Determinants of brand preference of mobile phone (hand set) case of high profile investors

Addis Ababa University Collage of Commerce Department of Marketing Management Post Graduate Program“Determinants of brand preference of mobile phone hand set case of high profile investo

Addis Ababa University Collage of Commerce Department of Marketing Management Post Graduate Program

“Determinants of brand preference of mobile phone (hand set)

case of high profile investors ”

By:

Mikias Tadese Id GSR/2798/07 Adviser: -Getie Andualem (Phd )

Research Paper Submitted To the Department of Marketing Management of Addis Ababa University School of Commerce in Partial Fulfillment of the Requirements for the Degree of Masters of Arts in Marketing Management

May, 2016 Addis Ababa

ADDIS ABABA UNIVERSIRT SCHOOL OF COMMERCE

MARKETING MANAGEMENT POST GRADUATE PROGRAMME

Declaration

I, Mikias Tadese, declare that this research paper entitled “determinants of brand preference of mobile phone case of high profile investors ” is my original work and has not been used by others for any other requirements in any other university and all sources of information in the study has been appropriately acknowledged.

Declared by:

Mikias Tadese signature - Date

-Advisor: Dr Getie Andualem signature - Date

-ADDIS ABABA UNIVERSIRT SCHOOL OF COMMERCE

MARKETING MANAGEMENT POST GRADUATE PROGRAMME

"Determinants of brand preference of mobile phone case of high profile investors"

By: Mikias Tadese

Approved by Board of Examiners

Chairman, Department - signature - Date Advisor - signature - Date Examiner - signature - Date

ADDIS ABABA UNIVERSIRT SCHOOL OF COMMERCE

MARKETING MANAGEMENT POST GRADUATE PROGRAMME

Letter of Certification

This is to certify that Mikias Tadese carried out his research on the topic entitled “Determinants of brand preference of mobile phone case of high

profile investors ” This work is original in nature and is suitable for

submission for the award of Master of Marketing Management.

Adviser: Getie Andualem(PhD)

First and foremost, I would like to thank to the Almighty God, for the gift of life and love.

The completion of this work would not be possible without the support and the help of many peoplewhom I owe great thankful However, words are not enough to give their rights First of all, I wouldlike to express my deep gratitude and appreciation to Getie Andualem (PhD) for his valuablecomments and constructive suggestions

I am highly indebted to all my families, who have constantly been encouraging and supporting methroughout my Academic career especially my greatest thanks must go to my Meron, Kidist,Tsega-alem, Biniam, wendwosen, Masersha, Tinase, Afomia, Meweded and Beza who used toencourage and support me since the beginning of my education to the time this project cometrue I really owe you so much thanks again God bless you

My special, thanks goes to my colleagues, Melaku, Selam and Tsege for unwavering support duringthe time of data collection

Last but not the least; I would like to express my heartfelt deeper gratitude for managers of AddisAbaba trade and industry bureau (Ato shesema) and all staffs and mangers of investment agency

Table of contents

Chapter one 1

1 Introduction 1

1.1 Back ground of the study 1

1.2 Statements of the problem 3

1.3 Basic research question 4

1.4 Objective of the study 4

1.4.1 General objective 4

1.4.2 Specific objective 5

1.5 Research hypothesis 5

1.6 Significance of the study 6

1.7 scope of the study 6

1.8 Definition of terms 6

1.9 Organization of the paper 7

Chapter two 8

2 Review of related Literature .8

2.1 Concept of brand 8

2.1.1 Definition of brand 8

2.1.2 History of brand 9

2.1.3 Function of brand 9

2.2 Brand preference 10

2.2.1 Definition of brand preference 10

2.2.2 Consumer brand preference 11

2.3 Brand equity 12

2.3.1 Definition and concept of brand equity 12

2.3.2 Brand equity dimensions 13

2.3.2.1 Brand loyalty 13

2.3.2.2 Brand name awareness 14

2.3.2.3 Perceived quality 15

2.3.2.4 Brand association 16

2.4 Consumer behavior 17

2.5 Consumer decision making 17

2.5.1 Consumer decision making process 18

2.5.1.1 Need recognition 19

2.5.1.2 Information search 19

2.5.1.3 Evaluation of alternatives 19

2.5.1.4 Purchase 20

2.5.1.5 Post purchase 20

2.6 Factor affecting brand preference of mobile phone 21

2.7 Theoretical framework 22

Chapter 3 Research methodology 24

Introduction 24

3.1 Research design 24

3.2 Research instrument 25

3.3 Source of data 25

3.4 Data collection techniques 25

3.5 Sampling design 26

3.5.1 Target population 26

3.5.2 Sampling techniques 26

3.5.3 Sample size determination 27

3.6 Data analysis and interpretation 28

3.7 Validity 28

3.8 Ethical clearance 29

CHAPTER FOUR: DATA ANALYSIS AND PRESENTARION 30

4.1 Reliability test 31

4.2 Frequencies distribution on general information 31

4.2.1 Frequency of demographic characteristics of the respondent 31

4.2.2 General information about the brand 34

4.3 Descriptive Statistics 36

4.3.1 Quality 37

4.3.2 Price 37

4.3.3 Perceived risk 38

4.3.4 Reference groups 38

4.3.5 Word of mouth 39

4.3.6 Advertising 40

4.3.7 Satisfaction 41

4.3.8 Brand preference 42

4.3.9 Foreign vs local 43

4.4 Correlation Analysis 43

4.5 Regression Analysis 46

4.5.1 Checking the assumptions 46

4.5.2 Outliers, Normality, Linearity, Independence of Residuals 47

4.5.3 Evaluating the Model 48

4.5.4 Evaluating each of the independent variables 49

4.6 Determinants of Brand preference based on profile of respondents 51

4.6.1 Independent sample t-test b/n gender and determinates of Brand preference 51

4.6.2 Independent sample t-test b/n investor type and Brand preference determinants 52

4.6.3 Brand preference determinants based on age of the respondents 54

4.6.4 Brand preference determinants based on investment capital of the respondents 55

4.6.5 Brand preference determinants based on investment sector of the respondents 56

Chapter five Summary of Finding, conclusions and recommendation 58

5.1 Summary of finding 58

5.2 Conclusion 59

5.3 Recommendation 60

5.4 Limitation and suggestion for further research 61

Reference 62 Appendix I

List of Tables

Table1: Reliability statistics 31

Table 2: gender of the respondents 32

Table 3: Investment capital of the respondents 33

Table 4: type of investor 33

Table 5: investment sector 34

Table 6: source of information of respondents 36

Table 7: Descriptive Statistics on Quality 37

Table 8: descriptive statistics on price 38

Table 9: Descriptive Statistics on perceived risk 38

Table 10: Descriptive Statistics on reference groups 39

Table 11: Descriptive Statistics on word of mouth 40

Table 12: Descriptive Statistics on advertising 40

Table 13: Descriptive Statistics on satisfaction 41

Table 14: Mean and standard deviation(Descriptive Statistics ) results of independent variables 42

