    Word of mouth (Hong & Ha, 2006)

    1 I trust specific word of mouth associated with my purchase 1 2 3 4 5 7

    2 I am interested in information I receive through word of mouth communication 1 2 3 4 5 7

    3 I can believe information I acquire through friends or colleagues 1 2 3 4 5 7

    Price (Ridgway & Netemeyer, 1993)

    1 I am willing to go to extra efforts to find lower prices 1 2 3 4 5 7

    2 I will visit more than one shop to take advantage of low prices 1 2 3 4 5 7

    3 The money saved by finding low prices is usually not worth time & effort 1 2 3 4 5 7

    4 I would never shop at more than one store to find low prices 1 2 3 4 5 7

    5 The time it takes to find low prices is usually not worth the effort 1 2 3 4 5 7

    Psychographics (Martinez & Montaner, 2006)

    1 I feel like trying new brands 1 2 3 4 5 7

    2 I can avoid buying always the same brands 1 2 3 4 5 7

    3 I am willing to make an effort to shop at my favorite store 1 2 3 4 5 7

    4 I think shopping is a chore 1 2 3 4 5 7

    5 I think shopping is boring 1 2 3 4 5 7

    Urbanization (Poel & Donnell, 2009)

    1 Population has increased in the last 10 years 1 2 3 4 5 7

    2 Traffic has increased in the last 5 years 1 2 3 4 5 7

    3 Now a days people see more cars than 5 years back 1 2 3 4 5 7

    4 Birth planning is getting more common today 1 2 3 4 5 7

    Promotions (Martines & Montaner, 2006)1 I clip discount coupons from newspapers and magazines 1 2 3 4 5 7

    2 I tale along coupons and use them when I shop 1 2 3 4 5 7

    3 I scan flyers before shopping 1 2 3 4 5 7

    Proximity(Martines & Montaner, 2006)

    1 I always like to shop near my own house 1 2 3 4 5 7

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    2 I prefer going to the shop which is on my way 1 2 3 4 5 7

    3 I like to shop at my favorite place 1 2 3 4 5 7

    4 When I shop I never care about distance 1 2 3 4 5 7

    Demographics

    Gender: Male Female Area:

    Income: Rs. 30,000Rs. 60,000 Rs. 60,000Rs. 90,000 Rs.

    90,000 and more

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    Questionnaire (Customers)

    The questionnaire has been designed to observe the satisfaction levels and preferences

    regarding the consumer preferences towards Al Fatah. The information provided would

    remain confidential. Your sincere cooperation would be appreciated. Circle your choice.

    1 2 3 4 5 7

    StronglyDisagree

    Disagree Neutral Agree StronglyAgree

    NoOpinion

    Comparing with other brands which factors aid in choosing Al fatah

    1 Brand identity 1 2 3 4 5 7

    3 Variety 1 2 3 4 5 7

    4 Fashion trend 1 2 3 4 5 75 Social status 1 2 3 4 5 7

    1 I have purchased products which are more expensive but have a long life 1 2 3 4 5 7

    2 I have purchased a house hold appliance as it consumes less energy than others 1 2 3 4 5 7

    3 I do not buy products that harm the environment 1 2 3 4 5 7

    1 When it comes to buying Al Fatah would be my first choice 1 2 3 4 5 7

    2 II will not buy other brands if they are not available at the Al Fatah store 1 2 3 4 5 73 I consider myself to be loyal to Al Fatah 1 2 3 4 5 7

    1 The likely quality of products in the store is very high 1 2 3 4 5 7

    2 The likelihood that Al Fatah products would be functional is very high 1 2 3 4 5 7

    1 My brand offers a high value of service 1 2 3 4 5 7

    2 My brand is expensive 1 2 3 4 5 7

    3 My brand has a differentiated image from other brands 1 2 3 4 5 7

    When the Al fatah ads were shown, they were:

    1 Distracting 1 2 3 4 5 7

    2 Disturbing 1 2 3 4 5 7

    3 Forceful 1 2 3 4 5 7

    4 Interfering 1 2 3 4 5 7

    5 Attractive 1 2 3 4 5 7

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    1 I trust specific word of mouth associated with my purchase 1 2 3 4 5 7

    2 I am interested in information I receive through word of mouth communication 1 2 3 4 5 7

    3 I can believe information I acquire through friends or colleagues 1 2 3 4 5 7

    1 I am willing to go to extra efforts to find lower prices 1 2 3 4 5 7

    2 I will visit more than one shop to take advantage of low prices 1 2 3 4 5 7

    3 The money saved by finding low prices is usually not worth time & effort 1 2 3 4 5 7

    4 I would never shop at more than one store to find low prices 1 2 3 4 5 7

    5 The time it takes to find low prices is usually not worth the effort 1 2 3 4 5 7

    1 I feel like trying new brands 1 2 3 4 5 7

    2 I can avoid buying always the same brands 1 2 3 4 5 7

    3 I am willing to make an effort to shop at my favorite store 1 2 3 4 5 7

    4 I think shopping is a chore 1 2 3 4 5 7

    5 I think shopping is boring 1 2 3 4 5 7

    1 Population has increased in the last 10 years 1 2 3 4 5 72 Traffic has increased in the last 5 years 1 2 3 4 5 7

    3 Now a days people see more cars than 5 years back 1 2 3 4 5 7

    4 Birth planning is getting more common today 1 2 3 4 5 7

    1 I clip discount coupons from newspapers and magazines 1 2 3 4 5 7

    2 I tale along coupons and use them when I shop 1 2 3 4 5 7

    3 I scan flyers before shopping 1 2 3 4 5 7

    1 I always like to shop near my own house 1 2 3 4 5 7

    2 I prefer going to the shop which is on my way 1 2 3 4 5 7

    3 I like to shop at my favorite place 1 2 3 4 5 7

    4 When I shop I never care about distance 1 2 3 4 5 7

    1 I would start purchase more if I have more money 1 2 3 4 5 7

    2 I would start buying more if I have more time 1 2 3 4 5 7

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    3 I would not buy if I want to save money 1 2 3 4 5 7

    Demographics

    Gender: Male Female Area:

    Income: Rs. 30,000Rs. 60,000 Rs. 60,000Rs. 90,000 Rs.

    90,000 and more