BUILDING BRAND AUTHENTICITY IN FAST -MOVING CONSUMER GOODS VIA CONSUMER PERCEPTIONS OF BRAND MARKETING COMMUNICATIONS A thesis submitted By Rafia Arif
BUILDING BRAND AUTHENTICITY IN FAST -MOVING CONSUMER GOODS VIA CONSUMER PERCEPTIONS OF BRAND MARKETING COMMUNICATIONS
A thesis submitted
Rafia Arif (4443)
Department of Business Administration
In partial fulfillment of
The requirement for the
BACHELORS OF BUSINESS ADMINISTRATION
This thesis has been
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
Dr. Syed Ali Raza (Advisor)
Dr. Syed Ali Raza (Director Academics)
I sincerely appreciate this given opportunity to express to those who have made this research possible. Iam grateful and truly appreciate their kindness in giving us guidance and encouragement to assist to the completion our research report. First and foremost , Iam very thankful to Almighty Allah who selected us for this research report to showcase the effect of marketing communications on brand authenticity among consumers. Secondly , Iam thankful to our respected teacher who provided us chance to work on this project. Besides, I appreciate to all the respondents who spend their precious time and patience in helping us to filled out the questionnaire. It would have been impossible to complete our research project without their honest contribution and helping us to spread out the questionnaire to their collegues. Therefore, Iam truly appreciate of the efforts of our respondents who kindly and patiently provide us useful information. In the last, Iam thankful to IQRA UNIVERSITY who gave us this platform to present and work on projects like this.
TABLE OF CONTENTS
CONTENTS PAGE NO.
Chapter 1 Introduction 1.1 Background 1.2 Problem statement 1.3 Research Objective 1.4 Research Questions 1.5 Significance of Study 1.6 Limitation & Delimitation 1.7 Structure of the Study Chapter 2 Literature Review 2.1 Theoretical Background 2.2 Hypothesis Development and Empirical Reviews 2.3 Conceptual model Chapter 3 Research Methodology 3.1 Research Purpose 3.2 Research Approach 3.3 Research Design 3.4 Sampling Technique Sample Size 3.5 Target Audience 3.6 Measurement of Instrument 3.7 Statistical Technique 3.8 Ethical Consideration Chapter 4 Data Analysis 4.1 Demographies profile 4.2 Reliability 4.3 Factor Analysis 4.4 Regression 4.5 Discussion Chapter 5 5.1 Conclusion & Recommendation 5.2 Conclusion 5.3 Recommendation & Future recommendation 5.4 Managerial Implications ABSTRACT
This study aims to highlight the factors depending on brand authenticity such as brand marketing communications and clarity of positioning among consumers. The data was gathered from 150 respondents residing in Karachi city and the software used to analyze the data was SPSS . We found that our data was reliable and highly acceptable Regression was applied to determine the relationship between independent variables and dependent variables so the results showed that perceived brand marketing communications has negative insignificant impact on brand authenticity whereas the other one clarity of positioning has positive significant impact on brand authenticity. Marketers should consider the brand marketing communications in a truthful way for making the consumers more authentic through their advertisement.
BUILDING BRAND AUTHENTICITY IN FAST -MOVING CONSUMER GOODS VIA CONSUMER PERCEPTIONS OF BRAND MARKETING COMMUNICATIONS
CHAPTER : 1
Marketing is a world full of trends, innovation and development, this eventually applies to branding as it is part of marketing. In the branding world are recent developments like brand building, brand communities, co-creation, online worth of mouth etc. These are all ways to interact, connect and engage with the consumer to make them satisfied and loyal. However, it all starts with a clear honest positioning which is often seen as a a manner to create competitive advantage .
Although, this sounds obvious it is often more difficult than it looks like, as consumers nowadays have full access to a lot of brand and manufacturer information. Hence, any inconsistency will lead to distrust and then the brand will be perceived as a money chasing company.
Perceived Brand Authenticity (PBA) is a research and new trending research topic in consumer psychology, marketing and especially branding. Some might say that Brand Authenticity is more important for consumer life time value and brand value than brand equity. Some international known brands such as Adidas, use brand authenticity as a brand building tool to design credibility and trust. As Brand Authenticity is a new research topic it does not yet have a clear definition or concept.