Table 15: Descriptive Statistics on brand reference 42

Table 16: foreign mobile phone brands vs local mobile phone brands 43

Table 17: Correlation Analysis 44

Table 18: Regression model summary 48

Table 19:ANOVA table 49

Table 20: Regression Coefficients 50

Table 21:Independent sample t-test b/n gender and determinates of Brand preference 52

Table 22: independent t test b/n investor type and determinates of brand preference 53

Table 23: One way ANOVA test for different age group 54

Table 24: one way ANOVA analysis test b/n different investment capital 55

Table 25: one way ANOVA analysis test b/n different investment sector 57

Lists of figures

Figure1 : Conceptual frame work of the study 23

Figure 2: Age group of respondents 32

Figure 3: type of mobile phone brand owned by investors 35

Figure 4: Normal P-P plot of regression standardized residual 47

Figure 5: scatter plot 48

The primary objective of this study was to identify determinants of mobile phone brand preference

by high profile investors In order to find out the determinants of brand preference, the study considered three factors namely Brand awareness, brand image and consumers attributes These factors had sub elements which included seven dimensions that are quality, price, perceived risk, reference groups, word-of-mouth, advertising and satisfaction To assess these factors influence on brand preference, a sample size of 384 respondents was selected using convenience sampling technique Based on the theoretical frame work and objectives of the study 25 items were provided

in a 5 point Likert scale to the respondents The gathered data was analyzed by descriptive and inferential statistics The analysis revealed that most investors prefer Samsung and apple mobile phone brand From ANOVA and independent sample t-test It also found out that Preference and determinants of preference are consistent over different demographic groups Furthermore, Satisfaction, quality and word of mouth are found out to be significant determinants of brand preference while price, perceived risk and reference groups are found to be insignificant in determining brand preference In general, Local Mobile phone manufacturers that are serving and

want to serve this segment market should provide brand that that has high and consistent quality

In addition to that they need to take active measures to ensure that word of mouth (WOM) andother forms of uncontrolled communication concerning their brands are positive

Key words: Brand, Brand Preference, Brand image, Brand awareness and Customer Attributes

Chapter One: Introduction

1.1 Back ground of the study

Mobile phones dominate most of modern human in every movement of life Nowadays which arebecame parts of basic needs of person as means communication across the world during the lastfifteen years Many individuals use mobile for not only communication purpose But also itbecomes a personal assistance to make everyday life easier The development of mobilecommunication technologies has been a long journey of innovation which is constantly evolvingand updating as a result of consumers' changing needs and preferences (Mokhlis and yaakop,2012) Mobile phone is one of the modern telecommunication technologies that have emergedover the past decades to facilitate communication among people within and across countries(Dziwornu, 2013)

The Mobile service provision has begun in 1999 with a capacity of 36,000 lines in Addis Ababa Bythe end of December 2004, the number of subscribers reached about 207,000 ETC’s mobileservice includes prepaid services, satellite mobile phone services, International mobile roamingservices, short message services and Voice mail services Call diverting, call barring and call waitingservices are also obtainable from Ethio mobile (ethio telecom, 2005) The number of mobilesubscribers has been increasing dramatically from time to time; the telecom giant currentlyprovides mobile telephone service to approximately 50 million subscribers (capital, 06 July 2015).Addis Ababa Investment Agency established with its self-power and duty under proclamation No.2/1995 E.C to create suitable condition for the investors and expand the investment activities ofthe city Since then, the Agency has taken over the mission of leading and coordinating theinvestment activities of the City mainly to improve the conditions around investment and createconducive environment to the private investment; to help the new companies and strengthen theold ones; to solve the identified investment problems step by step and to make the investmentmade by the investors contribute to our economic and social development; and in particular topromote the investment of the City in a problem solving way (AAIA guide book 2002e.c)

Since the establishment of the agency that is from 1995 e.c until January 2008e.c, the agencyprovide for 34,386 domestic investors investment licenses with a minimum capital requirements

of 350,000 birr to invest in Addis Ababa in a privileged sectors (manufacturing, hotels,construction , machinery rental, health sector , education sector etc) (AAIA ,2008) Domesticinvestor means an Ethiopian national or foreign national treated as domestic investor as per therelevant law, having invested in Ethiopia (FDRE investment proclamation, 769/2012)

Mobile phone is now considered by investors as one of the necessary electrical gadgets in life,because mobile phone is important in order to stay in touch with friends and family members,enabling access to electronic-mails, engaging correspondence between business associates ortransacting, creating and closing new business contracts

When cell phones were first introduced in Ethiopia, all subscribers had to visit the ETC main office

to register, where they received their sim card and their apparatus (the handset/phone) Duringthis time, all subscribers had identical handsets because there was no choice; everyone had thesame Erickson handset because ETC only provided its subscribers with one kind of handset.Because of this, there was no demand to have cell phone stores selling handsets because ETC’smobile phone service could only be obtained through the handsets they provided As soon as theyallowed customers to buy their own handsets, a number of cell phone sellers mushroomed andcontinue to mushroom in many parts of Addis Ababa by caring different local and internationalbrand of mobile phone for consumers (Etc, 2005)

There are many social and interpersonal factors that influence customers to decide about anyproduct and so happen in mobile phone also Consumer behavior is affected by a lot of variables,ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social Influences of variouskinds exerted by family, friends, colleagues and society as a whole

Consumer around the world varies greatly in age, income, education level and taste andunderstanding how this difference affect consumer buying decision is never easy However,marketing success largely depend on to anticipate what buyers will do and what they prefer from

the available products Today's, highly fragmented cell phone market in Addis Ababa and anincreasing number of investors, this study have done with intention to find out the determinants

of brand preference of mobile phone with a particular emphasis on high profile investors of Addis

1.2 Statement of the problem

When cell phones were first introduced in Ethiopia, all subscribers had to visit the ETC main office

to register, where they received their sim card and their apparatus (the handset/phone) Duringthis time, all subscribers had identical handsets because there was no choice; everyone had thesame Erickson handset because ETC only provided its subscribers with one kind of handset.Because of this, there was no demand to have cell phone stores selling handsets because ETC’smobile phone service could only be obtained through the handsets they provided As soon as theyallowed customers to buy their own handsets, a number of cell phone sellers mushroomed andcontinue to mushroom in many parts of Addis Ababa by caring different local and internationalbrand of mobile phone for consumers (etc, 2005)

