TABLE OF CONTENTS

CONTENT

PAGE NO

1. Introduction

2. Need for study

3. Research methodology

3.A. Research objectives

3.B. Variables of study

3.C. Conceptual Model

3.D. Research Hypothesis

4. Data Collection

5. Data Analysis Tools

1. INTRODUCION
Ever since farmers began burning identification marks on their animals thousands of years
ago, branding has been an integral part of commerce. In more recent times, as manufacturers
were able to offer a wide selection of products either locally, regionally or globally, having a
brand to distinguish their wares from something similar made by a competitor became
important. As more brands appeared within the same market sector and when competitors
quality improved, standard advertising methods were found to be lacking and the concept of
brand management was born.
Companies began looking for new branding strategies to distinguish themselves from
competitors, which led to USA television advertising executive Rosser Reeves developing the
unique selling proposition, suggesting that Differentiation is one of the most important
strategic and tactical activities in which companies must constantly engage.
With intensive competition between companies who were prepared to advertise heavily to
showcase their offerings, brands became something more than just a product, becoming more
like a contract between the company and customers. And if a consumer believed a company
was in breach of contract either by underperforming or not delivering on what was
promised in other words the brand lost trust the consumer could elect to take his or her
custom elsewhere. Hence, the need for the reasons and likelihood of brand switching to be
understood.
For example, when Apple introduced the iPhone brand, it was the most attractive
smartphone in the market, causing significant consumer switching from other brands
including Motorola, Nokia and Sony Ericsson. Later, Samsung continued to learn more about
consumer tastes and needs, which helped it launch a more attractive brand, Galaxy.
Samsung differentiated its smartphone with different features, big screens and a successful
marketing strategy through which it offers different options of brand new smartphones
targeting different consumers, including low-end smartphones for the developing world.

2. NEED FOR STUDY

A lot of brands are available in the market. But the consumers prefer a particular brand which
is much affordable to them. In the modern business world, due to the development of science
and technology, many new brands have been introduced in the market every year. Measures
of brand switching behaviour attempt to quantify the impact of marketing activities in the
hearts and minds of customers and potential customers. . The attributes price and quality can
indeed be more important on decision making than that of brand name and others.
Generalizations about the effect of price and quality should be tempered however because
consumer reactions to a price and quality differential clearly depend on the magnitude of the
differential as well as the brand names which are considered.

3. RESEARCH METHODOLOGY
The main purpose of this paper is to identify the role and the impact of price and quality of a
product on the consumer brand switching behaviour. The consumer brand switching
behaviour is a dependent variable that is influenced by the independent variables used in the
study. A sample size of 100 respondents is taken through convenient sampling. The
paper uses primary data. Data is collected from respondents using a
structured questionnaire in order to find out the impact of price and
quality on the brand switching behaviour of customers.

3.A. RESEARCH OBJECTIVES

To understand the brand switching behaviour of the consumers

To establish the relationship between price of a product and brand
switching.

To understand how quality of a product is responsible for switching of brand.

3.B. VARIABLES OF STUDY

Research Objective
Hypothesis
Variables
To
understand H1: Price of the product is a IDV: Price of product,
Quality of product.
the
brand significant reason behind
brand switching.

switching

behaviour of the H2: Quality of the product DV: Brand switching

leads to switching of brand. behaviour.
consumers
To establish the
relationship
between price of
a

product

and

brand switching.

To understand how
quality of a product
is

responsible

for

switching of brand.

factors IDV: Demographic Factor

switching
The objective of the have a significant relation DV: Brand
behaviour
proposed study is to with
consumer
brand
show
that switching behaviour

H3:

Demographic

Demographic Factor
directly or indirectly
related with consumer
brand

switching

behaviour.

3.C. CONCEPTUAL MODEL

DEMOGRAPHIC VARIABLES

Age
Gender
Education

INDEPENDENT VARIABLES

Price of the product

Quality of the product

Brand Switching

3.D. RESEARCH HYPOTHESIS

H1: Price of the product is a significant reason behind brand switching.
H2: Quality of the product leads to switching of brand.

4. DATA COLLECTION

Variables
Price

Questionnaire
Suri

and

Dimensions of Item

Monroe

(2003)

Scale Items
1. The advertised
price for this
__________ was:
very low / very high
2. I felt that the
__________ was:
very cheap / very
expensive
3. I felt that the
manufacturers
advertised price for
the __________
was:

Quality

Grewal,

Monroe,

and Krishnan (1998)

very low / very high.

1. The __________
appears to be of
good quality.
2. The __________
appears to be
durable.
3. The __________
appears to be
reliable.

4. The __________
appears to be
dependable.
5. My image of the
__________ is
_____.
6. I view the
__________ brand
name positively.
7. The workmanship
on this product
would be good.
8. How certain are
you that this
__________ will
perform
satisfactorily?
Brand Switching

Moore-Shay
and Lutz (1989)

uncertain / certain
1. I switch among
brands of
__________ just to
try something new
once in a while.
2. When I am
shopping for
__________, I am
likely to buy new
brands just for the
fun of it.
3. I get bored with
buying the same
brands of
__________, and so
I often try different

Demographic

brands.
18-24

Age

25-34

factors

35-44
45 and above
Male

Gender

Female
Education

High school
Graduation
Post-Graduation

5. DATA ANALYSIS TOOLS

Hypothesis

Data Analysis Tools

Part Questionnaire

H1: Price of the product is a

Correlation

1. The product appears to be

significant

Regression

of good quality.

reason

behind

brand switching.

2. The product appears to be

H2: Quality of the product

durable.

leads to switching of brand.

3. The product appears to be

reliable.
4. The product appears to be
dependable.
5. My image of the product
is excellent.
6. I view the Apple brand
name positively.
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7. The workmanship on this

product would be good.
8. I switch among brands
just to try something new
once in a while.
9. When I am shopping, I
am likely to buy new brands
H3: Demographic factors
positively

influence

Chi Square test

just for the fun of it.

Age
Gender

the

Education

consumer brand switching

behaviour.

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