Study On The Impact of Brand Image on Consumers Buying Preferences-

A Study on the 2-Wheeler (motorbike) Industry in Kolkata, India

A GRADUATING PROJECT BY

DEVYANI BANTHIA

STUDENT ID: ETU20151937

BATCH: MSc. DMC 2015-2016

SUPERVISOR: H.Y. LIU

DATE OF SUBMISSION: 26th October, 2016

ESC RENNES SCHOOL OF BUSINESS

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 INDEX

S. No Topic Page No.

1 Abstract 3
2 Keywords 3
3 Introduction 4-8
4 Literature Review 9-10
5 Objectives of Study 11
6 Limitations 11
7 Research Methodology 11-12
8 Research & Findings 12-25
9 Conclusion 26-27
10 Executive Summary 27-29
11 References 29-31
12 Annexure 1 31-35
13 Annexure 2 35

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 Study On The Impact of Brand Image on Consumers Buying Preferences-
A Study on the 2-Wheeler (motorbike) Industry in Kolkata, India

Abstract

A brand is not just a name, a logo design or a color. A brand is an assurance of trust, quality,
guarantee, repute as well as a means of identification. Branding is not just a process
wherein a company or an organization label the products that they offer with their mark or
logo, but a process of giving it a distinct, individuality that helps consumers classify and
identify their products in the market from over the product offerings of their rival
organization/company. What we aim to study and determine here is the effect of branding on
a consumers motorbike buying behavior and the key factors that influence a customers
association to branded motorbikes. This paper helps to understand a consumers buying
behavior in relation to the Indian scenario, thus bringing to light the branding elements that
tends to greatly impact the customers connection in terms of product purchase- in this case,
Motorbikes.

Keywords

Branding, Brand Image, Brand Equity, Consumer, Buying Behavior. Corporate Social
Responsibility, Purchase Decision

Introduction

One of the most crucial decision-making process for a customer is their choice of brands that
fit their budgets, needs as well as aspirations. In order to understand what influences a
customers purchase decision, companies invest a huge amount of their market survey
budgets to identify what criteria exactly is taken into consideration.

In order to decide what brand to choose, a customer first decides what he/she wants to buy.
They go through a series of steps in order to get to a final decision. The first and foremost

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thing to consider is the requirement of the product i.e. if they really need it or not. Following
this step, they try to get information about the product and then pick and choose the
alternatives that they have in the market and then finally, they come upon a decision and
purchase the product from a certain, specific brand. A person always puts his//her past
experiences into consideration when choosing a particular brand, keeping in mind its quality,
its packaging, aesthetics as well as performance, especially in cases of products that they use
frequently. 1

Choice of brand name is very crucial considering that it either takes into account the basic
theme or an essential connection to the product in a trendy yet compressed manner. A brand
name makes for one of the most important means of communication for an organization that
is the key to its success in the market. 2

As Keller puts it, A brand is a product, but one that adds other dimensions that differentiate
it in some way from other products designed to satisfy the same need. These differences must
be rational and tangible related to product performance of the brand or more symbolic,
emotional and intangible related to what the brand represents. 3

Mariotti explains a brand as a simplified shorthand description of a package of value upon

which consumers and prospective purchase rely to be consistently the same over long period
of time. It distinguishes a product or service from competitive offerings 4

Companies generally use a unique symbol, a logo, a word or a sentence, mark, name or a
blend of all to make their products stand out from their competitors in the market and for the
ease of recognition by their customers, both existing and prospective.

A brand may just be a combination of a name, design or a symbolic reference to some, but in
reality, it is a mark of trust, an assurance of quality, a way of recognition as well as a status
symbol. The constant desire to challenge the status quo makes as well as mirroring
continuous development, changes and inventive nature in terms of their product design,
marketing strategies and overall packaging reflects the commitment of the brand. (Sharma &
Pathan, 2011). 5

In order to prompt repeat purchases from a customer, a brand needs to continuously build an
image that reflects their highly reliable quality of products which offer a good value for
money. The above factors are majorly taken into consideration by customers, other than the
brand name. Brand name is just a way to position themselves in a competitive market but it

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does not always influence the customers decision, but sure does play an important role. It
has been noticed that if a consumer has been happy with a previous product purchase, he or
she does not like to put in that extra effort to reconsider an alternative choice of brand,
because they prefer to stay loyal to that brand, but only if there are no price revisions that are
beyond their understanding or if they get information about a product that beats the existing
products quality and service, thus making them unhesitatingly switch from their brand. This
is an important reason why companies and organizations invest a fortune in development,
research and branding to keep their customers loyal, keep them off switching their brand and
continuously adapt to their customers buying behavior.

