An investigation about the brand values of Sony Television and Panasonic Television.
(Chapter 1) Introduction.
This dissertation is an investigation about the brand values of Sony Television and Panasonic Television. It is a research which will find out the basis of customer preference. It is important to know how the customers actually make their buying decisions. A customer is faced with so many brands in the market. They view brands primarily as a means of providing a consistent quality guarantee and reducing the risk involved in the buying decision. Although some brands are differentiated, many lack relevant added values, which encourages consumers to also consider price. Sony and Panasonic are the top most brands in the market. But it is not known clearly why does a customer prefer Sony and why does one prefer Panasonic. Through this study I will investigate what are the important factors which influence the consumers brand preference. According to an article consumer, in general, buy their favorite brands on the basis of quality. The main purpose of this dissertation is to study the basis of consumer's preference. We will see that what social and personal factors acts as influencer. What are the reasons for preferring one brand to the other? Following are the aims of the research:
* What factors influence in brand preference?
* The influence of social and personal factors on brand preference.
* Why does the customer prefer one brand to the other?
The product that I have chosen is television. Selecting a product category for a research is one the most important criteria. It depends on the interest for a specific product. I have that for the past few years there has been not much innovation in the technology of televisions. The only biggest innovation is the digital flat screen technology. Almost all the brands are offering the same features. There is very less differentiation in features. This is what has created interest in me to investigate the reason why customer prefers one brand to the other. Since Sony and Panasonic are the top brands in the market so I have decided to carry out the study on these 2 brands. Both brands provide good quality and hence there is less differentiation. So we will see what are the factors which will influence the consumer to prefer one brand over the other.
Company Profile:
Sony:
Sony Television is a product of the Sony Corporation.
The Beginning:
In a burnt-out department store in Tokyo in May 1946 just after World War II, Masaru Ibuka and Akio Morita founded Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company), with the aim of developing products and technologies that would help rebuild Japan's economy.
In January 1958, the company name was subsequently changed to Sony Corporation. The name "Sony" was created by combining two words. One is 'sonus' in Latin, which is the root of such words as 'sound' and 'sonic'. The other is 'sonny' meaning little son. The words were used to show that " Sony" comprised a group of young people who have the energy and passion toward unlimited creation.
An electric rice cooker was one of the first ideas spawned by our founders. The breakthrough came in 1955, when they developed the world's first transistor radio. This was subsequently followed by many revolutionary products such as the: Trinitron color television (1968); Walkman personal stereo (1979); Compact Disc player (1982); Betacam for broadcast use (1982); Floppy Disk (1983); Handycam (1985); MiniDisc (1992); PlayStation (1994); DVD (1997); Memory Stick (1998); AIBO (1999); PlayStation 2 (2000) and CLIE, Sony's personal entertainment organizer (2000)
Source:
www.Sony.com, www.sony-ae.com, www.jumbocorp.com, www.pro.middle-east.sony.com
Sony Today:
Today, Sony is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With music, pictures, computer entertainment and online businesses, Sony is uniquely positioned to be a leading broadband entertainment company in the world. Globally, Sony has: Operations spanning over 70 countries 1,080 subsidiaries 189,700 employees Achieved consolidated annual sales of more than US$63 billion (for fiscal year ended March 31st, 2000) In the 21st century, Sony continues to strive for excellence in all areas of their business.
Sony In U.A.E:
The distributor of Sony TV in the U.A.E market is Jumbo Electronics Company Ltd (LLC). Jumbo Electronics Co. Ltd is an ISO 9002 company. It was founded in the United Arab Emirates in 1974. Their U.A.E. presence encompasses the seven Emirates of Dubai, Sharjah, Abu Dhabi, Ras Al Khaimah, Fujairah, Ajman and Al Ain. They are one of the largest distributors of Sony products in the world.1
Panasonic:
Panasonic Television is a product of the Matsushita Electric Industrial Co. Ltd, Japan.
2Panasonic's vision of the digital future is driven by the needs and aspirations of its business customers and millions of consumers around the world who use their products every day. Panasonic shares their dream to live a fuller life by providing ways of working smarter and enjoying the rewards of technological advances.
Source:
2www.panasonic.com, www.panasonicuae.com,
The founder of the company Konosuke Matsushita began the journey in 1918 by inventing a two-socket light fixture. Profound in its import yet elegantly simple, Konosuke Matsushita's breakthrough led to what is now one of the world's largest electronics companies. As he built Matsushita Electric Industrial Co., Ltd., he never lost sight of the importance of putting the needs of his customers and the public first.
Panasonic will continue its Customer First tradition of creating new products that resolve the challenges in business and personal life, helping us all enjoy more of what life has to offer. The name Panasonic is synonymous with innovation, quality, performance and ease of use.
Panasonic in U.A.E:
Oman National Electronics, a part of the Al-Futtaim Group - one of the most diversified trading houses in the lower Gulf, is the sole distributor for Matsushita Electric Industrial Co. Ltd. Japan. With six branches employing over 250 people and a UAE-wide distribution network of over 400 dealers, it has helped the brand to establish a unique niche and enjoy a pre-eminent position in a highly competitive market.
Oman National Electronics' association with Matsushita, dates back to the year 1971, when the UAE was a very small market and trade very traditional. This partnership has evolved over the last 30 years and continues to grow from strength to strength. In these 30 years, they have seen a dramatic change in the UAE. Growing markets, changing lifestyles and a vibrant trading activity has always thrown up new challenges, and they have successfully lived up to these by creating value through change.
In these 30 years, they have continuously reviewed their business practices and set new standards. This can be well illustrated by the fact that Panasonic enjoys prominent awareness and visibility through Oman National Electronics' large network of dealers. From the smallest grocery store, to souks, shopping malls and hypermarkets, you are likely to see a Matsushita product. Today, with a fully networked inventory management system operating on SAP, and centralized service operations (CSO), it not only provides excellent logistic support to its dealers, but also complete after-sales support to its consumers.2
Product Profile:
Sony Televisions:
Sony has a wide range of models. It has 4 series of models which are as follows:
* DRC-MF
* WEGA
* Trinitron
* Projection TV Technology.
Panasonic Televisions.
Following are the wide range of models available in Panasonic Televisions:
* Twin Top Dome.
* Sophia.
* TAU Digital Flat CTV.
* GIGA Flat CTV.
* Plasma Color Monitor.
* Projection CTV.
(Chapter 2) Literature Review.
A literature review gives researcher knowledge of the works already conducted on the subject. It will give me guidelines and will help me in conducting the research properly. It helps to understand the topic better.
Defining Marketing:
Marketing is one of the most powerful tools used by organizations in their struggle for survival and growth. There are varying views on marketing. Many authors have given different definitions for marketing. However the main purpose of marketing is identifying a certain group of people and then marketing a product for them, which satisfy their needs.
3Marketing can be defined as
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals, organizations, and society. 3
4According to the UK Chartered Institute of Marketing,
Marketing is the management process responsible for identifying, anticipating and satisfying consumer's requirements profitably.