Consumer around the world varies greatly in age, income, education level and taste andunderstanding how this difference affect consumer buying decision is never easy However,marketing success largely depend on to anticipate what buyers will do and what they prefer fromthe available products

Advances in the mobile technology and the availability potential consumer open a door for manyinternational brands enter into to the market such as Samsung, apple, Nokia, Motorola and other.Alongside the international brands, locally assembled phones have also emerged to compete forthe market share of Ethiopian mobile phone users These locally assembled mobile phone brandsinclude Techno, SMADL, Tana, and Geotel Even if locally established mobile phone assemblycompany start flourishing in the country, Student researcher observed that most of Investors owninternational mobile brands than locally assemble brands with a price ranging from 3000ETB to15000ETB To support the observation the pilot study was conducted on sample of 30 investors.The result revealed that majority of investors (50%) owned Samsung phone, followed by apple(20%) and Nokia (13.33%) The last next two mobile brands HTC and Techno have only 10% and6.67% coverage respectively in general the market share of locally assembled mobile phone

brands in this segmented market is below 7% As, marketing student, identifying determents ofbrand preference of investors help out local mobile phone assembly company in maintaining theircurrent customers and attract new once This study is done in such a way that identifiesdeterminants of brand preference of investors In addition, there is no significant research toknowledge of the student researcher that informs the determinants of mobile phone brandpreference of high profile investors in Addis Ababa mobile phone market context Therefore, thisstudy is going to identify factors that affect mobile phone brand preference of investors in AddisAbaba mobile phone market for the purpose of filling the information gap.

1.3 Research question

The study has tried to answer the following research questions:

1 which mobile brand i.e International or locally assembled, is preferred by investors?

2 Does advertising, word of mouth, reference group, perceived risk, price, satisfaction and qualityhave positive relationship with brand preference of investors?

3 What are the most significant determinants that heavily influence investors brand preference ofmobile phone?

4 Does factors that determine brand preference vary across profile of respondent?

1.4 objective of the study

 Identify which mobile phone brands i.e local or international brand is preferred by investor

 To determine the most heavily significant determinants that influences a preference of aparticular mobile phone brand

 Identify the relation between advertising, word of mouth, reference group, satisfaction,perceived risk, price and quality with brand preference.

 To examine if there are difference between the demographic profile of the investors anddeterminants that affect brand preference

1.5 Research hypotheses

H1: Quality has a significant positive relationship with brand preference.

H2: price has a significant positive relationship with brand preference.

H3: Perceived risk has a significant positive relationship with brand preference.

H4: Reference groups have a significant positive relationship with brand preference.

H5: Word of mouth has a significant positive relationship with brand preference.

H6: Advertising has a significant positive relationship with brand preference.

H7: Satisfaction has a significant positive relationship with brand preference.

1.6 Significance of Study

 Identifying patterns of consumer preference across the population and uncovering consumerheterogeneity is vital for designing and developing innovative marketing strategies andefficient market segmentation strategies, identification of investors’ brand preference towardsmobile phone brands will assist local companies to develop an effective marketing strategyand to help them compete effectively against foreign brands in a segmented market

 Finding of the study will be useful and important among students and academician as an inputfor doing similar research in this field in the future

1.7 Scope of the Study

This study aim to identify determinants of brand preference of mobile phone by domesticinvestors who invest in privileged investment sector in Addis Ababa city by taking license fromAddis Ababa investment agency since 1995E.c This research does not include foreign investorswho invest in Addis Ababa by taking license from federal investment agency and domesticinvestors who invest in non-privileged investment sector in Addis Ababa by taking license fromtrade and industry bureau In addition, from several antecedents of brand preference, study scope

is only limited to seven independent variables (i.e advertising, word of mouth, reference group,perceived risk, price, satisfaction and quality) From the different techniques of sampling , thestudy employ convenience non-probability sampling techniques

member of a certain product category” (Aaker, 1991)

Perceived quality: is the customer’s judgment about a product’s overall excellence or superiority

(Zeithaml 1988, pp 3 and 4)

Brand association: is anything that is linked in memory to a brand (Aaker, 1991).

Consumer behavior: is the study of how individuals or groups buy, use and dispose of goods,

services, ideas or experience to satisfy their needs or wants (KotlerET al.2009 p.224).

1.9 Organization of the paper

The study has five chapters Chapter one consists of back ground of the study , statements of theproblem, Hypothesis of the study, general and specific objective of the study ,research question,scope of the study and significances of the study Chapter two assesses different theories andconcepts from literatures Chapter three briefly describes the methodology and instrument used

to answer the research question Chapter four analyzes the data and extract important findings Atlast, chapter five gives conclusion, recommendation and limitation and suggestion

CHAPTER TWO: Review of related Literature

Consumer brand selection have been considered complex The consumer chooses from differentbrands based on their preferences, experiences and brand knowledge This chapter aims toinvestigate the extensive literature on determinates of consumer brand preference and relatedconcepts

According to Jobber.D, (2007), branding is the process by which companies distinguish theirproduct offerings from the competition Branding affects perception since it is well known that inblind product testing consumers often fail to distinguish between brands in each productcategory The American Marketing Association define the branding is not about getting your targetmarket to choose you over the competition, but it is about getting your prospects to see you asthe only one that provides a solution to their problem It further explains to succeed in brandingyou must understand the needs and wants of your customers and prospects You do this byintegrating your brand strategies through your company at every point of public contact Yourbrand resides within the hearts and minds of customers, clients, and prospects It is the sum total

of their experiences and perceptions, some of which you can influence, and some that you cannot.For consumers, brands reflect their experience and knowledge; simplifying the processing ofinformation accumulated over time about the company and its products or brands In addition,brands reflect consumer’ experiences and knowledge; thus, simplify the processing of information

accumulated over time about the company and its products or brands Consequently, brands act

as signals for products of high quality and low perceived risk, thus, enable the consumers tocapture both cognitive and non-cognitive values expressed in the positive feelings or self-

expression experienced (Aaker, 1998; Kotleret al., 2009).

Branding as “the process in which a customer or customers, define, label, and seek to purchase asubset of an otherwise undifferentiated or unbranded product” On the surface it appears that it is

up to the consumers to determine a brand’s strength, but in fact it is the branding process thatcreates a unique mental map in a consumers’ mind and guides their behavior (Keller, 2003).Branding is a marketing tool perceived to be important for both the company and consumer.Brands are important valuable intangible assets for companies, a distinctive tool that builds a long-

term relationship with the consumers, and protects its’ rights (Kolteret al., 2009).

