THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND LOYALTY IN YOUTH SEGMENT

THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND LOYALTY IN YOUTH SEGMENT: SPECIAL REFERENCE TO SOFT DRINK MARKET IN SRI LANKA

Abstract Customer loyalty is regarded as one of the key factors for organizations. Managers and marketers are trying to keep their brand loyal customers and trying to avoid competitors absorbing of these customers. Brands, just like people, have values. This research has focused impact of brand values on customer brand loyalty. This research has mainly focused on brand values of product quality, brand personality, emotional appeal and value proposition are influenced the customer brand loyalty towards the soft drink brand brands.

Key Words Brand Value Brand Loyalty Youth Segment

January 2013

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment

CHAPTER ONE INTRODUCTION

1.1 BACKGROUND OF THE STUDY As the competition in the market grows day after day, many companies realize the value of their existing customers more and seek to improve their customer loyalty through the creation of satisfaction. The consistent pursuit of the customer loyalty started from the early 80s. Afterward, most companies developed and examined some forms of customer loyalty strategies. Customer loyalty is regarded as one of the key factors for organizations, which causes their profitability and success a brand becomes successful only if its owners have an accurate perception of its constitutional assets. In case of important of the brand, the brand values play a vital role. Brands are among the important issues associating with the companies‟ products. The companies make long-term investments on their brands. It is the investment for brand management, in such a way that it both preserves the brand values and do not miss the customer loyalty through the preservation of the brand‟s characteristic. Since many factors affect the customer loyalty, In order to manage customer loyalty in the best way, the organizations must be able to communicate with their customers in the best way and identify their needs and demands. The loyal customer has a positive attitude towards it and is less sensitive to its prices. In this study attempt to study how the impact of brand values on customer brand loyalty in soft drinks. Once upon a time a soft drink was considered as a prestigious product and it has become acceptable to people of every age group. The first soft drink business was begun in 1783 as an artificial mineral water. Using the modern brand name, an Atlanta pharmacist began to sell Coca- Cola as a tonic in 1886. Mr. Sattar was the first entrepreneur to be involved with the marketing of soft drinks in 1965. Gradually it is becoming more popular in the consumers' world and its demand is world- wide.

Nowadays soft drinks have become essential part in lifestyle of the people in the society. There are number of soft drink brands are available in the market. In those brands, some brands are very famous not only in Sri Lanka but also globally. All companies doing lot of Page 2

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment things to create a loyal customer base towards their brand by giving a value to the customer. Researcher selected that area because of companies invest lot of money in increase the brand values. Then investigate the relationship between loyalty and brand values in this study, the relative effects of some factors of brand values on customer loyalty are simultaneously examined.

1.2 INDUSTRY OVERVIEW The food and beverage industry in Sri Lanka has become a thriving sector in the economy propelled by the post war optimism and reaping maximum benefits from peace dividends since May 2009. Contribution to the Private Consumption Expenditure (PCE) by the food and beverages industry was recorded at 37.8 % of 2011. The food and beverage sector industries listed in the Colombo Stock Exchange (CSE) witnessed a staggering growth of 42 % subsequent to the cessation of the 3-decades-long internal conflict. The private sector took full advantage of the end of the prolonged war by entering into untapped markets in the North and East provinces. Private sector firms in the food and beverage industry penetrated the North and East provinces in a massive wave increasing firm level earnings by two to three folds. Post conflict buoyancy in the tourism industry also facilitated in expanding the food and beverage industry on a substantial scale. The soft drink market comes under the food and beverages sector. The soft drink market has significant contribution to the food and beverages sector. Carbonated soft drinks are a thirst quencher and consumers are known to purchase them mostly on impulse. This requires the product to be widely available, especially in its chilled form, inplaces where impulse buyers could readily purchase them.

Manufacture of beverages recorded a growth of 10.2 per cent in 2011 compared to 19.7 per cent in 2010, mainly contributed by the growth in soft drinks. The production of beverages benefitted from enhanced market access to the Northern and Eastern provinces, increased consumer spending on account of improved income levels as well as the high growth momentum of the tourism sector. Statistics indicate that there will always be a market for carbonated soft drinks, because these are popular and command a global market share of about 50% of all beverages. Sri Lanka‟s economy has grown significantly, over 8% in the 2011. GDP per capita increased to US$ Page 3

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 2836 in 2011, compared to US$ 2400 in the previous year (Source: Central Bank of Sri Lanka). The income trends of consumers‟ indicate that more people can now afford to purchase and consume soft drinks, which augur well for market growth. However, rising inflation has reduced the disposable incomes of consumers significantly, impacting on market growth. There are 5 main industry players in carbonate soft drink market in Sri Lanka. They are 

Ceylon Cold Stores Ltd



Coca-Cola Beverages (Pvt) ltd



Varun Beverages Lanka (Pvt) Ltd (Pepsi)



Pet Packaging (Pvt) Ltd (My Cola)



Shaa Cola beverages (Pvt) Ltd

Ceylon Cold Stores Limited (CCS), also known as Elephant House, has established itself as the leader in Sri Lanka‟s carbonated soft drinks market, gaining a 47% share and outperforming leading multinationals such as Coca-Cola, Pepsi and other local brands in a highly competitive business environment. CCS manufactures a variety of soft drinks such as Ginger Beer, Orange Barley, Cream Soda, Lemonade, Necto, Orange Crush, Soda, Peyawa and newly entered brand to the market Kik kola, with most of these products having a history as old as the company itself. Second market leader in soft drink market in Sri Lanka is multinational Coca-Cola Company which provides variety of internationally popular brands such as Coca-cola, Sprite, Fanta, Portello. CCBSL produces and sells over 10-million unit cases of carbonated soft drinks per annum. It operates through a countrywide distributor network, consisting of about 128 distributors. Varun Beverages Lanka is the franchise for Pepsi-Cola brands who is the franchise owner of Neganahira Nagas in Sri Lanka Premier League. They can target young segment easily by it because Cricket is the most popular sport in Sri Lanka. They manufacture and distribute internationally known brands Pepsi, Mirinda, 7up. Rather than these main 3 competitors there are 2 companies My beverages and Shaa beverages provide soft drinks similar to product of major competitors

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1.3 RESEARCH PROBLEM Marketers‟ survival depends on consumer loyalty. Consumer loyalty depends on their perception and brand preference of the particular brand. With this in mind, the wishes of businessman to achieve customer brand loyalty can indeed become a reality with several efforts. To remain a competitive business, companies should treat customers as friends. In order to achieve this goal, managers should use the strategies to create values to the customer. Organizations in both public and private sectors have learned that the ability to communicate effectively and efficiently with their target audiences is important to their success. If a particular brand maintains a significantly higher perception of value to a consumer than any other brand in the category, that consumer will consistently purchase that brand and consistently recommend that brand to others. Conversely, as brands in a category become less differentiated in terms of both tangible and intrinsic features, price becomes the major differentiator of values, and thus, there is little loyalty. Marketers should know their market power originates from the creation of brands for their products, and powerful brands bring about customer loyalty for them. The most distinct skill of the professional companies may be their ability to create, keep and develop their brands. This study deals with the investigation of the role of brand values in the creation of customer loyalty in Soft drink among youth generation in Sri Lanka. So the research problem in this research to what extend Brand values impact on the Degree of Customer brand loyalty?

1.4 RESEARCH QUESTIONS 1. What is the impact of brand values towards the brand loyalty of customer? 2. How each brand value would influence for customer loyalty? 3. What is the customer attitude towards brand values when they buy a soft drink? 4. How brand values influence when consumers recommend a brand others? 5. What is the most important brand value for customer loyalty? 6. What is the consumers‟ ability to recognize brand values?

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1.5 RESEARCH OBJECTIVES

Key Objective  Determine the impact of brand values towards customer brand loyalty. Specific Objectives 1. Examine the customer attitude towards brand values when they buy a soft drink. 2. Find out impact of brand values when consumers recommend a brand to others. 3. Find out most important brand value for customer loyalty. 4. Examine the consumers‟ ability to recognize brand values. 5. Identify how soft drink companies can use brand values to make loyal customers. 6. Provide some recommendations to soft drink companies.

1.6 SIGNIFICANCE OF STUDY It is important for the marketers to build up loyal customers to ensure the success of business. Customer loyalty is one of the most important issues organizations face today. Creating loyal customers has become more important in Soft drink market due to significant increase in competition. Customer loyalty is regarded as one of the key factors for organizations, which causes their profitability and success a brand becomes successful only if its owners have an accurate perception of its constitutional assets. In case of important of the brand, the brand values play a vital role. Brands are among the important issues associating with the companies‟ products. The companies make long-term investments on their brands. Businesses are trying to attract and building a loyalty through satisfy customers. The aim of this study examines the significance of brand value on customer brand loyalty. The objectives of the study are determining relationship between of brand value with customer brand loyalty towards soft drinks brand in youth segment. So that is more important to marketers extend their business by creating loyal customers. Page 6

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment .

1.7 HYPOTHESES H0: There is a significant impact of product quality on customer brand loyalty H1: There is a no significant impact of product quality on customer brand loyalty

H0: There is a significant impact of brand personality on customer brand loyalty H1: There is a no significant impact of brand personality on customer brand loyalty

H0: There is a significant impact of emotional appeal on customer brand loyalty H1: There is a no significant impact of emotional appeal on customer brand loyalty

H0: There is a significant impact of value proposition on customer brand loyalty H1: There is a no significant impact of value proposition on customer brand loyalty

1.8 RESEARCH METHODOLOGY 1.8.1 Sources of Data There are mainly two ways to collection of the data. That are, 1. Primary data 2. Secondary data The method of collecting them is further explained in this section. Collection of secondary data, Secondary data was needed for the study when selecting the most popular brands & sample for the survey. The secondary data will be gathered by reports articles, journals and books. And Some Statistics gathered from Central bank of Sri Lanka and Census and statistics department. The primary data is collected for the special purpose. That is the research problem. In that way questionnaire for collect the research data. With the questionnaire method, the accuracy and reliability of the data are secured. The study was mainly conducted by using questionnaires. The well prepared questionnaire was used to gather essential data from the customers

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 1.8.2 Sampling Plan The sample selection firstly identified the population then after decides the sample. In that way the sampling techniques are,  Probability sampling technique  Non-probability sampling techniques In that way population should be the youth between ages of 15 & 30 in Sri Lanka. And randomly select the 50 respondents in each Colombo & Gampaha districts as the sample for the data collection

1.8.3

Data Presentation & Analysis Method

Data collected through questionnaires and analyzed in a quantified basis. Each question in the questionnaire is analyzed critically in order to analyze the each research question separately. For data analysis purpose, researcher used a prominent data analyzing software called SPSS. As the analytical tools, hypothesis testing and Standard deviation is used. After using these software and the analytical tools, the gained findings are presented in graphical form by using pie charts and bar charts. By critically analyzing those findings, built hypothesis will be testing and the relationships among the variable were identified. Then they were presented in both numerical and graphical forms. Descriptive analysis is done for the calculation of Mean, Standard deviation, Frequencies, and percentages for the Independent and Dependant Variables. Pearson‟s Correlation will be used to measure the strength of the linear relationship between two variables by measuring the degree of „scatter‟ of the data values. This reflects whether the theory is true or false. The graphical representation of the data has been used for the purpose of meaningful presentation and rational interpretation.