A rather different definition has been developed by the American Marketing Association (AMA):
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. 4
The above two definitions are widely accepted by academics and marketing managers. They emphasize that marketing focuses on planning and executing activities to satisfy the demands of the customer. The definitions are broad enough to indicate that marketing can occur in non-business organizations.
Sources:
3Douglas /Leonard J. Parsons, Marketing Management Text and Cases, Sixth Edition, pg. 2
4Dibb/Simkin/Pride/Ferrell, Marketing Concepts and Strategies, Second European Edition, pg. 4
Marketing Concept.
An organization must be in tune with consumers needs. They must adapt to changing environments and meet competitive threats to prevent loss of market share, stagnation and bankruptcy. The belief that satisfying customers can achieve organizational goals has gained so much importance among managers that it is now known as the marketing concept. According to the marketing concept, an organization must try to provide products that satisfy the needs of the customers through a coordinated set of activities that also allows the organization to achieve its objectives. The major aim of the marketing concept is customer satisfaction.
Brand:
5 The American Marketing Association defines a brand as follows:
"A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." 5
6A brand in short is an identifier of the seller or the maker. A brand name consists of words, letters, and/or numbers that can be vocalized. A brand mark is the visual representation of the brand like a symbol, design, distinctive coloring or lettering. A trademark is a brand that is legally protected. All trademarks are brands and include both the brand name and the pictorial design. Exclusive rights to use the brand in perpetuity are granted by the trademark law, unlike the Patents and Copyright Laws which have expiry dates.6
A brand is a promise of the seller to provide a particular set of benefits or attributes or services to the buyer. Each brand symbolizes a level of quality. Apart from attributes and benefits, it also reflects values, culture, personality and etc. so we can say that brand is a very complex symbol. It is not just a name.
Source:
5Philip Kotler, Marketing Management, Tenth Edition, pg no 404.
6S.A.Chunawalla, Product Management, pg no 165.
Brand gives an identity to a product. Brand differentiates one product from other. A brand can convey many levels of meaning. A brand brings in mind some attributes like Lexus suggests expensive, luxury, and high-prestige automobile. These attributes must be translated into functional and emotional benefits. The brand tells about the producer's values like for example Range Rover stands for high performance and prestige. Brand also represents certain culture and can project certain personality like Nokia communicator mobile phone may suggest a businessperson. It represents the kind of consumer who buys or uses the product. We would expect to see a 20-30 year old behind the wheel of a Porsche not a 50-60 year old.
Brands vary on the amount of power and value they have in the marketplace. We have brands that are not known more by the people and on the other hand we have brand that are known to the people and has a very high degree of brand awareness. Sony is one of the highly recognized brands in the world.
A Brand Is A Concept.
7The terms "brand" and "product" are not interchangeable. Chevron noted that "product" refers to the physical attributes and style of an item, especially its function and form. These attributes and characteristics are easy to communicate, and they are easy to modify in order to improve the product. In order to properly describe a product, you need focused communication that avoids complexity and confusion. "Products" are by nature extroverted, or focused on the consumer, and his or her wants and needs.
A "brand," on the other hand, has no corresponding physical body or characteristics. It is a concept, a collection of values that represents an unwritten covenant with the consumer. It is the sum of the expectations and associations that the brand conveys. A brand is difficult to communicate quickly, and it cannot be changed. It demands unfocused communication, in which the richness and the complexity of the communication support the values. "Value and identity statements that are required for effective brand -
Source:
7http://www.findarticles.com/cf_0/m3183/2_101/65369025/p1/article.jhtml?term=branding
communications always require conceptually oriented communications," Chevron said. The values and associations that form a brand are never one-dimensional. The complexity and depth of the brand messages are the core assets of a brand. 7
Brand Equity.
8A brand is an asset of any company. Its as much an asset as a factory and machinery are. A brand is not an asset by birth. It is built over a period of time. Brand equity is just the process of brand building. 8
9The term brand equity refers to the value inherent in a well-known brand name. From a consumer's perspective, brand equity is the added value bestowed on the product by the brand name. 9
Brand equity makes it possible for the company to charge a premium price. Brand names are the most valuable assets for many companies. Brand equity facilitates the acceptance of new products and the allotment of preferred shelf space, and enhances perceived value & quality, and premium pricing options. Brands differ in the amount of power and value they have in the market. On one hand there are brands that are not known by many buyers and on the other hand are brands that have a high degree of brand awareness. Then there are some brands that have a high degree of brand acceptability. Beyond this are brands which have a high degree of brand preference. And finally there are brands that have a high brand loyalty.
Source:
8S.A.Chunawalla, Product Management, pg no. 214
9Schiffman & Kanuk, Consumer Behaviour, 6th Edition, pg no. 224
0The overall description of brand equity incorporates the ability to provide added value to a company's products and services. This added value can be used to the company's advantage to charge price premiums, lower marketing costs and offer greater opportunities for customer purchase. A badly mismanaged brand can actually have negative brand equity, meaning that potential customers have such low perceptions of the brand that they prescribe less value to the product than they would if they objectively assessed all its attributes/features.
One of the best examples of brand equity is in the soft drink industry. ...
This is a preview of the whole essay
0The overall description of brand equity incorporates the ability to provide added value to a company's products and services. This added value can be used to the company's advantage to charge price premiums, lower marketing costs and offer greater opportunities for customer purchase. A badly mismanaged brand can actually have negative brand equity, meaning that potential customers have such low perceptions of the brand that they prescribe less value to the product than they would if they objectively assessed all its attributes/features.
One of the best examples of brand equity is in the soft drink industry. Without a brand name and all of the marketing dollars that have gone into it, Coca-Cola would be nothing more than flavored water. Due to the company's long-term marketing efforts and protection, enhancement and nurturing of their brand name, Coke is one of the most recognizable brands in the world. However, even this marketing giant has trouble capitalizing on its own brand equity when handled improperly (e.g. New Coke). If someone suddenly took their brand name and brand equity away from them, Coke would lose hundreds of millions, if not billions, of dollars. This includes lost sales, lost marketing dollars and lost promotions, additional marketing costs to promote a new brand, and significantly lower awareness and trial rates for their new brand. 10
Brand equity can provide strategic advantages to a company in many ways. It can allow a company to charge a price premium compared to competitors with less brand equity. Strong brand names simplify the decision process for low-cost and non-essential products. Brand name can give comfort to buyers unsure of their decision by reducing their perceived risk. It maintains higher awareness of the company's products. It is used as leverage when introducing new products. It becomes easy for the company to introduce new products in the market. As the company has an already established corporate brand name so it becomes easy to influence the customers to purchase their new product. High brand equity makes sure the company's products are included in most consumers consideration set.
Source:
0http://www.dssresearch.com/library/BrandEquity/understanding.asp
A brand can be linked to a quality image that buyers want to be associated with. It offers a strong defense against new products and new competitors. Brand equity can lead to higher repeat purchasing due to buyers' awareness of your brand, approval of its image/reputation and trust in its quality.