2.1.2 History of brand

Brands are not new to marketing Branding has been around for centuries as a means to

distinguish the goods of one producer from those of another In fact, the word brand is derived from the Old Norse word brandr, which means “to burn,” as brands were and still are the means

by which owners of livestock mark their animals to identify them (keller, k.L.2013)

Historically, the concept of brand was first used by the ancient Egyptian brick-makers who drewsymbols on bricks for identification (Farquhar, 1990) Other examples of the use of brands werefound in Greek and Roman times; at this time, due to illiteracy shopkeepers identified their shopsusing symbols Moreover, in the Middle-Ages, craftsmen marked their goods with stamps as atrademark by which to differentiate their skills The next milestone of brand evolved in NorthAmerica with the growth of cattle farming as a kind of legal protection, proof of ownership andquality signals (De Chernatony and McDonald, 2003)

2.1.3 Function of brand

According to Keller l.K (2013) brands provide important functions Brands identify the source ormaker of a product and allow consumers to assign responsibility to a particular manufacturer ordistributor Most important, brands take on special meaning to consumers Because of past

experiences with the product and its marketing program over the years, consumers find out whichbrands satisfy their needs and which ones do not As a result, brands provide a shorthand device

or means of simplification for their product decisions

Strong brands are important to both companies and consumers Companies can get benefitsbecause strong brands add value to companies, positively affects consumers perceptions ofbrands , act as a barrier to competition , improve profits and provide a base for brand extensions.Consumer gain because strong brands act as a form of quality certification and create trust

(Jobber D, 2007) Branding enables the company to build brand recognition and loyalty amongclients, and also to communicate its values and special approach to business in a memorable way.This establishes a benchmark of set of goals, against which the performance can be measured, andgives employees a sense of belonging to a team (Wang, wencheng, 2009 ) A strong brand alsooffers high brand credibility: it becomes a signal of the product quality and performance Thisreduces the risks involved in the purchase including the functional, physical, financial, social,psychological, and time risks (Keller, 2003)

Consumers are attracted to more dimensions of a brand and will be more likely to effectively bondwith the brand Consumers also use the brand as a means of self-image reflection, symbolic status,and an anchor in this forever changing world Finally, a brand smoothes consumers’communication process to others and enrich their everyday lives (Keller 2003)

2.2 Brand preference

2.2.1 Definitions and concepts of brand preference

Consumer brand preference is an essential step in understanding consumer brand choice; hastherefore always received great attention from marketers In marketing, the concept ofpreference means the desirability or choice among alternatives (Oliver and Swan, 1989) While

Zajonc and Markus (1982) propose that “a preference is a behavioral tendency that exhibits itself

not so much in what the individual thinks or says about the object, but how he acts toward it.

Tomer (1996) differentiates between four types of consumer preferences; the actual preference isthe degree to which the consumer appreciates and develops the capacity to use certain goods.Meta-preferences are one’s preferences about actual preferences that reflect the normative

judgments of the higher-order self (meta-self) True preferences are a unique set representingwhat is really and truly the best for the person Finally, unrestrained preferences are those thatsatisfy the lower or physical needs The individual’s preferences are determined by his or heractual preferences that reflect the meta-preferences and unrestrained preferences.

There are two perspectives of preferences The first assumption is that consumers have defined preferences; this is linked to the archaeology uncovering hidden value The secondassumption is that consumers construct their preferences at the time of valuation; they are notsimply revealed This architecture nature of preference is shaped by the interaction between the

well-properties of information-processing system and the decision task factors (Payne et al., 1999).The

two perspectives of preference formation are based on extremes, whether consumer preferencesare well-defined at one stream or constructed at the other However, consumers are notconsistent in their choices, and no single path can define the formation of brand preference.Neither the archaeology, embracing the economic assumption, nor the construction provides acomplete interpretation of the preference formation process (Hoeffler and Ariely, 1999)

The nature of consumer preferences can be either well-defined or constructed; however, itsstability and consistency varied according to the contextual factors It is assumed that theconsumer has relatively stable preferences determined by the subjective assessment of the brandattributes However, in the choice construction, he learns from the context-specific strategieswithout engaging in subjective value assessment (Amir and Levav, 2008)

Preferences facilitate consumers’ choice by enhancing their intentions towards the favored brand.Actual purchasing behavior is likely to correspond to intentions; the mechanism of intention

formation provides evidence of persistent consumer preferences (Van Kerckhoveet al., 2012).

2.2.2 Consumer brand preference

Consumer preferences for brands reflect three responses: cognitive, affective and conative orbehavioral (Grimm, 2005) The cognitive components encompass the utilitarian beliefs of brandelements (Grimm, 2005) The affective responses refer to the degree of liking or favoring that

reflects consumer feelings towards the brand (Grimm, 2005; Hseeet al., 2009; Zajonc and Markus,

1982; Zajonc, 1980) The conative or behavioral tendencies are denoted by Zajonc and Markus

(1982) as the consumers’ predicted or approached act towards the object It is the revealed

preference exhibited in consumers’ choices (Hseeet al., 2009).

It is important for marketers to know how consumers trade-off between different brands beforemaking their choices Since the brand preference has direct influence on consumer purchasingdecisions, then segmenting the market based on brand preference is more interpretable andmanagerially useful than using the desired brand attributes (O’Connor and Sullivan 1995).Inaddition to consumer’s beliefs on brand functional attributes, their beliefs on the brand symbolicattributes such as the brand personality and image have been demonstrated to influence their

preferences (e.g Aaker, 1993; Sirgyet al., 1997).

