"An investigation on the importance of brand names to consumers".
"An investigation on the importance of brand names to consumers"
Introduction:
The aim of this research is to find out why brand names are important to consumers. The reason why this research has been undertaken is because branding is an interesting topic, which plays a major part in everyday life. Brands are found everywhere that hardly anything today is unbranded, including clothes, food, furniture and even cars. The research will show why brands are important to consumers. This research proposal will report other authors who have commented on brands. The author will be conducting primary research in forms of questionnaires and interviews. This is an important study for the reason that it demonstrates the way people buy and the justifications of their choice.
Aims & Objectives or Hypothesis:
Research question:
Why brand names are important to consumers?
Aims & Objectives.
The main objective of the proposal is to examine why brand names are important to consumers which could also consist of what branding is and how important it is to consumers in everyday life.
Hypothesis
My hypotheses are as follows:
The higher the satisfaction with one brand name, the more the customer will trust the brand name.
The brand name is used to make the customer secure with products/service.
The geographical implications on the brand i.e. if the brand name is well established in particular areas.
Literature Review/Theoretical underpinning:
The Literature that used to complete this research proposal was obtained from the resource centre in the University of Luton, I used a variety of sources, which included textbooks, journals and the Internet played a vital tool in obtaining the research.
The literature reviews is as follows:
Textbooks:
Brand power (edited by Paul Stobart, Interbrand group PLC, 1994)
Brands: the new wealth creators (edited by Susanna Hart & John Murphy, 1998)
Building Brands Directly (edited by Stewart Pearson, 1996)
Journals:
'Fashion Involvement, self Monitoring and the Meaning of Brands'
BBC News. 'Cheap Jeans Better Than Designer Denim'
The case for brands (Economist) 9/8/2001, vol.360 issue 8238
Besides, brands are important to brand owners, brands are also important to consumers. A brand represents a pact between brand owner and consumer. Branding therefore is not a cynical activity imposed on the unsuspecting consumer against their will. Brands allow consumers to shop with confidence in what is an increasingly complex world. The brand offers the consumer a guarantee of quality, value and product satisfaction. Therefore as long as the brand keeps its part of the bargain the consumer will continue to support it. However, should the consumer not like the brand, or should it fail to deliver what the consumer requires, or should another brand appear which suits the consumer's needs better, then the brands identity allows the consumer to avoid the brand and purchase an alternative brand.
Brands are defined in various ways by different authors, one definition by Leslie De Chernatony and Malcom H.B McDonald (1994):
"A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or the user perceives relevant unique added values which match their needs more closely".
A recent study found that leading consultants are not willing to limit themselves to a single definition (De Chernatony and Riley 1996). As it is difficult to find a universal definition (some are limited and some are too in-depth). Cowing and Hawkinson (1993) ...
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Brands are defined in various ways by different authors, one definition by Leslie De Chernatony and Malcom H.B McDonald (1994):
"A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or the user perceives relevant unique added values which match their needs more closely".
A recent study found that leading consultants are not willing to limit themselves to a single definition (De Chernatony and Riley 1996). As it is difficult to find a universal definition (some are limited and some are too in-depth). Cowing and Hawkinson (1993) have categorised brand definitions under six headings, which are as follows:
Visual
Perceptual
Positioning
Added value
Image
Personality
However, the essence is that a brand is/must be identified and distinctive which consumers perceive as different from other products.
The brand name is arguably the most important element of the branding mix, because it is the one element that is hoped to never change, packaging deigns are will be updated advertising campaigns will change, even product formulations may alter, however the brand name will always stay the same. The brand name performs a number of key roles stated by Hart & John (1998)
"The brand name identifies the product or service, and allows the consumer to specify, reject or recommend brands. In this way a strong brand name becomes part of everyday life"
The use of brands has developed considerably, particularly in the last century. Brands and branding has are now such common currency that their original meaning is now in danger of being weakened. However, the function of a brand as distinguishing the goods of one producer from those of another and a brand therefore allowing consumer's freedom of choice unchanged.
.
Pearson (1996) states:
'One could go as far to say that if brands names did not exist there would be no trustworthy market place, a brand name provides the customer with information and reduces the shopping effort'
'The reason for us' seeing a brand as a process is that the individual beliefs of the companies and their customers constantly change and as a consequence the perception of the brand itself'
The Economist has stated (2001):
"The flip side of the power and importance of a brand is its still growing vulnerability. Because it is so valuable to a company, a brand must be cosseted, sustained and protected"
Branding is a creative process. It uses research techniques and the skills of a number of specialists. But in the end it is about creating distinctiveness, in a consumer-relevant fashion. Unfortunately, most branding seems to be concerned not with distinctiveness, but with similarity, with camouflaging the brand so it fits in with all the other brands on the market. To be distinctive, to refuse to follow the group takes courage and it could be highly rewarded. Therefore it could be said that brand names could be very important to consumers.
