consumer choice for brands

8/12/2019 Consumer Choice for Brands

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Consumer Choices ofDifferent Brands

Course:

Quantitative Methods for Decision Making(Executive MBA Spring 2014)

Prepared By:

Muhammad Umer Farooq

Saif Ali Momin


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Acknowledgement

We have taken efforts in this survey report. However, it would not have beenpossible without the kind support and help of many individuals and organizations.

We would like to extend our sincere thanks to all of them.We are highly indebted to Mr. Yaseen Ahmed Meenai for their guidance andconstant supervision as well as for providing necessary information regarding thesurvey techniques and resources & also for their support in completing the report.

We would like to express our gratitude towards our friends & colleagues at BycoPetroleum Pakistan for their kind co-operation and survey inputs which helped usin completion of this report.

Our thanks and appreciations also go to our batch fellows at Institute of Business Administration in developing the report and people who have willingly helped usout with their abilities.


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Consumer Choices of Different Brands

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Contents

1 Introduction ..................................................................................................... 4

2 Consumer Survey and Inferences .................................................................... 5

2.1 Smartphones Brand ................................................................................... 5

2.2 Television Brand ........................................................................................ 6

2.3 Clothing Brand ........................................................................................... 7

2.4 Footwear Brand ......................................................................................... 8

2.5 Computer Brand ........................................................................................ 9

2.6 Sports Brand ............................................................................................ 10

2.7 Automotive Brand ................................................................................... 11

2.8 Restaurant Brand ..................................................................................... 12

3 Chi-Square Test of Association ....................................................................... 13

3.1 Association between Smartphone and Television.................................... 14

3.2 Association between Smartphone and Computer Brand ......................... 15

3.3 Association between Clothing and Footwear Brand ................................ 16

4 Conclusion ..................................................................................................... 17

5 References ..................................................................................................... 18


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1 Introduction

Firms generally are in the continuous process of analyzing their product demand based onvarious market trends, consumer taste, income, product branding and so on. This informationis vital for a firm to analyze its product demand trend in the market and plan future strategyaccordingly.

In this report we have tried to study the taste of urban youth regarding their choices fordifferent household brands. This survey will reveal some interesting facts regarding transitionin the consumer choices and association between selections of different household brands.

The survey was carried out among general youth where they were asked about theirpreferences from the mentioned choices of various brands. Feedback for following consumergoods was sought from the audience.

1. Smartphones Manufacturer2. Television Manufacturer

3. Clothing Brands4. Footwear Manufacturer5. Computer Manufacturer6. Sports Items Manufacturer7. Automotive Manufacturer8. Restaurant Brands

Results and inferences presented in subsequent section are based on more than 70 responsesreceived from the target group.


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2 Consumer Survey and Inferences

2.1 Smartphones Brand

There were days when every pocket has a Nokia phone in it and every home had a mustNokia charger! But the things have changed so dramatically that the brand which was onlyfamous for their Kitchen Appliances has now become the number one smart phone choice ofthe urban youth! Yes, Samsung has the leading followers in smartphone industry.

The runner up in this smartphone marathon is HTC. Once a status symbol, HTC is facingseries financial crises (according to recent news) which have impacted their overall salesand industry share.

Apple and Nokia have shown similar results. Although, Apple has increased its customer

base but its not up to the mark. Since most of the Apple smartphone features work with3G/4G, Experts say that unavailability of 3G and 4G services in Pakistan is hindering Applesmartphone growth. Nokia has also failed to adopt Android standards and resulting in everreduced market share.

Qmobile is doing well but since its a local brand, urban youth do not feel itself comfortablewith it. Although Qmobile offers a lot in term of software but it has failed to give reliablehardware.


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Finally, Sony and Blackberry have very alarming situation. According to experts, Sony andBlackBerry have a very few models of smartphones which makes it difficult for consumer tofind appropriate phone.

2.2 Television Brand

Samsung and Sony has shown consistent results and continued their legacy of producingbest televisions. Probably the major reason is their customer support eco system and easilyavailable spare parts in local market.

There is news that LG is winding up their business in Pakistan, probably the main reason istheir very low returns on investments. Since the previous distributor of LG (AlliedElectronics) has launched their own brand (Qmobile), LG is now facing bad times these days.

Panasonic is failed to capture market because of their sky high prices and very less modelsavailable. Moreover, their technology and hardware is not easily repairable and oftenrequires the spare parts to be imported from Korea or China.

Having a Chinese brand tag, Ecostar is struggling to build their brand image. Chinese brandare supposed to have low product life and same is the impression with Ecostar. Moreimprovement on quality is to be done to attain trust of the consumer.


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2.3 Clothing Brand

We know that there are numerous choices available for clothing brands nowadays. However,when consumers are asked to choose from the mentioned local and international brand,Cambridge (an international brand) seems to lead all of them. Bonanza generally havesimilar high product price as of Cambridge and therefore local consumers tend to buyinternational brand rather than local to have look a feel of international brand.

Decency and readymade garments are mostly preferred by office going consumers thereforeGul Ahmed, Alkaram and Khaadi are generally less preferred since they do not providestitched clothing. Among three non-stitched garments manufacturers Gul Ahmed due to itslong term market presence and credibility have relatively good number of consumers as ofnow.


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2.4 Footwear Brand

Apart from durability and price of footwear brands, one major factor seems influential is theup-to-date style according to fashion trend. Bata have good quality of footwear but due tolack of variety in style and not in-line with taste of consumers it seems to be less famous inyouth. However, EBH and Servis have reasonably equal number of market capture and bothhave products which are balance of quality and style. Servis due to its low price products andgreater number of stores have somewhat greater market capture than EBH.