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1.9 LIMITATIONS OF THE RESEARCH A research is only focus on the Carbonate drinks brands so people who are using the noncarbonate drinks such as natural drinks based on fruits because health considerations are not match with the research questions. And also sample is only the respondents of Colombo and Gampaha districts. It is decreasing the reliability of the research due to the reason of only two districts not representing the whole soft drink market. Other than that sample size also insufficient to such a vast research. And the validity of this research is in question as people might be in a hurry to complete it and so might not give accurate responses

1.10. CHAPTERIZATION Total research will include six chapters and which are as follows

Chapter 1- Introduction This chapter represents the background of the thesis. As instance it contain research problem, research objectives, research questions and information which require laying the foundation of thesis.

Chapter 2- Literature Review It contains the research articles, relevant theories and concepts which have written relevant to particular research topic and the previous researches. This will support to understand the prevailing vacuum in the industry.

Chapter 3- Conceptualization and Operationalization Under this chapter mainly define the variables and interpreting the conceptual framework.

Chapter 4- Research Methodology This contains formulating hypotheses, sampling plan and scaling of the data.

Chapter 5- Data Presentation and Analysis Mainly testing hypotheses is conducting under this chapter and analyze the variables.

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Chapter 6- Summary and conclusion Conclusion and suggestions are going to be presented here as the eventual task of the thesis.

1.11 CHAPTER SUMMARY Under the first chapter discuss the background of the study, industry overview, research problem, objective of the study, how can collection of data, significance of the study and hypotheses development. Mainly first chapter discuss the overall idea about the conduct the research.

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CHAPTER TWO LITERATURE REVIEW

2.1. LITERATURE REVIEW

2.1.1. Studies of Brand Loyalty Brand Loyalty is an important concept of today‟s brand marketing world. Many definitions were being proposed by many researchers, among which the most complete definition was being proposed by Jacoby and Olson (1970). They defined brand loyalty as the result from non-random, long existence behavior response, and it was a mental purchase process formed by some certain decision units who considered more than one brands. In early researches, researchers usually took the act of repurchase as the method of measure brand loyalty. But some researchers indicate that to measure brand loyalty the best way is to measure by affective loyalty (Bennett and Rundle-Thiele, 2000). Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors. According to the study conducted by Oliver (1999), the brand loyalty was classified into four parts: cognitive loyalty, affective loyalty, conation loyalty and action loyalty. Day (1996) added two indicators, action and affection for brand loyalty and divided brand loyalty into true brand loyalty and spurious brand loyalty. The spurious brand loyalty consumers may make repeated purchases only because the brand they purchase is the only one choice in the stores. On the other hand, true brand loyalty consumers should show both psychological and affective commitments in addition to repurchase consistency. As shown in Figure 2.1, Dick and Basu (1994) classified loyalty into:

1. True loyalty

3.Latent loyalty

2. Spurious loyalty

4. No loyalty.

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Figure 2.1 Degree of Loyalty Repeat Purchase Possibility High

Related

High

Attitude

Low

Low

True Loyalty

Latent Loyalty

Spurious Loyalty

No Loyalty

Source: Dick and Basu (1994)

It is admittedly true that shopper allegiance for a brand in truth contributes much to marketing. According to the concept of brand loyalty, it is regarded as the essential feature of brand value. The American Marketing Association gives it the explanation as “the situation in which a consumer generally pays money for the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category” or “the degree to which a consumer consistently purchases the same brand within a product class”(2006, qtd in Moisescu). The author draws attention to the fact that since other descriptive aspects of brand equity, such as considerable quality, associations and awareness, all have consanguineous relationship with purchase and appreciation, they can guarantee the level of brand loyalty. It follows that brand fidelity may add the satisfaction of other dimensions of brand value. For example, brand devotion always leads the payers to believe the perceived quality of the brand is better than others. Typical loyal purchasers are less sensitive to price. Because of this, when a product mark up, they won‟t lessenthe quantity of they buy. It is the view of Reilly (2008) that loyal customers deem the assessment of the product .As a consequence, they strong believe their choices. In that case, they trend to center less on the price. The potential benefit that the loyal customers are able to add is that they may bring in more new consumers. At the same time, these potential consumers are also possible to become the future loyal customers. A good example of this is that when one repeatedly buy the same brand cosmetic, and consider it convenient to use, he will recommend it to his classmates and girl friend. Hence, there is no wonder that people around always own the same brand of Page 12

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment clothes as well as other commodity. In contrast, if people around me complain the poor quality of a brand to me frequently, I won‟t think of owning it as well. Most of all, in the global economy, client brand dependability stands out as an important competitive weapon. Kust (2008, p.24) correctly argues that the world has switched into a global business in the last 10 decades; developing the brand loyalty globally is essential to enter the market. He goes on to indicate that in order to keep a trust relationship with their consumer, corporations should create a customer brand loyalty program among customers. According to Vraneševic and Stanandccaronec (2003), the importance of product brand can be seen primarily in its impact on consumers‟ choice and their loyalty towards the brand through identifying and differentiating quality. In other words, customers will more likely to become loyal to a brand when the particular brand is perceived to provide the level of quality that can meet customers‟ expectations. Similarly, Ruyter, and Bloemer (1998) has found that there was a positive relationship between perceived service quality and service loyalty when they conducted series of studies for five different service industries. The same goes to perceived quality and brand loyalty as well because customers‟ perception of quality towards a product or services may enhance their loyalty towards a brand. Brand loyal consumers are more willing to pay more for a brand because they perceive some unique value in the brand that other brand cannot provide (Jacoby and Chestnut, 1978; Pessemier, 1959; Reichheld, 1996).This uniqueness most probably derived from greater brand trust in the reliability of a brand or from more favorable affect when customers use the brand (Chaudhuri and Holbrook, 2001). In the commitment-trust theory, Morgan and Hunt (1994) stated that trust is a key variable in the development of an enduring desire to maintain a relationship in the long term e.g. the long term relationship might be developed towards a brand due to the trusting relationship that the customer has. Likewise, Ballester and Aleman (2001) found that there are possible conceptual connections of trust to the notion of loyalty and this actually drives the authors to focus on Aust. J. Basic & Appl. Sci., analyzing the relationships existing among these concepts. Subsequently, the results suggested that brand trust play an imperative role in generating customers' commitment towards a brand or brand commitments towards a particular product. In other words, brand trust as one of the variables in their study would possibly effects the level of brand loyalty. Thus, brand trust is included in the theoretical framework of this research. Brand image play an important role in brand building, especially in customer dependability. As Reichheld (2001,qtd in Hsieh and Li,) perceptively state that preferable brand image will lead consumers to conceive a perception of an organization‟s public relationship practice, Page 13

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment which matches the corporate reputation better. With this in mind, customers are more likely to retain optimistic faith, attitude, and action. It must be therefore be acknowledged that customer loyalty grows fast through approving brand image. Understanding loyalty is essential for marketing practitioners as loyal customers are less likely to switch and make more purchases than similar non loyal customers (Reichheld, 1996; Reichheld and Sasser, 1990), thus if the company can retain just 5% more of its loyal customers, profits will increase by 25% - 125% (Reichheldand Sasser, 1990). Reichheld‟s (1996) is further supported by Strauss and Frost (1999), who suggest that relationship marketing is cost effective; it is less expensive to retain one customer than to acquire one; it is easier to sell more products to one loyal customer than to sell the same amount to two new customers. This means that, it is easier to persuade loyal customer than to persuade new customers. The loyal customers normally have more confidence towards the firms compared to new customers. Theoretically, brand loyalty could be enhanced by maintaining the long term relationship with the customers in that it could help in creating the competitive advantages for any particular company. Normally, in order to increase the market share, most companies are utilizing common strategies such as discounting their market prices (having price war with competing brand), expanding their distribution channels or even launching promotional campaigns (Cravens, 1994). However, it would be more cost effective and profitable to increase the market share that could be sustained over time though effectively strategizing the brand loyalty rather than using the common short-term strategies. Once the relationship or loyalty is build, it would be easier for the companies to achieve sustainable competitive advantage.

2.1.2. Studies of Product Quality In today‟s intense competitive market, the marketers are looking towards building a long term profitable business relationships with the customer. The whole marketing orientations has changed from the production concept to the marketing and societal concept. In marketing concept, the achievement of the overall organizational goals depends on how best is a company in delivering satisfactions better than the competitors (Kotler and Armstrong, 2010). From the marketing point of view, competitive advantage can be achieved through a series of intermediate objectives such as perceived quality, achieving satisfaction, greater

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment commitment and confidence on the part of customers, as well as a final objective, which is to enhance loyalty. Product quality is defined as „Differences in quality amount to differences in the quantity in the desired ingredient or attribute‟ (Abbott, 1955). As mentioned by Garwin (1984), there are 8 dimensions of quality which include performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality. Product quality can be analyzed under the concept of two different perspectives, objectives quality and perceived quality (Brunso et al., 2005). The objective to measure the quality is determined by intrinsic and extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic attributes exist in the form of non-physical but related to the product (brand name, stamp of quality, product information and etc). The differences between objective quality and perceived quality lie in that objective quality has a pre-design standard to a product, and perceived quality is influenced by internal and external product attributes which is an evaluation basis for consumers (Olshavsky, 1985; Zeithaml, 1988). Kan (2002) points out that objective quality is that consumers will use their experience and knowledge to evaluate overall product benefit, function, durability, technology and reliability when consumers purchase a product. Perceived quality is a consumer judgment on the accumulative product benefits and a subjective feeling on product quality (Zeithaml, 1988; Dodds et al., 1991).Aaker (1991) argues that perceived quality can show the salient differentiation of a product or a service and becomes a selective brand in consumers‟ mind. In order to increase the brand loyal customer base, it is suggested that an organization needs to create the awareness, reputation, image, reputation, brand extension, innovation and perceived quality of its product. It is also noted that to create brand loyalty, an organization needs to create a valued based which is preferred relationships with the customer. Product owners need to work out on the volume on relevance, emotional connectivity and customers‟ experiences in order to hook customers on stay with the said brand. Best-practice organizations recognize that the emotional aspects of their brand are reflected in how customers experience that brand across every touch point. Today's loyalty programs enable companies to execute against these opportunities by helping them better understand customer motivations, and then deliver on these unique insights through mass customization – not mass communication. (Pearson, 2006)

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment A good quality product creates customer delight. In turn, delighted customers remain loyal and talk favorably to others about the company and its product. Studies show big differences in the loyalty of customers who are less satisfied, somewhat satisfied and completely satisfied. Even a slight drop from complete satisfaction can create an enormous drop in loyalty (Kotler and Armstrong, 2010). Several researches have been done and it was noted that there are positive relationship between performance quality and customer satisfaction. However the correlation differs between one product and services to another. According to a research constructed by Croanin and Taylor (1992) who examined for businesses, found strong correlation between satisfaction and loyalty for fast food and dry cleaning. If the consumers recognize, quickly recall, and are aware of the brand, this can is a sign of quality and commitment. Thus, a buyer aware of a brand with favorable associations in her/his mind and able to recognize quality is more willing to consider this brand at the time of purchase, which leads to a favorable behavior towards the brand.