Brand names are company assets that must be invested in, protected and looked after to maximize their long-term value to your company. Brands have many of the same implications as capital assets (like equipment and plant purchases) on a company's bottom line, including the ability to be bought and sold and the ability to provide strategic advantages.
1Aaker distinguished five levels of customer attitude toward his or her brand, from lowest to highest:
. Customer will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change the brand.
3. Customer is satisfied and would incur costs by changing brand.
4. Customer values the brand and sees it as friend.
5. Customer is devoted to the brand.
Brand equity is highly related to how many customers are in classes 3,4, or 5. It is also related, according to Aaker, to the degree of brand name recognition, perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks, and channel relationships. 11
A brand should be managed carefully so that its equity doesn't depreciate. This requires improving brand awareness, perceived quality and positive associations. These will also require outstanding consumer service, creative and skillful advertising, and good R&D investment.
Source:
1Philip Kotler, Marketing Management, 10th Edition, pg no 405.
Why do sellers brand their product?
2Branding gives the seller several advantages:
* The brand name makes it easier for the seller to process orders and track down problems.
* The seller's brand name and trademark provide legal protection of unique product features.
* Branding gives the seller the opportunity to attract a loyal and profitable set of customers. Brand loyalty gives sellers some protection from competition.
* Branding helps the seller segment markets. Instead of P&G's selling a simple detergent, it can offer eight detergent brands, each formulated differently and aimed at a specific benefit-seeking segments.
* Strong brands help build the corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers. 12
Brand Image:
Many consumers buying decisions are influenced by the image they have of the brand. The brand image is formed out of the knowledge of the consumers have about the values it delivers and some other aspects of the product such as the class of people who use it, the character of advertising that promote it, and the corporate image of the company which manufactures it. Consumer's preference is developed through brand image. Brand image is the meaning consumers give to a product based on the perceived values it delivers. Sony has a very high brand image. Its slogan "it's a Sony" indicates that whatever the product be if it's a Sony product then its got to have a good quality. It means that only the name Sony is enough for the customer to prefer that product. In this research I will see that whether high brand image increases the preferences of the customer or not. High brand image will result in high customer preference for that brand. But it is not always true that a brand with a good image will influence the customer to prefer or buy the product.
Source:
2Philip Kotler, Marketing Management, 10th Edition, pg no 408.
Brand Loyalty.
Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price. Consumer behavior is habitual because habits are safe and familiar. In order to create brand loyalty, advertisers must break consumer habits, help them acquire new habits, and reinforce those habits by reminding consumers of the value of their purchase and encourage them to continue purchasing those products in the future.
The consumer buying decision process:
It is important to know how the customers actually make their buying decisions. It is also important to identify who makes the buying decision, the types of buying decisions. And the steps in the buying process. There are different stages in the buying decision process. 13The consumer passes through five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior. 13
* Problem Recognition: The buying process starts when the buyer recognizes or identifies a problem or a need. The identification of a need is likely to occur when a consumer is faced with a problem. The need can be initiated by internal or external stimuli.
* Information Search: The information search begins when a consumer perceives a need that might be satisfied by the purchase of a product. Through gathering information, the consumer comes to know of the competing brands and their features.
* Evaluation of Alternatives: 14At the time of evaluating alternatives the consumers tend to use 2 types of information: (1) a list of brands from which they plan to make their selection (the evoked set) and (2) the criteria they will use to evaluate each brand. Making a selection from a sample of all possible brands is a human characteristic that helps simplify the decision-making process.14
Source:
3Philip Kotler, Marketing Management, 10th Edition, pg no 178
4Schiffman & Kanuk, Consumer Behaviour, 6th Edition, pg no. 570
* Purchase Decision: In the evaluation of alternatives stage, the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred brand. However, two factors can intervene between the purchase intention and the purchase decision. The first factor is the attitude of others. The second factor is unanticipated situational factors that may erupt to change the purchase intention.
* Post Purchase Behavior: After purchasing the product the customer will experience some level of satisfaction or dissatisfaction. The marketer's job does not end when the product is bought. Marketers must monitor post purchase satisfaction and post purchase actions.
The Major Factors That Influence Buying Behavior and Brand Preference.
Cultural, social, personal, and psychological factors influence the consumers buying behavior. And they also have an influence on the brand preference. Almost all individuals interact with other people who directly or indirectly influence their purchase decisions. Thus the study of groups and their impact on the individual is very important. The basic groups which influence the individuals buying behavior are family, friendship groups, formal social groups, work groups and etc. The family is a major influence on the consumption behavior of its members. The members of a family assume specific roles and tasks in their everyday functioning. A family's decision-making style often is influenced by its social class, lifestyle, role orientation, and stage in the family life cycle, as well as by the products importance, perceived risk, and time limitation of the purchase itself. Social classes show distinct product and brand preferences in many areas. The impact of culture on our society is so natural and so deep-rooted that its influence on behavior is rarely noted. Culture is the most basic determinant of a persons wants and behavior.
When customers make purchase decisions, they seem to take into account the countries-of-origin of the brands they are evaluating. Consumers have specific attitudes or even preferences for products made in particular countries. These country-of-origin effects influence how consumers rate quality and, sometimes, which brands they will finally select. Then there are opinion leaders which also influences the consumers buying decisions. Opinion receivers perceive the opinion leader as a highly credible, objective source of product information who can help reduce their search time. Brands tend to evolve over time, depending on a country's economic development, level of consumerism and the length of time that the brand has been available there. It is possible that new brands first are purchased purely for the function they perform (for instance, a pen) before gaining the trust required for purchase because of their name, in addition to the function they perform (for example, luxury brands).
5According to an article, Different streams of research offer seemingly conflicting predictions as to the effects of analyzing reasons for preferences on the attitude-behavior link. The authors apply these different theoretical accounts to a new product scenario and identify conditions under which analyzing reasons for brand preferences can increase or decrease the predictive value of reported preferences. Consistent with dual-process theories of persuasion, in Study 1 the authors find that reasons analysis increases the link between attitude and behavior when the measure of behavior closely follows attitude measurement. In contrast, and consistent with research by Wilson and colleagues (e.g., Wilson et al. 1989) on the disruptive effects of reasons analysis, the authors find that thinking about reasons significantly decreases the attitude-behavior correlation when the observed behavior occurs after a substantial delay. Study 2 not only replicates this finding but also suggests that the timing of the reasons task can be an important moderator of the disruption effect.