Although, the exact definition or use of Brand Authenticity is not described yet it is being used by brands to gain competitive advantage. It requires for marketing to be indirect and to have the appearance that commercial gain is not the ultimate intended goal because conveying your brand is a big step towards positioning your brand, and clarity is key. Therefore there is a rise in the need for authenticity as authentic brands lead to more profits because it has an effect on the level of consumer engagement with the brand.
Consumer first make a judgement about how authentic the brand or advertisement is and then use this judgement to guide their further search for information. If the product is deemed inauthentic , the consumer may decide to pass on it completely, regardless of what other benefits it offers. Consumers assumed that products they considered to be authentic would also have other characteristics they wanted , and therefore they could limit their search and decision making to products they considered authentic.
1.2 PROBLEM STATEMENT:
Authenticity and marketing are two different words but rarely found in the same sentence. While consumer trust in advertising and marketing gets a benefit from it, developing authenticity is still a serious issue for brands. Many consumers are not just looking for a one shot purchase , they are buying into a image , positioning and trust of a brand.
To examine how marketing communication through clarity of positioning influence on brand authenticity and its consumer outcomes . Basically the attitude and perception of a consumer towards a brand, basically create the marketing communication through clear positioning in the minds and hearts of consumer and forced them to purchase that particular brand/product Dwivedi & McDonald,(2018)
Brand marketing communications plays a crucial role in direct effect on consumer’s perception through clarity of positioning which makes loyal relation of consumer with their authentic brand. Marketing communication is considered to be the impression towards behaviour of consumer where consumer become bound to brands and loyal consumers become consistent to that preferred brands regardless of price or convenience Fritz, Schoenmueller ; Bruhn,(2016).
On the basis of previous reviews , I have found the result in which this study aims to identify the effect of brand marketing communications on brand authenticity among consumers of Karachi city.
1.3 RESEARCH OBJECTIVE:
I have been focusing on the subject of brand authenticity in order to gain knowledge and to understand the effects of perceived brand marketing communication through clarity of positioning on brand authenticity among customers.
1.4 RESEARCH QUESTIONS:
What is the relationship between perceived brand marketing communication and authentic brand?
What is the impact of clarity of positioning on brand authenticity?
1.5 SIGNIFICANCE OF THE STUDY:
This research can benefit marketers in promoting their brand to further understand consumer behaviour and make necessary changes required.
This is also essential to researchers who may see this as a good basis for further research related to brand authenticity and marketing in general.
1.6 LIMITATIONS AND DELIMITATIONS:
Despite of a lot of efforts and hardwork , there are still some limitations of this study. The lack of time for the research that was required to be completed within a short fame of time. The study was on the effect of Brand authenticity on consumer perception of only two dimensions, perceived brand marketing communication and clarity of positioning so I did not undertake an in depth analysis of my research. The study examined the effect of Brand authenticity on consumer behaviour among brand marketing communication and brand clarity an hence did not cover brand quality and packaging . Hence the results can not be generalized.
1.7 STRUCTURE OF THE STUDY:
This research report is built up five chapters. Chapter one expressed the background, problem statement, research objective, research questions, significance of the study, limitation and delimitations, structure of the study. Chapter two discussed the literature review, theoretical background , justified hypothesis development and empirical reviews and presented a proposed conceptual model. Chapter three focused on the research methodology, research purpose, research approach, research design, sampling technique, sample size, measurement of instrument, statistical technique , ethical consideration. Chapter four presented the data analysis and discussed the demographies profile, reliability, factor analysis , regression and discussion related to theoretical background in the research. Lastly, chapter five expressed the conclusion, future recommendation and managerial implication.
2.1 THEORETICAL BACKGROUND
Authentic brands represents their products in a truthful way because it is a brand’s power. Its includes how your customers view you, and you should be exactly who you are, and communicate it in the language of your customers to establish loyal relation with our customers. They should be sincere to the brand and should perceive the brand to be of high quality. This study of brand authenticity has its two major independent variables that include perceived brand marketing communications and clarity of positioning. Brand marketing communications used to shape the minds of consumers through clear positioning which can turn the minds of consumers towards the particular product/brand.
