RESEARCH PROJECT
(BMBR5108)
DETERMINATION OF FACTORS
AFFECTING BRAND IN MARKETING
STUDENT’S FULLNAME : HUYNH VAN BINH
STUDENT ID
: CGSVN00015023
INSTRUCTOR:
: Dr. PHAN DINH NGUYEN
INTAKE
: MARCH 2013
Class:
: MBAOUM0313-K08A
Ho Chi Minh, September 2014
Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
ACKNOWLEDGEMENT
First and foremost, I would like to give special thanks to for being an excellent
professor, advisor, thesis committee chair, and mentor. I appreciate all the insight and
time he put into helping me with my thesis. I am also grateful to him for teaching me
the basics, and advancing my knowledge and expertise. I’d like to thanks Dr. Phan
Dinh Nguyen, who helped me in the data analysis. Many thanks my classmates in
MBA class.
My special gratitude is extended to all instructors, staff and students of Ho Chi Minh
City Open University for their support and the valuable knowledge during my study.
Huynh Van Binh
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
ABSTRACT
The marketing effort orientated to towards strengthening the brand means to increase the
degree of knowledge of the brand name. In this paper we want to show the relationship
between marketing effort and brand awareness and brand image.
Starting out from a theoretical review, we set out a model of effects of the marketing effort
-as the brand's antecedents- on brand awareness and brand image. In order to test the
defined structural model and research hypotheses empirical research was conducted on the
sample of undergraduate students of the Ho Chi Minh City Open University. The structural
model of the effects of marketing mix elements on brand equity is defined in line with the
existing theoretical findings.
Research hypotheses are defined according to the identified structural model. Research
results indicate that the structural model has an acceptable level of fit to the empirical data.
The estimated structural coefficients and indirect effect coefficients indicate the direction
and intensity of effects of each analysed element of marketing mix on brand awareness and
brand image.
Finally, implications of research results for the theory and practice of brand management
are analysed and discussed.
KEY WORDS: Brand Image, Brand Awareness, marketing effort, Measurement,Model.
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
TABLE OF CONTENTS
Acknowledgement
Abstract …………………………………………………………………………………………
Table of Contents Figures ……………………………………………………..........................
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1 Chapter1 : Introduction ………………………………………………………………………
1.1 Introduction …………………………………………………………………........................
1.2 Research Background ……………………………………………………….........................
1.3 ResearchMotives ……………………………………………………………........................
1.4 Problemstatement …………………………………………………………….......................
1.5 Research Ojective …………………………………………………………….......................
1.6 Research methodology and design ………………………………………………………….
1.7 Research Procedure …………………………………………………………………………
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2 Chapter 2 : Literature review ……………………………………………………………….
2.1Introduction…………………………………………………………………………………
2.2 Brand ……………………………………………………………………………………….
2.2.1Brand Awareness …………………………………………………………………………
2.2.2Brand image ………………………………………………………………………………
2.3Marketing efforts……………………………………………………………………………
2.3.1Advertising 13……………………………………………………………………………..
2.3.2Distribution intensity……………………………………………………………………...
2.3.3Store image ……………………………………………………………………………….
2.3.4Price deals …………………………………………………………………………………
2.4 Relationship between marketing effort and brand awareness and brand image……………
2.5 Conclusion ………………………………………………………………………………….
3 Chapter 3 : Methodology ……………………………………………………………………
3.1Introduction …………………………………………………………………………………
3.2Research design ……………………………………………………………………………..
3.3Item generation ……………………………………………………………………………...
3.3.1Introduction……………………………………………………………………………….
3.3.2Operationalization of measures…………………………………………………………....
3.4 Preliminary study …………………………………………………………………………..
3.5 Main survey…………………………………………………………………………………
3.5.1Brand selection………………………………………………………………………….....
3.5.2Sampling …………………………………………………………………………………..
3.6 Conclusion ………………………………………………………………………………….
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4 Chapter 4 : Research results …………………………………………………………………
4.1Introduction………………………………………………………………………………….
4.2Descriptions of sample……………………………………………………………………….