The process of creating a brand name is called branding, which as mentioned above, is a
combination of various symbols, design, words, sentences, colors, logo, etc to make it easily
distinguishable in the market from among their competitors. By definition, a brand is a
complete package in itself that a customer can blindly trust, now and for the years to come.
(Sawant, 2012). 6

Companies also use trendy, catchy names to make it easy for people to recollect, even if it
has nothing to do with the product or the experience of using the product or for that matter,
an emotional connect. This is also a unique way to give the brand a distinct recall value by
generating curiosity, ease of remembrance and make its products stand out in a crowd. 7

Customers, in my opinion tend to have strong connection to brands and brand names. Brand
name has been seen to influence a customers decision in choice his/her choice of motorbike.
When people intend to purchase a motorbike, they have a galore of brands to choose from,
but they usually make a purchase taking into preference the brand name and company
reputation in the prevailing market because of the trust factor as well as previous experiences
with the brand, be it personal or recommended.

With the ever-increasing competitive marketing, being customer-oriented is helping

companies and organizations get a larger market share and better position in the market. 8 Due
to such competitive markets where customer can choose similar products at varied prices
both low and high, companies are forced to come up with aggressive marketing strategies and
well-coordinated distribution structures. In such cases, competitive advantage can only be
achieved by conducting good research and development of the products offered, as well as
revamping their overall package in order to offer more significant advantages to the
customer.9

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Understanding a customers Buying Decision

Why are certain brands selected whereas the others are turned down? This leads us to
understand the customers experiences with the brand. Many valued brands supposedly have
a better understanding of their customers wants and needs because of their efforts in trying
to understand their behavior and the time and money invested to have been able to be ahead
the others in the same league. After all, it is all about how well a brand establishes and
emotional or an intellectual connect with its target customers. By using a rational approach to
understand a customers decision making process, consumer researchers can collect
important information about the product and how it affects the customers buying decision at
various stages.

Understanding what comprises a Brands Strength?

A brand that has a dynamic appeal to its audiences is considered an impactful, strong brand.
Only a brand with such captivating power to lure people to do business or monetary
transactions at the market in which they operate, and attract people to purchase or avail their
services can sustain in such a dynamic, ever-changing environment. For example, there are
many brands for soft drinks, sports accessories and fast food who incur a fortune on
advertising and brand name building and promotion. The popularity of these brands is the
reason people want to buy their products in order to be a part of the status quo, thus helping
increase the sales of the company. Because their success to credited to their ability to
distinguish themselves from other products, and in turn being able to connect with the
customer, the success of the entire campaign is accredited to the customer. The customer
eliminates other brands in the favor of the brand that connects best with them as well as
serves their interests. The failure of the brand is when the brand is eliminated in the selection
process itself. Thus, the biggest upheaval that a brand faces is the challenge of survival in the
process of decision making and not being eliminated from the customers pool of choices and
then finally being bought after much consideration.

Understanding Consumer Behavior

Consumer behavior deals with the various activities as well as thought processes that the
consumer goes through while considering and decision making in case of a product/service
purchase, be it individually or even in case of a group. It is a study using behavioral as well
as demographic factors in order to understand the wants and needs of the target audiences and

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an assessment of what generally influences such groups, for example, friends, family,
community or society. By studying the 5Ws and H- What, When, Where, Why, Who & How
about the target audiences using studies and elements of sociology, psychology, economics
and social anthropology in an attempt to understand consumer behavior as well as the buyers
decision making process.

The term brand identity was coined in the early 1990s and has seven other concepts
connected to it like personality, positioning, brand equity, COO, brand communities and
subcultures, relational branding, and CSR.

Brand equity helps to measure the effects of branding over the years. Aaker and
Joachimsthaler (2000)9 affirmed that brand loyalty is connected to brand equity, thus stating
that the higher the customer loyalty of an organization, the higher is the brand equity
(customer-based).

The concepts of brand loyalty and CSR have also been found to be interconnected. Brand
loyalty is closely related to brand communities and the subcultures of consumption thus
bringing us to understand the concept of CSR. The main reason for doing CSR activities it to
change the way a consumer sees the brand and build reputation in the market.

The main reason why organizations adopt CSR practices are: to make consumers understand
the brands assurance, maintaining customer loyalty, maximizing the effect of investments on
CSR done by the brand, and to avoid any prospective conflicts with stakeholders (Blumenthal
& Bergstrom 2003)10. Companies that are seen as responsible can use this ethical game as an
edge for the benefit of the brand, thus helping build a long lasting relationship with the
community. (Kapferer 2008:22)11

CSR has become a way of understanding and measuring the reputation of an organization and
its branding strategy since it reflects not only their pre-planned communications strategies as
well as the socially responsible activities taken up by the organization. CSR and loyal
customers are closely connected mainly because CSR also affects the brand identity of an
organization. If a brand is perceived to be taking care of the environment, community or
society, it will help the brand image positively which in turn would help companies mint
money on that perception.