2.1.3. Studies of Brand Personality

In the business world of today, every company is trying to get the attention of the customers by creating a distinctive brand image for their products. Pepsi is often perceived by consumers as more “young,” Coke as more “real and honest,” Dr. Pepper as more “nonconformist and fun” (Aaker 1997, p. 348). These kinds of human characteristics associated with the brand are called “brand personality”. Brand personality mainly comes from three sources: the first one is the association consumers have with a brand, secondly, the image a company tries hard to create. Aaker (1997) defines brand personality as “a set of human characteristics associated to a brand.” Hence, brand personality offers the functions of self-symbolization and self-expression (Keller, 1993). Levy (1959) indicates that brand personality contains demographic features, such as gender, age and social class, and they may be directly influenced by the image of the brand users, personnel and product spokespersons, and indirectly affected by product attributes as well. Brand Personality is a differentiating element in an environment of symbolic consumption (Lannon, 1993), which is presented to the consumer as a vehicle of self-expression and the expression of an ideal (Sirgy, 1982; Malhotra, 1988), and a source of personal and social meaning (Levy, 1959; Allen & Olson, 1995; J. Aaker, 1995, 1997). Brand Personality is thus a factor that influences consumer choice and preference (Biel, 1993) and, as such, is an

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment element that generates value for the consumer and for the company (D. A. Aaker, 1991, 1996). Also a strong, favorable brand personality can provide consumers with emotional fulfillment, image enhancement, an increased willingness to remain loyal to the brand, to try a new brand or brand extension and to pay premium prices for a brand. BP can be the principle differentiation basis when there is little or no distinction other than the brand (Aaker 1997, Freling & Forbes 2005b, Venable et al 2005, Chang & Chieng 2006). Most of the authors accept the approach that considers brand personality as a set of human characteristics linked to a brand. A long term relationship between brands and loyal customers is based upon clear and string brand personality. A real and affective closure to the customer can only be achieved when a brand evokes human features. The dimensions of brand personality are supposed to be correspondent to those identified in the case of human beings by psychologists. According to Jennifer Aaker, he suggests Sincerity (typified by traits such as wholesome, down-to earth, and honest), Excitement, (typified by traits such as daring, imaginative, and exciting), Competence (typified by traits such as intelligent, secure, and confident), Sophistication (typified by traits such as glamorous, smooth, and charming) and Ruggedness (typified traits such as strong and masculine).By using various marketing approaches, a company may convey their brand personality to consumers and have the consumers of varying personality traits believe and recognize the company‟s brand personality; thus, consumers may develop some kind of relationship with the brand, which will further influence their brand loyalty. Many of the studies are conducted to show the relationship between the brand personality and the brand loyalty of the customer and the consequences have being analyzed. Additionally, it is found that by involving the concept of brand personality, the brand loyalty can be enhanced. It might be that consumers like the brands having more distinct brand personality, and it is also likely that consumers are more familiar with the brands they prefer. Consumers may likely use the brand and products in line with their own personality traits, in other words, all the marketing activities are aimed at having consumers believe and recognize a brand personality, and reinforcing the communication between the brand and the consumer (Govers and Schoormans, 2005), in order to enhance the brand‟s loyalty and equity. Mengxia (2007) investigated the Influence of brand personality on consumers‟ brand preference, affection, loyalty and purchasing intention. The results of his study shows that Page 17

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment brand personality has a positive influence on brand preference, affection, and loyalty and purchase intention. A brand personality should be shaped to be long-lasting and consistent. Besides, it should also be different from other brands and meet consumer‟s demands (Kumar et al., 2006). Also a study conducted by Kumar et al. (2006) sorted out the connection between brand personality and brand loyalty, and separately used durable goods (cars), and consumer goods (tooth-pastes) to explore the relationship between brand personality and brand loyalty.

2.1.4. Studies of Emotional Appeal Many authors have discussed about what is emotional appeal and its importance on building. Here researcher gives a theoretical based view of how we can generate brand loyalty through emotional advertising. Emotions are kinds of mental feelings, which together with moods and attitudes form the umbrella concept of affect (Bagozzi, Gopinath, and Nyer 1999). More specifically, emotion has been defined as a "mental state of readiness that arises from cognitive appraisals of events or thoughts, has a phenomenological tone, often expressed physically, accompanied by physiological processes, and may result in specific actions to affirm or cope with the emotions" (Bagozzi, Gopinath, and Nyer 1999). Holbrook and Batra (1987) called for a broadening of the unidimensional view of affect to encompass the full gamut of emotions, and these emotional reactions include not only liking and disliking, but also love, hate, fear, anger, joy, sadness, and so on. Emotions are ubiquitous throughout marketing as they influence information processing, mediate responses to persuasive appeals, and measure the effects of marketing stimuli (Bagozzi, Gopinath, and Nyer 1999). Affective responses, such as moods and feelings evoked by an advertisement are found to be antecedents of the attitude toward the ad (Batra and Ray 1986). It is widely accepted that emotions and moods trigger buying responses (Gardner 1985). How and to what extent emotional reactions to ads influence consumer decisionmaking has attracted attention from a number of researchers in recent years. Geuens and De Pelsmacker (1999) tested emotions and affect intensity on communication effects of different emotional (warm, humorous, and erotic) and non-emotional advertising appeals. They found that affect intensity seems to be mood specific, and the predicted effects of affect intensity seem to occur more in the case of warm and humorous appeals than erotic appeals

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment McGuire (1969) argues that there is no difference between emotional appeals and rational appeals in terms of the effectiveness or emotional appeals are more effective. Holbrook and Hirschman (1982) suggested that emotional appeals come from the emotional, experiential side of consumption. Choi and Thorson (1983) found that emotional ads were better than rational ads by most recall measures. Emotional appeals make a brand liked or friendly (Batra and Ray 1985). Where, Kotler and Armstrong (1991, 426-427) define emotional appeal as an: “attempt to stir up either negative or positive emotions that can motivate purchase. These include fear, guilt, surprise and shame appeals that get people to do things they should or stop doing things they shouldn‟t. Communicators also use positive emotional appeals such as love, humor, pride, hope and joy.” An appeal, according to Manrai et al. (1992), is the basic idea behind an advertisement or the basic reason why an audience should act. Emotional appeals are often strategically employed to influence consumers indirectly and make the consumer feel good about the product (Calder and Gruder 1989) relying on feelings for effectiveness (Aaker et al 1992). When it comes to changing the message receiver‟s beliefs about the advertised brand (Stafford 1993), Emotional appeal ads may have rational appeal components while rational appeal ads can have emotional appeal component respectively. Stafford (1993) suggests that both types of meanings occur in all ads and only case by case does the balance vary. However, Aaker, Stayman and Hagerty (1986) found a positive relationship between the level of warmth created by a commercial and the attitude toward the ad Page, Goldberg and Gorn (1987) also reported more positive reactions for emotional appeal advertisements than for informational appeal advertisements. Thorson and Heide (1990) also found that emotional advertisements may be more effective and memorable than rational advertisements. One of the most critical concerns advertisers express about television advertising is the potential decline of the persuasive impact on TV spots because of increasing clutters in the media environment. To make advertising appeals more distinctive and hence, perhaps more persuasive, advertisers frequently use dramatic emotional ads messages designed to “shock the emotions and make the brain itch” (Moore 1989) Such advertising executions often feature high impact, sensually evocative appeals that stimulate strong positive emotions (e.g., the Hallmark greeting card ads dramatizing precious moments and nostalgic memories in life). However, advertisers also employ graphic and sensational negative emotional advertising messages such as those used by insurance companies, healthcare institutions, drug and alcohol abuse clinics, food manufacturers Page 19

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment exploiting consumers' fears of cancer and cardiac diseases (Alsop 1988), and public service agencies making appeals to prevent child abuse or to promote the use of contraceptive devices (LaTour and Pitts 1989). Researcher has gone through the definitions of emotional appeals from different authors given in different times. Their thoughts and findings are similar somewhat but also vary as the time changes, from these definitions can get a clear view about emotional advertising and to some extend its importance. Basic purpose of emotional appeals is to engage more and more viewers into the brand and ultimately influence them to buy the product. As we know that marketing‟s basic function is to target the need of people while emotional appeal aim the hidden feelings behind that need, and then eventually through this marketers can create brand loyalty.

2.1.5. Studies of Value Proposition A value proposition is presented to customers highlighting what they get from your using products or services. Value propositions typically show benefits of the company and what the customer can expect to experience through the process. This statement should make the customer see why they should choose your company over another. The more specific a value proposition is the better. This will reduce any uncertainty among the customer and let them know upfront what they can expect. Strong value propositions will be able to grab the customers‟ attention and make them want to know more. Creating and delivering the value proposition are critical issues that marketing planners should consider in planning strategies. These days, a high level of competition and rapid changes in the market and technology make it complex for a company to sustain momentum without focusing on deliver the value that customers require. Value propositions vary across industries and across different market segments within an industry (Kaplan & Norton 1996). Capon and Hulbert (2007) linked the success of firms in the marketplace to the value provided to customers. They introduced a principle of customer value, with customer insights driving the company‟s marketing activities. Customer value should also drive investment and production decisions, because customers perceive value on the benefits of the product or service they receive. Consequently, as the environment changes, and the customer experience and their needs change, the value they seek also changes. Therefore, most companies especially leader companies invest more money in marketing research to gain deep customer insights, in order that they can shape their development plans with deep understanding of the Page 20

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment market based on recent history, which is at the “heart of positioning”. Capon and Hulbert (2007: 251) state that a clear and effective value proposition should be the basis of a firm‟s functional, psychological and economic value, with related benefits. It shows how to “gain customers and beat competitors”.

Organizations are successful when customers buy and repeat buy from them. Buying behaviors and motivations are extremely different between one and another customer. Some customers seek quality, others prefer quantity, some like a high level of service, and others desire to do things by themselves. Organizations compete in order to attract more customers to purchase and repurchase. They provide different types of marketing activity related to their strategy to satisfy customers and to provide the value expected by their customers. On the other hand, customers perceive the value provided by organizations differently. This variation occurs due to the different needs for each customer. Osterwalder and Pigneur (2003) stated that “Modeling and mapping value propositions helps better understanding of the value a company wants to offer its customers and makes it communicable between various stakeholders”.