2.2 EMPIRICAL REVIEWS
H1:There is significant impact of perceived brand marketing communication on perceived brand authenticity.
Durivedi & Mc Donald,(2018) examine the effect of consumer perception of brand marketing communication on brand authencity. They used two independent variable that are perceived brand marketing communication and clarity of positioning and one dependent variable is brand authencity. The data was collected from US energy drink consumers and the techniques. They used are structure equation modeling. It is clear in the results that brand marketing communication has not direct significant effect without clarity of positioning on brand authencity. They recommend marketing managers to focus on marketing communication affecting on consumer perceived brand authencity.
Karakoc,(2016) examine the drivers of perceived brand authencity and their impact on consumer engagement. Perceived brand authencity has been used as a dependent variable and brand heritage, brand country of origin, brand extensions and brand consistency are used as the independent variable. Furthermore , consumer engagement used as a mediator. The data was collected from 80 participants in which 46% are male and 56% are females and these respondents belonging to family, friends and educational institute and the technique they have been used are conjoint analysis. The result shows that these are drivers except brand heritage have a positive effect on brand authencity because consumer tend to engage with that brand when it is perceived authentic.They recommend managers or future researchers should investigate on why brand heritage is not important for brand authencity of a chocolate brand.
Illicic, Baxter, Kulczynski,(2018) examine the influence of co branding authenticity in cause related marketing . They used co-branding authenticity as the dependent variable and celebrity social responsibility and consumer intention has been used as the independent variables. They have tested through three studies. In first study, the data was collected from 176 members belonging to Australian general public .In second study, the data was collected from 202 members belonging to Australian general public. In third study, the data was collected from 304 members belonging to Australian general public. The result shows that co-branding authenticity has a strong relationship with purchase intention . Consumers have high intention to purchase the cause related product when celebrities have highten the perception due to consumer self transcendence.They recommend marketers should consider the effectiveness of co-branding authenticity on purchase behaviour of consumers.
Yun-Chia Tang & Hung-Chang Chiu,(2015) examine how to affect brand attitude with authenticity in advertising. They used authenticity as the dependent variable and advertising authenticity, emotions, brand attitude and personality traits has been used as the independent variables. The data was collected from 97 respondents among undergraduate and graduate students. The technique they have been used was structure equation modeling. The results confirm the positive significant impact of brand attitude on brand authenticity, which prove as different personality traits have greater influence on authenticity . They recommend marketers should analyze the more personality traits to target their customers for achieving their goal.
Buil, Chernatony & Martinez,(2011) examining the impact of advertising and sales promotion on brand loyalty. They used advertising and sales promotion have been used as independent variables and brand loyalty used as a dependent variables. The data was collected from 302 respondents belonging to UK . The technique has been used was structure equation modeling. The results shows that the positive significant impact of advertising on brand loyalty because it’s a powerful tool of market a brand and increase our sales among consumers.They recommend future researchers should extend their studies by involving low involvement products for increasing their sales and should make their their customers loyal towards their products.
H2: There is significant impact of clarity of positioning on perceived brand authenticity.
Fritz et al.,(2017) examine exploring antecedents and consequences of brand authencity. Brand authencity has been used as a dependent variable and brand clarity, brand heritage, brand nostalgia, brand commercialization, social commitment, brand legitimacy, actual self congurence, ideal self congurence and employees passion are used as the independent variables. They conducted an online survey that generates 509 data sets in which 58 percent female, 42 percent male, 50 percent participants whose aged between 26 and 30 years belonging to Germany. The techniques they have been used are structure equation modelling. The result confirm the positive consequences on consumer behaviour in order to brand clarity positively effect on brand authenticity, which can turn the influence on consumer’s behaviour. They recommend marketing managers should focus on brand identification play an important role in shaping consumer’s authencity perceptions because consumers are more likely to perceive the brand as more authentic.