2.3 Brand equity

2.3.1 Concept and definition of brand equity

Brand equity has been defined by Aaker (1991) as: a set of assets such as name awareness, loyalcustomers, perceived quality, and associations that are linked to the brand and add equity to theproduct or service being offered Keller (1993), on the other hand, defines brand equity as theeffect of the brand on the consumers response to the marketing activities associated with aparticular product

The concept of brand equity is of particular relevance to consumer choice In essence, brandequity measures the equity of the brand, both to the organization and to the consumer For theconsumer, this added equity arises from the brand’s role as an indicator of desirable attributesand as the basis for building an emotional bond (Teas and Grapentine 1996)

Aaker (1991) offers that brand equity can: help a customer interpret, process, store, and retrieve alarge quantity of information about products and brands; affect the customer’s confidence in thepurchase decision; and enhance a customer’s satisfaction when the individual uses the product Abrand is said to have positive customer based brand equity when consumers react more favorably

to an element of the marketing mix for the brand than they do to the same marketing mixelement when used by a fictitiously named or unnamed version of the product or service (Keller1993) In other words, it can be defined as how much a customer likes the brand and how muchthis affinity toward the brand influences purchase behavior

The conceptualizations of consumer-based brand equity have mainly derived from cognitivepsychology and information economics The dominant stream of research has been grounded incognitive psychology, focusing on memory structure (Aaker 1991; Keller 1993) Aaker (1991)identified the conceptual dimensions of brand equity as brand awareness, brand associations,perceived quality, brand loyalty, and other proprietary brand assets such as patents, trademarksand channel relationships The former four dimensions of brand equity represent consumerperceptions and reactions to the brand, while proprietary brand assets are not pertinent toconsumer based brand equity Keller (1993) looked at consumer based brand equity strictly from aconsumer psychology perspective and defined it as “the differential effect of brand knowledge onconsumer response to the marketing of the brand”

2.3.2 Brand equity dimensions

Brand equity is a multidimensional construct, which consists of brand loyalty, customer basedbrand awareness, perceived quality and brand associations Various researchers contended thatbrand associations could be recalled in a customer’s mind as emotional impressions Brandawareness influences consumer decision making by affecting the strength of the brandassociations in their mind, (Keller, 1993) It is also pointed out that there are several dimensions ofbrand awareness with brand associations (Pitta and Katsanis, 1995) Perhaps Aaker (1991)proposes five brand equity assets as the source of the equity created, they are: brand loyalty,brand name awareness, perceived brand quality, brand associations in addition to perceivedquality, and other proprietary brand assets (patents, trademarks etc.)

2.3.2.1 Brand loyalty

Loyalty is a core dimension of brand equity Aaker (1991) defines brand loyalty as the attachmentthat a customer has to a brand Grembler and Brown (1996) describe different levels of loyalty.Behavioral loyalty is linked to consumer behavior in the marketplace that can be indicated bynumber of repeated purchases (Keller 1998) Cognitive loyalty which means that a brand comes upfirst in a consumers’ mind, when the need to make a purchase decision arises, that is theconsumers’ first choice The cognitive loyalty is closely linked to the highest level of awareness(top-of-mind), where the matter of interest also is the brand, in a given category, which the

consumers recall first Thus, a brand should be able to become the respondents’ first choices(cognitive loyalty) and is therefore purchased repeatedly (behavioural loyalty) (Keller 1998).

Based on Aaker’s model, Ovidiu (2005) discussed that Brand loyalty generates value by reducingmarketing costs and leveraging trade Loyal customers expect the brand to be always available andentice others advising them to use it Retaining existing customers is much less costly thanattracting new ones Even if there are low switching costs, there is a significant inertia amongcustomers It is also difficult for competitors to communicate to satisfied brand users because theyhave little motivation to learn about alternatives Therefore, competitors may be discouragedfrom spending resources to attract satisfied and loyal customers and even if they do so, thisrequires a long time Aaker (1992) believes that focusing on brand loyalty is often an effective way

to manage equity Also, Pitta and Katsanis (1995) suggested that brand equity increases theprobability of brand choice, leads to brand loyalty

2.3.2.2 Brand name awareness

Brand awareness is a key and essential element of brand equity which is often overlooked (Aaker,1996) Brand awareness refers to “the ability of a potential buyer to recognize or recall that abrand is a member of a certain product category” (Aaker, 1991) Brand awareness refers to thestrength of a brand’s presence in the consumer’s mind (Aaker, 1996)

Keller (2003,) defines awareness as “the customers’ ability to recall and recognize the brand asreflected by their ability to identify the brand under different conditions and to link the brandname, logo, symbol, and so forth to certain associations in memory”

Brand awareness has different level; at the recognition level, it can provide the brand with a sense

of the familiarity as well as a signal of substance, commitment and awareness and at the recalllevel, it further affects choice by influencing what brands get considered and selected For manycompanies, brand awareness is pivotal and it underlies the strength of successful brands (Aaker,1992)

Brand awareness is measured according to the different ways in which consumers remember abrand, which may include brand recognition, brand recall, top of the mind brand and dominant

brand (Aaker, 1996): Brand recognition Brand recognition relates to consumers’ ability to confirm

prior exposure to that brand when given the brand as a cue It requires that consumers can

correctly discriminate the brand as having been previously seen or heard Brand recall relates to

consumers’ ability to retrieve the brand from memory given the product category, the needsfulfilled by the category or a purchase or usage situation as a cue It requires consumers tocorrectly generate the brand from memory when given a relevant cue

Customers need information to be able to choose between alternative brands (Strydomet al.,

2000) However, consumers are bombarded with increasingly more marketing messages Thechallenge therefore facing marketers is to build awareness and presence both economically andefficiently (Aaker, 1996)

Awareness plays an important role in most of conceptual models of brand equity Brandawareness generates a high level of purchase, mainly because consumers are likely to buy thosebrands they are familiar with enhancing the firm’s profitability and sales (Baldauf et al., 2003)

2.3.2.3 Perceived quality

Perceived quality is the customer’s judgment about a product’s overall excellence or superioritythat is different from objective quality (Zeithaml 1988) Objective quality refers to the technical,measurable and verifiable nature of products/services, processes and quality controls Highobjective quality does not necessarily contribute to brand equity (Anselmsson et al 2007)

Zeithaml (1988) classify the concept of perceived quality in two groups of factors that are intrinsicattributes and extrinsic attributes The intrinsic attributes are related to the physical aspects of aproduct (e.g color, flavor, form and appearance); on the other hand, extrinsic attributes arerelated to the product, but not in the physical part of this one (e.g brand name, stamp of quality,price, store, packaging and production information (Bernue´set al.2003)

Aaker (1992) explained that perceived quality provides value by providing a reason to buy,differentiating the brand, attracting channel member interest, being the basis for line extensions,and supporting a higher price In other words, perceived quality is the consumer’s judgment about

a product’s overall excellence or superiority (Zeithaml, 1988) Perceived quality is included as anasset distinct from brand It has become an important business thrust for many firms and can be

the motivation for programs designed to enhance brand equity Perceived quality is a sufficientlyimportant and accepted strategic consideration (Aaker, 1992).

