Course Work on Marketing: Relationship Between Brand Image and Consumers' Purchase Intentions

Executive Summary

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Purchase intention is one of the most vital components of marketing strategies as it enables the understanding of the consumers. Research shows that understanding the consumers intentions is one of the essential strategies for solving the challenge of understanding the issues than the impact on consumers choice of one retailer over another. The study examines the concepts of image, name, and reputation of brands as the definitive factors in determining customers intention to purchase products. Family Marts quest to enter into Singapores convenience store market and one of the ways of understanding the ground is to examine the purchase intention of the potential clients using 7-Elevens consumers as the respondents in the research. SPSS facilitate the analysis of the complex data from the study and the application of ANOVA tool aid in drawing the relationship between the independent research variables such as brand name, image, reputation, consumers income, levels of education, and marital statuses and the dependent variable which is purchase intention.

Background

Family Mart Co. Limited launched its first operations in 1973 with the first store in Saitama Prefecture. At present, Family Mart Co. Limited has numerous franchise stores across countries such as Vietnam, the US, Taiwan, South Korea, Thailand, Philippines, Malaysia, and three main cities in China namely Suzhou, Guangzhou, and Shanghai. In Japan, Family Mart Co. Limited is ranked at the second position as the largest operator in franchise chain store (Family Mart, 2017). Since 1981, the organization has had appropriate experience in the business of convenience stores such that at present the total number of stores that Family Mart operate are approximately 22,400 as evident from the 2009 survey. As a result, the business venture trails 7-Eleven Company which is the largest convenience store.

The product's sales in the Family Mart depends on the country that it is operating. For example, Family Mart Co. Limited in Japan specializes in essential products for Japanese consumers especially grocery products bento, fried chicken, nikuman, alcoholic and soft drinks. However, there has been a rapid increment in the number of goods that Family Mart Co. Limited sell due to globalization that has led to the need for product diversity. Family Mart is not operational in Singapore but is considering it the most viable market evident from the success of 7-Eleven franchise in the country. The success of 7-Eleven is due to appropriate financial strength and efficient management aptitudes which local firms do not have and hence find it hard to lead successful businesses in the region. Therefore, as Family Mart is trying to advance its ventures in Singapore, it is using the strategies of 7-Eleven Company which is successful in the region.

Introduction

Singapores convenience stores retail business landscape changes every day with the companies operating in small formats being forced to compete with the global giants that are invading the market. According to Durvasula, Akhter, and Bamossy (2012), Singapore is currently a center-stage where global retailers are focusing on due to the country ever changing the culture, demand for products and demographics. The key factor that is affecting the consumers intent to purchase services and good is information technology which is currently playing a pivotal function in the contemporary business environment. Sultan (2010) says that information technology and the rise of social media usage among the consumers. Purchase intention is currently evolving into a complex phenomenon to understand due to increasing number of informed consumers. Therefore, the success of retailers such as Family Mart has the greatest challenge of applying the tactical means of understanding the shoppers intentions in buying and using services or goods. For instance, research shows that brand image is the defining factor in customers intention to purchase products.

As a result, businesses are struggling to enhance the brand images of their services and commodities to lure many consumers. A similar situation faces Family Mart in its quest to advance its operation into Singapore market. The ability to have an appropriate operational efficiency and corporate culture can change the shopping styles of Singapores consumers. One of the first and necessary steps that convenience stores should take while designing marketing plans and strategies is comprehending the factors that influences the customers purchasing behavior. Buying intention is one of the aspects that originate from the buyer's behavior. The known factors that affect the consumers intention to buy goods and services include brand loyalty which elements such brand image, brand name, and brand reputation are intertwined within it.

As Lancasters theory about the buyer choice, there is a postulation that utilities from the product attribute determine consumers decisions to of consumer choice. Furthermore, it is evident that customers associate products attribute to the positive and negative concerns that ensue after the consumption of goods. In a research study by Pellemans (2010), the findings show that design, quality, brand image and brand name are essential factors that consumers consider before purchasing products. Other attributes that shape the buying decisions of consumers include prices and products reputation.

Research objectives

The purpose of the research is:

To show the relationship between brand image and consumer's purchase intentions.

To demonstrate how brand reputation affects the consumer's purchase decisions.

To illustrate the impact of brand name in customers buying intentions

To show the influences of consumer demographics such as marital status, occupation, education level, income, and age on their buying plans.

Research Justification

Because of the close relationship between purchase intention and product marketing, it is essential to explore the factors that influence purchase intentions. Purchase intention is important in the formulation of marketing strategy because it describes the plans of consumers to acquire services or goods. Buying plans represent the innate tendencies or actions related to the brands that the shoppers exercise. Therefore, examining consumers buying plans is essential for marketing managers in their quest to predict the organizations future sales hence paving the way for marketing strategies and actions for positively impacting on the buyers purchasing decisions and behavior. Since previous research show the correlation between customers subsequent buying behaviors, it is essential that Family Mart Co. Limited marketing managers know how to apply the knowledge and insights from the positive correlation and determines when they should use them best to influence consumers purchasing patterns and behavior.

Literature Review

Many scholars use the Theory of Planned Behavior (TPB) in describing the concept of purchase intentions. The TPB define the role of behavioral intentions in capturing motivational triggers of buying behaviors. Therefore, the intention is one of the prevalent predictors of consumers buying decisions and actions. On the other hand, scholars such as Durvasula, et al. (2012) view purchase intention to be a factor of brand reputation, brand name, and consumers attitudes. The deductions from TPB is that brand perception, norms, and motivation that promotional mix supply is responsible for the positive influence which leads to increased buying intention. Public relations, sales promotion, and advertising are examples of motivational forces that positively affect buyers in making purchase decisions. Other research studies reveal the impact that cultures and norms have on the types of brands to or purchase as evident from a good number of individuals who are firmly tied to their cultural attitudes and behaviors while buying products. Brand synonymity with cultural ties will make such individuals purchase items because of the belief that they such goods form part of their daily lives.

In the contemporary business environment, brand serves a critical role in the marketing of services and products. Similarly, the economies of many nations depend on the brand because of the brand name, brand image and brand reputation of the products that the countries produce sales them in the world market. According to Lennon (2007), the brand is the present-day instrument that almost all marketers use in altering and achieving a positive buying intention. According to Shezhad, Ahmad, Iqbal, Nawaz, and Usman (2014), the present-day consumers is both conversant and knowledgeable about products and services brand that they were in the past due because of the information age. The term brand is a phrase that denotes artifacts, design, symbol, sign, name or a mixture of all these aspects which individuals will apply in the processes of identifying services or goods of a particular dealer, producer or a business institution. Many organizations are using the brand as the key aspect for differentiating their services and products from those of close competitors (Kotler & Keller, 2012). Lennon (2007) on the other hand describe the concept of brand to be a blend of design, symbol, and name which acts as the representation of consumers opinions, perceptions, and understanding of the services, products, their attributes, and performance.

In an attempt to describe the impact of the brand on customers intuition, Lennon (2012) says that a brand that is powerful will always attract consumers attention to the extent of making them consider the name while making their purchase intentions. There is a difference in the way brand impacts on the consumers buying plans because of the variation in their value and power. The higher the value and power, the greater the brands capacity to convince buyers to make a decision that favors it. When a business organization has no powerful brand, they consumers do not notice the presence of the brands within the market. A strong brand with the backi...