NAM conference_March 10-12_2013

Views:
 
     
 

Presentation Description

Impact of Marketing Communication and Price Promotion on Brand Equity: Evidence from Durable Goods

Comments

Presentation Transcript

Impact of Marketing Communication and Price Promotion on Brand Equity: Evidence from Durable Goods :

Impact of Marketing Communication and Price Promotion on Brand Equity: Evidence from Durable Goods Presented By: Sajeeb Kumar Shrestha M.Phil., M.B.S., TU Ph.D. Scholar (FOM), TU Teaching Assistant, Shanker Dev Campus Tribhuvan University 2nd International conference on "Reshaping Organizations to Develop Responsible Global Leadership" Organized by: Nepalese Academy of Management Hotel Yak & Yeti, Nepal March 10-12, 2013 1

1. Introduction:

1. Introduction Brand equity is the value added to a product by a brand (Leone et al., 2006; and Hanna & Wozniak, 2001). Advertising assists consumers in purchase decision making process and help the companies in building and maintaining brand equity (Goldfrab et al., 2009; Madhavaram et al., 2005; and Sriram & Kalwani, 2004). Price promotion is often used in marketing strategies in order to stimulate consumer buying intention, regular price, and sales amount (Mulhern & Padgeet, 1995). 2

2. Statement of the Problem:

2. Statement of the Problem The study addresses the following research questions: Does marketing communication and price promotions/deals contribute to creation of brand equity? What is the relation between marketing communication and price promotions/deals with brand equity? 3

3. Objectives of the Study :

3. Objectives of the Study The study aims to achieve the following objectives: To measure the impact of marketing communication and price promotions/ deals to creation of brand equity. To analyze the relations between marketing communications and price promotions/ deals with brand equity. 4

5. Research Framework:

5. Research Framework 5 Price deals Perceived advertising spending Brand Association/ Image Brand Equity Perceived Quality Brand Awareness Brand Loyalty H1 H2 H3 H4 H5 H6 H8 H7

5.1 Research Hypotheses:

5.1 Research Hypotheses The hypotheses are stated as follows: H1: Perceived advertising spending has positive effect on perceived quality of the brand. H2: Use of price deals for promoting the brand has a negative effect on its perceived quality. H3: Perceived advertising spending has positive effect on brand association/image of the brand. H4: Use of price deals for the brand has a negative effect on its brand association/ image. H5: Perceived advertising spending has the positive effect on the brand equity. H6: More frequent price deals have a negative effect on the brand equity. H7: Perceived advertising spending has positive effect on brand awareness of the brand. H8: Perceived advertising spending has positive effect on brand loyalty of the brand. 6

5.2 Model for this Research:

5.2 Model for this Research Model 1: PQ =  +  1 PAS -  2 PP + U …………………(1) Model 2: BAS =  +  1PAS -  2PP + U ………………..(2) Model 3: OBE =  +  1PAS -  2PP + U ………………..(3) Model 4: BAW =  +  1PAS + U ………….………………(4) Model 5: BL =  +  1PAS + U ………………………………(5) Where, PQ = Perceived Quality; PAS = Perceived Advertising Spending; PP = Price Promotions/Deals; BAS = Brand Associations/Image; OBE = Overall Brand Equity; BAW = Brand Awareness; BL = Brand Loyalty and;  = Constant;  i = Co-efficient or slope of regression model; and U = Error term. 7

7. Research Methodology:

7. Research Methodology This research is basically descriptive and analytical in nature based on primary data . The questionnaire survey has been designed to obtain responses. Convenience sampling method has been used for sampling purpose. In this study 200 questionnaire has been distributed among them, 175 questionnaire has been considered as valid. Data has been generated in five point Likert Scale anchored by “Strongly Disagree” = ‘1’ to “Strongly Agree” =‘5’. Descriptive statistics, Correlation, and Regression tools have been used for analysis. 8

9. Major Findings:

9. Major Findings Samsung television brand is most popular television brand followed by Sony and LG television. Analyzing descriptive statistics, perceived quality and brand awareness construct has greater impact on forming television brand equity in Nepal. Perceived advertising spending have negative effect on perceived quality. Likewise, price promotions/deals have positive effect on perceived quality. It is because, Nepalese consumers thinks more price means more quality. Perceived advertising spending has positive effect on brand associations/image, overall brand equity, brand awareness and brand loyalty. Price promotions/deals have negative effect on brand associations/image, overall brand equity. 9

10. Conclusion:

10. Conclusion This study is consistent with Villarejo-Ramos and Sanchez-Franco (2005) research that confirmed perceived advertising spending has a favourable influence on brand equity. A negative relationship between use of price deals and brand equity was established. The study is consistent to Amaretta and Hendriana (2011) expressed that marketing communication had positive and significant effect to brand equity except perceived quality on perceived quality violates the assumption of hypothesis. It is concluded that marketing mix elements (marketing communication and price promotions) have an important role in creating brand equity in the Nepalese television markets. 10

PowerPoint Presentation:

Thank You. 11

authorStream Live Help