2.3.2.4 Brand associations

Brand association is anything that is linked in memory to a brand (Aaker, 1991) The associationreflects the fact that products are used to express lifestyles whereas other associations reflectsocial positions, and professional roles Still others will reflect associations involving productapplications, types of people who might use the product, stores that carry the product, orsalespeople who handle the product or even the country of origin

Keller (1998) defines brand associations as informational nodes linked to the brand node inmemory that contains the meaning of the brand for consumers These associations includeperceptions of brand quality and attitudes towards the brand Keller and Aaker both appear tohypothesize that consumer perception of a brand are multi-dimensional, yet many of thedimensions they identify appear to be very similar The image that a good or a service has in themind of the consumer-how it is positioned is probably more important to its ultimate success thanare its actual characteristics According to (Aaker, 1991) there are at least nine brand associations.The associations convey either the concept, or the meaning of the product in terms of how itfulfills a customer’s need

Brand association can be divided into three major categories: attributes (including product-relatedattributes and non-product-related attributes such as price, brand personality, emotions andexperience), benefits (what customers think the product or service can do for them, includingfunctional benefits, symbolic benefits and experiential benefits) and attitudes (customers’ overallevaluations of the brand) (Keller,1998)

Associations can help customers process or retrieve information, be the basis for differentiationand extensions, provide a reason to buy, and create positive feelings Consumers use brandassociations to process, organize, and retrieve information in memory and this helps them tomake purchase decisions (Aaker,1992)

2.4 Consumer behavior

According to Kotleretal.2009 “Consumer behavior is the study of how individuals or groups buy,

use and dispose of goods, services, ideas or experience to satisfy their needs or wants.” In theearly stages, consumer behavior was taken as buyer behavior that reflects the interactionbetween consumers and produces at the time of purchase but now marketers recognize consumerbehavior as an ongoing process not only what happens at the time when consumer gives moneyand gains some goods or services

Consumer behavior include mental activity, emotional and physical that people use duringselection, purchase, use and dispose of products and services that satisfy their needs and desires(Kotler, 1999)

In the eye of marketers, a consumer is known as “a man with a problem” Therefore a consumerpurchase is the response to that problem The process that a consumer takes in his decisionmaking is quite interesting to most of the large companies They are extremely trying to researchthe consumer buying process to find out what consumers buy, where and how they buy, whenand why they buy It is easier for researchers to find the answers for what, how, where, when andhow much consumers buy but it is not that much easy to find why they buy The reason is “theanswers are often locked within the consumer’s head” (Kotler et al 2008)

2.5 Consumer decision making

According to Schiffman et al (2008), in the consumer decision making literature there are fourkinds of decision making views First is the economic view where consumers evaluate allalternatives and choose the one with the maximum utility/satisfaction The decision in economicview is solely focused on utility Second is the passive view, this view can be considered to beopposite to the economic view where “the consumers are submissive to the self-serving interestand promotional efforts of marketers” Consumers do not make rational decisions based on utilitybut by the aims and manipulation of the marketers The third view is the emotional view.Emotional view is when there are deep feelings or emotions attached to decisions which mostlyend up as impulse purchases Since emotional decisions are based on current feelings andemotions at the time of purchase, there is less pre-purchase information compared to other

views The last decision making view is the cognitive view, with this view the consumers maketheir decisions based on how well the product/service will fulfill their needs and enrich their lives.Consumers receptively or actively search for products and services that will serve those goals.Unlike in economical view which assumes consumers have perfect information, in cognitive viewconsumers do not evaluate all possible information in detail but instead they use decisionshortcuts (heuristics) to gather sufficient information about alternatives to make a satisfactorydecision.

Companies use various marketing efforts to influence the decision of consumers but it is difficult

to know how consumers respond to them Marketing stimuli comprises the Four Ps: product,price, place and promotion Besides these there are other stimuli that act as the major forces inthe buyer’s environment: economic, technological, political and cultural All these stimuli enterinto the buyer black box and depending upon the influence of buyers characteristics, the buyercome up with the observable buyer response: product choice, brand choice, dealer choice,

purchase timing and purchase amount (Kotleret al 2008).

Consumer product selection is influenced strongly by personal, cultural, social and psychologicalcharacteristics Mostly, marketers do not have control on these factors but

Have to take them as given (Armstrong and Kotler, 2000)

2.5.1 Consumer decision making process

There are five marketing steps and decision solving processes in describing purchases byconsumers The solving processes are need, information gathering, evaluating the givenalternatives, purchase activity, and also the post purchase status

Several theories have been developed to describe purchase behaviors among consumers.Although they may vary in form of presentation, most of them are composed of stages such aspre-purchase, purchase and post-purchase (Kwok, 2007).Usually a buyer passes through fivestages to reach his buying decision First the buyer notices the difference between his currentstate and ideal state and recognizes his want and need for something A need can also be aroused

by external stimuli He/she starts searching the information for his/her desired product throughdifferent channels like family, friends, advertisement or mass media After sufficient information is

gathered, the buyer processes the information to evaluate the alternatives brands in the choiceset Finally he purchases the product which he assumes to be the best for him After purchasingthe product, the buyer will take further action to the marketer based on his satisfaction or

dissatisfaction (Kotleret al 2008).

2.5.1.1 Need recognition and problem awareness Information Search?

The first step in the consumer decision making model is the need recognition (Blackwell et al2001) Only after realizing a problem, a need or a demand, consumers begin searching forinformation that will solve their problem or satisfy their needs or demands

2.5.1.2 Information search

There are two types of information search that consumers conduct to search for a solution First isthe internal search which is consisted of retrieving knowledge from memory, such as pastexperience/knowledge or genetic tendencies (Blackwell et al., 2001) Internal search happensbefore external search takes place Peterson & Merino (2003) explain that internal and externalsearch are related and external information search process is dependent on memory (internalsearch) The relationship between internal and external search is also iterative because externalsearch that are accepted and pass through the retention steps will be added to memory for futureresearch (Peterson & Merino 2003)

Secondly search can be external where consumers search for or exposed to outside information.Outside information can be marketer dominated or non-marketer dominated Marketerdominated information sources are controlled by the marketers designed to convince consumers

to use their products such as advertisements and, salespersons On the other hand, non-marketerdominated information sources are free of the influence of marketers; these can include family,friends, and opinion leaders Most of the non-marketer dominated information sources can be

considered as word-of-mouth (Blackwell et al, 2001).

