The effect of personal values and advertisement on brand

loyalty

(A study of frozen food industry in Peshawar)

BY

Umer Shahzad

BBA (D)

Department of Business Administration

Institute of Management Sciences Peshawar

Session 2012-2016
 Certificate of Approval

I certify that I have read the effect of personal values and advertisements on brand

loyalty in frozen food industry of Peshawar by Umer Shahzad, and that in my opinion

this work meets the criteria for approving a thesis submitted in partial fulfilment of the

requirements for the BBA at the Institute of Management Sciences, Peshawar.

Supervisor

Name: Dr. Imran Wazir

Designation: Assistant Professor

Signature: ________________________________

Coordinator Research and Development Department

Name: Dr. Muhammad Siddique

Signature: _________________________________

i
 Declaration

I, hereby declare that the research is submitted to R&DD by me and it is my own

original work. I am aware of the fact that in case my work is found to be plagiarized or

not genuine, R&DD has full authority to cancel my research work and I am liable to

penal action.

Student Name: Umer Shahzad

Date: 05/12/2016

ii
 Dedication

First of all, I want to thank almighty, who is the most merciful and the most beneficent.

I dedicate this achievement to my parents, specially my mom who worked hard to make

it possible for me. I also dedicate it to my entire family members, my supervisor Dr.

Imran Wazir, whose assistance was really helpful for me and all my friends and

well-wishers.

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 Table of Contents
Certificate of Approval ................................................................................................................i

Declaration .................................................................................................................................ii

Dedication ................................................................................................................................. iii

Abstract ..................................................................................................................................... 1

1.1 Introduction: .................................................................................................................... 2

1.2 Background of Study: ...................................................................................................... 2

1.3 Research problem Statement: .......................................................................................... 3

1.4 Research Purpose: ........................................................................................................... 4

1.5 Research Objectives: ....................................................................................................... 4

1.6 Scope and Rational of Research: ..................................................................................... 4

1.7 Conceptual framework of the study: ............................................................................... 4

1.8 Research Hypothesis: ...................................................................................................... 5

1.9 Research Significance: .................................................................................................... 6

1.10 Research Limitations: .................................................................................................... 6

1.11 Research Structure:........................................................................................................ 6

Chapter 2: Literature review ...................................................................................................... 8

2.1 Independent Variables: .................................................................................................... 8

2.1.1 Personal Values: ....................................................................................................... 8

2.1.2 Advertisement: ....................................................................................................... 12

2.2 Dependent Variable: ...................................................................................................... 14

2.2.1 Brand Loyalty: ................................................................................................. 14

Chapter 3: Methodology .......................................................................................................... 19

3.1 Introduction: .................................................................................................................. 19

3.2 Research Technique: ..................................................................................................... 19

3.3 Sampling Techniques and Procedures: .......................................................................... 19

3.4 Sample size: ................................................................................................................... 20

3.5 Sources of Data Collection: ........................................................................................... 20

3.6 Methods of Data collection: .......................................................................................... 20

3.6.1 Research Instrument: .............................................................................................. 20

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Chapter 4: Data Analysis ......................................................................................................... 22

4.1 Statistical Test: .............................................................................................................. 22

4.1.1 Reliability Analysis: ............................................................................................... 22

4.1.2 Regression Analysis: .............................................................................................. 23

4.1.3 Personal Values Effecting brand loyalty: ............................................................... 23

4.1.4 Advertisements influencing brand loyalty:............................................................. 26

Chapter 5: Conclusion ............................................................................................................. 29

5.1 Introduction: .................................................................................................................. 29

5.2 Achievements of objectives:.......................................................................................... 29

5.3 Future Implications: ...................................................................................................... 30

5.4 Recommendations: ........................................................................................................ 30

References: .............................................................................................................................. 31

Annexure A ............................................................................................................................. 34

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 Abstract

The aim of this is to explore the effect of personal values and advertisements on brand

loyalty in a frozen food industry of Peshawar. To achieve the aim some objectives were

set. Deep and thorough review of literature was done which aided to develop the

conceptual framework of this study. This conceptual framework helped in explaining

the impact of personal values (social and economic) and advertisements on brand

loyalty. To confirm this conceptual framework data was collected through

questionnaires. The structured questionnaire is used and distributed among 100

respondents of Peshawar.

The collected data was then analyzed through linear regression which finds that

personal values of people of Peshawar are not allowing them to be loyal for this

industry because of their traditional trends, tastes and economic values. They prefer

more to make and cook food items at their homes and they are not satisfied with the

advertisements efforts of froze food industry brands. These finding are opening up a

new challenging debate which has to be researched and measured in near future to get

things better for the frozen food industry of Peshawar.