Sources:
5JMR:Journal of Marketing Research, Aug2000, Vol. 37 Issue 3 (Title: The Effects of Analyzing Reasons for Brand Preferences: Disruption or Reinforcement?) www.ulh.ac.uk
Specifically, the authors draw on the literature on accountability effects to show that even when there is a delay between attitude and behavior measurement, reasons analysis leads to an increase in the attitude-behavior link, as long as reasons are analyzed after attitude measurement. Finally, in Study 3, the authors validate the account of the effects of reasons analysis by obtaining parallel findings for attitude persistence. Together, the studies offer preliminary advice to both practitioners and academics regarding the potential effects of asking consumers to think about why they like or dislike certain products. 15
6Another article presented a study which examined how brand preferences and response to marketing activity evolve for consumers new to market. The authors examine how brand preferences and response to marketing activity evolve for consumers new to a market. They develop a theoretical framework that begins with a consumer's first-ever purchase in a product category and describes subsequent purchases as components of sequential purchasing stages. The theory is based on the notion that choices made by consumers new to a market are driven by two competing forces: consumers' desire to collect information about alternatives and their aversion to trying risky ones. These forces give rise to three stages of purchasing: an information collection stage that focuses initially on low-risk, big brand names; a stage in which information collection continues but is extended to lesser-known brands; and a stage of information consolidation leading to preference for the brands that provide the greatest utility. There is increasing interest in understanding how and why brand preferences and choice strategies vary with experience in a product category. A deeper understanding of such choice dynamics can help managers design marketing programs that evolve with their customers over time. Such knowledge may also help managers more accurately evaluate the lifetime value of a customer. Despite the importance of these topics, few studies have examined the effect of product category experience on brand choice in an effort to understand how preferences evolve over purchases. 16
Source:
6 JMR: Journal of Marketing Research, May2000, Vol. 37 Issue 2(Title: The Evolution of Brand Preferences and Choice Behaviors of Consumers New to a Market), www.ulh.ac.uk
Television being an expensive product is purchased on the basis of rational, not emotional, reasons, with quality and value playing a predominant role in the purchase decision. Television is not a thing which is bought everyday. People look for quality and features while making a decision to buy a television. Consumers are faced with numerous brands many of which are unfamiliar. They view brands primarily as a means of providing a consistent quality guarantee and reducing the risk involved in the buying decision. Although some brands are differentiated, many lack relevant added values, which encourages consumers to also consider price. Continual promotions also influence consumers to view "the better offer" as the main criteria in deciding to buy-to the brands' detriment. 17According to an article consumer, in general, buy their favorite brands on the basis of quality. While this notion may not be revolutionary, marketing managers sometimes overlook it. A brand positioned under the "quality" banner should exude that characteristic, from its packaging to its contents to its salespeople. A "quality" brand should be differentiated from its competitors and the added values reflected in a higher price. A brand that lacks sustaining differentiating features will be only "the brand of the month" until another brand offers better value. Quality is a sustainable proposition, whereas value is not, and it certainly is not a viable consideration for sustaining profitability in a competitive market. 17
Consumers evaluate common features in a way that supports their already established preferences. Consider the following example: A consumer is deciding between two televisions, each described on several attributes: screen size, flat screen, superior sound, and so on. After evaluating the available attribute information, he has established a preference for one of the brands (say, brand A). Later, he finds out that both brands share an identical and very attractive feature (say, High Contrast Screen With Anti-Reflective Coating). How would this information affect brand preference? Would there be any change in the strength of preference for brand A compared to brand B? Now imagine that this consumer finds out that the feature shared by both -
Source:
7Marketing News, 03/26/2001, Vol. 35 Issue 7, p25 (Title: Buying influenced by bloodline) available at www.ulh.ac.uk
brands is unattractive (e.g., a low quality sound). How would the news about the presence of this bad feature affect the already established preference for brand A? Would it have the same effect as in the case of an attractive common feature? Now this raises a issue that what are the factors which influences the customer to prefer a particular brand. This is a very complex issue. But there are many other reasons which affect brand preference. Demographic (income) and psychographics (lifestyle) factors can affect the preferences also. 18According to an article, it was examined how confirmatory reasoning moderates the impact of attractive and unattractive common features on consumer preferences. Building on the existing research on confirmatory information processing and the motivated reasoning framework, it was proposed that consumers evaluate common features in a way that supports their already established preferences. In a series of three studies, it was shown that the impact of common features is moderated by their attractiveness and the strength of individuals' already established preferences. In the context of a choice task, only attractive features were found to enhance individuals' already established preferences, and this effect was more pronounced for consumers with already established brand preferences compared to consumers who were indifferent to the options. The effect of attractive and unattractive features was reversed in the context of a rejection rather than a selection task. These findings are interpreted in the context of consumers confirmatory reasoning aimed at reaching a consistent and readily justifiable decision. 18
Source:
8Journal of Consumer Research, Mar2001, Vol. 27 Issue 4, p475 (Title: The Impact of Common Features on Consumer Preferences: A Case of Confirmatory) www.ulh.ac.uk
(Chapter 3) Research Methodology.
Market research is the collection and analysis of data for the purpose of decision-making. Market research is used to describe existing market conditions, explain certain market behaviors, and predict how consumers might respond to new products and changes in marketing mixes.
9The American Marketing Association defines marketing research as follows:
"Marketing research is the function which links the consumer, customer, and public through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process." 19
The first step in research is to recognize the problem. In any research we have to first find the problem and the reason for doing the research. In my research I have to find out in Television which brand is preferred between the Sony and Panasonic and the reason for their preference. Next thing is to find the segment that prefers these brands. So I conducted the research to know the preference level of both the brands and to know the key factor that effect the preference of the brands. Based on all this following is the hypothesis which is to be tested:
Hypothesis:
> People prefer Sony TV because of its high quality.
> Panasonic is preferred because of its low price and satisfactory quality as compared to Sony.
> Sony TV has a very strong brand image as compared to Panasonic TV.
Source:
9Boyd, Westfall & Stasch, Marketing Research Text & Cases, 7th edition, pg no 9.
Objectives of the Research:
In order to achieve desirable and correct results for any research, it is essential to make a set of precise and well-defined objectives. Clear and precise objectives are the key to a successful investigation. All the objectives should be SMART. It means that it should be specific, measurable, attainable, realistic and timely. Sony and Panasonic television are among the top successful brands in the world. In the U.A.E market also they are enjoying good success. This is because they offer quality products. People prefer the particular brands because of various reasons.
Based on the above following are the objectives:
* What factors influence in brand preference?
* The influence of social and personal factors on brand preference.
* Why does the customer prefer one brand over the other?
Research Design:
Choosing an appropriate research design plays a very important role in the success of the market research. The success of marketing research depends on how effectively or efficiently marketing information is converted into the information needed for the analysis purpose.
The research design that I will use will be a descriptive research design. 20As the name implies, descriptive studies are designed to describe something. A descriptive research design is also called as a explanatory design. This is typically concerned with determining frequency with which something occurs or how two variables vary together. It also describes the demographic characteristics of consumers who use the product.20
Source:
20 Boyd, Westfall, Stasch, Marketing Research 7th Edition, pg no 128.
Sample Process:
Census: The census for this project will be a mix of potential customers and existing customers.
Sample Frame: A sampling frame is a listing of general components of individual units that comprise the defined population. In this research the sample frame will be the customers of Sony TV and Panasonic TV in U.A.E.
Method of Sampling: The method of sampling that I will use is Simple Random Sampling. Under this method each member of the population has a known and equal chance of being selected. Since everyone has a known chance of being selected that is why I selected this method. Respondents will be picked up randomly and will be interviewed with the help of questionnaires.