Key factors:
After writing up the literature review on Branding, it has come to conclusion that branding is an immense part to look at therefore; this proposal will be directly paying attention to the importance of branding to consumers. Why they feel that a brand name is important. The proposal will look at the other factors, which will influence the brand name including the satisfaction of the customer in terms of the brand. These could include:
* What other factors determine have emphasis on brand names: i.e. quality, brand loyalty.
* Do brand names perceive consumers choice.
* Are particular brands more popular, is fashion a key factor for example Mercedes Benz.
* Does marketing (advertising) have an impact on the brand name.
Methodology:
This study will illustrate why brand names are important to consumers, therefore, it would be useful to obtain information from a realistic sample size. In order to test the hypothesis it will be necessary to accomplish research. The aim of this methodology is to provide the author with precise information. There are different methods to gather information, for example data can be primary, secondary, quantitative and qualitative.
The information will be using both primary and secondary research. The primary and secondary research used for this proposal, will be as follows:
Primary Data:
Questionnaires:
Interviews:
Secondary Data:
Textbooks
Journals
Primary data is information which collected at the present time. It is collected for a specific reason. The disadvantages of primary research are that its very time consuming and costly, however, this will be the type used in this research. Secondary research is second hand information which has previously been used for a different purpose, secondary research is relatively cheap to obtain, however secondary data has its disadvantages such as the research conducted could have been carried out a long time ago, and may not answer the question posed. Therefore the research that will be carried out for this proposal will mostly be primary research.
This research aims to investigate the attitudes, habits and awareness of consumer perception on brands therefore; a questionnaire would be an ideal way to gather a great number of facts. The questionnaire will be structured in a way that I could write the questions and limit the answers therefore it will be easy to analyse the information. Conducting questionnaires is a quantitative method in which large amounts of data can be collected.
The questions asked in the questionnaire will be kept to minimal, Gates and McDaniel (1995) stated:
'Questionnaires must speak to the respondent in the understandable language and at the appropriate intellectual level'
Therefore plain and simple words will be used so that it can be understood in all age ranges. Most of the answers will be multiple choice and 1-5 scales. Instructions at the beginning will be given.
In order to ensure that the final questionnaire will be accurate and understood a pilot study will be conducted before the main questionnaire. This pilot study will enlighten any misunderstanding/ confusions which can be identified. The pilot study will also illustrate any questions that could be avoided in the final questionnaire.
Due to restrictions on time and money the majority of the questionnaires will be handed out to university students and friends, however, I will had some in the Arndale centre, therefore the sample size will no be biased. The larger the sample the more accurate the results will be, however, it is unlikely that masses of information will be collected. The sample that will be students, shoppers and pass bys in the Arndale Centre.
In addition 20 interviews will be conducted to gain qualitative information. The interview will be semi-structured and the interviewer will follow bullet points of areas to address. An advantage of this it motives: attitudes and feelings can be understood, however, they will be time consuming, and therefore only 20 interviews will be conducted.
Time Plan:
June 2003: Pilot study: write up questionnaire for pilot study.
July 2003: Pilot study: questionnaire. Hand out questionnaire, collect questionnaire asses the pilot study.
August 2003: Draft up final questionnaire, write up final questionnaire and hand it out to sample.
September 2003: Collect questionnaires. Start analysing questionnaires.
October 2003: Arrange interview, conduct interviews and analyse data
November 2003: Analyse results of questionnaire and interview.
December 2003: Gather all relevant journals, information which is needed for the literature review.
January 2004: Write up literature review and methodology.
February 2004: Make sure all information obtained is accurate and complete.
March 2004: Write up of dissertation.
April 2004: Type up final draft of dissertation.
May 2004: Hand in dissertation.
Budget:
The following money will be spent in order to complete the dissertation successfully:
Questionnaires: 1 page cost 5p x 3 pages: 15p x 100 (100 questionnaires) = 15.00
Interviews: 1 page cost 5p x 4 pages = 20p x 20 (20 interviews) = 4.00
Dissertation Printout: 60 pages (double spaced) x 5 = 3.00
Binding of dissertation: 1.00
Other expenditure: 5.00
Total cost: 28.00
Bibliography:
Textbooks:
Gates and McDaniel, (1998) Marketing Research Essentials
Paul Stobart, Interbrand group PLC, (1994) Brand power
Stewart Pearson, (1996) Building Brands Directly
Susanna Hart & John Murphy, (1998) Brands: the new wealth creators
Journals:
'Fashion Involvement, self Monitoring and the Meaning of Brands'
BBC News. 'Cheap Jeans Better Than Designer Denim'
The case for brands (Economist) 9/8/2001, vol.360 issue 8238