Among all Hushpuppies footwear have very up-to-date style in every season with goodquality and reasonable price. Therefore, it seems to be famous in youth and thereforecapturing near to half of the market share.


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2.5 Computer Brand

When it comes to the selection of computer a vast majority of local consumers tend to selectDell and HP computers. One clear reason may be due to its low cost and easy availability ofspare parts in local market. With a diverse specification and configurations available forhome usage, professional usage, gaming computers, Dell and HP have greater market captureto all class of consumers.

Apple and Sony have comparatively less market share due to their highly priced computers

and in our country we have fewer consumers who afford these highly priced fashionoriented machines.

Lenovo and Fujitsu are not very well known brands in general public. This might be due tobusiness purpose laptops like notebooks which are famous in this case.


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2.6 Sports Brand

Sports brands fan following are somewhat related to global trends and has little or noinfluence depending on local taste and economy. According to Forbes Fab40; Worlds MostValuable Sports Brands are Nike and Adidas. Surprisingly our stats also show similar resultsfor local consumers.

There might be good reason that when somebody thinks of Sports apparel, equipment andaccessories, the first name that strikes the heart and mind is Nike. Nike is also associatedwith many famous sports stars which catch their fan following to inclined towards Nikeproducts.

Most of the brands listed in the survey are available locally. However; Nike, Adidas andReebok have reasonable number of stores in local market than others and therefore theytend to capture sport fans more towards these world best Sport brands.


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2.7 Automotive Brand

Roads friendly build, high resale value, easily available spare parts and decades of trust hasmode Toyota and Honda most favorite brands of the youth. Although, used car import policyhas introduced some new brands to customers but it has not affected these giants much.

Suzuki has been the brand of lower and upper middle class and still holds the market ofsmall sized automobiles like Cultus, Alto, Mehran and Swift. Suzuki does not have much tooffer in luxury vehicle category such as Civic/Corolla which has limited its market share.

Since there are very rare outlets or dealer of Nissan and Mitsubishi in local market, thesebrands are near to vanish permanently. Nissan has converged to produce more Trucks and

Busses and Mitsubishi is getting ba nkrupt as they dont have a distributer with strongfinance base and market experience. If these both brands want to compete with others, theyhave to introduce variety of products with good after sale support and local market serviceeco system.


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2.8 Restaurant Brand

Well, we are totally amazed here! There was a general perspective that youth want to go inmultinational food chains but this survey results has astonished us. Yes, youth is moreinterested in desi stuff being cooked by desi ingredient with desi recipes and in desienvironment. Our teacher at IBA, Mr. Meenai has quoted that, I had to travel to kohat for alecture. During this trip I was suffering from illness and was not feeling well. Eventually myfriends offered me some desi foods prepared by Lamb meat and after having it I was feelingvery refreshing and energetic.

This trend also shows the inclination of youth about healthy and organic food. There is a lotof buzz about processed and artificial ingredients being used in fast food like burgers so itmay be a cause of the disliking of KFC and McDonald in youth.

Through their diverse food range and luxurious dine in facilities, Pizza Hut has managed togain youth attention. Pizza Huts monthly deal plans and promotion offers have resultpositively in term of their sales.

Nandos is suffering from lack of enough outlets and competitive prices. Having only chickendishes is may be another cause of their less popularity.


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3 Chi-Square Test of Association

To determine the relationship between various consumer choices, Chi-Square test was carriedout between different combinations of consumer products. Few results which are worthnoticing are listed below:

selection of particular brand of television against smartphone brand selection of particular brand of smartphone against computer brand selection of particular brand of clothing against footwear brand

Before proceeding for the results of Chi-Square test we would set the hypothesis of the test asfollows.

Null hypothesis H O: There is no association between selections of one particularbrand of an item over other.

Alternate Hypothesis H A: There seems an association between selections of oneparticular brand of an item over other.

For the p- value less than = 0.05 we will reje ct the Null Hypothesis.


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3.1 Association between Smartphone and Television

Results of the Chi-square test show us that p- value is less than (0.05). So there seems to bean association between smartphone selections with particular brand of television.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 66.498 a 30 .000

Likelihood Ratio 22.672 30 .828

N of Valid Cases 52


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3.2 Association between Smartphone and Computer Brand

Results of the Chi-square test show us that p- value is greater than (0.05), so we accept thenull hypothesis and conclude that, there seems to be no association between Smartphoneselections with particular brand of Computer.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 37.558 a 30 .161


N of Valid Cases 52


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3.3 Association between Clothing and Footwear Brand

Results of the Chi-square test show us that p-value is less than (0.05), so we reject the nullhypothesis and conclude that, there seems to be an association between Smartphoneselections with particular brand of computer.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1.148E2 a 64 .000


N of Valid Cases 52


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4 Conclusion

We would like to conclude this survey discussion by a famous quote of famous celebrity Mr.Mahatma Gandhi. He once said:

A customer is the most important visitor on our premises. He is notdependent on us. We are dependent on him. He is not an interruption in ourwork. He is the purpose of it. He is not an outsider in our business. He is partof it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.

From the survey we have witnessed some dramatic change of choices in recent times.Companies who failed to meet customer requirement have suffered badly. Customer needsinnovation with affordability and reliability. Brands whocannot predict the future areeventually get eliminated from the market. Similarly brands with strong retail network, good

customer services and friendly product service ecosystem are seems to dominate the market.


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5 References

Survey website: http://www.surveymonkey.com

Quotation of Ghandi: http://www.indusbusinessjournal.com/

Worlds Most Valuable Sports Brands: http://www.forbes.com/

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