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The brands covered in this study are:

A) As per the official website of TVS Motor, TVS Motor is the third largest two-
wheeler manufacturer in India, with a revenue of 11,244 Cr* INR (2015-16). The
company has annual production capacity of 3.2 million 2 wheelers & 1.2 Lakh* 3
wheelers. TVS Group spans across industries like Automobile, Aviation, Education,
Electronics, Energy, Finance, Housing, Insurance, Investment, Logistics, Service and
Textiles. Has over 90 Companies under the umbrella. TVS Motor Company Ltd (TVS
Motor), member of the TVS group (Revenue around INR. 40,000 Cr in 2015-16), is
the largest company of the group in terms of size and turnover. 23
B) As per the official website of Bajaj Auto, The Bajaj Group is amongst the top 10
business houses in India. Its footprint stretches over a wide range of industries,
spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting,
iron and steel, insurance, travel and finance. The group's flagship company, Bajaj
Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and
the Bajaj brand is well-known across several countries in Latin America, Africa,
Middle East, South and South East Asia. Founded in 1926, at the height of India's
movement for independence from the British, the group has an illustrious
history. Bajaj Auto the flagship company has gone up from INR**.72 million to INR.
120 billion, its product portfolio has expanded and the brand has found a global
market. 24
C) As per its official website Hero MotoCorp, Hero MotoCorp Ltd. (Formerly Hero
Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in
India. In 2001, the company achieved the coveted position of being the largest two-
wheeler manufacturing company in India and also, the 'World No.1' two-wheeler
company in terms of unit volume sales in a calendar year.25 Business Standard
website claims that the, Two-wheeler maker Hero MotoCorp has posted a 71 per
cent growth in net profit for the March quarter at Rs. 814 crore against Rs*. 477 crore
in the year-ago period. Turnover for the quarter increased to Rs. 7,512 crore from Rs.
6,794, an increase of around 11 per cent. Hero MotoCorp Ltd. continues to maintain
this position till date.26
* 1 Crore = 10 Million Rupees; 1 Lakh = 100 Thousands of Rupees
**1 Euro = INR/Rs.72.68

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In a present day competitive market, survival of the company in the market holds utmost
importance. How a company chooses to survive in this cut-throat competition could depend
on various factors namely packaging, design, pricing, quality control, distribution channels
and many other means as well as a comprehensive strategic plan needed to achieve target
sales, quality check measures, revenue and desired market share.

Literature Review

Nepalia (2011)12 says that if a brand image is managed well, its product value as well as
brand loyalty increases, since it will be on top of the customers mind. A dealer takes into
account the fact that customers trust a certain brands product over other alternatives because
of which similar features shall be there and shall lead to assured increase in sales.

Ayanwale, Alimi, and Matthew Ayanbimipe (2005)13 believe that when there are a significant
number of rivals for a product in the market due to which customers have changed their brand
preferences, manufacturers and producers of the product look forward to understand what are
the missing features in their products because of which they are losing customers to a rival
brand. Once this information is in place, they can research and develop and market their
product accordingly for an advantageous position and attract purchasers. It has also been
noted that men and women are similarly influenced by promotions in case of brand selection,
mainly in terms of television adverts. Also, firms should give proper products for the
publicity in the market in order to magnify their position in the market.

In addition to this, Doostar, Akhlagh, and Abadi (2012)14 justify that branding helps to
achieve a competitive advantage over rivals in the market because the strength of a brand can
is very versatile with regards to the opinion of a customer. The quality as well as the pricing
strategy of the product have an increasing as well as a directly proportional connection with a
customers purchase behavior as well as a factor that helps them distinguish between
alternative brands.

Khasawneh and Hasouneh (2010)15 States that a customers demographic criteria do not have
an important effect or an influence in terms of brand awareness. Also, a customer understands
the reputation of the brand in question mainly during their purchase decision making process.
It has also been seen that people prefer the expensive range of branded goods simply because
they have more value in the market as compared to their local counterparts.

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In his study of the Coimbatore District in India, Clement Sudhakar and Venkatapathy
(2009)16 considers friend circle or peer groups to be the most influential in case of purchase
of small sized and mid-sized motorbikes.

According to Malik, Ghafoor, Iqbal, and Ali (2013)17 Brand image positively influences
peoples purchase behavior especially in case of youngsters in Gujranwala, a city in Pakistan
because a brand name gives them a reason to flaunt their purchases publically as well as
reflects their character and beliefs though their choice of brand thus confirming that brand
image has a strong, ever-increasing control on a customers purchase behavior.
Advertisement is the best way for a brand to attract customers and for a strong brand recall
value.

As per Sharma & Pathan (2011)18 the age and the sex of the customer does not make a major
difference of opinion in the minds of the customer when they are in the process of choosing a
brand. What is most important is the financial value of the and its position in the market and
its image according to people.

Asim Nasar (2012)19 studies that companies invest and give a good consideration to the brand
image building process and utilize a huge chunk of their capital for the same, in terms of their
marketing strategies, practices, planning and others. They also established that the reputation
of a brand is one of the most important criteria in the market because without a worthwhile
brand image, an organization cannot claim a large share in the market, and thuis they
continuously work on their branding and positioning strategies.