Sample Size: The sample size will be 100. In this sample of 100 there will be a mix of potential and existing customers. So I have decided to research on the potential customers and existing customers of Sony & Panasonic TV.
Data Collection:
In this research both primary; as well as secondary data is required.
. Primary Data:
Primary data is the data taken primarily. It refers to the collection of first hand information. This is done by conducting surveys using questionnaires, personal interviews and observation. In my study I will be interviewing the respondents with the help of a structured questionnaire. The questionnaire is the backbone of obtaining first hand data during interviews. Designing the questionnaires is an important and very challenging task of conducting marketing research. Questionnaire helps in obtaining data during a personal interview or mail or telephone survey.
While designing the questionnaire it is important to decide which all types of questions will be included. Following are the different types of questions:
) Direct Questions: Direct questions as the name indicates ask for the desired data. In this type of questions the depth of the answer is low.
2) Indirect Questions: These types of questions are asked when the question is threatening the respondent's ego, prestige or some other factor.
3) Open-end Questions: In open-ended questions the respondents are allowed to freely express their views and ideas in their own words. It can give a more actual & correct view of the respondent.
4) Closed-end Questions: They are also called fixed alternative questions. The respondent is given only very few limited number of alternatives from which he has to choose the one that closely matches his opinion.
5) Dichotomous Questions: In this type of questions there is only a choice between 2 alternatives, they are of the type: yes/no.
6) Multiple Choice Questions: These types of questions offer the respondent several alternatives. These types of questions should be longer and complex than the free-answer or dichotomous questions.
The questionnaire method has certain advantages. One of the main advantages is its versatility. Another advantage is that of the speed and cost. It is faster and cheaper than observing. There are certain disadvantages also. One of the main problems is the unwillingness of respondent to provide information. Questions about income or personal questions are more likely to be refused. As the questionnaire is the fast and cheapest method to obtain data so I have chosen this method. It is the best suitable method for my research.
In my research I will use questionnaires which will have different types of questions like direct questions, indirect questions, closed end, dichotomous & multiple choice questions. I have not included open end questions in my questionnaires because the respondents sometimes find it difficult to answer and also they think it will take more time and hence they take it as a waste of time and avoid answering to it. By including multiple choice and dichotomous questions it became much more convenient for me as well as the respondent. It was a decision which saved me a lot of time. It didn't take much time of the respondent also. And also data collected from such questions is easy to analyze.
2. Secondary Data:
Secondary data refers to collecting information that already exists. This will be collected through published sources, newspapers, journals, magazines and articles available on the Internet. Magazines such as The Economist & Gulf Marketing will be used. Also info will be collected from websites like www.panasonic.com, www.pro.middle-east.sony.com, www.jumbocorp.com, www.sony-ae.com, www.al-futtaim.com, www.panasonicuae.com.
(Chapter 4) Data Analysis & Findings.
We will now analyze the data collected and prove the hypothesis.
In this research structured questionnaires were used to interview. Some people were personally interviewed and the rest were asked to fill in the questionnaire by themselves and also a few were interviewed through the telephone. The questionnaire included a total of 18 questions. All the data collected from these questions will help in achieving the objectives of the research carried out and will help in testing the hypothesis. We will analyze only that data which is relevant and fulfills the requirement of the research. Some questions were included in the questionnaire to maintain the flow of questions and to keep them in order and maintain the interest of the respondent. Let us now see the data collected:
In this questionnaire the income level of the respondents was asked. The level of income is an important variable in such a research. This gives us a fair amount of idea about the possible lifestyle, buying behavior, purchasing power and similarly other things. The various income levels and the percentage of respondents who belong to the particular income level are shown below in the table.
Table 1.
Income Level (AED).
Percentage.
500-2500
8
2500-4000
44
4000-6000
26
6000-8000
9
Above 8000
3
Graph 1.
The above graph clearly depicts the table. From a sample of 100 people, which were interviewed, the most number of individuals were in the category of 2500-4000. 44% of the respondents had an income between AED 2500-4000. 26% were in the income level of 4000-6000, 18% belonged to the 1500-2500 income level, and only 9% and 3% belonged to the 6000-8000 and above 8000 income level. So from this finding we come to know that the majority of the sample is from the middle class and the upper middle class. Now from the above findings we have an idea of the customer.
Question no 1:
. Are you a member of any club? ?Yes ?No
Table 2.
Yes
21
No
79
On the basis of the above table the following graph has been made in order to clearly illustrate the results of the research.
Graph 2.
From the 100 respondents that were interviewed 79% of them were not members of any club. Only 21% of them were members of some clubs. These clubs ranged from low to high standard ones. This question was asked in order to know the lifestyle of the customer. The way they lead their life. Are they very status conscious or not. From the above data we come to know that very few people were associated with clubs. But still the above data does not mean that all the respondents who were members of some club had a very high living standard.
Question no. 2
2. Do you own a television? ?Yes ?No
Of all the 100 men/women interviewed it was found that all of them owned television. It is a fact that television has become a necessity for everyone and also that it is such a thing which in today's world everyone has.
Question no. 5
3. Which is the brand you prefer? ?Sony ?Panasonic
Table 3.
Sony
64
Panasonic
36
Graph 3.
From the above graph it is clear that the brand preference for Sony is very high. 64% of the people prefer Sony and 36% prefer Panasonic. People prefer Sony because it has a very good reputation in the market since many years. And also that it is a high quality product which is reliable also. There are so many reasons why customers prefer Sony so much. We will come to know of the main reasons why people prefer Sony so much from the rest of the findings.
Based on the income levels also I have tried to find out which people prefer Sony and which prefer Panasonic. This also gives us a picture as to which types of people prefer these brands. Their purchasing power also influences them to prefer a particular brand. As for example a person with a low income will not prefer Sony, as he will not be able to afford it. Let us now see the tabulated data.
Income Level.
Percentage of people who fall under each income level.
Sony
Panasonic
500-2500
8
3
5
2500-4000
44
30
4
4000-6000
26
9
7
6000-8000
9
8
Above 8000
3
3
0
Table 4.
Graph 4.
From the above table and graph it is seen that the people in the lower income group of 1500-2500 mostly prefer Panasonic. 15 of the total 18 people who belonged to this income level preferred Panasonic. Since the purchasing power of these people is not high so they cannot afford to buy a high priced Sony television. Instead they find good quality at reasonable price in Panasonic. Panasonic is not as high priced as Sony and so these lower income level people prefer Panasonic. The majority of middle class income group of 2500-4000 and 4000-6000 prefer Sony television. These are the people who have the purchasing power and can afford to buy some reasonable priced models of Sony television. 30 of the 44 people in the income level of 2500-4000 preferred Sony. Whereas 19 of the 27 people from the income level of 4000-6000 also preferred Sony. In the middle class group also there were people who preferred Panasonic. So this means there are certain reasons why people prefer Sony and why people prefer Panasonic. As far as the high-level income group is concerned I came to know that almost all of them preferred Sony television. These are the people who have the buying power and are ready to give the price for a high quality product. For them the product and the brand is more a status symbol. Of the 9 people who fall in the 6000-8000 income level 8 of them preferred Sony. And of the total 3 persons from the 8000 and above income level all 3 of them preferred Sony television. One thing is clear that not all people can afford Sony because of its high price.