A value proposition is an explicit promise made by a company to its customers that it will deliver a particular bundle of value creating benefits (Buttle, 2009). In other words, “the value proposition is a written statement focusing all the organization‟s market activities onto customer critical elements that create a significant differential within the customer‟s decision process, to prefer and/or purchase the organization‟s offering over a competitor‟s”(Fifield, 2007). Lanning (1998) defines the value proposition as an entire set of experiences, including value for money that an organization brings to customers. Customers may perceive this set or combination of experiences to be “superior, equal or inferior to alternatives”. According to Anderson, Narus and Rossum (2006) there are three kinds of value proposition, involving all benefits, favorable points of difference and resonating focus. All benefits are a complete list of positive features that a supplier believes its offerings might deliver to end customers as a result of good knowledge about the customers and the competitors. Favorable points of difference are the factors that distinguish the supplier‟s offerings among the next alternatives. To achieve that, detailed knowledge about the next best competitor(s) is required in order to shape the company‟s strategy. The resonating focus approach differs in two respects: more is not always better and it is better to focus on one or two key points to deliver to the target

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment customer. Suppliers in this approach must identify the elements that make their offer superior in order to demonstrate, document and communicate them clearly to the targeted customers.

Lanning (1998) stated that a superior value proposition offers breadth of resulting experiences, which may make an improvement over other scenarios of experiences. Neither internally-driven nor customer-propelled methods work well in discovering these scenarios. Managers must think like customers and listen to them. Michael Porter‟s original competitive advantage framework presented strategy decisions as a choice between whether to provide generic low-cost products and services or more differentiated and customized ones for specific market and customer segments to create and deliver the value proposition (Kaplan & Norton, 2008). Kaplan and Norton (2006) realized that customer synergies arise when retail companies consistently deliver the same value proposition across a geographically dispersed network of retail outlets. When investigating the value proposition, there should be some visible signs on customers‟ perceived value terms. According to Ravald and Gronroos (1996), customer perceived value is the trade-off between perceived benefits and perceived sacrifice (Kar, 2006). Perceived sacrifice involves all of the activities of purchasing, comparing prices, transportation and installations. Perceived benefits are the physical and technical features of the product. That means that adding more benefits and reducing sacrifices may increase customer perceived value. Fifield stated that “A successfully tested and proven value proposition is essential to a successfully differentiated business” (Fifield, 2007). As the value proposition can improve the efficiency and effectiveness of the internal process of a particular product or service, the results would be many more retained customers and cost reduction, which finally lead to satisfied shareholders, profit rise and increases in market share. Kar (2006) states that the ability of a company to provide a superior value for its customers is regarded as one of the most successful competitive strategies.

2.2. PREVIOUS STUDIES Reshma Farhat and Dr. Bilal Mustafa Khan has studied Importance of Brand Personality to Customer Loyalty. Here an attempt has been made to probe into the behaviour of a customers‟ willingness to buy a brand/product, of what are the related factors which Page 22

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment influences his buying behaviour and attitude towards the brand. An investigation is done to highlight a point of what are the influencing factors which compels him to be a loyal for a brand. The study findings suggest a conceptual model that combines the theories of brand personality with the necessary dispositional variables to explain the customer‟s loyalty processes.

Che Aniza Binti Che Wel (PHD), Syed Shah Alam, (PHD) Sallehuddin Mohd Nor have studied Factors Affecting Brand Loyalty. This study intended to examine the factors that could possible affect brand loyalty among young consumer in Malaysia. The results revealed that product involvement, perceived quality and brand trust are the major factors that affect consumer brand loyalty. Mohd Rizaimy Shaharudin, Anita Abu Hassan, Suhardi Wan Mansor has studied The Relationship between Extrinsic Attributes of Product Quality with Brand Loyalty on Malaysia. This study is about the discoveries on the relationship between extrinsic attributes of product quality with brand loyalty. It helps to extend the understanding of a commitment to re-purchase a product, due to the feelings and effects formed as a result of the perception of quality. Results obtained in this study with the earlier literature are consistence to confirm that although the product quality based on the perceived quality (extrinsic attribute) have significant influence on the brand loyalty.

Faiza Saad M.Phil. (Marketing) has studied Brand Loyalty through Emotional Advertising. In this study she gave a theoretical based view of how generate brand loyalty through emotional advertising. Plus what are the drivers of emotional appeal and how to achieve emotional satisfaction through advertising and its experience.

2.3. CHAPTER SUMMARY In this chapter, the researcher tried to discuss about the theories and the concepts relating to the brand values and brand loyalty. Literature also discusses the impact of brand values on consumer brand loyalty. So it is very useful for the third chapter of this research in order to develop and conceptualize the variables.

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CHAPTER THREE CONCEPTUALIZATION AND OPERATIONALIZATION

3.1. CONCEPTUAL FRAMEWORK The conceptual frame work is the foundation of which the entire research which used in research to outline possible courses of action or to present a preferred approach to an idea or thought. Conceptual frameworks can act like maps that give coherence to empirical inquiry. Because conceptual frameworks are potentially so close to empirical inquiry, they take different forms depending upon the research question or problem. Researcher has logically developed considering the variables relevant to the problem situation and which have been identified through past research by the researcher. Here conceptual framework will indicate the relationship between independent and the dependent variables. So by using those factors, researcher formulated the conceptual framework to describe the impact of brand values on customer brand loyalty as follows.

Figure 3.1 Conceptual Framework

Brand Values

Product Quality Brand Personality

Emotional Appeal

Degree of Impact on Customer Brand Loyalty

Value Proposition Page 24


3.2. DEFINING VARIABLES

Brand Loyalty Brand loyalty can be defined as the result from non-random, long existence behavior response, and it was a mental purchase process formed by some certain decision units who considered more than one brands. Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors

Product Quality Product quality can be defined as „Differences in quality amount to differences in the quantity in the desired ingredient or attribute‟. The product quality is determined by intrinsic and extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic attributes exist in the form of non-physical but related to the product (brand name, stamp of quality, product information and etc).

Brand Personality The brand personality is a part of the brand image. Brand personality can be defines as “the set of human characteristics associated with a brand” continues by explaining that the personality of a brand is similar to the one of a human, e.g. it possesses characteristics such as age and gender, and human personality traits such as warmth and concern. Brand personality is both consistent, long- term and that everything associated with a brand affects the personality of it. And brand personality must be similar to what the target market desires, and that it has to feel important enough to be associated with this personality.

Emotional Appeal

Emotions are kinds of mental feelings, which together with moods and attitudes form. More specifically, emotion has been defined as a "mental state of readiness that arises from Page 25

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment cognitive appraisals of events or thoughts, has a phenomenological tone, often expressed physically, accompanied by physiological processes, and may result in specific actions to affirm or cope with the emotions". These include fear, guilt, surprise and shame appeals that get people to do things they should or stop doing things they shouldn‟t. Communicators also use positive emotional appeals such as love, humor, pride, hope and joy.”

Value proposition A value proposition is presented to customers highlighting what they get from your using products or services. Value propositions typically show benefits of the company and what the customer can expect to experience through the process. This statement should make the customer see why they should choose your company over another.

3.3 FORMULATION OF HYPOTHESES Researcher analyzed the whole literature related to this study, and come up with following hypotheses.

H0: There is a significant impact of product quality on customer brand loyalty H1: There is a no significant impact of product quality on customer brand loyalty

H0: There is a significant impact of brand personality on customer brand loyalty H1: There is a no significant impact of Brand Personality on customer brand loyalty



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3.4. OPERATIONALIZATION THE CONCEPTUAL FRAMEWORK Concept

Variables

Indicators Ingredients

Measure Degree of consideration of ingredients‟ quality

Packaging

Degree of consideration of bottle shape and its

Product Quality

Standards

Health Value

Degree of consideration

Degree of consideration of health value of

Five-point Likert Scale

Five-point Likert Scale Five-point Likert Scale

product

The Effect of


Brand Values Sincerity

on Customer

of cheerful


characteristics of brand

Brand Loyalty

Drink Brands


quality

of Standardized product

towards Soft

Measure Scale


Brand Personality

Excitement

of excitement


imaginative of brand

among Youth


Segment in Sri

Competence

Lanka Social


Appeal

of social appeal

Emotional Appeal

Lifestyle Connection Value For Money

Value Proposition

of success of the brand

Experience Value Benefit Value

Degree of consideration with lifestyle connection

Five-point Likert Scale Five-point Likert Scale Five-point Likert Scale

of consumer Degree of consideration of value for money Degree of consideration of Experience Value Degree of consideration of Experience Value

Five-point Likert Scale Five-point Likert Scale Five-point Likert Scale

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3.5 CHAPTER SUMMARY Under this chapter discuss the conceptual framework of the research and how the operationalization of the conceptual framework can and discuss the independent and dependent variables broadly. In that way identify the main three independent variables and sub variables of each independent variables and dependent variable.

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CHAPTER FOUR METHODOLOGY 4.1 INTRODUCTION This chapter contains the description of the research design, data collection, population, sampling procedure, data presentation and data analysis content. Under the chapter one covered the background of the study, industry overview, objective of the study, develop hypotheses, significant of the study etc. after second chapter discussed the literature regarding the topic of the impact of brand values on customer brand loyalty. The purpose of the study is to identify the impact of brand values on customer brand loyalty in youth segment. Extract the most relevant information from the resources is important, definition of the research objective are focused. Having a solid objective avoiding research distracted by other irrelevant elements and keeps the study within certain field & helps to ask the right questions regarding how to use brand values to build a loyal customer base in youth segment.

4.2. METHODOLOGICAL CHOICE

4.2.1. Research Approach There are two methods available for selecting research approach. Those are as follows, 

Inductive method: In this method, based on observations and other research findings, the

researcher prepares a theory. 

Deductive method: In this method researcher uses conventional theory to develop

hypothesis which are being tested to analyze the findings and to made conclusions to justify those hypothesis. The Deductive method will be used in conducting this research. This is to develop a theory and hypothesis (or hypotheses) and design a research to test the hypothesis (Sunders et al., 1996).

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 4.2.2. Research Design

The research design is a plan for addressing the research objectives or hypotheses. The researcher

develops

a

structure

or

framework

to

answer

a

specific

research

problem/opportunity. There are mainly three types of research design. Those are exploratory, descriptive and causal. This study is quantitative and causal and mainly depends on the answers of the responders. Because investigate whether the value of one variable causes or determines the value of another variable, in an attempt to establish linkage between them. In here it primarily based on four fundamentals the Product Quality, Brand personality, Emotional appeal, & Value Proposition as independent variables. Data collection is focused on the sub elements in each four elements. One questionnaire has been developed for data collection from the customers.

4.3. METHOD OF DATA COLLECTION The data was collected under mainly two categories as primary data collection methods and secondary data collecting methods. Following sources are the key sources, which were used to gather information needed to achieve research objective

4.3.1 Primary Data Collection

This research is a quantitative research where sources data for the study will be gathered through a structured questionnaire. The Questionnaire method considered as the prime tool of data collecting. With the questionnaire method, the accuracy and reliability of the data are secured. The study was mainly conducted by using questionnaires. The well prepared questionnaire was used to gather essential data from the customers. All variables are operationalized using the literature on brand values and customer brand loyalty. This study is interested in describing the characteristics of a population or phenomenon. This study also use hypotheses testing to examine how brand image impact on customer brand loyalty in youth segment, and the questionnaire will includes questions to examine it.