Soundararaj & Janakidas (2012)20 came to the inference that a focus on good quality products
that are durable, have a variety to pick and choose from as well as innovative is the key to
gaining a bigger share in the India marketplace.

In his study, Sankar (2006)21 talks about how a local brand competes with a global brand in
case to motorbikes and came to the conclusion that people prefer local brands because of
their quality of services.

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 Objectives of the Study

The purpose of this study is to create deeper consideration of what influence a brand name
can have can have on consumers who are looking to buy a motorbike and have to choose
between a pool of brands available in the automobile industry market.

In this study, we take into account three of the most popular motorbike brands in India
namely, Hero Motocorp, TVS and Bajaj Auto Limited to understand among which of the
three do people prefer and why.

Further I want to identify if there is a close link between brands and the consumer decision
making process, that leads them to behave the way they do during the purchase process. I also
want to understand the impact of advertisement expenses on the company that is the best
known brand in the current India market scenario.

Limitations

Being one of the fastest progressing metropolitan cities in India, Kolkata has a significant
majority of the educated class, thus making is easy for to find customers who own
motorbikes. This makes Kolkata a suitable location for my study as well as conducting my
survey methodologically. The data collection has been restricted to the city of Kolkata and
although the respondents were limited in size and composition, they were conducted in a
professional manner. Sampling may be slightly biased since due to lack of time and
restrictions, I may have left out certain requests for answering the questionnaire as prepared
by me. Also, a sense of insecurity may have prompted people to slightly alter the information,
which is not in my knowledge or understanding.

Research Methodology

Since the objective of conducting this research project is to determine what impact Brand
Name has on the Consumer Buying Preferences in the 2-Wheeler automobile sector, the
research is descriptive by nature.

The survey method was used for data collection. Specifically, survey based questionnaires
were used as the primary tool for data collection. The data gathered is both quantitative and

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qualitative in nature. The questionnaire mainly consists of closed ended questions in order to
save time of respondents and ensure a comparatively higher response rate from them.

The objective of this survey design is to identify a relationship between variables. Thus, it
depends on the comprehensive questionnaire as prepared, which was used to collect data
from the relevant target groups being studied i.e. individuals.

Considering that the research is mainly consumer centric, the survey-based questionnaires
was circulated among the owners of 2-Wheelers motorbikes in Kolkata, India. For the ease of
sampling, 50 people had been questioned.

Karl Pearsons correlation Coefficient was used to determine the relationship between
advertisement expenses and net sales over a period of 5 years since advertisement is widely
considered as a major tool in Brand building. Secondary Data sources such as companys
balance sheet have been used to collect the data figures and Microsoft Excel used to perform
the analysis, as required by this study and also because of the ease of usage instead of any
other software.

All the findings have been tabulated to be represented in the form of tables and bar diagrams
for the ease understanding.

Research and Findings

Data collected from the survey and Secondary data sources was tabulated in Microsoft Excel
sheet and the following analysis was done on the basis of it.

Primary Data analysis:

Demographic Information of the respondents:

Table provides the respondents age-group information. The first age group (25 to 35 years)
accounted for 30% and next 36 to 45-years-age-group accounted for 46%, the 46 to 55-years-
age-group were 18% and 4% respondents were above 65 years.

The table explains the respondents income. It is very important variable. Most of researchers
include this variable in their survey. My analysis shows that 8% respondents annual income
is between 1,00,000 to 2,00,000 and 34% respondents annual income is between 2,00,000 to

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3,00,000 and 34% respondents earn annually between 3,00,000 to 4,00,000 and 24%
respondents annual income is above 4,00,000 All respondents have a different brand
motorbike, matching their individual income level.

In the table, the demographic variable occupation indicates that 26% respondents are in
private service and 50% respondents run their own business and 24%.

Variables Measuring Groups Frequency Percentage

25-35 15 30
Age 36-45 23 46
46-55 9 18
55+ 3 6
Grand Total 50 100

Income 1-2 lakhs 4 8

2-3 lakhs 17 34

3-4 lakhs 17 34

above 4 lakhs 12 24

Grand Total 50 100

Occupation Business 25 50

Govt. Service 12 24

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 Private service 13 26

Grand Total 50 100

Ownership Yes 50 100

No 0 0
Grand Total 50 100

TABLE:1 Demographic Information of the Respondents

Analysis 1: The following bar diagram depicts the results of questions asked the respondents
about the specific brand of the bike they own.

Figure 1: BRAND CHOICE

35

30

25
FREQUENCY

20

15

10

0
BAL HMC TVS
Total 15 31 4
BRAND CHOICE

After having asked the respondents which brand bike they own, I gave them three best known
different brand bike names which include nearly all the available brands in Indian market.
30% cases replied to have Bajaj Auto Ltd and 8% respondents owned TVS bikes. The
majority of respondents which is 62% answered to have own Hero Motocorp bikes. This is

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the highest percent of brand bike user in survey. In terms of ownership of specific bike brand,
Hero is followed by Bajaj Auto Limited.