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
4.3Scales assessment …………………………………………………………………………..
4.3.1Reliability testing …………………………………………………………………………
4.3.2Exploratory factor analysis ……………………………………………………………….
4.4Testing the research model and the hypotheses …………………………………………….
4.4.1Testing correlations between all constructs ………………………………………………
4.4.2Testing research model…………………………………………………………………....
4.4.2.1 The relationship between marketing efforts and the brand awareness…………………
4.4.2.2 The relationship between marketing efforts and the brand image………………….......
4.5Testing the effect of brand awareness and brand image on the year in college:…………….
4.6Findings and conclusion …………………………………………………………………….
4.6.1Findings ……………………………………………………………………………………
4.6.2Conclusion ………………………………………………………………………………...
5 Chapter 5 : Conclusions and implications …………………………………………………
5.1 Introduction…………………………………………………………………………………
5.2 Conclusions of the study ……………………………………………………………………
5.2.1 Summary of all hypotheses………………………………………………………………..
5.2.2 Conclusions of the study ……………………………………………………………….....
5.3 Implications of the study ……………………………………………………………………
5.4 Limitations and recommendations for further research………………………………………
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List of References……………………………………………………………………………….
Appendix…………………………………………………………………………………………
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
Chapter1 : Introduction
1.1 Introduction
This chapter portrays general introduction for the current study with which research
background, research motives, research objectives, and research procedures are
background, research motives, research objectives, and research procedures are
provided as the rationale for this study. An introduction to the methodology to be
used and the scope of the study is also addressed in this chapter. At the end of the
chapter, the structure of this study is provided. The Outline of this chapter is shown
in figure 1.
1.2 Research Background
Kathman (2002) described the importance of brand building based on today’s
market situation. The author said that as the use of new media (e.g., internet), the
rate of transformation in marketplace, and the speed of globalization increase, the
role of branding becomes more important than any other season. Kathman added
that market fragmentation, product diversity, and short-life-cycle brands also show
the importance of building brand equity in the present market situation. The author
concluded that brand building is the only way to thrive their business in today’s
market situation. The author also added that, in these days, we have many products
and brands and the market is segmented so much that make it difficult for the
audience to recognize or recall the brand.
Studies on branding issue receive the great attention in marketing area in other
countries. The growing interest is reflected in the proliferating conferences, articles
and press attention on branding, as well as the companies’ huge investments on this
area. Brands are powerful strategic weapons which, if handled correctly and
managed sensibly, can provide their owners with considerable rewards in terms of
7
Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
market share growth and corporate profitability (Aaker, 1996).
Branding has always been crucial for anyone who wants to sell something to gain
credibility (Keller, 2003). Yet, the concept of a brand which represents the specifics
of a product or a company, like a name which describes the character of the person
it belongs to, is a new one in Vietnam. Most Vietnamese firms are small or medium
sized and have not dealt with problems related to the branding issue. The media had
not highlighted it until several Vietnamese brands were recently appropriated
overseas (VnExpress, 2002; VET, 2003).
The severe shortage of commodities in the late 1980s and early 1990s consolidated
manufacturer’s lack of awareness about branding, particularly bearing in mind the
low per capita income of Vietnamese people. But the mushrooming of new
producers and service suppliers and the arrival of foreign competitors has caused
things to change drastically. An abundance of goods and services of higher quality,
advanced technologies, and shorter product life spans have forced local businesses
to think seriously about building brands which can give them long term and
sustainable development (VET, 2003). Right now, building brands is a very
important issue in developing country as Vietnam, and it can be considered to be a
useful topic for conceptual development and managerial relevance.
In several studies, brand awareness and image are considered the most important
components of brand equity (Keller, 1993). However, only a few studies delved into
how these components are correlated with products or services.