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 4.3.2 Secondary Data Collection

Secondary data consist of information that has already been gathered and might be relevant to the problem at hand (McDaniel & Gates 2008:72). The secondary data will be gathered by reports articles, journals and books. And Some Statistics gathered from Central bank of Sri Lanka and Census and statistics department.

4.4 THE SAMPLING PLAN

4.4.1 Population

The objective of this Research was to investigate the impact of brand values on customer brand loyalty towards carbonate soft drink among youth segment. So the population was young between age 15 and 30 in Sri Lanka.

4.4.2 Sample

Probability sampling techniques were used in this research for sample selection. The sampling technique used was a mix of convenience sampling and simple random sampling. Therefore there was no sample frame used in selecting respondents, which lead to a nonprobability sampling techniques. The research is focused only on Colombo and Gampaha districts and hopes to get the information from respondents who are representing those Districts. The total sample was consisted with 100 numbers of customers in Colombo and Gampaha district with the age limit of within 15-30 Additionally in order to enhance the representation of the selected sample the researcher collected data from different office staffs, University students and School students

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4.5. MEASURING SCALE All items in the questionnaire were measured on a five-point Likert scale. In that way measure the impact of brand values towards the customer brand loyalty. There are 4 types of independent variables and one dependent variable. Figure 4.1 Five-point Likert Scale

1. Strongly Disagree

2. Disagree

3. Neutral

4. Agree

5. Strongly Agree

4.6 DATA ANALYSIS After collecting data which has gathered by the questionnaires analyze & interpret to identify the solution for the research problem. Each question in the questionnaire has analyzed critically in order to analyze the each research question separately. For data analysis purpose, researcher was use prominent data analyzing software called SPSS. As the analytical tools, hypothesis testing and standard deviation were used. With the help of SPSS analysis system used data tables to represent the numerical figures of finding as well as Bar charts and Pie charts are used to show those findings graphically. Because of that users and decision makers may able to understand the information and to get correct decision on research. Microsoft Excel will also be used to assist the data analysis process. Descriptive analysis will be done for the calculation of Mean, Standard deviation, Frequencies, and percentages for the Independent and Dependent Variables. Pearson‟s Correlation will be used to measure the strength of the linear relationship between two variables by measuring the degree of „scatter‟ of the data values. This reflects whether the theory is true or false. The analyses will enable to examine the individual relationship between the independent variables and dependent variable.

Page 32


4.7 CHAPTER SUMMARY Under this chapter discuss how the research was done by the researcher. In that way discuss the sample design, data collection, data analysis technique, measuring techniques of the data.

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CHAPTER FIVE DATA PRESENTATION AND ANALYSIS

5.1 INTRODUCTION This chapter deals with the presentation of data on the basis of dependent variables and independent variables of the research model and statistical analysis. Statistical tools such as mean, mode, frequencies, correlation are used to test the hypotheses and objectives taken in the study. And also relative importance of the independent variables was presented in this chapter based on the responses given through the questionnaire of research.

5.2 ANALYSIS OF DEMOGRAPHIC STATISTICS 5.2.1 Analysis of “Gender”

Figure 5.1 Gender Category 80 70

68

60 50 40

32

30 20 10 0 Male

Female

Source: Survey Data 2012

The questionnaire was collected from 100 respondents. Those 100 respondents comprise with 68 males and 32 females. (Table 5.1 attached in Appendix)

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 5.2.2 Analysis of “Age” Category Figure 5.2 Age Category

13%

22%

15-20 21-25 65%

26-30


The researcher used three age category with the age limit of 15-30 for conduct the research. Because the objective of this Research was to investigate the impact of brand values on customer brand loyalty towards carbonate soft drink among youth segment. The researcher used the three age category for conduct the research namely 15-20, 21-25 and 26-30. The majority of respondents were age between 21-25 years old, & that was 65%. (Table 5.2 attached in Appendix) 5.2.3 Analysis of “Income Level” Figure 5.3 Income level

15%

2% Less than Rs.10000 42%

23%

Rs.10000-Rs.20000 Rs.20000-Rs.30000

18%

Rs.30000-Rs.40000 Rs.40000 above


Page 35

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 42% respondents had selected „less than Rs. 10000‟ category as their income level. 18% respondents were having an income between Rs. 10000 – Rs. 20000 where as 23% of the total sample were having an income between Rs. 20000 & Rs. 30000. However this indicates that majority of the sample was having less spending ability with an income level less than Rs. 10000.Because of the sample is consist significant amount of school students and university students. (Table 5.3 attached in Appendix) 5.2.4 Analysis of “Occupation” Figure 5.4 Occupation Student

1% 8%

Unemployed

7%

28%

Trainee Executive-Private

24%

1% ExecutiveGovernment 32%

Manager Self Employed


When considering about the occupation, almost 28% of the total sample were representing the Students. Since undergraduates & school students represent the youth segment of the society, the researcher has accessed the University crowd & school students above age of 15. However the sample also included 32% of trainees because of most of senior students of universities have joined with companies as trainees. (Table 5.4 attached in Appendix)

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5.3. ANALYSIS OF OTHER APPROACHING QUESTIONS

5.3.1 Analysis of most favorite soft drink brand Figure 5.5 Most favorite soft drink brands 30%

28%

25% 20%

19% 14%

15%

11% 10%

8%

7%

6%

4%

5%

3%

0% Coca-Cola

Pepsi

Fanta

Elephant Portello Cream Soda

EGB

Sprite

7up

Others


According to research among 100 respondent‟s 28 persons select Elephant Cream Soda as their first choice. Coca-Cola has the second place in the market as 19 respondents have Select Coca-cola as their first preference. Another Cola brand Pepsi has third place in the market according to research. Fanta has been selected by 11 respondents as their most favorite brand. Cola and Pepsi has significant market share. The reason of that they are international brands and world famous brands. (Table 5.5 attached in Appendix)

5.3.2 Analysis of importance of brand values Respondents were asked to rank the brand values soft drinks. The brands values are provided to rank are taste and quality, value for money, taste and quality, brand image, design & associated feelings.

Page 37

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.6 Importance of brand values Taste & Quality Value for Money Brand Image Design Associate Feelings Total

Rank 1 74 2 21 0

Rank 2 10 38 41 6

Rank 3 14 16 35 31

3 100

5 100

4 100

Rank 4 2 17 2 44

Rank 5 0 27 1 19

Total 100 100 100 100

35 53 100 100 100 Source: Survey Data 2012

Figure 5.6 Importance of brand values 80 70 60 Taste & Quality

50

Value for Money 40

Brand Image

30

Design

20

Associate Feelings

10 0 Rank 1

Rank 2

Rank 3

Rank 4

Rank 5

According to findings most of people give their attention firstly for the taste and quality. From the sample of 100 respondents, 74 respondents had stated Taste and quality was their mostly important brand value. 21% of the respondents had ranked brand image as first. But only 2% of the respondents have ranked value for money as first. 41 respondents had selected brand image as second while 38% of the respondents had ranked value for money as second.44% has ranked design as fourth. These results show that consumers within the sample mostly preferred brand value is taste and quality. A significant portion of respondents had revealed that they prefer to taste and quality mostly. They exhibit a less tendency towards associate feelings, while the respondents within the sample holding a moderate prefer with brand image.

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5.4. ANALYSIS OF VARIABLES

5.4.1 Analysis of Product Quality

5.4.1.1 Analysis of impact of quality of ingredients

Researcher took product quality as first variable under the independent variable. Quality of ingredients was one of the main indicators used to identify the impact of product quality on brand loyalty towards soft drinks. Respondents were asked whether they become loyal for a soft drink brand based on the quality of ingredients. Because the high quality of ingredients could be increase the brand loyalty

Table 5.7 Impact of quality of ingredients

Valid

Frequency 2

Percent 2.0

Valid Percent 2.0

Cumulative Percent 2.0

Neutral

12

12.0

12.0

14.0

Agree

54

54.0

54.0

68.0

Strongly Agree

32

32.0

32.0

100.0

100

100.0

100.0

Disagree

Total

Source: Survey Data 2012 Figure 5.7 Impact of quality of ingredients 60

54

50 40

32

30 20

12

10 0

2

Strongly Disgree

Disagree

0 Neutral

Agree

Strongly Agree

Page 39

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.8 Impact of quality of ingredients-Mean N

Valid Missing

100 0 4.1600 4.00 .70668

Mean Mode Std. Deviation Source: Survey Data 2012

Out of the 100 respondents 32% were strongly agreed to the statement & 54% respondents were agreed with the statement. 12 respondents have said they are neutral with the statement and 2 respondents disagreed with the statement. Table 5.8 shows the mean value is 4.16 which higher than neutral value. This shows that majority of the sample was considering the quality of ingredients when they become for a soft drink brand.

5.4.1.2 Analysis of impact of bottle shape

The second indicator of product quality was packaging. When considering the packaging of soft drink it is bottle. So here the respondents were asked whether the bottle shape is an important factor when they become loyal for a soft drink brand.

Table 5.9 Impact of bottle shape

Valid

Frequency 3

Percent 3.0

Valid Percent 3.0


Disagree

23

23.0

23.0

26.0

Neutral

31

31.0

31.0

57.0

Agree

34

34.0

34.0

91.0

9

9.0

9.0

100.0

100

100.0

100.0

Strongly Disagree

Strongly Agree Total


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Figure 5.8 Impact of bottle shape 40 34

35

31

30 23

25 20 15

9

10 5

3

0 Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Table 5.10 Impact of bottle shape-Mean N

Valid Missing

Mean Mode Std. Deviation Source: Survey Data 2012

100 0 3.2300 4.00 1.00358

34% respondents were agreed with the statement & 9% respondents were strongly agreed with it. However 31% respondents were neutral with the statement.23 respondent said disagree with the statement while 3 respondents said they are strongly disagreeing with it. Table 5.10 shows the mean value is 3.23 This indicates the bottle shape is not a so much important factor when become loyal for a soft drink brand. It has an average impact on it.

5.4.1.3 Analysis of impact of standardized product

Next the respondents were asked whether Standardized product offering is an essential factor for them when they buy a soft drink. This question was asked to measure the indicator product standard Page 41


Table 5.11 Impact of standardized product

Valid

Frequency 5

Percent 5.0

Valid Percent 5.0


Neutral

9

9.0

9.0

14.0

Agree

74

74.0

74.0

88.0

Strongly Agree

12

12.0

12.0

100.0

100

100.0

100.0

Disagree

Total

Source: Survey Data 2012 Figure 5.9 Impact of standardized product 80

74

70 60 50 40 30 20 10

5

12

9

0 0 Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Table 5.12 Impact of standardized product-Mean N

Valid Missing

100 0 Mean 3.9300 Mode 4.00 Std. Deviation .63968 Source: Survey Data 2012 According to findings 74% respondents were agreed with the statement & 12% respondents were strongly agreed with it. 9% respondents were neutral on the statement. Only 5 respondents were disagreed. Table 5.12 shows the mean value is 3.93 which say that they usually expect standardized product when they buy a soft drink.