Shirdastian, Laroche ; Richard,(2017) examine using big data analytics to study brand authenticity sentiments. Brand authenticity sentiment coding has been used as the dependent variable and tweet collection and tweet cleaning are used as the independent variables. The data was collected from 150 respondents who used twitter and support vector machine (SVM) technique have been used to analyze this relationship. The result shows high accuracy relation for both tweet cleaning and tweet collection dimensions and for brand authenticity as well because authenticity is highly perceived by consumers on social media in the form quality commitment and uniqueness so it could be promoted to our consumers .They recommend companies should try to more engage with our consumers to feel improvements in order to perceived brand authenticity.
Frizzo, Korelo, Prado,(2017) examine the effect of brand authenticity and brand heritage on consumer brand relationships. They used brand authenticity and brand heritage as the dependent variables and enticing, enriching and enabling has been used as the independent variables. The research has been tested through two experiments. In first experiment ,the data was collected from 111 undergraduates belonging to large university in Brazil and Bootstrap analysis technique has been used in this relationship. The result shows that the significant indirect effect of brand authenticity and enticing the self, but do not found a significant indirect effect of brand authenticity and enriching the self and enabling the self. In another experiment, the data was collected from 70 undergraduates from the large university of Brazil and Bootstrap analysis technique has been used for this experiment as well. The result shows that the large indirect effect of brand authenticity and enticing the self ,smaller indirect effect of authenticity and enabling the self, but no effect of authenticity and enriching the self. They recommend marketers should focus on which assets could be prove as influential for them in the order to develop relationship with consumers to deliver our best experiences to them.
Beverland,(2005) examine the brand authenticity in the luxury wine trade. They have been used brand authenticity as dependent variable and heritage and pedigree, stylistic consistency, quality commitment, relation to place, method of production and downplaying of commercial considerations used as independent variables. The data was collected from 30 wine consumers because it was qualitative research and it was conducted over 3 years in Australia. The result shows that the positive effect of attributes of authenticity on brand authenticity because the attributes of authenticity are transferable to other industries. They recommend future researcher should identify the other attributes of authenticity .
2.3 CONCEPTUAL MODEL
Perceived Brand Marketing Communications
Perceived Brand Authenticity
Clarity of Positioning
The relationship of each independent variables with brand authenticity is discussed as under :
BRAND AUTHENTICITY AND PERCEIVED BRAND MARKETING COMMUNICATIONS:
Marketing communications creates a positive brand perceptions in the mind of consumer because it is a crucial tool for communicating authenticity to consumers. It is expressed as authentic advertising influences on consumers through emotion which makes consumers to pay attention to the product / brand, then establish a loyal relation with it.
BRAND AUTHENTICITY AND CLARITY OF POSITIONING:
Positioning is all about you should clear about our brand / product to customers for making a brand authentic for customers. Clear positioning occupy a space in the minds of the consumer that we are different from the competitive brand and we expect consumer to become authentic about our brand / product.
CHAPTER NO :3
3.1 RESEARCH PURPOSE
There are three types of research purpose that are exploratory research, descriptive research and explanatory research. The research purpose used for this study is explanatory research. Explanatory research comes after both exploratory and descriptive research because it explains the cause or reasons of occurrence of any fact. It explains any behaviour occuring in a market and gives answer to the question that why and how a relation exists among the various aspects of a situation or among the different variables.
3.2 RESEARCH APPROACH
There are three types of research approaches that are qualitative approach , quantitative approach and last one is pragmatic approach. The research approach used for this study is quantitative research. I adopt survey based questionnaire which are conducted and response taken randomly from general public .The reason behind selecting quantitative approach is getting appropriate. In quantitative study we get result as per statistical analysis, where as in qualitative approach we are unable to get result statistically. It is feasible for us to use quantitative approach because in quantitative approach we focus on breadth of information where as in qualitative approach focusing on detailed information of a particular factor.
3.3 RESEARCH DESIGN
The research design used for this study is correlational design that shows whether the relationship among the marketing communications and brand authenticity occurs or not. It actually describes the statistical association between two or more variables and also used to predict a future event.