Question no 7:
. Please rank the attributes of quality of your preferred brand (on a scale of 1-7 for specifying the importance level)
?High Resolution.
?Video Quality (Sharp Images).
?Clear Sound.
?Prevention from ambient light reflection.
?Undistorted picture from any angle.
?Digital Picture Noise Reduction.
?High Contrast Colors.
In this question I have divided the findings into 2 sections. I have made 2 tables. The first table shows the results of the people who prefer Sony television. The second table shows the results of the people who preferred Panasonic. The people who preferred Sony TV have ranked the attributes of quality as under:
Sony:
Table 5
Attributes of quality.
2
3
4
5
6
7
Rank
High resolution.
7
27
0
0
2
Video quality (sharp images)
29
7
8
0
Clear sound
3
38
6
7
4
Prevention from ambient light reflection.
9
27
6
2
3
Undistorted picture from any angle.
5
25
34
7
Digital picture noise reduction.
0
7
2
24
6
High contrast colors.
8
8
31
5
3
5
On the basis of the above table the following graph has been plotted in order to clearly see the rankings of each of the attributes of quality specifying the importance level of each.
Graph 5.
The customers of Sony or the people who preferred Sony television have ranked the attributes of quality as above. From the graph we come to know that the video quality is ranked number 1. It shows that how important the quality of the video is for the customer. Sony has a very high video quality with sharp images. High resolution was ranked 2 which is also a part of video quality. Hence the video quality of Sony Television is considered to be very good. 3rd rank was given to prevention from ambient light reflection. This is a new technology which is there in all the series of Sony television. Nowadays this attribute is very important, as customers want to watch video without any disturbance. Sometimes light creates disturbance and the viewer is not able to watch the television properly because of its reflection. By this latest technology this problem has been solved. Customer basically wants to view the video and wants that the video be of high quality like the image should not be a blurred one but it should be sharp. From the above rankings it is concluded that Sony has been successful in making its customer satisfied by providing high video quality in its televisions. As far as sound is concerned the respondents have ranked it 4th. This doesn't mean that it does not have good sound. It's only that the video is of more importance. Sound comes secondary to video but is equally important. Sony provides a high quality sound system with its televisions. The 5th, 6th and the 7th rank have been given to the high contrast colors, digital picture noise reduction and undistorted picture from any angle respectively.
Panasonic:
The people who preferred Panasonic TV have ranked the attributes of quality as under:
Table 6.
Attributes of quality.
2
3
4
5
6
7
Rank
High resolution.
1
5
3
7
3
Video quality (sharp images)
6
0
4
6
Clear sound
4
4
7
8
2
5
Prevention from ambient light reflection.
0
6
5
5
2
Undistorted picture from any angle.
6
0
7
4
6
Digital picture noise reduction.
3
4
9
7
High contrast colors.
22
3
0
4
Graph 6.
People who preferred Panasonic have also ranked video quality as number 1. Prevention from ambient light reflection is given rank 2. Whereas high resolution is ranked 3. This shows that the video quality of Panasonic is also good. It should be noted that high resolution has been ranked 3. It shows that as compared to Sony, Panasonic does not have a very high resolution. The respondents have ranked high contrast color 4th. As far as sound is concerned it is ranked 5th. Panasonic does not have a high quality sound system as compared to Sony television. 6th and 7th rank has been given to undistorted picture from any angle and digital picture noise reduction respectively. These attributes have least importance in the eyes of the respondents. These findings reveal that to the customer high video quality is very important and the customer looks for good quality picture when buying a television.
Question no 8:
2. Please rank the attributes of design & style of your preferred brand (on a scale of 1-4 for specifying the importance level)
?Size.
?Color.
?Design.
?Weight.
In this question also I have divided the findings into 2 sections. I have made 2 tables. The first table shows the results of the people who prefer Sony television. The second table shows the results of the people who preferred Panasonic. The people who preferred Sony TV have ranked the attributes of design and style as under:
Sony:
Table 7.
Design & Style.
2
3
4
Rank
Size
8
9
30
7
3
Color
4
41
7
2
Design
39
1
0
4
Weight
3
3
7
41
4
On the basis of the above table the following graph has been plotted in order to clearly see & observe the rankings of each of the attributes of design & style specifying the importance level of each.
Graph 7.
The above graph evidently shows that the design of Sony television is excellent and hence it has been ranked 1st. Sony televisions design is very trendy and latest. The colors of Sony T.V has been ranked 2nd. As far as size and weight is concerned the people who prefer Sony have ranked them 3rd and 4th respectively. These are one of the attributes which are not satisfactory. Sony products are usually heavy in weight and also bigger in size as compared to other brands. That is why people do not like the size and weight of Sony Televisions. Sony needs to consider this matter and it should try and reduce the size and weight of its product.
Panasonic:
The people who preferred Panasonic TV have ranked the attributes of design & style as under:
Table 8.
Design & Style.
2
3
4
Rank
Size
4
10
22
4
Color
20
7
6
3
Design
1
20
4
2
Weight
4
5
6
1
3
Graph 8.
The above graph shows that the colors of Panasonic televisions are very good and the designs are also pretty good. This is what the customer's perception is. That is why the color and design have been given the ranks 1st and 2nd respectively. The weight of the product has been ranked 3rd. It's again the weight of the product which is the problem over here but still the weight is not as heavy as Sony television. The respondents who prefer Panasonic brand have ranked size 4th.
Question 9:
3. Please rank the following attributes of the after sales service of your preferred brand (on a scale of 1-3 for specifying the importance level)
?Warranty Period.
?Availability of parts.
?Speed of Service.
In this question also findings is divided into 2 sections. The people who preferred Sony TV have ranked the attributes of after sales service as under:
Sony:
Table 9.
After sales service attributes.
2
3
Rank
Warranty Period
30
7
27
Availability of parts
21
40
3
2
Speed of Service.
3
7
34
3
Graph 9.
The respondents who prefer Sony television have ranked the warranty period of Sony television 1st. from the above graph we can see that the availability of parts have been ranked 2nd and the speed of service has been ranked 3rd. It is seen that the service provided by the service provider is not very good. It is just satisfactory.
Panasonic:
The people who preferred Panasonic TV have ranked the attributes of after sales service as under:
Table 10.
After sales service attributes
2
3
Rank
Warranty Period
2
22
2
2
Availability of parts
7
4
5
Speed of Service.
7
0
9
3
Graph 10.
The customers of Panasonic T.V have ranked the availability of parts as number 1. The parts are always available on time. The warranty period is ranked 2nd. As far as speed of service is concerned it is again not good. It has been ranked 3rd.
