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IMPACT OF BRANDING ON CONSUMER

PURCHASE DECISION IN BRANDED


APPAREL
Project Report: Research Methods in Business

Ambuj Arind
Atanu Kundu
Chandni Jain
Aniket Shewale
Vaibhav Rana
Vivek Agarwal
BACKGROUND/SIGNIFICANCE
0 The problem we are to identify is whether different branding elements
affects a consumer’s purchase decision for branded apparel
0 Branding elements considered: Brand Image, Brand Loyalty, Brand
Name, Brand Resonance, Brand Trust.
0 The research considered impact of demographic factors like- Age,
Income, Gender and other factors- Influencers, price and quality on the
purchase decision
0 Past research conducted does not give us an understanding of the
relative importance of the various brand elements affecting a
consumers purchase decision
CRITICAL LITERATURE REVIEW
Citation Sample Environment Method Conclusions
300
University Online
Shehzad et al. Students, Questionnaire Convenienc
(2014) Lahore Floated e Sampling Brand image or Brand name has significant positive relationship with consumer buying behavior
814
University
kriŽ anoVá Students, Random Percentage of people that decide by brand exceed those who do not decide under the infuence of brand
(2012) Slovakia Questionnaire Sampling significantly

1. People wear branded clothes to look attractive and to impress people


2. Price of branded clothes is not a big issue for people. People prefer branded clothes over non-branded
regardless of high price.
3. People buy branded clothes because they provide more value for money and because of their good
quality.
4. Wearing the same type of clothes makes people bored. They like to wear new and fashionable clothes.
5. People wear branded clothes because of comfort and recognition that they give.
6. Promotion of the brand by a well-known personality hardly affects the decision.
Hassan, 7. People are less loyal towards the branded clothes.
Hurrah & 200 people, Random 8. People get influenced by price offers, design and style of products to change the brand.
Lanja (2014) Jalandar Questionnaire Sampling 9. Fashion, family and friends influence the choice of brand.
Random
Sampling/
Mramba 160 mobile Questionnaire/In F2F
(2015) phone users terview Interview Brand name has a significant impact on purchase decision
Online
Experience

200 1. significant positive relationship between attitude and on-line purchase intentions
SajidBhatti, internet Random 2. Perceived Usefulness has significant positive relation on Attitude
2014 users Questionnaire Sampling 3. Perceived Ease of use has a significant positive relationship with attitude.
1. Brand Knowledge Affects Customer Behaviour
2. Reference groups are very influential in buying branded products.
3. As the age increases, people tend to become more loyal to specific brands.
Sarwar, Aftab Online Stratified 4. Emotional exploitation is important for affecting consumer buying behavior.
& Iqbal, 2014 80 Questionnaire Sampling 5. Personal and culture values affects the consumer behavior.
RESEARCH QUESTION AND
OBJECTIVES
0 RQ: Whether product preferences differ amongst males and females?
0 RO: The gender affecting the product preferences.

0 RQ: Does brand image affect branded apparel purchase?


0 RO: To understand the impact of brand image on brand choice

0 RQ: Does age of customer affect his/her decision to purchase branded


apparel?
0 RO: Identifying the relationship between age and purchase decision of
branded apparel

0 RQ: Does brand trust affect purchase decision?


0 RO: To determine if trust affects branded brand choice.
0 RQ: Whether brand loyalty is important for purchase decision?
0 RO: To determine whether loyalty affects purchase decision
RESEARCH METHODS
0 Data Type:
0 Primary Data
0 Secondary
0 Methods of Data Collection:
0 Surveys via a web based questionnaire
0 Method of Data Analysis:
0 Computer aided data analysis (SPSS)
SAMPLE PLANNING
0 Target population:
0 Urban Residents
0 All age groups
0 Size:
0 Target: 200 respondents
0 Achieved: 114 respondents
0 Proportional representation of both genders
0 Sampling Unit:
0 Simple Random Sampling (i.e. every unit in the population has equal
and known chance of selection)
PRIMARY RESEARCH
Interview – Gap Analysis

 Purchase behaviour varies for different customers:


 Some come with very specific demands based on past experiences,
habits and recommendations, irrespective of the possible changes
in advertising/promotions
 Some ask for products on the basis of a specific brands or price
ranges
 A few glance at the available choices, analyse the product and make
their purchase decision
 The brand elements identified by us were further verified by literature
review, as variables that customers often consider while making their
purchasing decision.
QUALITATIVE DATA
Gender

Reference Groups Demographics


Family Age
Celebs Income

Self
Brand Loyalty
Concept pay more
Recommend
Values
Price
Status

Consumer Purchase
BRANDING
Decision

Perception

Trust Brand
Image

Quality Brand Knowledge


Awareness
SAMPLING ADEQUACY

Inference:
• The KMO Index is 0.636, which is above than the world-over accepted KMO
Index of 0.6
• Bartlett’s Test of Sphericity has a significance <0.05, implying validity and
suitability of the responses collected to the problem being addressed
through the study.
EXPLORATORY FACTOR ANALYSIS

Construct 2: Construct 3:
Values Brand Trust
Construct 5:
Reference Groups

Construct 1:
Loyalty
Construct 4:
Knowledge
QUESTION ITEMS AND LOADINGS
COMPONENT CORRELATIONS
RELIABILITY ANALYSIS:
Cronbach Alpha
DESCRIPTIVE STATISTICS
NORMALITY – UNIVARIATE ANALYSIS
Hypothesis
H0 : The data set is normal
H1: The data set is not
normal
Inference:
• The Shapiro-Wilk test
shows that the
distribution is not
statistically significantly
different from normal
distribution.
• The value is more than
.05 therefore we fail to
reject the null hypothesis
and we conclude that
there is not enough
evidence to prove
otherwise.
Pearson’s Correlation Coefficients

Hypothesis
H0: The values are
not correlated
H1: The values are
correlated

Chi Square Test

Inferences:
• Significant correlations were observed between willingness to recommend
and influencer_experts, willingness to recommend and willingness to
paymore, awareness and willingness to paymore, gender and willingness to
recommend, influencer_experts and willingness to recommend, awareness
and willingness to recommend.
Hypothesis
H0: The values are not correlated
H1: The values are correlated

One Way ANOVA

Inferences:
• Significant associations were observed between price and willingness to pay
more, brand image and willingness to pay more, price and willingness to
recommend, and brand image and brand awareness.
• To account for these interaction effects, interaction variables were
introduced in the regression model
TESTING OUTLIERS
The Casewise List table highlights cases where the cases with studentized residuals (i.e.,
the "ZResid" column) greater than ±2 standard deviations. Cases with studentized residual
values greater than 2.5 should be inspected in further detail to determine why these cases
are outliers and to remove them from the analysis if this is deemed necessary

We observed 3 values with ZResid > +-2.5. These data points were
removed from our regression analysis using “Select Cases” in SPSS.
TESTING LINEARITY OF PREDICTORS
Linearity of the continuous variables with respect to the logit of the dependent
variable was assessed via the Box-Tidwell (1962) procedure, with Bonferroni
correction resulting in statistical significance being accepted when p < .0023

Box-Tidwell

All continuous independent variables were found to be linearly related


to the logit of the dependent variable.
INFERENTIAL STATISTICS
MULTI-VARIATE ANALYSIS
MANOVA

There was a statistically significant difference in purchase behavior based on a


brand elements, Wilk's Λ = 0.0050, partial η2 = .18

Purchase decision differs significantly across levels of Brand Image and


Brand Perception
MULTI-VARIATE ANALYSIS
Binary Logistic Regression
Ln(p/1-p)=2.499*(age) – 0.822*(price) – 0.877*(brand_image) – 7.231*(awareness) – 0.539
*(self_concept)+8.403

Model is statistically significant (p < .0005; "Sig." column). Also, Hosmer


and Lemeshow test gives us a Significance of 0.894.
RESULTS
0 Of the twenty two predictor variables only five were statistically
significant: Age, Price, Self Concept, Awareness and Brand Image

0 Awareness is the most significant factor affecting Brand purchase,


followed by Age and Brand Image

0 Price affects branded apparel purchase decision negatively


Thank you!