Analysis:2 The diagram below portrays the result of the question that was asked the
respondents as to the purchase decision making process.

Figure 2: DECISION MAKING

45
40
35
FREQUENCY

30
25
20
15
10
5
0
Friend decision Joint Family Decision my own decision Others
Total 3 6 40 1
DECISION MAKING

The objective of this question was to find out whether the purchase decision was the
respondents own individual decision or a collective decision. As we can see in the above bar
diagram that the majority of the respondents replied that when they purchased a bike that was
their own decision and relatively a fewer respondents answered that the purchase decision
was their joint family decision and the lowest number of respondents replied to have
consulted with their fried before buying, this is followed by the others which signifies that
the respondents sought others namely co-workers etc. suggestions before making buying
decision.

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Analysis 3: The following table depicts that result of the question which is related to the most
important attribute the respondents considered for making their buying decision.

Figure 3: IMPORTANT FACTOR

30

25

20
FREQUENCY

15

10

0
Quality Price Others Brand Name
Total 25 4 2 19
IMPORTANT FACTOR

Regarding which most important aspect the respondents considered when he or she made a
purchase decision. The purchase decision of a potential buyer is influenced by a number of
factors namely past experience, brand, quality and price. The majority of respondents 50%
answered when they purchased a bike they considered the bike quality and 38% respondents
replied they considered the well-known brand name and 8% said they considered the price a
and 4% considered the other attributes.

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Analysis 4: The diagram below depicts the results of the question as to whether they sought
attributes information of the brands he or she was not previously aware of.

Figure 4: INFORMATION SEARCH

30

25

20
FREQUENCY

15

10

0
compared a few Extensive information Limited information no information
brands Search search search
Total 4 10 12 24
INFORMATION SEARCH

The figure 4 shows the extent of the information search before buying a bike. 20%
respondents searched information extensively before buying a bike. 8% of the cases
compared few brands before finally making their purchase decision. The survey shows that
24% respondents were engaged in limited information search before making their final
choice. However, 48% respondents did not search any information before buying a bike.
According to the result of the survey, it can be inferred that most potential buyers usually
engage in information at least to an extent.

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Analysis 5: The table below shows the result of the question related to the extent the
respondents sought opinion from others.

Figure 5: OPINION SEEKING

25

20

15
FREQUENCY

10

0
Never No Sometimes Yes
Total 1 11 20 18
OPINION SEEKING

By asking this question I wanted to find out when customers buy a bike whether they seek
any opinion from others or not. The figure 5 shows that 40% respondents replied yes, I did
sometimes which is the largest followed by 36% respondents who replied Yes, I did and
22% answered No, I did not and 2% answered Never which means they never seek any
opinion from others.

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Analysis 6: The diagram below portrays result of the question as to whether the respondents
took the lesser known brands into consideration before making their final buying decision.

Figure 6: CONSIDERATION FOR LESSER KNOWN

BRAND
25

20

15
FREQUENCY

10

0
never no, I did not yes, but not much Yes, I did
Total 8 22 16 4
CONSIDERATION FOR LESSER KNOWN BRAND

This is very interesting question for me regarding lesser known brand bike consideration I
asked the respondents whether they considered the lesser known brand bikes alongside well-
known brand bike. I found more than 44% respondent answered No, I did not which means
the respondents mainly considered only the brands that were in their evoked set. 8%
respondents replied Yes, I did and 32% respondents answered Yes, I did but not much
and 16% replied Never which means they only considered the brands in their consideration
set i.e. Hero Motocorp, Bajaj and TVS.

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Analysis 7: The diagram shows the different external variable factors which influence the
buying choice.

Figure 7: EXTERNAL FACTOR

25

20

15
FREQUENCY

10

0
Electronic
Brand Image Exibithion Others Print Media Trade Shows
Media
Total 21 7 5 1 5 11
EXTERNAL FACTOR

Figure 7 depicts the external factor that influenced the brand choice for a person. Factors
considered here are Brand image, Electronic Media, Print Media, Exhibition, Trade shows
and other such media. 42% respondents said Brand image, 14% respondents replied tv, radios
and other such electronic media effected their choice while 10% said newspapers and
magazines influenced their choice, 22% respondents relied on their experiences in trade
shows and 10% from Exhibitions. 2% respondents had other factors to influence their choice.

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Analysis 8: The table below shows the perception of the consumers as to the quality of the
well known branded products.

Figure 8: BRAND PRODUCT QUALITY

30

25

20

15
FREQUENCY

10

0
no, don't agree not always true not necessary yes,i agree
Total 9 10 5 26
BRAND PRODUCT QUALITY

When it comes to the question regarding a brand product quality it is more interesting for me
as I wanted to find out respondents what their views about brand product quality. The
majority 52% answered Yes, I agree and 18% respondents replied No, I dont agree and
20% respondents views I agree, but its not always true and 10% respondents answered It
is not necessary.