1.3 Research Motives
To date, there have been a number of studies that have attempted to examine how
consumers think about, respond to, and classify brands within their minds. Branding
literature has provided theoretical perspectives to help marketers understand the
construct of brand. Brand equity has become a hot topic for chief executives,
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
accountants and academics as it is tipped to join other critical measures of long-term
business performance. At the same time, the 'knowledge economy' is becoming an
accepted It is perhaps framework for management thinking, planning and
organisation surprising, therefore, that the designated marketing function in so
many companies has done so little to advance the management of one of their most
value-adding has done so little to advance the management of one of their most
value-adding activities - brand knowledge. Indeed, it is nearly 40 years since
Theodore Levitt pointed out the unique perspective of marketing: "The difference
between marketing and selling is more than semantic. Selling focuses on the needs
of the seller, marketing on the needs of the buyer. Selling is preoccupied with the
seller's need to convert the product into cash, marketing with the idea of satisfying
the needs of the customer by means of the product and the whole cluster of things
associated with creating, delivering, and finally consuming it.” During those four
decades, marketing departments have grown as substantially as their budgets, huge
quantities of data swamp the brand teams and yet the evidence suggests they have
not strengthened their grip on
'knowing and understanding' their users better. Over the same period the reputation
of the marketing function has declined in many companies.
1.4 Problem statement
Based on the importance of brand awareness and brand image to the company’s
surviving, we manage to investigate to what extent the students know about the
brand of motocyces (brand awareness) and what kinds perception of the brand of
motocycles as reflected by the brand association held in target customers’memory
(brand image).
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
1.5 Research Ojective
The aim of this paper is to find out the effect of the marketing effort, measured by
means of the perceptions of the consumers, on two dimensions of brand equity:
brand awareness and brand image. This paper is included within a major
investigation that seeks to develop and to contrast a model which allows the
measurement of the brand equity through: the influence of the marketing effort of
the companies (measured by means of actions of prices, product, distribution and
communication) on dimensions of brand equity -brand awareness and brand image.
The marketing effort, translated partially to (1) perceived advertising spending, (2)
distribution intensity, (3) store image and (4) Price deals , is considered as (a)
antecedent in the formation of the level of knowledge of the brand name (Rossiter
& Percy, 1987; Aaker, 1991) and (b) determinant of the associations linked to its
image (Alba & Hutchinson, 1987; Yoo, Donthu & Lee, 2000).
From the theoretical review on brand value we construct a theoretical model of
causal relationships between the marketing efforts and the dimensions of brand
equity_ brand awareness and brand image. This is defined as a set of assets and
liabilities linked to the brand, which adds or subtracts value to or from a product in
its relationships with customers (Aaker, 1991). To contrast the model, the linear
regression model is applied.
Following, Yoo et al. (2000), we analyse how each of the components of brand
equity is affected reviously by the perception of the market about the marketing
effort the company develops concerning brands.
To verify our model we carry out an empirical research of a consumers' sample of a
durable goods (motocycle) which we submitted to a questionnaire of attitudes. Once
its reliability and validity was determined, this questionnaire could be used for the
application of the structural model. To serve this task, two questions need to be
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
answered:
Q1:Is there a relationship between marketing effort and two dimensions of brand
equity: brand awareness and brand image?
Q2: Is there any difference of brand awareness and brand image among year in
college?
1.6 Research methodology and design
The study comprises two phases: The pilot study and the main survey. The Pilot
study includes qualitative and quantitative stages. Qualitative stage was conducted
to collect the appropriate response scheme from students at University of
Technology. These items will be measured in the pilot quantitative study for their
relevance and reliability. Finally, the main survey was carried out to test the
research hypotheses, answer research questions and fulfill research objectives
Cronbach alpha was used to measure the reliability of the scale, exploratory factor
analysis was applied to identified correct factors and multiple linear regression was
performed to test the significant relationship between each marketing elements
dimension on brand awarenss and brand image.
1.7 Research Procedure
The procedures of this study are shown in figure 1
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
Figure 1-2 : Structure of the study
Identifying Research Objectives
Collecting and Exploring Related
Literature
Establishing Research Framework
Data Collection
Data Analysis
Conclusions and Suggestion
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
Chapter 2 : Literature review
2.1 Introduction
The previous chapter introduces an overview of the study background, the research
objective and the research motives and research procedure. This chapter searches
and reviews relevant theories in the literature. The aim of this review is to propose a
research model of marketing efforts and brand awareness and brand image, to
generate hypotheses that will be tested in chosing motocycles of the students to
answer the research questions and to confirm the research model.