2.5.1.3 Evaluation of alternatives

The third stage of the consumer buying decision process involves the analysis and evaluation ofalternatives solutions How does the consumer process competitive brand information make afinal value judgment? The consumer has sought and found the relevant information, and must

now use it to make the purchase decision There is no single process used by all consumers or byone consumer in all buying situation There are several decision evaluation processes Traditionalsources of information for the evaluative stage include past experience, marketing-sponsoredcommunications, consumer groups and research institutions, and word-of-mouth In Internetmarkets, however, information technologies allow for more and more defied, evaluative criteria to

be used In this regard, when consumer experience information overload in the evaluationprocess, or when the “psychological price” of evaluation becomes too high, the advantage may be

to the “ safe” branded or establish competitor (kotler,2003)

2.5.1.4 Purchase

In the evaluation stage, the consumer forms preferences among the brands in the choice set Theconsumer may also form the intention to buy the most preferred brand Factors can intervenebetween the purchase intention and the purchase decision The first factor is the attitude ofothers The extent to which another person’s attitude reduces one’s preferred alternativedepends on two things: “(1) The intensity of the person’s negative attitude toward the consumer’spreferred alternative and (2) the consumer motivation to comply with the other person’s wishes.The most intense the other person’s negativism and the closer the other person are to theconsumer, the more consumers will adjust his or her purchase intention The converse is also true:

a buyer’s preference for a brand will increase if someone he or she respects favors the same brandstrongly The influence of others becomes complex with several people close to the buyer holdcontradictory opinions and the buyer would like to please them all Related to the attitudes ofothers is the role played by infomediaries who publish their evaluations, examples includeconsumer reports, professional movies, books, and music reviewers; customer reviews of booksand music in Amazon.com; and the increasing number of chat rooms where people discussproducts, services and companies Consumers are undoubtedly influenced by the evaluations”(Kotler, 2003)

2.5.1.5 Post purchase

After purchasing the product, the consumer will experience some level of satisfaction ordissatisfaction The marketer’s job does not end when the product is bought Marketers must monitor

post purchase satisfaction, post-purchase actions, and post-purchase product users What determineswhether the buyer will be highly satisfied, somewhat satisfied, or dissatisfied with the purchase? Thebuyer’s satisfaction is a function of the closeness between the buyer’s expectation and the product’sperceived performance If performance falls short of expectations, the customer is disappointed If itmeets expectations, the customer is delighted These feelings make a difference in whether thecustomer buys the product again and talks favorably or unfavorably about it to others Consumersform their expectation on the basis of messages received from sellers, friends, and other informationsources The larger the gap between expectation and performance , the greater the consumer’sdissatisfaction The importance of post-purchase satisfaction suggests that product claims musttrustfully represent the product’s likely performance Some sellers might even understate performancelevels so that consumers experience higher-than-expected satisfaction with the product Satisfaction ordissatisfaction with the product will influence a consumer’s subsequent behavior If the consumer issatisfied, he or she will exhibit a higher probability of purchasing the product again For example, “data

on automobile brand choice show a high correlation between being highly satisfied with the last brandbought and the intention to buy the brand again One survey showed that 75 percent of Toyota buyerswere highly satisfied and 75 percent intended to buy again; 35 percent of Chevrolet buyers were highlysatisfied, and about 35 percent intended to buy a Chevrolet again” ( Kotler,2003)

2.6 Factors that Determine brand preference of mobile phone (Empirical review)

Mesay Sata (2013), conducted study on factors affecting consumer buying behavior of mobile inHawassa town Accordingly, the result of the study shows that consumer’s value price followed bymobile phone features as the most important variable amongst all In addition to that socialinfluence, durability, brand name, product feature and after sales service have a positive impact

on the decision to buy a mobile phone device

Safiek Mokhlis., et al (2012), conducted study on factors affecting consumer to buy a mobilephone, The research result shows that Outlook, price, new features, durability, advertisement,and after sales service are the key factors which influence on consumer at the time of purchasingmobile phone

In the study of subramanyam and venkateswarlu (2012) they conducted the study on which factorinfluence the mostly buying behavior of customer When they buy new brand mobile phone Thisstudy conducted kadapa district in India As per study result advertising, level of education,income and past experiences by friend and family member are the main factor which influence thecustomer at the time of owning mobile phone.

Bibi Noraini M.Y et al (2015), try to explore the factor that influence consumer's purchase ofmobile phones The main objective of their study is to understand how price, social influences,relative advantage and brand image affect demand of smart phones in the northern regions ofMalaysia The result revealed that price, social influences, relative advantage and brand imagehave significant relationships towards demand of smart phones

Many Researcher have found brand awareness, brand image, and consumer attributes to be majorantecedents of consumer brand preference (Berry, 2000; Keller, 2003; de Chernatony and Segal-Horn, 2003; Grace and O’Cass, 2005) cited by Ahmed Alamro, Jennifer Rowley, (2011)

in the minds of consumers through activities of the brand (Keller, 2003) Customer attributesrefers to attributes, specifications and characteristics of consumers (Zeithaml, 1991,)

The model and its associated hypotheses concerning determinates brand preference wasdeveloped on the basis of previous research and theory that suggests relationships betweenindependent variables and the dependent variable (i.e brand preference) Based on previousresearch studies and literatures reviewed seven independent variables brand image (price andquality), brand awareness (advertising and word of mouth) and consumer attributes (perceived

risk, reference groups and satisfaction) thought to influence the dependent variable (i.e Brandpreference) are identified.

Figure 1:conceptual model for Brand preference mobile phone (modified by student researcher,

model of Ahmed Alamro and Jennifer Rowley, (2011))

Chapter 3: Research methodology

Introduction

Since research methods are the practical techniques used to carry out research, this section of thestudy focuses on discussion of methodology and the methods that were employed in thisresearch The section consists of research design, research instrument, data collection techniques,target population, sampling techniques, sample size determination and methods of data analysisand interpretation To provide the detail of each sub methodology application, the studentresearcher discusses each separately as follows

3.1 Research design

In order to achieve the objectives of this study, the research employed quantitative researchdesign Quantitative methods are characterized by measurable data which can be expressed innumbers or other quantities This gives a basis for the presentation of frequencies, distributionsand correlations (Limb & Dwyer, 2001).The choice of quantitative approach for this research wasbecause of quantitative research aims to determine how one variable affects another in apopulation, by quantifying the relationships between variables (Creswell, 2009) So, the studyquantify the relationship between variables by applying quantitative approach, Quantitativeresearch involves studies that make use of statistical analyses to obtain findings So here,statistical analysis applied to obtain the findings In addition, from the literature reviewed thequantitative methods of data collection and analysis will be used in this study were widely usedand tried and tested in similar research topics

To test hypothesis, and investigate research objective and research question both descriptive andinferential statistic were applied The purpose of descriptive survey is to collect detailed andfactual information that describe an existing phenomenon (Ezean, 1998) The reason why theresearcher chose descriptive type of research is to identify and clearly describe the factors thatattract investor to prefer a particular brand Similarly, explanatory research design was used toidentify the relationship between independent and dependent variables (brand preference)