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Analysis 9: This question is related to the opinion of the respondents whether using a well-
known brand signifies the social status of the consumer.

Figure 9: Brand as a Status Symbol

18

16

14

12
FREQUENCY

10

0
I Agree, but not
Yes, I agree No, I dont Agree Not Necessarily
always true
Series1 17 7 11 15
Status Symbol

Its interesting to know that respondents considered the branded products signify their social
class. As many as 34% respondents views that Yes, I agree and 30% respondents replied
that Yes, I agree but it is not always true and 22% answered Not necessary and 14%
respondents No, I dont agree.

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Analysis 10: The objective of the question was to find out to what extent the brand name is
more important than the desired attributes of the product.

25
FIGURE 10: BRAND NAME WITH OTHER
ATTRIBUTES
20

15
FREQUENCY

10

0
Important to an
Very important Not at all important Not always
extent
Series1 20 10 13 7
attributes

I wanted to find out the importance of brand name to customers over the desired attributes of
a product. As many as 40% respondents views that brand name relative to desired attribute is
Very important and 20% respondents Important to an extent and 26% respondents
answered Not at all important and 14% respondent replied Not always.

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Analysis 11: The objective of this question is to find out the need for a consumer to buy a
bike.

Figure 11: Need To Buy

25

20
FREQUENCY

15

10

0
Easy transportation Economical Others Style/Looks
Total 7 19 1 23
Need Attributes

Figure 11 shows that 46% of people buy a bike for its style statement,38% because they find
it to be economical,10% use bikes since it provides ease in transportation and 2% users have
variable reasons like secondary mode of transportation.

Secondary Data Analysis

A companys expenses towards advertisements, publicity as well as marketing activities

determine the extent of brand image. Net Sales reflects the Total sales which shows an
increasing trend throughout showing that a brand has good hold and recognition in the
market.

Correlation coefficients have been used to find the relations between variables to determine
the strength and market hold of the considered company.

I have considered Hero Motocorp to study further as it has the maximum demand and
maximum number of people is buying it because of its brand image. Correlation between
Advertisement and sales expenses and net sales of Hero MotoCorp can be seen below.

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 HERO MOTOCORP(Correlation Matrix)
Year Net advertisement
sales and publicity
Year 1
Net sales 0.949943 1
advertisement and 0.886287 0.70764 1
publicity
Table2: Correlation Matrix

From the Table 2 it is very evident that there is a very strong and positive correlation between
the three variables considered here which implies:

Increase in advertisement expenses shows a positive increase in net sales.

Companys net sales have increased over the years showing a very high demand for
its products.
Companys expenses towards advertisements and other marketing activities have
increased implementing that the companys brand image has seen a boom resulting in
the company being most demanded.

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 Conclusion

Due to information being widely circulated as well as the power of advertising, customers
these days have a good idea about brands and its products. They tend to trust well-known
brands over the not-so-well known ones since they are more sure of the quality they
would get from a known brand and know who to hold accountable. Popular brands make
a significant effort to quality control as standardize their products, thus making a pool of
loyal customers in the market place. This is one of the reasons why brand name affects a
customers choice and how companies align this information according to the customers
needs.

Customers have a galore of choices to pick from, in case of the automobile industry.
Thus, when it comes to choosing a motorbike, customers have been seen to prefer a brand
name, also establishing that a brand name influences their choice of decision and
purchase. When trying to understand further, we found that the reason for choosing a
brand name is because of their good quality as well as service. Also, a brand name holds a
lot of accountability, thus giving the customer a confidence to buy. In a market that is
highly dynamic and competitive, the brand name of a company acts like a asset which is
also used as an effective marketing tool to attract and persuade customers because every
brand creates its own image and reputation on individual minds. People who answered
my survey have given ranks to different motorbike brands taking into consideration its
quality and price.

In my study, I have attempted to explain through an empirical finding that when a

customer has had a positive experience with the brand, a trust factor builds up, thus
converting them into loyal customers in future. Also, it was also figured out from my
study that since well-known brands are more popular compared to unknown brands,
customers prefer the well-known ones since they do not want to take a risk.

Making a brand popular is a difficult task in this competitive market scenario, but the
gains from the same are massive since it will build a trust in the brand name and also in
the minds of the customer, in turn making them loyal to their brand. In my opinion,
companies do not really know the importance of creating a brand name of high repute.
Companies mainly create a certain brand awareness for customers to recognize their

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 brand name, thus scoring a place in the consumers mind when it comes to future
purchases.

It is a known fact that if a customer has an emotional connect with a certain brand, they
automatically tend to have more confidence in the brand and will in turn develop a loyalty
towards the brand. So, to create an emotional connect, brands use the companys name, or
its logo to build that instant connection and recognition among customers so that its easy
for them to identify it when they go purchasing their product.