Question 10:
4. Please rank the following for indicating the importance level for each one of the attributes in context to your purchase decision (on a scale of 1-7 for specifying the importance level).
?Quality.
?Price.
?Features.
?After sales Service.
?Design & Style.
?Ease of Use.
?Sales Promotion.
This question will give the answer to our first objective of the study. The first objective was: What are the factors which influence in brand preference? From this data we will be able to know what are the factors and what are the attributes which the customers look for while making a purchase of a brand. Let us now see the findings.
Table 11.
Attributes.
2
3
4
5
6
7
Rank
Quality
26
46
9
9
3
Price
23
47
5
5
2
Features
49
23
2
6
After sales service
8
35
57
7
Design & Style
6
27
5
42
6
Brand name.
4
64
5
27
4
Sales promotion.
2
2
52
23
5
Graph 11.
It is important to know how the customers actually make their buying decisions. What are the factors which they consider while making a purchase. In the case of television buying there are certain attributes which the customer keeps in mind before making a purchase. In my research I investigated the various important attributes which a customer considers while buying a brand.
It was seen that features was the most important and the foremost factor which the customers look for initially. The majority of the people ranked features first in this question. Customers look for enhanced and latest features in television. The second most important consideration is the price. The customers in the United Arab Emirates market are very price conscious and very price sensitive also. They look for good reasonable price offered for the product. Television being an expensive product is purchased on the basis of rational, not emotional, reasons, with quality and value playing a predominant role in the purchase decision. Television is not a thing which is bought everyday. People look for quality and features while making a decision to buy a television. In the above findings we have seen that quality is also very important hence it is ranked 3rd. Consumers see many brands in the market which are not much differentiated. Although some brands are differentiated, many lack relevant added values, which encourages consumers to also consider price. It is for this reason the customers have given importance to price by ranking it 2nd.
After the features, price and quality the fourth most important attribute is the brand name that they are going to purchase. Many consumers buying decisions are influenced by the image they have of the brand. Good brand image increases the preference levels of the customers for that particular brand.
It was seen that the sales promotion also influences the buying decisions of customers. Sales promotion was ranked 5th. Sales promotion creates a stronger and quicker response from the customer. Sales promotion gives added value to a customer that is why the customer is attracted towards the brand that is offering sales promotion. Sales promotion is however not effective in building long-run brand preference.
From the findings we come to know that the design and style as well as the after sales service was considered to be least important while making a purchase decision. Hence it was ranked 6th and 7th respectively.
Question 11.
5. Are you aware of the ongoing promotions offered by Sony & Panasonic?
?Yes ?No
Table 12.
Yes
61
No
39
Graph 12.
Graph no 12 shows that the majority of the respondents were aware of the ongoing promotions of both Sony and Panasonic. 61% of the respondents were aware of the promotions whereas 39% of the people were unaware of the ongoing promotions offered by the two companies.
Sales promotion often attracts the brand switchers. Sales promotions used in markets of high brand similarity produce a high sales response but in the short run only. Price competition is often used by a small brand seeking to increase its share.
Question 12.
2. Have you seen advertisements of the Sony and Panasonic Televisions? ?Yes ?No.
Table 13.
Yes
53
No
47
Graph 13.
Of the 100 people that were interviewed 53 of them have seen the advertisements of Sony and Panasonic televisions. This shows that the people are quite aware of the advertisements and the brand. 47 of them were not aware of the advertisements. One reason is that these days' companies spend less on advertisement of televisions. Advertising helps in increasing the awareness levels of the customer for a particular product. Sony as well as Panasonic is not advertising much in the U.A.E market. Today the market has become so competitive that companies need to advertise today. Any lack of communication between the company and the customer will result in loss of sales. They should advertise to make the customers recall that the brand still exists in the market and is still offering quality and value for money product.
Question 13.
3. How is the quality of Sony Televisions?
?Very High.
?High.
?Medium.
?Low.
?Very Low.
Table 14.
Very high
57
High
32
Medium
1
Low
0
Very Low
0
Graph 14.
From the above tabulated data and graph the first hypothesis is proved that Sony T.V is preferred because of its high quality. According to my findings of the 100 respondents, 57 of them voted for high quality. They said that the quality of Sony televisions is very high. 32 of them said that the quality was high. One thing is clear from the findings that Sony has very high quality. It is only 11% of the total respondents who thought that the quality of Sony is medium. It is to be noted that no one said that the quality was low or very low.
Hence the hypothesis that people because of its high quality prefer Sony T.V is true.
Question 14.
4. How is the quality of Panasonic Televisions?
?Very High.
?High.
?Medium.
?Low.
?Very Low.
Table 15.
Very high
9
High
30
Medium
41
Low
0
Very low
0
Graph 15.
From the above data and the graph the second hypothesis is partly proved that Panasonic television is preferred because of its satisfactory quality as compared to Sony. From these findings we come to know that the television of Panasonic is of medium quality. From the survey conducted 41% people said that the quality of Panasonic T.V was medium. 30% people said that it had high quality. But only 19% said that it had very high quality. 10% said that it had low quality. The majority voted for medium quality. Hence the quality of Panasonic is satisfactory.
Question 15.
5. Which of the following would you associate Sony with?
?High Quality.
?High Price.
?Value for Money.
?Status Symbol.
?Latest High Technology.
?Excellent Enhanced Features.
Table 16.
High quality.
39
High price.
5
Value for money.
23
Status symbol.
1
Latest high technology.
7
Excellent enhanced features.
5
Graph 16.
From the survey conducted I came to know that majority of the people associate Sony with high quality. 39% people perceived Sony television to be of high quality. 23% people said value for money. This shows that Sony T.V has a very strong brand image. One more hypothesis is proved over here that Sony has a very strong brand image as compared to Panasonic. This will be further proved in the analysis of the findings of next question which is dealing with Panasonic. In the above graph it is seen that 15% people associated Sony with high price also. 11% associated it with status symbol whereas the rest associated it with high technology and enhanced features.
Question 16.
6. Which of the following would you associate Panasonic with?
?High Quality.
?High Price.
?Affordable Low Price.
?Value for Money.
?Status Symbol.
?Latest High Technology.
?Excellent Enhanced Features.
Table 17.
High quality
7
High price
7
Affordable low price
21
Value for money
35
Status Symbol
7
Latest high technology.
0
Excellent enhanced features.
3
Graph 17.
According to the above results of the survey it can be concluded that Panasonic T.V is considered to be value for money. 35% people associated Panasonic with value for money. 21% associated it with affordable low price. This proves our one more hypothesis that Panasonic is preferred because of its low price and satisfactory quality. Only 17% associated it with high quality. 7% said that it was high priced, 7% considered it as status symbol, 10% said high technology whereas only 3% associated with excellent enhanced feature.
Question 17.
7. Which of the following reasons influenced you to buy the brand.
?Friends Recommendation.
?Suggestion from Office Colleague.
?Relatives.
?Family Decision.
?Husband/Wife Recommendation.
?Children's recommendation.