3.2 Research instrument

Questionnaire is the main instrument survey technique that is used to collect data in this study.Questionnaire employs the typical form of fixed-response alternative questions that require therespondent to select from a predetermined set of answers to every question According toMalhotra and Birks (2003), this survey technique is the most common method of primary datacollection in marketing research and the advantages are simple to administer and dataconsistency The main questions in the questionnaire measured determinates of brand preference

by using the five-point Likertscale (1 “strongly disagree”-5 “strongly agree”) The Likert scalingtechnique is a widely used rating scale which requires the respondents to indicate a degree ofagreement or disagreement with each of a series of statements or questions (Albaum, 1997) Thisrating scale is easy to construct and administer and respondents readily understand how to usethe scale (Malhotra and Birks, 2003)

3.3 Source of data

There are two major approaches to gather information about a situation, person, or problemthese are primary and secondary data source Sometimes information required is already availableand need only be extracted However, there are times when the information must be collected Tomeet the objective of the research and to answer the research question’s both primary andsecondary data were used The primary data is collected through structured questioner and thesecondary data about factors that are important to brand preference collected from journals,books, and articles

3.4 Data collection techniques

The data for the research was collected through structured questionnaire In order to design thequestionnaire, conceptual framework of the study was used In addition the student researchertry to make The questionnaire brief, simple, clear and cover the relevant aspects of the modelsused in the conceptual frame work According to Fisher (2007) it is recommended to Keep thequestionnaire as short as possible and give it a logical and sequential structure so that therespondent can easily see what the questionnaire is about and can follow its themes as theydevelop

The questionnaire constructed in English language and then translated to Amharic languagebyprofessionals in the field to make easily understood and simple for the respondent A pilot test ofthe questionnaire was conducted on 30 respondents who were similar to those who were toinclude in the study in terms of background characteristics: for the purpose of removing anyinconsistencies and to confirm the suitability of the content, structure and design of the questionsand questioner.

Student researcher himself collected data for 13 working days by physically present to the office ofAddis Ababa investment agency Student researcher implied face-to-face contact with respondentwho are present in office of AAIA in time of data collection and try to look their investment licensebefore providing the questioner to make sure that they are investors not representative

3.5 Sampling design

3.5.1 Target population

The target population of this study is 34,386 local investors(it includes Diaspora) who invest in 10sub-cities of Addis Ababa from 1995 till 2007 E.C on privileged sector by taking licensee from AddisAbaba investment agency There are other sectors who provide investment and trade license forinvestors, the reason behind AAIA was selected because of it gives license to investors who camefrom all region of Ethiopia to invest in all 10 sub-cites of Addis Ababa and in all sectors ofinvestment which was permitted for local investors but others investment and trade licenseprovider governmental organization are restricted by sub cites and sector

3.5.2 Sampling techniques

There are several ways in which potential participants can be selected for inclusion in a researchstudy, and the manner in which participants are selected is determined by several factors,including the research question being investigated, the research design being used, and theavailability of appropriate numbers and types of study participants (Geoffrey, 2005) It is typicallynot practical to include every member of the population in a research study Time, money, andresources are three limiting factors that make this unlikely Therefore, most researchers are forced

to study a representative sample of the population (Geoffrey, 2005) There are two approaches to

the selection of the samples: Probability sampling and non-Probability sampling In probabilitysampling each member has equal chances of being selected and in non-probability sampling eachmember does not have equal chances to be selected For this study, Convenience sampling which

is a non-probability sampling technique was employed Even though there were some risks inadopting a convenience sampling techniques such as a questionable representativeness, hencequestionable credibility of the findings, However, the study avoided this by composing adiversified sample consisting of investors with different backgrounds in terms of gender, age,sector , investor type and investment capital There were three basic reasons for employingconvenience sampling in this study; first, from 34,386 investors who took license some are notoperating at this time due to several reasons however, this population was exactly unknown bythe AAIA agency Second, some investors are operating with representative and lives abroad thatmakes difficult to get all investors in person or other means of communication Third, individualalso took license collectively through Private limited company (PLC) and cooperative organizationwith representative manger this also make difficult to get representative investors from the group

So, the mentioned three problems forced the student researcher to employ conveniencesampling

3.5.3 Sample size determinations

The target population of this study is local investor who invests in city government of Addis Ababa

in privileged investments sector who use mobile phone, the total size of the population is notexactly known According to Sekaran,(2009) sample size between 30-500 is already adequate formost of the research When the size of population is unknown and previous researches areunavailable to determine the variability of an estimate over all possible samples, thus the sample

size is calculated for the list favorable case p = q = 0.5 (Corbetta, 2003) Indeed, as the variability is

measured by √pq, it is easy to see that this index assumes its highest value when p = q = 0.50

(Corbetta, 2003)

Since the total population is unknown and previous studies are not available, with the study title

here in Ethiopia, to determine the estimate of p and q used the recommendation by Corbetta

(2003) in determining the standard deviation, 95% confidence interval and 5% sampling error in

calculating the sample size The sample size for this study was determined with the use of Topmanformula as presented below (Dillon, 1993).

n = 2 2

Where: n = required sample size

Z = Degree of confidence (i.e 1.96)2

P = Probability of positive response (0.5)

Q = Probability of negative response (0.5)

E = Tolerable error (0.05)2

n = (1.96)2 0.5 0.5(0.05)2

n= 3.8416 0.5 0.50.0025 =384

3.6 Data analysis and interpretations

To meet the specified research objectives, Quantitative data analysis was used for the studypurpose Both descriptive and inferential statistics methods of data analysis also employed.Descriptive statistics like frequency distributions, graphs, charts are used for identifying frequency

of respondents in each demographic group and inferential statistics like correlation, multipleregressions , Independent sample t-test and ANOVA were used :- to find out the relation b/nindependent variables and dependent variable, identifying impact of each independent variable

on brand preference and identify mean difference b/n demographic groups and their brandpreference determinates respectively

3.7 Validity

Validity is concerned with whether the findings are really about what they appear to be about(Sounders et al., 2003) Validity defined as the extent to which data collection method or methodsaccurately measure what they were intended to measure (Sounders et al., 2003) Numbers of

different steps taken to ensure the validity of the study: Before the research instruments were

used for data collection the draft copies was evaluated for content validity by my advisers, Data

was collected from the reliable sources, and Survey question was made based on literature reviewand conceptual frame of work of reference

3.8 Ethical clearance

Before data collection, the purpose and procedure of the study was explained to the respondents and verbal informed consent was also be obtained Respondent were not required to write their name and also Attitude, opinion, and belief of respondent was kept confidential.