Before making a purchase, customers generally go through the process of deciding which
brand to choose to buy the product of their requirement. This may not be the case for
every customer as it varies upon the customers involvement and the importance the
purchase holds in the mind of the customer. For this, customers collect suitable
information about the brand and its products as well as its alternatives and then hold a
comparison, weighing their pros and cons before finalizing their decision.

Because information is so freely available now through television, newspapers, internet

and magazines, people now are more aware and updated about the various motorbike
brands and have almost as much information about the industry, thus forming strong
perceptions about their choice of branded motorbikes. Because people are very
emotionally attached to branded products, the brand name that they choose also reflects
their personality and the influence for their choices.

Executive Summary

Consumerism dominates all aspects of life in the modern day scenario by following a pattern
as set by the capitalist cultures where values have a different measure, you are known by
what you have not by what you are. And because everyone is looking to build an image as
well as have a sense of individuality in the eyes of the society, possession of material objects
makes them feel a class apart from the rest of the society.

Nowadays, Brands not only represent a company or its products but also define the general
lifestyle of an individual. The products or brands that a person uses reflects his overall status
in society as well as gives a sneak peek to his/her past. This leads to a deeper association

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between the brand and its customer wherein both are dependent on each other for varied
reasons.

The purchase of any product, such as a motorbike, a mobile phone or even daily use products,
the brand play a major influential role in the choice of brand, mainly because customers
nowadays are deeply connected to the brands that they use. They even go ahead and buy
certain products just for the sake of the brand name because they blindly trust the brand name
and feel that it is an unsaid assurance of quality.

Popular brands of motorbikes are chosen by people simply because they trust the brand
name- is precisely what this study establishes. It is also an indicator that the reason people
buy these brands could be because of their positive past experiences with the brand or the
brand performance of the product in the market, thus making them loyal towards certain
brands. Also, the fact that a well-known brand in the market is sure to provide its customers
with superior quality services that lives up to or even exceeds a customers expectations and
satisfaction levels is also what prompts people to choose these popular brands. Because
certain brands reflect personal values and beliefs, is a representation of their lifestyle and
status in the community as well as is a mirror of ones personality, people tend to become
attached to these branded products. This study emphasizes how automobile companies have
become successful simply by getting to know their customers closely and designing
motorbikes as per their customers needs and wants. In order to create an impact and to
understand their customers better, the conduct research and developments and also have a
marketing strategy by conducting campaigns for brand awareness, encourage participation by
people as even sponsor various activities to involve people with the brand so as to understand
their requirements better.

Because of the advantageous reliability factor in a branded, well-known motorbike, people

give less consideration to the unbranded counterparts, because they have built a trust in the
quality of the branded motorbike and also because they have become attached to a certain
brand. And because they have become loyal to a certain brand overtime, they prefer to make
a repeat purchase from the same brand because it has met the customers needs well and has
satisfied the customers over a period of time.

I feel that the purpose of this study has been fulfilled to a certain extent. The theory clearly
describes that a brand name has the power to attract customers towards its products. The

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reason being that a customer gets special attention as well as develops a connection with a
specific brands products, thus creating a loyal kinship with brand.

References

1. Keller, K. (2008), Strategic Brand Management, Upper Saddle River, NJ:

Pearson/Prentice Hall, Edition 2, pp 02.
2. Keller, K. (2008), Strategic Brand Management, Upper Saddle River, NJ:
Pearson/Prentice Hall, Edition 2, pp 182.
3. Keller, K. (2008), Strategic Brand Management, Upper Saddle River, NJ:
Pearson/Prentice Hall, Vol.3, pp 64.
4. Mariotti, J. (1999), "Smart things to know about brands & branding", New
Hampshire: Capstone US.
5. Sharma, P. M. and Pathan, R. (2011), "Factors Effecting Purchase Decision of
Branded Sports Accessories with Special Reference to Reebok", International
Journal of Research in Commerce & Management, Vol.2, pp79-82.
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Preference (With Special Reference to Menswear)", IOSR Journal of Business and
Management, Vol.5, No.6, pp 54-61.
7. Papanastassiu and Rouhani, 2006, Too Old for a Brand, p.17, Cited by Travis Daryi,
Emotional Branding pp. 152-153
8. Hartmann & Apaolaza, Managing customer Loyalty in Liberalized Residential
Energy Markets: The impact of Energy Branding Energy Policy, Vol 35 (2007)
p.2661
9. Aaker, David A., Joachimsthaler, Erich (2000): Brand Leadership. The Free Press,
New York
10. Blumenthal, Dannielle & Bergstrom, Alan J. (2003): Brand councils that care:
Towards the convergence of branding and corporate social responsibility. Journal of
Brand Management. 10(4/5), pg. 327-342
11. Kapferer, Jean-Nol (2008): The New Strategic Brand Management Creating and
sustaining brand equity long term. London; Philadelphia, Kogan Page
12. Nepalia (2011), Brand management and its impact on consumer buying behaviour,
International Referred Research Journal, 1(17), 113-114.