Figure 2-1 : The structure of Chapter 2
Introduction
Brand
Marketing efforts
Relationship between marketing
mix and
brand awareness and brand image
Conclusion
2.2 Brand
Brands can be defined as a “name, symbol, term, or sign that are intended to
identify the goods and services of one particular firm” (Kotler, 1991, p. 442).
Consumers’ consumption choices are often based on brand names that help to
differentiate one product from another. Branding researchers have tried to
conceptualize the value of a brand or brand equity (Faircloth et al., 2001). In the
general sense, brand equity can be defined as the “marketing effects that are
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
uniquely attributable to the brand” (Keller, 1993, p. 1). In other words, because of
the product or service’s brand name, different outcomes may result from the same
marketing activity (Keller, 1993). Customer-based brand equity is centered on the
idea of how a consumer’s knowledge of the brand affects the consumer’s response
to the brand’s marketing activity (Aaker, 1991; Keller, 1993). From the perspective
of the Customer-based Brand Equity model, brand knowledge is the key to creating
brand equity, because it creates the differential effect that drives brand equity. What
marketers need, then, is an insightful way to represent how brand knowledge exists
in consumer memory.
An influential model of memory developed by psychologists is helpful in that
regard. The associative network memory model views memory as a network of
nodes and links, in which nodes represent stored information or concepts and links
represent the strength of association between this information or concepts. Any type
of information can be stored in the memory network, including information that is
verbal, visual, abstract or contextual in nature. Consistent with the associative
network memory model, brand knowledge is conceptualized here as consisting of a
brand node in memory with a variety of associations linked to it. In particular,
Keller (1993) suggests that brand knowledge consists of two components – brand
awareness and brand image – which are discussed in detail in the next two sections.
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
Figure 2-2 : Dimensions of Brand Knowledge, Keller (1993).
Brand knowledge
Brand Image
Uniquess of
Brand
Associations
Favourability of
Brand
Associations
Stregth of Brand
Assocuations
Brand Awareness
Types of Brand
Associations
Attribute
Brand
Reconition
Brand Recall
Attitudes
Benefits
Functional
None Product
Related
Experiential
Product
Related
Symbolic
Packaging
User
Imagery
Price
Usage Imagery
2.2.1 Brand Awareness
The ease and likelihood to which a brand name comes to mind describes the
concept of brand awareness (Keller, 1993). Brand awareness reflects the strength of
a brand’s presence in the consumer’s minds (Pappu, Quester, & Cooksey, 2005),
and it is related to the strength of the brand node or trace in memory in relation to
the consumer’s ability to identify the brand in various conditions (Rossiter &
Percy,1987). Brand awareness can be demonstrated in the forms of brand recall and
brandrecognition (Keller, 1993). Brand recall occurs when the brand name is
evoked bymemory in response to a cue such as a product category name
(Hutchinson & Raman, 1994). Distinguishable from brand recall, brand recognition
can be conceptualized as the consumer’s ability to verify previous exposure to the
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
brand when the brand is given as a cue (Keller, 1993). In other words, brand
recognition occurs when the consumer is exposed to the brand and is able to
identify it as being
seen or heard previously (Hutchinson & Raman, 1994; Keller, 1993).
