Game of the Names: Empirical Analysis of the effect of Brand Name on Product Preference

and Product Purchase Intention.

PRATHAMESH MUZUMDAR

THE UNIVERSITY OF TEXAS-ARLINGTON

IntroductionGame of the Names

Brand name/ Brand title. Preferences. Purchase intention. Purchase decision.

Subject- Smartphones Multiple brands. Multiple products. Consistent development in technology. Affordable. Generate interest in various age groups.

Approach Theoretical approach- Literature review. Analytical approach.

Literature ReviewInternal

InformationExternal

Information

Brand Familiarity

Purchase Intention

Brand Promise

Recall

Usage

Possession

Word of Mouth

Blackwell, Miniard, & Engel, 2001

Alba & Hutchinson, 1987

Kim & Lennon, 2000

Sen & Johnson, 1997

Kent & Allen, 1994

Moorthy, Ratchford, & Talukdar, 1997

Yes

Affect

Brand Name

Literature ReviewResearch Objective

Recall

Purchase IntentionBrand A

Kent & Allen, 1994

Brand Name

Brand B

Brand C

HypothesisHypothesis 1

Brand name influences the consumer preference when selecting a brand. Selection of a brand occurs when brands are comparable on different attributes.

Preferences- 2 parts Part 1- Features or technical specifications. Part 2- Particular product of a particular brand.

Hypothesis 2

Brand name influences the purchase intentions of a consumer particularly when selecting an smartphone, irrespective of the features provided by the particular model.

Does the likelihood of purchase changes when a particular product is tagged with certain brand name. Is brand name more important than features.

Hypothesis 3 Particular set of dimensions compare smartphones rather than each available

technical specification (feature) of the smartphone. Most of the smartphones are promoted on multiple technical aspects. Does all the aspects matter.

Data CollectionSurvey Questionnaire

43 Questions 6 Sections

Groups Focus group- Attribute determination. Experimental group- 2 sections Control group- 3 sections

Method Online Survey- Amazon Mechanical Turk.

Data 192 responses out of 200. 157 responses were used for analysis.

Survey StatisticsCountries

India vs. Others Others

India- 115, Others- 43 USA- 28, Europe- 8, Asia- 3

South America- 2

Methodology

Focus Group

Experimental Group Control Group

1. Popular Attributes.2. Popular Brands.

1. Conjoint Analysis.2. Paired samples t- Test.

1. Positioning Map.2. Paired sample t- Test.3. Multidimensional scaling.

Focus Group30 responses

Specifications/ Attributes/ Features

1. Dimensions- Height/ Weight etc. 2. Display & user interface.3. Keys & input method.4. Connectivity.5. WLAN features.6. Data Networks.7. Operating frequency.8. Memory.9. Power management.10. Processor.11. Security.12. Browsing & internet.13. GPS & Navigation.14. Main Camera.

Selected specifications

1. Operating system2. Memory3. Display4. Camera5. Battery

Experimental Group Design

Conjoint AnalysisReduced no of profiles.

Control Group DesignMultidimensional scaling

Positioning MapReduced no of dimensions.

Selected Products1. Apple iPhone 52. Samsung GS 33. Nokia Lumia 9204. HTC 8X

Experimental Group DesignSection- Brand names are not exposed. Section 1 5 questions. Paired sample t –Test. Respondents rate- 5 attributes/ features (Pre selected).

1. Brand names not included.

2. Ranking of attributes/ features

depend on ranking of other

features.

Feature evaluation- The questions in this section deal with different features of smart phones. There are 5 features displayed which are to be ranked from 1 to 5.

4. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Operating System (Ex- Apple- iOS, HTC- Windows etc).

5. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Memory (Ex- 8GB, 16GB etc).

6. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Display (Ex- 4 inch, 4.3 inch, 5 inch etc).

7. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Camera (Ex- 8 mega pixel, 8.5 mega pixel etc).

8. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Battery (Ex- talk time, standby time, internet use time etc).

Experimental Group DesignSection 2 16 profiles. 4 hidden profile.- (HTC 8X, Samsung GS 3, Nokia Lumia 920, Apple iPhone 5)

Attributes / Existing Product Profiles

Bundle 9 Bundle 10 Bundle 11 Bundle 12 Bundle 13 Bundle 14 Bundle 15 Bundle 16

Operating System iOS 6 Android 4.0 Windows Android 4.0 Android 4.0 iOS 6 Android 4.0 Windows

Memory 64 16 32 32 32 32 16 64

Display 4.8 4.8 4.5 4.8 4.3 4.3 4.3 4.3

Camera 8.7 8 8.7 8 8.7 8 8.7 8

Battery 1800 2100 2000 1440 1800 2100 2000 1440

Attributes / Existing Product Profiles

Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8

Operating System Windows Android 4.0 iOS 6 Android 4.0 Android 4.0 Windows Android 4.0 iOS 6

Memory 16 64 32 32 32 32 64 16

Display 4.3 4.5 4.5 4.5 4 4 4 4

Camera 8 8.7 8 8.7 8 8.7 8 8.7

Battery 1800 2100 2000 1440 1800 2100 2000 1440

HTC 8X Apple iPhone 5Nokia Lumia 920Samsung GS 3

Control Group DesignSection- Brand names are included.Section 1 20 questions. Positioning Map.