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13. Ayanwale, A., Alimi, T., & Matthew Ayanbimipe (2005). The influence of
advertising on consumer brand preference, Journal of Social Science, 10(1), 9-16.
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Assets on the Buying Decisions of Final Consumers Journal of Basic and Applied
Scientific Research, 2(9), 8824-8832.
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behaviour: A Jordanian Perspective. International Research Journal of Finance and
Economics, 43, 33-57.
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Influence in Decision Making, Indian Journal of Marketing, Vol.35, No.6, June
2009
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advertisement on consumer buying behaviour, World Applied Sciences Journal, 23(1),
117-122.
18. P.M. Sharma and R.Pathan, (2011), "Factors Effecting Purchase Decision of Branded
Sports Accessories with Special Reference to Reebok", International Journal of
Research in Commerce & Management, Vol.2, pp79-82.
19. Asim Nasar, Syed Karamatullah Hussani, Emadul Karim, Mohammad Qutubuddin
Siddiqui. (2012) Analysis of influential factors on consumer buying behavior of
youngster towards branded products: evidence from Karachi: KASBIT Business
Journal, ISSUE 5, pg56-61.
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Indian Journal of Research in Commerce & Management, Vol.3, pg68-71.
21. S.M. Sankar,(2006), "Consumer Perception of Global vs. Local Brands: The Indian
Bike Industry".
22. Annual Reports of Hero MotoCorp
23. TVS Motor, About The Company, Corporate TVS Motor (2016). TVSMotor.com.
Retrieved from https://www.tvsmotor.com/tvs-in-brief
24. Bajaj Auto, About The Company, Corporate Bajaj Auto. (2016). Bajajauto.com.
Retrieved from http://www.bajajauto.com/bajaj_corporate.asp
25. Hero Motocucle Company, Two Wheelers Bike Manufacturers in India Hero
MotoCorp (2016). Heromotocorp.com. Retrieved from
http://www.heromotocorp.com/en-in/about-us.php

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 26. Narasimhan, T. (2016). Hero MotoCorps profit jumps 71% To Rs 814 cr. Business-
standard.com. retrieved from http://business-standard.com/article/companies/hero-
motocorp-s-profit-jumps-71-to-rs-814-cr-116050600032_1.html

Annexure 1:

Questionnaire

Dear Maam/Sir,

I, Devyani Banthia from ESC Rennes School of Business is conducting a survey to determine
impact of brand image on Consumer Buying Preferences for 2-Wheelers in Kolkata. I would
be highly obliged if you could take out some time from your busy schedule and provide your
valuable inputs.

Name______________________________

Address________________________________________________________________

Q1. What is your gender?

Male
Female

Q2. What is your age group?

25-35
36-45
46-55
More than 55

Q3. What is your income per annum?

1-2 lakhs

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 2-3 lakhs
3-4 lakhs
More than 4 lakhs

Q4. What is your occupation?

Private Service
Business
Government Service
Others, please specify_______________

Q5. Which of the following brand of bikes you have?

Hero MotoCorp
Bajaj Auto Ltd.
TVS
Others, please specify_____________

Q6. When you bought the bike, was it your own decision or a collective decision?

It was my own decision

It was a joint family decision
It was my friend decision
Others, please specify __________________

Q7. What is the need to buy a bike?

Economical
Easy transportation
Style/Looks
Others, please specify__________

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Q8. What is the most important attribute you considered when you bought the bike?

Price
Quality
Brand Name
Others, Please specify________________

Q9. Which attributes do you like most in your two-wheeler? Rates the various factors you
consider most? (1-6, 1 is most important)
Luggage space
Fuel Efficiency
Pick up
Resale value
Driving comfort
Out look

Q10. What are the external factors that influence you about purchasing bike?
Print media
Electronic media
Exhibition
Trade shows
Brand image
Others, Please specify_______________

Q11. Did you seek any opinion as to which brand bike to buy from others?

Yes, I did
No, I did not
Yes, I did some times
Never

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Q12. Do you believe that a well-known branded bike is always better in quality than a lesser-
known brand?

Always
Sometimes
Most frequently
Not necessarily

Q13. Did you do a lot of information search for buying a bike or you just compared the bike
brands you are aware of?

I did extensive information search among all available brands

I compared only among the brands in my considerations set
Yes, I did but not much
No, I did not

Q14. Do you think that a well-known branded bike is a status symbol?

Yes, I agree
No, I dont agree
Not necessarily
I agree, but its not always true

Q15. How important was the brand name to you alongside your desired attributes?

Very important
Important to an extent
Not at all important
Not always

Q16. Are you satisfied with the bike you have decided to buy or bought?

Highly satisfied

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 Moderately satisfied
Neither satisfied nor Dissatisfied
Dissatisfied

Annexure 2:

HERO MOTOCORP
YEAR Net advertisement and
sales(in publicity(in crores)
crores)
2010 15,758.18 364.97
2011 19,245.03 382.6
2012 23,368.05 366.09
2013 23,582.74 468.71
2014 25,124.91 493.47

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