Researchers have considered recall as a higher level of memory performance than
recognition (Aaker, 1991, Washburn & Plank, 2002). In other words, if a consumer
is able to recall a brand outside a store when given the product category as a cue,
then the consumer surely can recognize the brand when exposed to it in a store
(Keller, 1993, Rossiter & Percy, 1987).Aaker (1991) explains brand awareness as
having many levels ranging fromrecognition (being identified as seen or heard
previously) at the lowest level, tobrand recall (being evoked in a response to a cue
such as product category) at midlevel, to the highest level, the dominant brand or
the only brand that can be recalled by a consumer directly from memory (high level
of awareness), it can be assumed
that the consumer should be able to recognize the brand when exposed to a brand
(the low level of awareness). Brand recall and brand recognition provide cues to the
consumer which aid determining the set of brands to be considered for consumption
(Baker, Hutchinson, Moore, & Nedungadi, 1986). Brand recall and brand
recognition have been explored to determine a general understanding of the brand
awareness construct
2.2.2 Brand image
Along with brand awareness, brand image is an important component of brand
knowledge (Keller, 1993). Brand image has been conceptualized as perceptions
about a brand as reflected by the brand associations or anything that is linked to the
brand in a consumers’ memory (Aaker, 1991; Keller, 1993). Brand image is shaped
by the associations made by consumers and is used to differentiate brands in a
product category.
Brand associations contain meanings about a brand for the consumer (Keller, 1993).
A brand’s image results from the favorability, strength, and uniqueness of brand
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
associations that are held by the consumer (Grace & O’Cass, 2002; Keller, 1993).
Positive and unique brand associations that are strongly held by consumers enable
consumers to build strong, favorable attitudes and emotions toward a brand (Aaker,
1991).
Brand associations may include attitudes, attributes, and benefits about a brand
Faircloth et al., 2001; Keller, 1993). First, brand attitude, or the overall evaluation a)
consumer has of a brand (Wilkie, 1986), may result from the consumer’s
perceptions of brand associations in regards to the brand (Aaker, 1991; Keller,
1993). Beliefs related to product/non-product attributes, brand benefits, and quality
perceptions have been discussed as primary influences of brand attitude (Zeithaml,
1988). Brand attitude functions as a point of reference when the consumer is
exposed to the brand by having a direct influence on consumption (Lutz, 1991).
Next, what a consumer thinks the product is or descriptive features that characterize
the product are referred to as attributes (Keller, 1993). Attributes can be grouped
into two types: product-related and non-product related. Product related attributes
are those that “relate to a product’s physical composition,” (Keller, 1993, p. 4).
Product-related attributions could be directly linked to the product performance.
Nonproduct related attributes have been defined as “external aspects of the product
or service that relate to its purchase or consumption” (Keller, 1993, p. 4). For
example, user imagery is a non-product related attribute that a brand might posses
when associated with characteristics such as user demographics and psychographics
(Keller, 1993). Another non-product attribute example is usage imagery, which
allows the consumer to associate the brand with the typical situation in which the
product would be used such as time of day, the location, or particular activities
(Keller, 1993). User and usage imagery attributes may help to formulate brand
personality, which is a type of brand association that captures “human
characteristics that are associated with a brand” (Aaker, 1997, p. 347). Personality
descriptors given to the brand are often an outcome of inferences that are made
about the users or usage of the brand or a combination of both (Plummer, 1985).
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
Finally, brand benefits are what consumers think the product or service can do for
them and reflect the personal value that consumers attach to the brand
(Keller,1993). Benefits may be functional, symbolic, or experiential (Park,
Jaworski, &MacInnis, 1986). Functional benefits more commonly satisfy needs
associated with problem removal or prevention (Kim, Forsythe, Gu, & Moon,
2002). Symbolic benefits tend to be related to non-product related attributes and
often associated with underlying needs of social approval, self-esteem, and selfconcept (Keller, 1993; Solomon, 1983). Experiential benefits relate specifically to
how a consumer feels when using the product and often satisfy cognitive
stimulation and sensory pleasure needs (Orth & De Marchi, 2007). Keller (1998)
proposed that brand equity comes from the effects of brand marketing which was
regarded as consumer brand knowledge. He showed that brand knowledge is one
kind of memory mode of associative networks which are composed of brand
awareness and brand image. He suggested that brand images are reflected by types
of brand associations, favorability of brand associations, strength of brand
associations, and uniqueness of brand associations. Brand image is a result of
consumers decoding of all the signals delivered by the brand such as brand name,
visual signs, products, sponsoring, and advertising (Kapferer, 1994). Danesi (2006)
proposes that the use of brand name enables consumers not only to recognize
certain goods and distinguish them from others, but also to associate connotative
meanings to them. Therefore, it allows consumers to decode brand image.