Please rate different features for a particular smart phone model.

13. Apple iPhone 5- Features- Operating System- iOS 6. (1= Very Unsatisfied, 5= Very Satisfied)

14. Apple iPhone 5- Features- Memory- 16 GB, 32 GB, 64 GB. (1= Very Unsatisfied, 5= Very Satisfied)

16. Apple iPhone 5- Features- Display- 4 inch. (1= Very Unsatisfied, 5= Very Satisfied)

17. Apple iPhone 5- Features- Camera- 8 mega pixel. (1= Very Unsatisfied, 5= Very Satisfied)

18. Apple iPhone 5- Features- Battery- 1440 mAh, Talk time- 6 hrs . (1= Very Unsatisfied, 5= Very Satisfied)

5 Point Likert scale.5 questions for each brand.

Control Group DesignSection 2 4 questions. Paired sample t- Test.

5 Point Likert scale.4 questions- Likelihood of purchase.

Please rate the likelihood of buying a smart phone considering all the features given above.

34. Apple iPhone 5. (1= Very Unlikely, 5= Very Likely)

35. Samsung Galaxy S3. (1= Very Unlikely, 5= Very Likely)

36. HTC 8X. (1= Very Unlikely, 5= Very Likely)

37. Nokia Lumia 920. (1= Very Unlikely, 5= Very Likely)

Control Group DesignSection 3 6 questions. Multi dimensional scaling- Euclidean distance model.

5 Point Likert scale.6 combination + Pseudo brand.

Please compare and contrast each of the following pair.

38. Apple iPhone 5 and Nokia Lumia 920. (1= Very similar, 5= Very different)

39. Apple iPhone 5 and Samsung Galaxy S3. (1= Very similar, 5= Very different)

40. Apple iPhone 5 and HTC 8X. (1= Very similar, 5= Very different)

41. Samsung Galaxy S3 and Nokia Lumia 920. (1= Very similar, 5= Very different)

42. Samsung Galaxy S3 and HTC 8X. (1= Very similar, 5= Very different)

43. HTC 8X and Nokia Lumia 920. (1= Very similar, 5= Very different)

Hypothesis 1Brand name influences the consumer preference when selecting a brand. Selection of a brand

occurs when brands are comparable on different attributes.

Experimental Group

Conjoint Analysis1. Factor importance-

Identify attribute.2. Market share

simulations- Identify preferred smartphone.

Paired sample t- Test1. Attribute ranking.

Control Group

Positioning Map1. Change in preferences-

Attribute.

2. Change in preference- Smartphone. Market share.

Brand Name

Smartphone/ Profile #

Features/ Attribute

Preference Preference

Hypothesis 1Control Group

Results

2.

3.

Smartphone Rankings- Market share1. Samsung GS 3- 40.94% Apple iPhone 5- 40.94%2. Nokia Lumia 920- 11.41%3. HTC 8X- 6.71%

Attribute- 1. Operating system Apple iPhone 5- iOS 6 Samsung GS 3- Android2. Memory Apple iPhone 5- 16, 32, 64.3. Display Samsung GS 3- 4.8 inch.4. Battery Samsung GS 3- 2100 mAH. 5. Camera Samsung GS 3- 8 m.p

Hypothesis 1Experimental GroupPaired sample t- Test.

Conjoint Analysis

Preferred smartphone.

1. HTC 8X.

2. Apple iPhone 5.

Product Profiles

Profile 1 (HTC 8X)

Profile 8 (Apple iPhone 5)

Profile 10 (Samsung GS 3)

Profile 11 (Nokia Lumia

920)

Predicted market shares

12.18(29.84)

10.91(26.72)

9.56(23.42)

8.27(20.26)

Market Share Simulations. Market share predictions for different scenarios, using the share of preference Rule.