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The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 5.4.1.4 Analysis of impact of health values

The final main indicator used under the independent variable Product quality is health values of product. Respondents were asked whether health values of the product gain their loyalty towards that particular soft drink brand.

Table 5.13 Impact of health values of the product

Valid

Frequency 3

Percent 3.0

Valid Percent 3.0


Neutral

6

6.0

6.0

9.0

Agree

66

66.0

66.0

75.0

Strongly Agree

25

25.0

25.0

100.0

100

100.0

100.0

Disagree

Total

Source: Survey Data 2012 Figure 5.10 Impact of health values of the product 66

70 60 50 40 30

25

20 10 0

3

6

0 Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Table 5.14 Impact of health values of the product-Mean N

Valid Missing

100 0 Mean 4.1300 Mode 4.00 Std. Deviation .64597 Source: Survey Data 2012 Page 43


From the total sample, 66 respondents were agreed with the statement & 25 respondents were strongly agreed with it. But 6 were neutral & 3 respondents said they were not considering about the health values when purchasing a soft drink by disagree the statement. Table 5.14 shows the mean value is 4.13 which higher than neutral value. Those results demonstrate that most of the sample respondents are considering about the health values when purchasing a soft drink.

5.4.1.5 Analysis of impact of product quality for repurchases

Next the respondents were asked whether overall product quality influence them to repurchase that particular soft drink brand.

Table 5.15 Impact of product quality for repurchases

Valid

Agree Strongly Agree Total

Frequency 68

Percent 68.0

Valid Percent 68.0


32

32.0

32.0

100.0

100

100.0

100.0


Figure 5.11 Impact of product quality for repurchases 80 68

70 60 50 40

32

30 20 10 0

0

0

Strongly Disagree

Disagree

Neutral

0 Agree

Strongly Agree

Page 44

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.16 Impact of product quality for repurchases-Mean N

Valid Missing

100 0 Mean 4.3200 Mode 4.00 Std. Deviation .46883 Source: Survey Data 2012 The above table clearly shows 68% respondents were agreed with the statement & 32% respondents were strongly agreed with it. Table 5.16 shows the mean value is 4.32 which higher than neutral value. The results clearly indicate that majority of the respondents repurchase the particular soft drink brand if it has a good product quality.

5.4.2 Analysis of Brand Personality

5.4.2.1 Analysis of impact of cheerful characteristics

Under the second independent variable Brand Personality, Sincerity was taken as first indicator used to identify the impact of brand personality on brand loyalty. To measure it, the respondents were asked whether cheerful characteristics of the brand increase the loyalty of them for a soft drink brand.

Table 5.17 Impact of cheerful characteristics

Valid

Frequency 9

Percent 9.0

Valid Percent 9.0


Neutral

27

27.0

27.0

36.0

Agree

61

61.0

61.0

97.0

3

3.0

3.0

100.0

100

100.0

100.0

Disagree



Page 45

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Figure 5.12 Impact of cheerful characteristics 70 61 60 50 40 27

30 20 10

9 3

0 Disagree

Neutral

Agree

Strongly Agree

Table 5.18 Impact of cheerful characteristics-Mean N

Valid Missing

100 0 Mean 3.5800 Mode 4.00 Std. Deviation .69892 Source: Survey Data 2012

From the total sample, 61% respondents were agreed and 3% of respondents were strongly agreed with the statement. However 27% respondents were neutral on the statement. Only 9% of the respondents had disagreed with statement. Table 5.18 shows the mean value is 3.58 which indicate that majority of the respondents like to cheerful characteristics of the brand when they loyal for a soft drink brand.

5.4.2.2 Analysis of impact of excitement imaginative

Table 5.19 mention the summary of the results gathered from asking whether excitement imaginative of the brand increase the loyalty of them for a soft drink brand. This question was asked to measure the indicator excitement under the Brand personality.

Page 46

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.19 Impact of excitement imaginative

Valid

Frequency 8

Percent 8.0

Valid Percent 8.0


Neutral

38

38.0

38.0

46.0

Agree

46

46.0

46.0

92.0

8

8.0

8.0

100.0

100

100.0

100.0

Disagree



Figure 5.13 Impact of excitement imaginative 50 45 40 35 30 25 20 15 10 5 0

46 38

8

Disagree

8

Neutral

Agree

Strongly Agree

Table 5.20 Impact of excitement imaginative-Mean N

Valid Missing


From the total sample of 100, 46 respondents were agreed and 8 respondents were strongly agreed with the statement. However 38 respondents were neutral on the statement. Only 8 respondents had disagreed with statement. Table 5.20 shows the mean value is 3.54 Results demonstrate that nearly half of the sample respondents said excitement imaginative can gain their loyalty towards a soft drink brand.

Page 47

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 5.4.2.3 Analysis of impact of success of the brand

Next the respondents were asked whether Success of brand in the market is important when become loyal for soft drink brand. This question was asked to measure the indicator of Competence.

Table 5.21 Impact of success of the brand in the market

Valid

Frequency 6

Percent 6.0

Valid Percent 6.0


Neutral

22

22.0

22.0

28.0

Agree

59

59.0

59.0

87.0

Strongly Agree

13

13.0

13.0

100.0

100

100.0

100.0

Disagree

Total

Source: Survey Data 2012 Figure 5.14 Impact of success of the brand in the market 70 59

60 50 40 30 22 20 10

13 6

0 Disagree

Neutral

Agree

Strongly Agree

Table 5.22 Impact of success of the brand in the market-Mean N

Valid Missing

100 0 Mean 3.7900 Mode 4.00 Std. Deviation .74257 Source: Survey Data 2012 Page 48

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment According to the findings 59% respondents were agreed with the statement & 13% respondents were strongly agreed with it. But 22% respondents were neutral on the statement. Only 6% respondents were disagreed. Table 5.22 shows the mean value is 3.79. These results says that they usually look whether that brand is success or not in the market. 5.4.2.4 Analysis of impact of brand personality for repeat purchases

Next the respondents were asked whether overall brand personality influence them to repeat purchase that particular soft drink brand

Table 5.23 Impact of brand personality for repeat purchases

Valid

Frequency 18

Percent 18.0

Valid Percent 18.0


Agree

68

68.0

68.0

86.0

Strongly Agree

14

14.0

14.0

100.0

100

100.0

100.0

Neutral

Total

Source: Survey Data 2012 Figure 5.15 Impact of brand personality for repeat purchases 80 68

70 60 50 40 30 18

20

14

10 0

0

Strongly Disagree

Disagree

0 Neutral

Agree

Strongly Agree

Page 49

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.24 Impact of brand personality for repeat purchases-Mean N

Valid Missing

Mean

100 0 3.9600

Mode

4.00

Std. Deviation

.56711


Table 5.23 clearly shows 68% respondents were agreed with the statement & 14% respondents were strongly agreed with it. 18% respondents are neutral on the statement. And Table 5.24 shows the mean value is 3.96. The results clearly indicate that majority of the respondents repurchase the particular soft drink brand if it has a good brand personality.

5.4.3 Analysis of Emotional Appeal

5.4.3.1 Analysis of impact of social appeal

Third independent variable was Emotional Appeal. Social appeal was taken as first indicator to measure the impact of emotional appeal on brand loyalty of soft drink brand. Here the respondents were asked whether Social appeals (Love, Friendship) of the brand attracted them to be aware of soft drink brand.

Table 5.25 Impact of social appeal

Valid

Frequency 7

Percent 7.0

Valid Percent 7.0


Neutral

49

49.0

49.0

56.0

Agree

42

42.0

42.0

98.0

2

2.0

2.0

100.0

100

100.0

100.0

Disagree



Page 50

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Figure 5.16 Impact of social appeal 60 49

50

42 40 30 20 10

7 2

0 Disagree

Neutral

Agree

Strongly Agree

Table 5.26 Impact of social appeal-Mean N

Valid Missing


Table 5.25 clearly shows that 42% respondents agreed with the statement and 2% respondents strongly agreed. But 49% respondents were neutral on the statement and 7% disagreed. And Table 5.24 shows the mean value is 3.39. So, a clear statement cannot be made as there is a highly impact of social appeal on brand loyalty

5.4.3.2 Analysis of impact of Lifestyle Connection

The second indicator was Life style connection under the variable of emotional appeal. Here the respondents were asked whether Life style connection of the brand retain their awareness for a soft drink brand

Page 51

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.27 Impact of lifestyle connection

Valid

Frequency 2

Percent 2.0

Valid Percent 2.0


Neutral

35

35.0

35.0

37.0

Agree

59

59.0

59.0

96.0

4

4.0

4.0

100.0

100

100.0

100.0

Disagree



Figure 5.17 Impact of lifestyle connection 70 59

60 50 40

35

30 20 10

4

2 0 Disagree

Neutral

Agree

Strongly Agree

Table 5.28 Impact of lifestyle connection-Mean N

Valid Missing


From the total sample, 59% respondents were agreed and 4% of respondents were strongly agreed with the statement. However 35% respondents were neutral on the statement. Only 2% of the respondents had disagreed with statement.

Page 52

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.26 shows the mean value is 3.65. Most of the respondents of the total sample agreeing with the statement stated that they actually relate their lifestyles with Soft drink brand they use.

5.4.3.3 Analysis of impact of emotional appeals for repeat purchases

Next the respondents were asked whether overall emotional appeal influence them to repurchase that particular soft drink brand

Table 5.29 Impact of emotional appeals for repeat purchases

Valid

Percent 2.0

Valid Percent 2.0

Cumulati ve Percent 2.0

51

51.0

51.0

53.0

42

42.0

42.0

95.0

5

5.0

5.0

100.0

100

100.0

100.0

Frequen cy 2

Neutral Agree

Disagree



Figure 5.18 Impact of emotional appeals for repeat purchases 60 51 50 42 40 30 20 10

5

2 0 Disagree

Neutral

Agree

Strongly Agree

Page 53


Table 5.30 Impact of emotional appeals for repeat purchases-Mean N

Valid Missin g

100 0

Mean 3.5000 Mode 3.00 Std. Deviation .62765 Source: Survey Data 2012 Table 5.29 shows 42% respondents were agreed with the statement & 5% respondents were strongly agreed with it. But the majority of the sample 51% respondents are neutral with the statement. Table 5.28 shows the mean value is 3.5. The results indicate that there is an impact of emotional appeal on repurchases the particular soft drink brand.

5.4.4 Analysis of Value Proposition

5.4.4.1 Analysis of impact of value for money

The final independent variable was Value proposition. Under this firstly respondents were asked whether getting a value for money which they pay is an essential factor when they buy a soft drink. This question asked to measure the indicator Value for money.