?Sales Person Recommendation.
Table 18.
Friend's recommendation.
22
Suggestion from office colleague.
6
Relatives.
4
Family decision.
31
Husband/wife recommendation.
21
Children's recommendation.
0
Sales person recommendation.
6
Graph 18.
Cultural, social, personal, and psychological factors influence the consumers buying behavior and they also have an influence on the brand preference. Almost all individuals interact with other people who directly or indirectly influence their purchase decisions. Family, friendship groups, formal social groups, work groups and etc influence the individuals buying behavior. The family is a major influence on the consumption behavior of its members. The members of a family assume specific roles and tasks in their everyday functioning.
From graph 18 we can see that the major factor which influenced the decision of buying is family decision. The family plays a vital role in our day-to-day lives. As television is a product which is used by each and every member of the house so it becomes important that a brand or a product be chosen which all the members of the family like. From the survey conducted 31% people said that family decision was the reason which influenced them to buy the particular brand. It is the culture which affects the buying behavior. People living in the United Arab Emirates are from a culture in which an individual gives a lot of value to his or her family. Hence for him it is very important to consider the views and suggestions of his family.
22% people bought the product on friend's recommendation. Friends are also one of the strong influencers. 21% were influenced by the husband/wife decision. This is also similar to family decision. In today's world the teenagers are well aware of the different products available in the market. Nowadays the children are also influencing the buying decisions of the adults. Today the adults also consult their children when buying a product. In this survey 10% people were influenced by children's recommendation. 6% of the total respondents were influenced by the recommendation of their office colleagues, 6% were influenced by sales person recommendation and the rest 4% by their relative's recommendation.
Question 18.
8. Which of the following strongly influences your purchase decision.
?Reliability.
?Durability.
?Low Price.
?Easy to use.
?Easy to purchase.
?Trusted Brand Name.
?Latest Technology.
?Latest Style.
?Many options/features.
Table 19.
Reliability.
3
Durability.
24
Low price.
1
Easy to use.
3
Easy to purchase.
0
Trusted brand name.
9
Latest technology.
5
Latest style.
9
Many options/features.
6
Graph 19.
From the above findings it is seen that the most important factor which influences a consumer is durability. 24 people said that they look for durability in the product or brand when they are going to make a purchase. 19 of the respondents said that a trusted brand name plays an important role in their purchase decision-making. The third thing which people look for is the latest technology in television. Today the digital flat screen is the latest technology in television which is very popular. So the brand offering the latest technology will be preferred by people. 13 people said that reliability is also an important factor. 11% consider price as the most important factor to consider while making a brand choice. The customer today is faced with so many brands today. And there is so much of price competition in the market. If a customer is getting all the features which he wants in a cheaper brand, he might go for that brand. But still he will look for quality first. If the product or brand is offering him the required good quality then he may have preference for that brand. For latest style 9 people said that it is important. 6 people considered features of the branded product to be important whereas only 3% people wanted the product to be user friendly. Nowadays all products are user friendly only and hence people do not bother about such things these days.
So from the above graph we come to know that quality is the fundamental factor which influences the customers brand preference. Television is a product which is very important in a persons life. It is a source of entertainment for the person. So people want it to be the best one. It is a product which not bought everyday. A customer wants to make a purchase once and wants to buy the best. But still price will play an important role, as everyone cannot afford to buy the high priced high quality products. Depending on the purchasing power the customer compromises on the quality. He will buy a reasonably good product with medium quality but at reasonable price.
(Chapter 5) Conclusion.
The results from this study reveal that Sony is the brand which the majority prefers. People prefer Sony because it has a very good reputation in the market since many years. And also that it is a high quality product that is reliable also. There are so many reasons why customers prefer Sony so much. 64% of the respondents preferred Sony T.V whereas only 36% preferred Panasonic T.V. Based on the income levels also I found out which people prefer Sony and which prefer Panasonic. People in the lower income group of 1500-2500 mostly preferred Panasonic. The majority of middle class income group of 2500-4000 and 4000-6000 prefer Sony television. As far as the high-level income group is concerned I came to know that almost all of them preferred Sony television. These are the people who have the buying power and are ready to give the price for a high quality product. One thing is clear that not all people can afford Sony because of its high price.
From the rankings of quality attributes of Sony television it was seen that the video quality of Sony was very high. People who preferred Panasonic have also ranked video quality as number 1. Prevention from ambient light reflection is given rank 2. Whereas high resolution is ranked 3. This shows that the video quality of Panasonic is also good. It should be noted that high resolution has been ranked 3. It shows that as compared to Sony, Panasonic does not have a very high resolution. The design of Sony television is excellent and hence it has been ranked 1st. Sony televisions design is very trendy and latest. People do not like the size and weight of Sony Televisions. Sony needs to consider this matter and it should try and reduce the size and weight of its product. It was also seen that the after sales service provided by both Sony and Panasonic was not satisfactory.
It is important to know how the customers actually make their buying decisions. What are the factors which they consider while making a purchase. It was seen that features was the most important and the foremost factor which the customers look for initially. The second most important consideration is the price. The customers in the United Arab Emirates market are very price conscious and very price sensitive also. They look for good reasonable price offered for the product. After the features, price and quality the fourth most important attribute is the brand name that they are going to purchase. Many consumers buying decisions are influenced by the image they have of the brand. Good brand image increases the preference levels of the customers for that particular brand.
According to my findings, from the 100 respondents that were interviewed 57 of them voted that Sony had very high quality. Hence the hypothesis that people because of its high quality prefer Sony T.V is true. From the survey conducted 41% people said that the quality of Panasonic T.V was medium. The hypothesis that Panasonic is preferred because of its satisfactory quality and low price as compared to Sony is proved. 39% people perceived Sony television to be of high quality. 23% people said value for money. This shows that Sony T.V has a very strong brand image. One more hypothesis is proved over here that Sony has a very strong brand image as compared to Panasonic. 35% people associated Panasonic with value for money. 21% associated it with affordable low price. This proves the hypothesis that Panasonic is preferred because of its low price and satisfactory quality.
Cultural, social, personal, and psychological factors influence the consumers buying behavior and they also have an influence on the brand preference. From graph 18 we can see that the major factor which influenced the decision of buying is family decision. 22% people bought the product on friend's recommendation. 21% were influenced by the husband/wife decision. From the findings we also come to know that durability, trusted brand name and price are the main factors which influence the customer's brand preference and buying decision.
Brands vary on the amount of power and value they have in the marketplace. We have brands that are not known more by the people and on the other hand we have brand that are known to the people and has a very high degree of brand awareness. Sony is one of the highly recognized brands in the world. Brand equity makes it possible for the company to charge a premium price. Many consumers buying decisions are influenced by the image they have of the brand. Consumer's preference is developed through brand image. High brand image will result in high customer preference for that brand. We have seen that Sony has a very strong brand image. But it is not always true that a brand with a good image will influence the customer to prefer or buy the product. We have seen the factors which influence brand preference. Brand image was only one of the many factors which influence.
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