Attribute Rankings.1. Operating system. 2. Display. 3. Battery.4. Memory. Non Significant 5. Camera

Hypothesis 1Conjoint Analysis

Attributes

Respondents / Attributes and Levels

Average Responses

Operating System

Windows 21.06

Android 4.0 0.23

iOS 6 8.37

Display

4.5 22.60

4 13.01

4.8 13.01

4.3 0.03

Memory

16 39.03

32 4.29

64 0.40

Camera

8 3.27

8.7 0.70

Battery

1800 22.61

2100 16.62

2000 15.06

1440 15.95

1. Windows (21.06)2. 4.5 inch (22.60)3. 16 GB (39.03)4. 8 mega pixel (3.27)5. 1800 mAH (22.61)

Hypothesis 1Conclusion Smartphone Preferences

Attribute Preferences.

Experimental GroupConjoint Analysis

HTC 8X

Control GroupPositioning MapSamsung GS 3

Apple iPhone 5

Experimental GroupPaired Sample t-Test

Windows.Display 4.5 inch.

Control GroupPositioning Map.iOS 6 & Android.

4 inch & 4.8 inch.

Brand NameControl Group Questionnaire

Brand NameControl Group Questionnaire

Hypothesis 2Brand name influences the purchase intention of the consumer when selecting smartphone

irrespective of the features provided by the particular model.

Brand Name

Experimental Group

Conjoint Analysis1. Market share

simulations- Identify preferred smartphone.

Control Group

Paired Sample t- Test1. Likelihood to purchase-

Smartphone ranking.

Experimental GroupPurchase Intention

Control GroupPurchase Intention

Hypothesis 2Control GroupPaired Sample t- Test.

Likelihood of Purchase

Experimental GroupConjoint Analysis.

Preferred smartphone – 1. HTC 8X

2. Apple iPhone 5.

Market Share Simulations. Market share predictions for different scenarios, using the share of preference Rule.

1. Samsung GS 3 2. Apple iPhone 53. HTC 8X Non Significant4. Nokia Lumia 920

Product Profiles

Profile 1 (HTC 8X)

Profile 8 (Apple iPhone 5)

Profile 10 (Samsung GS 3)

Profile 11 (Nokia Lumia

920)

Predicted market shares

12.18 10.91 9.56 8.27

Hypothesis 2Conclusion Likelihood of Purchase.

Experimental GroupPreference

Conjoint AnalysisHTC 8X

Control GroupLikelihood of PurchasePaired sample t- Test.

Samsung GS 3

Brand NameControl Group Questionnaire

1. Price variable not included.2. Comparisons between profiles are solely on the basis

of features

Hypothesis 3 Particular set of dimensions compare smartphones rather than each available technical

specification of the smartphone.

Control Group

Multi-dimensional Scaling

1. Bi dimensional model.2. Dimension definition.

Focus Group14 Attributes/ Features

5 Attributes/ Features

Control Group5 Attributes/ Features

Few Dimensions

Hypothesis 3Euclidean Distance Model

Results Dim 2

Dim 1

Dim 1

Dim 2

Dimension 11. Apple iPhone 5.2. HTC 8X.

Dimension 21.Samsung GS 32. Nokia Lumia 920.

Pseudo Brand1. Huwaei

Hypothesis 3Euclidean Distance Model Results

Dimension 11. Apple iPhone 5.2. HTC 8X.

Dimension 21.Samsung GS 32. Nokia Lumia 920.

Pseudo Brand1. Huwaei

Stimulus Number Stimulus NameDimensions (Axis)

1 (X axis) 2 (Y axis)1 Apple iPhone 5 1.8257 0.15052 Nokia Lumia 920 -1.1767 1.19653 Samsung GS 3 0.4764 -1.2544 HTC 8X -1.2919 -0.4515 Huwaei 0.1664 0.3581

Stimulus Coordinates

Goodness of Fit

Stress 0.00337

R square 0.99986

ConclusionDimension definition

Apple iPhone 51. Operating System.2. Memory

HTC 8X

Samsung GS 31. Operating System.2. Display3. Battery4. Camera

Nokia Lumia 9201. Camera.2. Battery.3. Display

Dimension 1

Operating systemMemory

Dimension 2

Operating systemDisplayCamera

Comparable FeaturesOperating systems

MemoryDisplayCamera

Overall ConclusionHypothesisAll the three hypothesis have been proved.

Hypo 1- Brand name influences preferences.

1. Smartphone features.

2. Brand and product.

Hypo 2- Brand name influences purchase intention.

1. Likelihood of buying changes from control group to experimental group.

Hypo 3- Two dimensions were found.

1. Comparable features were defined.

Future ResearchSegmentation- Positioning. Demographics- Gender Location Income group

Conspicuous Consumption. 70% Responses- India High price brands- Apple & Samsung(Preferred) Low price brands- HTC & Nokia.

Effect of Price. Interaction between brand name and price. Low cost smartphone in India- Nokia Lumia 610- $250.

Question & Answer.

Thank You