Table 5.31 Impact of value for money

Valid

Percent 4.0

Valid Percent 4.0

Cumulati ve Percent 4.0

80

80.0

80.0

84.0

16

16.0

16.0

100.0

100

100.0

100.0

Frequen cy 4

Agree Strongly Agree

Neutral

Total


Page 54


Figure 5.19 Impact of value for money 90

80

80 70 60 50 40 30 16

20 10

4

0 Neutral

Agree

Strongly Agree

Table 5.32 Impact of value for money-Mean N Valid 100 Missing 0 Mean 4.1200 Mode 4.00 Std. Deviation .43298 Source: Survey Data 2012

Out of the total sample, 80 respondents were agreed & 16 respondents were strongly agreed with the statement. These two kinds of respondents represent 96% of the total sample which is a significant proportion. There are not any respondent disagreed with the statement where 4 respondent on neutral. Table 5.30 shows the mean value is 4.12 which higher than neutral value. The results indicate that a larger portion of the respondents in the sample expect significant value for money which they for a soft drink.

5.4.4.2 Analysis of impact of experience value Next the respondents were asked whether experience value of the soft drink get my loyalty towards soft drink brand. This question was asked to measure the indicator of experience value under the value proposition.

Page 55

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.33 Impact of experience value

Valid

Frequency 13

Percent 13.0

Valid Percent 13.0


Agree

74

74.0

74.0

87.0

Strongly Agree

13

13.0

13.0

100.0

100

100.0

100.0

Neutral

Total

Source: Survey Data 2012 Figure 5.20 Impact of experience value 80

74

70 60 50 40 30 20

13

13

10 0 Neutral

Agree

Strongly Agree

Table 5.34 Impact of experience value-Mean N Valid 100 Missing 0 Mean 4.0000 Mode 4.00 Std. Deviation .51247 Source: Survey Data 2012

According to findings 74% respondents were agreed with the statement & 13% respondents were strongly agreed with it. 13% respondents were neutral on the statement. Here also not a single respondent disagreed with the statement. Table 5.34 shows the mean value is 4.12 which higher than neutral value. This result says that they usually look for the experience value of soft drink.

Page 56

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 5.4.4.3 Analysis of impact of benefit value Table 5.35 Impact of benefit value

Valid

Frequency 4

Percent 4.0

Valid Percent 4.0


Neutral

19

19.0

19.0

23.0

Agree

75

75.0

75.0

98.0

2

2.0

2.0

100.0

100

100.0

100.0

Disagree



Figure 5.21 Impact of benefit value 80

75

70 60 50 40 30 19

20 10

4

2

0 Disagree

Neutral

Agree

Strongly Agree

Table 5.36 Impact of benefit value-Mean N Valid 100 Missing 0 Mean 3.7500 Mode 4.00 Std. Deviation .55732 Source: Survey Data 2012

The final indicator which used under the independent variable value proposition was benefit value. The respondents were asked whether they become loyal for a soft drink brand based on the benefit value of soft drink.

Page 57

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment The above table clearly shows that 75% respondents agreed with the statement and 2% respondents strongly agreed. Here 19% respondents were neutral on the statement where 7% disagreed. Table 5.36 shows the mean value is 3.75 which can be made a statement as there is an impact of benefit value on brand loyalty.

5.4.4.4 Analysis of impact of value proposition for repeat purchases

Next the respondents were asked whether overall experience and benefits influence them to repurchase that particular soft drink brand.

Table 5.37 Impact of value proposition for repeat purchases

Valid

Frequency 9

Percent 9.0

Valid Percent 9.0


Agree

79

79.0

79.0

88.0

Strongly Agree

12

12.0

12.0

100.0

100

100.0

100.0

Neutral

Total


Figure 5.22 Impact of value proposition for repeat purchases 90 79

80 70 60 50 40 30 20 10

12

9 0

0

Strongly Disagree

Disagree

0 Neutral

Agree

Strongly Agree

Page 58

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.38 Impact of value proposition for repeat purchases-Mean N Valid 100 Missing 0 Mean 4.0300 Mode 4.00 Std. Deviation .45958 Source: Survey Data 2012 Table 5.36 clearly shows 79% respondents were agreed with the statement & 12% respondents were strongly agreed with it. Not a single respondent disagreed with the statement while 9% neutral on the statement. Table 5.38 shows the mean value is 4.03. The results clearly indicate that majority of the respondents repurchase the particular soft drink brand if it has a good value proposition.

5.5. CORRELATION ANALYSIS AND TESTING HYPOTHESES Pearson‟s Product Moment Correlation Coefficient test was conducted to identify the sensitiveness and the responsiveness between the variables in this research and to classify its significance and direction of the relationships. The correlation analysis has been done in many researches to fulfill the above requirements. The researcher of this study also will apply correlation analysis to independent and dependent variables to test the hypothesis built in chapter 04. Both correlation analysis and hypothesis testing will be done parallel. Proposed four hypotheses will be tested here.

5.5.1. Hypothesis testing of 1st variable (Product Quality)

H0: There is a significant impact of product quality on customer brand loyalty H1: There is a no significant impact of product quality on customer brand loyalty

Page 59


Table 5.39 Relationship of product quality and brand loyalty Correlations

Product_Quality

Product_Quality

Brand_Loyalty

1

.209

Pearson Correlation Sig. (2-tailed) N

Brand_Loyalty

*

.037 100

100

*

1

Pearson Correlation

.209

Sig. (2-tailed)

.037

N

100

100

*. Correlation is significant at the 0.05 level (2-tailed).


Hypothesis is accepted. There has a relationship with the Product quality and Brand Loyalty. The relationship is between Product quality and Brand Loyalty which is 0.209. All Correlations are significant at the 0.05 level. Here we can see that not the stronger relationship is there but there is moderate relationship with Product quality and Brand Loyalty. However far as mean values of sub variables of product quality are concerned (depicted in table 5.8, 5.10, 5.12, 5.14). The total product quality variable mean value is 3.8625 which mean there is a relationship with Product quality and Brand Loyalty Since there is a significant relationship between brand loyalty and product quality, the null hypothesis, “There is no significant relationship between Product quality and Brand Loyalty of soft drinks brand.” is rejected and H1 is accepted.

5.5.2. Hypothesis testing of 2nd variable (Brand Personality)

H0: There is a significant impact of brand personality on customer brand loyalty H1: There is a no significant impact of brand personality on customer brand loyalty

Page 60

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Table 5.40 Relationship of Brand Personality and brand loyalty Correlations Brand_Personal ity Brand_Personality

Pearson Correlation

Brand_Loyalty 1

Sig. (2-tailed) N Brand_Loyalty

Pearson Correlation

.404

**

.000 100

100

**

1

.404

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis is accepted The above correlation analysis clearly shows that there is a significant relationship between brand personality and brand loyalty of soft drinks brands. Because of the relationship between the two variables is calculated to 0. 404. However far as mean values of sub variables of brand personality are concerned (depicted in table 5.18, 5.20, and 5.22).So there is a relationship with Product quality and Brand Loyalty.

Since there is a significant relationship between brand loyalty and brand personality of soft drink brand, the null hypothesis, “There is no significant relationship between brand loyalty and brand personality” is therefore rejected. Also it can be stated that since the significance level (p value) is 0.000 there is a statistically significant relationship

5.5.3. Hypothesis testing of 3rd variable (Emotional Appeal)


Page 61


Table 5.41 Relationship of emotional appeal and brand loyalty Correlations Emotional_App eal Emotional_Appeal

Pearson Correlation

Brand_Loyalty 1

Sig. (2-tailed) N Brand_Loyalty

Pearson Correlation

.382

**

.000 100

100

**

1

.382

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis is accepted The above correlation analysis clearly shows that there is a significant relationship between emotional appeal and brand loyalty of soft drinks brands. Because of the relationship between the two variables is calculated to 0. 382. However far as mean values of sub variables of emotional appeal are concerned (depicted in table 5.26, 5.28). The total emotional appeal variable mean value is 3.52 which mean there is a relationship with emotional appeal and Brand Loyalty

Since there is a significant relationship between brand loyalty and emotional appeal of soft drink brand, the null hypothesis, “There is no significant relationship between brand loyalty and brand personality” is rejected. Also it can be stated that since the significance level (p value) is 0.000 there is a statistically significant relationship between the two variables and are linearly related.

5.5.4. Hypothesis testing of 4th variable (Value Proposition)


Page 62


Table 5.42 Relationship of value proposition and brand loyalty Correlations Value_Propositi on Value_Proposition

Brand_Loyalty

Pearson Correlation

1

Sig. (2-tailed)

Brand_Loyalty

.095 .345

N

100

100

Pearson Correlation

.095

1

Sig. (2-tailed)

.345

N

100

100


Hypothesis is accepted There has a relationship with the value proposition and brand loyalty. The relationship is between value proposition and brand loyalty which is 0.095. Here we can see that not the stronger relationship is there but there is less relationship with value proposition and brand loyalty. However far as mean values of sub variables of value proposition are concerned (depicted in table 5.32, 5.34, 5.36). The total value proposition variable mean value is 3.9567 which mean there is a relationship with Product quality and Brand Loyalty

Since there is a significant relationship between brand loyalty and value proposition, the null hypothesis, “There is no significant relationship between value proposition and brand loyalty of soft drinks brand.” is therefore rejected and H1 is accepted.

5.6 CHAPTER SUMMARY

Under this chapter discuss the main part of the research that is the analysis of the collection data. That is the most critical part of the research in that way use the mean, mode, standard deviation for analysis the independent and dependent variables finally discuss the hypotheses that way use the correlation for test the hypotheses. Page 63


CHAPTER SIX CONCLUTION AND RECOMMENDATIONS

6.1. INRODUCTION This chapter is focused on drawing out conclusion from the analysis and discussion performed in the previous chapters and give recommendations. Also this chapter includes some suggestions for future researches. The gathered data which were analyzed; interpreted and tested hypotheses will be then used give an overall summary and conclusion for this study with regards to determine the impact of brand values on brand loyalty towards soft drinks.

6.2. OVERALL SUMMARY OF STUDY The key objective of this study was to determine the impact of brand values on customer brand loyalty towards soft drink in youth segment in Sri Lankan market. Before all, researcher has done a broad analysis for brand values as well as the brand loyalty concept. The key objective then divided into specific sub objectives according to the independent variables found in previous literatures. The significance of this study was lack of previous researches carried out in this nature. In global context more researches can be found which were done on the some brand values and impact to brand loyalty. In this research, brand values like product quality, brand personality, emotional appeal, and value proposition are the independent variables and customer brand loyalty is dependent variable. Hypotheses were developed through the past literature available to test the relationships with the brand values and customer brand loyalty.

Population of this research is youth age between 15 & 30 in Sri Lanka and by using convenience sampling method researcher select 100 respondents as the sample from two districts in Sri Lanka called Colombo, and Gampaha to represent whole country. The data collected through the questionnaire has been tabulated for meaningful analysis and ease of interpretation. The data will be analyzed using mathematical techniques to identify and Page 64

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment validate the theory that is to be justified. Primarily Descriptive analysis and Pearson‟s Correlation techniques of data analysis were mainly used in this study. A number of relationships were identified through the testing hypotheses which were done in previous chapter. The findings of this research were discussed thoroughly with the backing of literature in a line with the objectives of this research been fulfilled. So the findings of research will be highly useful for the soft drink companies who are playing in the industry, and companies are planning to enter the soft drink market. And advertising agencies are also benefited because they can identify which brand values should emphasis in their advertising campaigns when they advertise a soft drink brand.