3.4 SAMPLING TECHNIQUE:
Sampling technique which is used in this study is convenience sampling. A convenience sampling implies non probability sampling method in the research’s gathered data from the participants selected from a population based on convenience and easy accessible. The reason behind this sampling technique selection in this study is because the convenience sampling is the easiest method to reach target audience and it is the inexpensive way of gathering some basic information efficiently and quickly from the population who are easily avalaible.
3.5 SAMPLE SIZE:
The sample size of the data collected for this research is 150.
3.6 TARGET AUDIENCE:
The target population for this research is confined in age bracket between 20 to above 35 years. The target population is the people in Karachi whose have loyal relation with their authentic brand and marketing communications have greatly affect in shaping their minds for the authentic brand.
3.7 MEASUREMENT OF INSTRUMENT:
The instrument for data collection is questionnaire. The questionnaire is answered by the target population using likert scale that provides a range of answers through which the reponses of the target population are scored.The likert scale used for this research is given as follows:
Dwivedi & McDonald,(2018)
3.8 STATISTICAL TECHNIQUE:
This study utilizes the statistical pakage for the SPSS programming. The test applies on the information incorporates, reliability analysis, factor analysis and the regression analysis.
3.9 ETHICAL CONSIDERATION:
We have collected the data through questionnaire. Every respondent has filled the questionnaire themselves. To complete the research with proper guidelines research ethics is important. Considering that we gave enough time to all respondents so that they can gave true answers on the basis of their experiences. We strictly mentioned the confidentially of their responses to ensure privacy of their responses and as well as their personal data. The data is purely use for academic purpose, it will not harm any of the member involved in this.
The software which is used to test the data was SPSS . We have done various tests on the collected data to find the results.
4.2 DEMOGRAPHIES PROFILE
Frequency Percent Valid Percent Cumulative Percent
Valid Male 117 76.5 76.5 76.5
female 36 23.5 23.5 100.0
Total 153 100.0 100.0 Age
Frequency Percent Valid Percent Cumulative Percent
Valid Less than 25 118 77.1 77.1 77.1
25-30 28 18.3 18.3 95.4
31-35 6 3.9 3.9 99.3
Above 35 1 .7 .7 100.0
Total 153 100.0 100.0 Educatoin
Frequency Percent Valid Percent Cumulative Percent
Valid Undergraduate 78 51.0 51.0 51.0
Graduate 60 39.2 39.2 90.2
Post graduate 6 3.9 3.9 94.1
Other 9 5.9 5.9 100.0
Total 153 100.0 100.0 Occupation
Frequency Percent Valid Percent Cumulative Percent
Valid Private 63 41.2 41.2 41.2
Public 20 13.1 13.1 54.2
Semi Private 12 7.8 7.8 62.1
Self Employed 58 37.9 37.9 100.0
Total 153 100.0 100.0 Pie Chart
VARIABLES ITEMS CRONBACH ALPHA
Perceived brand authenticity 8 .927
Perceived brand marketing communication 6 .919
Clarity of positioning 8 .945
Reliability measures the data which is used to test is reliable or not. The three variables used in our questionnaire in which perceived brand authenticity was dependent variable and perceived brand marketing communications and clarity of positioning were independent variables. The software used to test the reliability on applied data was SPSS and the value of cronbach alpha represents the reliability. The value of cronbach alpha for perceived brand authenticity is .927,which means the instrument is reliable. The value of cronbach alpha for perceived brand marketing communications is .919 , which also shows the instrument is reliable. Furthermore, the value of cronbach alpha for clarity of positioning is .945 , which also represents the instrument’s reliability. In order to get the reliability of the cronbach alpha’s rule, it means these reliabilities are highly acceptable.
4.2 FACTOR ANLYSIS
KMO & BARLETT’S TEST
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .945
Bartlett’s Test of Sphericity Approx. Chi-Square 3019.167
The KMO measures the adequacy of the sample size that we have taken the sample size is 150 so is it sufficient to run the factor analysis or not. The KMO value should be greater than 0.5 and the significance value should be less than 0.5 , so in order to KMO AND BARTlETT’S rule we got a value of KMO is .945 and significance value is .000 , which means our sample size for 150 respondents is adequate.
