Marketing Mix Elements Influencing Brand Equity and Brand

Choice

Vansha mehra(086) MBA 2 - B

Outline
The scope of the paper is as follows : 1. Introduction 2. Literature Review 3. Objective of Study

4. Research Methodology
5. Findings 6. Limitations 7. References

Introduction
Brand equity refers to the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner. Elements that can be included in the valuation of brand equity include : changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. The dimensions of brand equity affect Overall Brand Equity, which in turn affect the final brand choice made by the consumers.

High brand awareness, is positively related to brand equity as it can be a signal of quality and may thus help the buyer consider the brand. Brand equity plays a role in how information is learned and then retrieved and used in making the choice.

Literature review
1. According to Aaker (1991), brand equity is a multidimensional concept. It consists of brand loyalty, brand awareness, perceived quality, brand association, and other proprietary brand assets. 2. Keller (1993) suggested brand knowledge, comprising brand awareness and brand image..
3. Analysis by Erdem, et al (1999) showed that the brand equity concept might be understood better if examined in a broader framework that assesses the incremental effect of the brand across the various stages of the consumers choice process. Thus, brand equity plays a role in how information is learned and then retrieved and used in making the choice.

Objective
The objective of the study is determining the determinants and their effect on brand equity choice. The focus of the study is the indian car passenger market.

Research methodology
Sample size : 1932 but valid responses were only 302. Method: Items were measured on 5 point likert scale with anchors 1( strongly agree) and 5( strongly disagree) Category selection: Those consumers were chosen who had bought atleast a second passaenger car in last 6 months.
Sampling : Random samping was done, three brand types were distinguished :Prestige >9 lakhs, Volume (5to9 lakhs) and economy (< 5 lakhs).

Research methodology
Sample contained 80% economy customers, 14% volume and 6% prestige customers. Data collection Method Pre test method: The primary data by questionnaire by sending them through email in six metro cities. The items found unreliable were dropped and questionnaire were improved on the basis of pre test findings.(cronbachs alpha and convergent validity) The final research employed shopping centre surveys to collect information.Total 644 consumers agreed to reply because the free gift incentive was offered with each questionnaire.

Instuments to be studied

 Price

. Celebrity sponsorships
. Event sponsorships
. Percieved quality

Distribution intensity
Store image Advertising frequency Price promotions

Non price promotions

Word of mouth

Hypothesis
Hypothesis : Following hypotheses were developed: HO - 1: The percieved Quality of brand is related positively to the extent to which the price of brand is percieved to be high. HO - 2: The percieved Quality of brand is related positively to the extent to whichbrand is available in stores. HO - 3: The percieved Quality of brand is related positively to the extent to which the product is distributed through the stores with good image . HO - 4: The percieved Quality of brand is related positively to the advertising frequency of brand. HO - 5: The percieved Quality of brand is related negatively to the price promotion of the brand. HO - 6:Percieved quality is more for the brands which have originated outside india .

HO - 7: The percieved Quality of brand is related positively to the positive wom. HO - 8: The percieved Quality of brand is related positively to the celebrity endorsement of the brand.

HO - 9: The percieved Quality of brand is related positively to the events sponsored by the brand.
HO - 10: The percieved Quality of brand is related positively to the extent to which the brand awareness is high. HO -11: The percieved Quality of brand is related positivelypercieved quality of consumers.

Findings
Sructural equation model is used which is an extension of the general linear model (GLM) that enables researchers to test a set of regression equations simultaneously. Structural model testing showed an acceptable model fitness level. GFI, NFI, CFI, and RMR values above 0.90 and AGFI values above 0.80 are generally interpreted as representing a good fit, whereas a value of RMSEA below 0.10 indicates a good fit. Due to large samples, a significant Chi-square (X2) does not indicate poor fit because the Chi-square is easily influenced by the size of the sample (unlike other criteria). In addition to the disadvantage of the Chi-square statistic , the ratio of Chi-square to its degree of freedom, X2/df, is further used to indicate a good fit. It is suggested that a ratio of 3:1 or less indicates an adequate fit Standard loading model indicated that all items were loaded highly on their corresponding variables and t values are greater than 2.0.

Summary of Findings

Hypotheses H1, H2, H3, H7, H8, H9, H10 and H11 are accepted. Hypothese H4,H5, and H6 is rejected as the null hypothesis is accepted as there exist no relationship between the variables.

RESULTS

Of the ten marketing mix elements considered, some had a very strong impacton brand equity because they positively impacted both the dimensions consideredfor the study. However, contrary to what many previous studies reported, country of originand price promotion did not impact the brand equity for such consumers. Advertising frequency is not a builder of brand equity; word-of-mouth is a better determinant of brand equity for repeat passenger car buyers.

Limitations
Sample is limited geographically
Hypothesis should be tested further in other countries to get a universal idea. Data collested was on repurchase basis so the respondants may have become biased in their choice.

References
Aaker, D A (1991). Managing Brand Equity, New York: Mc Milan. Aaker, D A (1996)
Cornwell, T B (1995). Sponsorship Linked Marketing Development, Sport Marketing Quarterly, 4(4), 13-24. Economic Times (2007). Second Time Car Buyers Steer Sales into Fast Lane, June 19.

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