6.3. SUMMARY OF THE FINDINGS

There is an impact of product quality on customer brand loyalty Qualities of ingredients, bottle shape, standards of product and health values of product are measured under the product quality. 

The impact for brand loyalty by product quality is most affected by qualities of ingredients (Mean value is 4.16)

There is an impact of brand personality on customer brand loyalty Sincerity, excitement, competence are measured under the brand personality. 

The impact for brand loyalty by brand personality is most affected by success of the brand which use measure the competence. (Mean value is 3.79)

There is an impact of emotional appeal on customer brand loyalty Social appeal and lifestyle connection are measured under the emotional appeal. 

The impact for brand loyalty by emotional appeal is most affected by lifestyle connection due to consumers match their lifestyles with Soft drink brand. (Mean value is 3.65)

Page 65

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment There is an impact of value proposition on customer brand loyalty

Value for money, experience value and benefit value are measured under the value proposition. 

The impact for brand loyalty by value proposition is most affected by value for money. They expect perceived value for money that they pay. (Mean value is 4.12)

6.4. CONCLUSION AND RECOMMENDATION Throughout this study, researcher has tried to accomplish the key objective by using dependent and independent variables. It is to assess the impact of brand values on customer brand loyalty towards soft drink in youth segment in Sri Lankan market. Testing hypotheses as well as other analysis has someway proved the impact of brand values on customer brand loyalty towards soft drink. Here the notable thing is some of factors of variables highly impact on customer brand loyalty. So it is important for the soft drink companies who are playing in the industry, and companies are planning to enter the soft drink market when build a value for their brands. Soft drink is an important product item in modern society both urban and rural areas. Consumers mainly purchase the product for their refreshment. Today it has a significant place in various parties and picnics. In the past decade it has become a part of foods. People use soft drinks along with foods. Consumers purchase decisions for soft drinks are always influenced by a number of factors, which lead them to select a particular brand in preference to others.

As per this study researcher selected youth segment because the importance of these consumers is also widely recognized in the soft drink market. These young customers are recognized as style setters that influence consumption change than other market segments .Buying behavior of youth is determined by values like the image, lifestyle connection. But there are significant impacts by quality of product also alongside context specific factors such as gender and lifestyle. The challenge was to researcher is to discover which factors are mostly affected because marketing managers have insufficient knowledge about what drives this market segment.

Page 66

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment At present many brands of soft drink are being consumed in Sri Lanka. Consumers can express their attachment and be loyal to a brand. Consumers avoid brands which are not attributed as expected by them. Customers‟ brand loyalty for soft drinks is always influenced by a number of brand values that lead them to select a particular brand in preference to other available brands in the market. According to research consumers of soft drink has highly ranked taste and quality of soft drink and brand image. According to this study most popular soft drink brand in youth segment is Elephant Cream Soda. Brand values of ECS have been really connected with youth lifestyle and its taste has got highly attraction of youth segment. When customers buy a soft drink consider about the quality ingredients. That means taste and quality of a soft drink has significant role. When Elephant Cream Soda and global brands such as Coca Cola and Pepsi absorb the market, their taste has much affected. Under the product quality the bottle shape also significant impact on get the attractive and retain towards that soft drink brand. The newly entered soft drink brand Kik Cola couldn‟t grab the market. Their bottle design was not attractive for the young generation.

The research revealed that health values also a considerable factor for soft drink. Health conscious is a new trend due to the knowledgeable young generation. So manufacturers should give the message to the customers the soft drinks never cause of their healthy.

As per the young customers are recognized as style setters, the brand personality is the most affected brand value. According to research success of the brand has highly indicated under brand personality. But when soft drink brand become a success brand it is affected by other elements of brand personality. When researcher asked whether cheerful characteristics of the brand increase the loyalty of them for a soft drink brand, majority of the respondents have agreed with that. It can be further concluded by practice of the current market. The top three ranked soft drink brands Elephant Cream soda, Coca Cola and Pepsi have used cheerful characteristics for develop their brand personality. When companies develop their brand personalities they can use celebrity endorsements. Sports category is the most important celebrity category for the soft drink industry if emphasize cheerfulness of the brand. Companies should carefully use the endorsement of celebrities, because it will highly influence to the brand personality because as the attitude towards the advertisement significantly impacts brand attitudes. For the brand loyalty emotional appeals have high values. Researcher have identified youth segment actually relate their lifestyles with soft drink brand they use. So marketers should Page 67

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment give emotional appeals with the lifestyle connection. So soft drink marketers are well aware of the fads and trends of the youth culture. Young may use brands to become trendsetters and opinion leaders for several groups in society. When consider the value proposition customers thought they have to feel the product for repeat purchasing. Soft drink brand should emphasis their experience value to the customer

6.5. SUGGETIONS FOR FUTURE RESEARCHES This study carried out to the impact of brand values on customer brand loyalty towards soft drink in youth segment in Sri Lankan market. This study is only focused on carbonated soft drink. But nowadays, demand for non-carbonated soft drink such as natural drinks based on fruits is being increased due to the health conscious. In that way in future should evaluate which brand values are very affective for carbonated and non-carbonated soft drinks. So there is a very good opportunity for a future research to carry out a research to test which brand values are very affective when positioning a non-carbonated soft drink brand.

6.6 CHAPTER SUMMARY Under this chapter discuss the final overall summary of the research, conclusion, recommendation and suggestions of future researches.

Page 68


APPENDIX I Questionnaire

The Effect of Brand Values on Customer Brand Loyalty towards Soft Drink Brands among Youth Segment in Sri Lanka I am a final year undergraduate of the Department of Marketing Management of University of Kelaniya. I am conducting a research for my academic purpose. As a part of my research I would like to gather some information from you. Your information will be highly valuable for this study and the information provided will be kept confidential and for academic use only. I greatly appreciate your cooperation. 1. Gender Male

Female

2. Age Level 15-20

21-25

26-30

3. Monthly Income Level Less than Rs.10000

Rs.10000-Rs.20000

Rs.20000-Rs.30000

Rs.30000-Rs.40000

Rs.40000 above

4. Occupation Student

Unemployed

Trainee

Executive-Private

Executive-Government

Manager

Self Employed Page 69


5. Which soft drink brand is your most favorite among following popular soft drinks brands available in Sri Lanka Coca-Cola

Portello

Pepsi

EGB

Fanta

Sprite

Elephant Cream Soda

7up

Fanta Cream Soda

Other…………….

6. Rank the importance of following brand values of soft drinks according to your purchasing behavior Taste & Quality Value for Money Brand Image Design Associated Feelings

Please indicate your level of agreement or disagreement with each of the following statements regarding Product quality of soft drinks Strongly Disagree Neutral Agree Disagree

Strongly Agree

7.I become loyal for a soft drink brand based on the quality of ingredients 8. The bottle shape is an important factor when I become loyal for a soft drink brand 9.Standardized product offering is an essential factor for me when I buy a soft drink

Page 70

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment 10.Health values of the product gain my loyalty towards that particular soft drink brand 11. Overall product quality influence me to repurchase that particular soft drink brand

Please indicate your level of agreement or disagreement with each of the following statements regarding Brand Personality of soft drinks Strongly Disagree Neutral Disagree

Agree

Strongly Agree

12. Cheerful characteristics of the brand increase the loyalty of me for a soft drink brand 13. Excitement imaginative of the brand increase the loyalty of me for a soft drink brand 14. Success of brand in the market is important when I become loyal for a soft drink brand. 15. Overall brand personality influence me to repurchase that particular soft drink brand

Please indicate your level of agreement or disagreement with each of the following statements regarding Emotional Appeals of soft drink brands 16. Social appeals (Love, Friendship) of the brand attracted me to be aware of soft drink brand 17.Lifestyle connection of the brand retain my awareness for a soft drink brand 18. Overall emotional appeals of the brand influence me to repurchase that particular soft drink brand

Page 71

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment Please indicate your level of agreement or disagreement with each of the following statements regarding Value Proposition of soft drink brands

Strongly Disagree Neutral Disagree

Agree

Strongly Agree

19. Getting a value for money which I pay is an essential factor when I buy a soft drink 20. Experience value of the soft drink get my loyalty towards soft drink brand 21. I become loyal for a soft drink brand based on the benefit value of the soft drink 22. Overall experience and benefits influence me to repurchase that particular soft drink brand

……………………………Thank You…………………………

Page 72


APPENDIX II Table 5.1 Analysis of “Gender” Gender

Valid

Male Female Total

Frequency 68

Percent 68.0

Valid Percent 68.0


32

32.0

32.0

100.0

100

100.0

100.0

Table 5.2 Analysis of “Age” Age Level

Valid

15-20

Frequency 13

Percent 13.0

Valid Percent 13.0


21-25

65

65.0

65.0

78.0

26-30

22

22.0

22.0

100.0

Total

100

100.0

100.0

Table 5.3 Analysis of “Income Level” Monthly Income Level

Valid

Frequency 42

Percent 42.0

Valid Percent 42.0


Rs.10000Rs.20000

18

18.0

18.0

60.0

Rs.20000Rs.30000

23

23.0

23.0

83.0

Rs.30000Rs.40000

15

15.0

15.0

98.0

Rs.40000 above

2

2.0

2.0

100.0

100

100.0

100.0

Less than Rs.10000

Total

Page 73


Table 5.4 Analysis of “Occupation” Occupation

Valid

Frequency 28

Percent 28.0

Valid Percent 28.0


1

1.0

1.0

29.0

Trainee

31

31.0

31.0

60.0

ExecutivePrivate

24

24.0

24.0

84.0

ExecutiveGovernment

7

7.0

7.0

91.0

Manager

8

8.0

8.0

99.0

Self Employed

1

1.0

1.0

100.0

100

100.0

100.0

Student Unemployed

Total

Table 5.5 Analysis of most favorite soft drink brand Which soft drink brand is your most favorite among following popular soft drinks brands available in Sri Lanka

Valid

Missing Total

Frequency 19

Percent 19.0

Valid Percent 19.6


Pepsi

14

14.0

14.4

34.0

Fanta

11

11.0

11.3

45.4

Elephant Cream Soda

28

28.0

28.9

74.2

Portello

4

4.0

4.1

78.4

EGB

8

8.0

8.2

86.6

Sprite

7

7.0

7.2

93.8

7up

6

6.0

6.2

100.0

Total

97

97.0

100.0

3

3.0

100

100.0

CocaCola

System

Page 74


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Websites http://www.emeraldinsight.com/ http://www.jstor.org/ http://www.cbsl.gov.lk/ http://www.statistics.gov.lk/ http://www.ccs.lk/ http://www.cocacolasabco.com/Territory.aspx/Show/Sri%20Lanka Page 77

THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND LOYALTY IN YOUTH SEGMENT

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