2.3 Marketing efforts
Any marketing effort will be positively related to brand equity when it leads to a
more favorable behavioral response to the focal product than to the equivalent
unbranded product. As proposed in the conceptual framework, managerial efforts
manifested in controllable marketing actions are related to brand equity through the
mediation of the dimensions of brand equity. Therefore, to create, to manage, and to
exploit brand equity, the relationships of marketing efforts to the dimensions of
brand equity must be determined.
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
We investigate consumers' perceptions of four selected strategic marketing
elements: advertising, price deals, store image and distribution intensity. The
selected factors do not embrace all types of marketing efforts but are representative
enough to demonstrate the relationships between marketing efforts and brand
awareness and brand image.
2.3.1 Advertising
Advertising originated from the word “adverture” in Latin language means
attractiveness, charm and allurement. According to the Vietnamese dictionary,
Advertising means “propagandize, introduce goods, services or undertakings to
consumers in many way with the purpose of persuading them to buy these goods or
services and thus promote the goods and services”. According to the Oxford
dictionary, advertising is drawing attention to or describing favourably (goods or
services) in a public medium to promote sales or making them generally or publicly
known, or seeking by public notice to make them so known. Advertising is a paid
form of a nonpersonal message communicated by business firms, non-profit
organizations, or individuals and is transmitted to a target audience through mass
media such as television, radio, newspapers, magazines, direct mail, outdoor
displays or mass - transit vehicles. The main objectives of advertising is informing
and persuading consumers to purchase specific brands offered by the advertisers,
thereby getting profits. However, advertising is also used to inform, educate and
motivate the public about non-commercial issues, such as AIDS, political ideology,
energy conservation, religious recruitment, deforestation and charity. Thus, as far as
language alone is concerned, the notion of advertising not only covers the giving of
information about goods and services to promote sales but also its use to inform,
propagandize and motivate the public regarding social and cultural life.
2.3.2 Distribution intensity
Distribution intensity has been commonly defined as the number of intermediaries
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Determination of Factors Affecting Brand in Marketing – Huynh Van Binh
used by a manufacturer within its trade areas (cf. Bonoma and Kosnik 1990; Corey,
Cespedes,
and
Rangan
1989;
Stern,
El-Ansary,
and
Coughlan
1996).
Sometimescalled “place”(causing the marketing mix to be referred to as the “ four
Ps”), distribution is also concerned with the phycical movement of products. With
distribution, marketing managers are concerned with marketing structure and
channels of distribution_those wholesalers, distributors, retailers, agents, and other
responsible for getting goods and services to customers. Ideal distribution intensity
would make a brand available widely enough to satisfy, but not exceed, target
customers' needs, because oversaturation increases marketing costs without
providing benefits (McCarthy and Perreault 1984). There are three broad options intensive, selective and exclusive distribution: outlets used (e.g. cigarettes, beer).
Intensive distribution is usually required where Intensive distribution aims to
provide saturation coverage of the market by using all available outlets. For many
products, total sales are directly linked to the number of customers have a range of
acceptable brands to chose from. In other words, if one brand is not available, a
customer will simply choose another.
Selective distribution involves a producer using a limited number of outlets in
ageographical area to sell products. An advantage of this approach is that the
producer can choose the most appropriate or best-performing outlets and focus
effort (e.g. training) on them. Selective distribution works best when consumers are
prepared to "shop around" - in other words - they have a preference for a particular
brand or price and will search out the outlets that supply. Exclusive distribution is
an extreme form of selective distribution in which only one wholesaler, retailer or
distributor is used in a specific geographical area.
2.3.3 Store image
Store image has a long history of changing conceptualizations. This change ndicates
the difficulties that researchers have in defining the construct (e.g., Sewell,1974).
Martineau (1958) is the first one that put the concept of store image into retail
business. He first defined store personality or image as follows. The way consumers
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