ROTATED COMPONENT MATRIX
VARIABLES 1 2 3
PBA4 0.550 PBA5 0.639 PBA6 0.651 PBA7 0.716 PBA8 0.630 COP1 0.641 COP2 0.659 COP3 0.662 COP4 0.771 COP5 0.635 COP6 0.710 COP7 0.475 PBMC1 0.651 PBMC2 0.721 PBMC3 0.762 PBMC4 0.790 PBMC5 0.773 PBMC6 0.774 PBA1 0.707
Model ? t- Statistic P- Value sIg
(Constant) .382 1.773 .078
Perceived Brand Marketing Communications -.013 -.155 .877
Clarity of Positioning .895 9.800 .000
Adjusted R Square = .604
The above table shows that the relation between perceived brand marketing communications and perceived brand authenticity is inversely proportional because its beta value is negative . On the other hand, the clarity of positioning and perceived brand authenticity shows the positive relation and it is directly proportional. The clarity of positioning is significant because its t value is greater than 1.68 and its p value is less than 0.1. On the other hand , the perceived brand marketing communications is insignificant and have negative relation with perceived brand marketing communications. Furthermore , the adjusted R square is 0.60 which shows 60% biasness of the model in brand authenticity is explained by perceived brand marketing communications and clarity of positioning. The regression equation is given below :
Y = 2 + B1IV1 + B2IV2
PBA = 0.382 – 0.013(avgpbmc) + 0.895(avgcop)
H1: There is negative insignificant impact of perceived brand marketing communications on perceived brand authenticity.
H2: There is positive significant impact of clarity of positioning on perceived brand authenticity.
CONCLUSION ; RECOMMENDATION
This research was conducted to examine the impact of marketing communications and clarity of positioning on brand authenticity among consumers. The data was gathered from 150 respondents in Karachi. The questionnaire was used as our tool for collecting data which was adopted from research paper. Besides, our instrument is highly reliable because we have got the values of cronbach alpha is greater than 0.5 so our instrument is highly accepatable. After testing the reliability , we had tested factor analysis in which KMO ; BARLETT’S test showed the adequacy of our sample size in order to get the value of greater than 0.5 which is sufficient to run the factor analysis. Then the rotated component matrix showed the proper groups of all variables. In the last , we had tested regression used to examine the impact of both independent variables on dependent variables and it showed that brand marketing communications has negative insignificant impact on brand authenticity whereas clarity of positioning has positive significant impact on brand authenticity which tends to get higher attention towards an authentic brand from consumers. Co branding authenticity has positive significant impact on celebrity social responsibility and purchase intention. Consumers get inspired by CSR so they used to consider co branding authenticity which increases their purchase intention towards their authentic brand Illcic et al.,(2018).
Brand clarity has positive significant effect on brand authenticity which can effect the consumer behaviour . Besides, brand identification and clarification are effective tool in shaping their minds of consumers towards brand authenticity Fritz et al.,(2017).
RECOMMENDATIONS & FUTURE RECOMMENDATIONS:
Future researchers can increase our data size from 150 to 300 and so on for having a clear image from the respondents residing all over the country.
Future researchers should investigate the perceptions of consumers towards high involvement categories.
Future researchers should investigate how marketers strengthen brand authenticity in the minds of consumers by various means.
As our data collected was only from Karachi, future researchers can collect the data from other cities as well in order to get different outcomes from the respondents and make a clear image.
We got adjusted R square is 60% . So apart from brand marketing communications and clarity of positioning other factors also influencing on brand authenticity so future researcher should investigate the impact of those factors in future studies.
Future researchers should identified the reasons of negative insignificant impact of brand marketing communications on brand authenticity .
Consumers get inspired by the effective marketing communications and clear position of a brand, because better positioning and advertising increases the purchase intention among consumers and consumers become loyal towards a brand, then brand authenticity will increase in the minds of consumers as well.