1
Chapter 1: Introduction to report

1.1 Introduction:

The introduction part of this research is about the background of the study which will

be helping to explain the research topic and the statement of problem that what

actually is required and tried to find. The background of this study, purpose of the

research, research problem are comprehensively derived along with the overall

significance of this study. This chapter ends with defining, explaining and exploring

the overall step by step structure of this research that has to be carried out.

1.2 Background of Study:

After the big recession of 1930s, personal values of people gained a serious

importance for corporations who wants to sustain their profitability which can only be

achieved by retaining the customers when they are loyal, especially when it comes to

economic and social values. Economic values have importance for the majority of a

population because upper class are not price conscious. Similarly, Social values of

each region are also changed which makes a challenge for corporations to sustain

their profitability and retain their customers and their loyalty. According to Theile &

Mackay (2001), personal values has gained a lot of significance for marketers,

especially for the Multinational brands who are running businesses in International

markets, where the overall strategies can easily be effected by cultural differences and

economic values which makes a huge difference and makes it difficult for companies

to get loyal customers.

This is a global view of most of the marketers and advertisers that an affective

advertisement of any kind whether it is on print media, electronic media or online

2
media, can put a beneficial impression on consumers which can be taken into account

as a competitive edge and can also create more loyal customers for a long period of

time.

1.3 Research problem Statement:

Wang, Lo, Chi and Yang (2004), found that targeting the right customer values

can be used as a strategic tool and a competitive edge which will not only attract the

customers but also will create loyalty which will retain them for lifetime. Rajagopal

(2006), concluded that customers merely decide to buy a product which is providing

them savings and they rely on their income level while purchasing a product currently

or in near future consumption. This clearly suggests that personal values do have a

great effect on brand loyalty especially of economic and social values. Modern

thought of advertisers suggests that a desire impression can be formed on consumers

by a quality and an effective advertisement which can be helpful to retain customers

for their lifetime and they will be categorized as loyal customers.

In a context of Peshawar, the traditional values are not targeted right and

advertisements efforts are not good enough to get loyal customers in frozen food

industry of Peshawar so we are trying to find that “Personal values plays a pivotal
role in developing brand loyalty. Khyber Pakhtunkhwa is more prone and attached to

its traditional values due to which people are not brand conscious to frozen food

industries in Peshawar and whether advertisement has any impact on their loyalty so

that it can be designed according to the personal values.”

3
1.4 Research Purpose:

The aim of this research was to find the impact of personal values and advertisement

in frozen food industry of Peshawar on brand loyalty.

1.5 Research Objectives:

1. To determine if personal values has any impact on brand loyalty in frozen

food industry of Peshawar.

2. To verify if advertisement plays a role in people’s choice for frozen food

industry.

1.6 Scope and Rational of Research:

Due to financial restriction and time constraint, the scope of this research is

restricted to Peshawar. Peshawar is a capital of Khyber Pakhtunkhwa, a province of

Pakistan.

As this research aims to explore the impact of personal values and advertisement on

brand loyalty in frozen food industry of Peshawar. So once the research is completed

with its expected outcomes it will help frozen food industry to design their

promotional strategies and advertisements according to the personal values of their

target market and it will help to develop more loyal customers.

1.7 Conceptual framework of the study:

Personal values are always taken as the important factor of human’s life and

purchase intention so that people can make a conscious choice while making a

purchase decision and being loyal to a specific brand. Shafer, Morris and Ketchand

(2000), classified personal values into six different categories which are names as

social, economic, theoretical, religious, political and aesthetic but according to the

4
scope of this research, expenses, and time limitations, only economic and social

values are considered in this framework.

Personal
Values

 Social Values

 Economical
values

Brand
Loyalty

Advertisement

Figure 1.1

This theoretical framework suggests that brand loyalty is effected by personal

values including the social and economic values of the people and also advertisement

is effecting the brand loyalty.

1.8 Research Hypothesis:

H1: Personal values has an inverse relationship with brand loyalty in frozen

food industry of Peshawar.

H2: Advertisement has positive impact on brand loyalty in frozen food

Industry of Peshawar.

5
1.9 Research Significance:

This research can be really beneficial to the frozen food brands in the industry of

Peshawar for targeting the right values of people so that the customers behave loyal to

these brands and it will explore the benefits of advertisements in this industry and will

provide reasons that advertisement campaigns can positively affect the brand loyalty

and marketers can target the right personal values through advertisements.

1.10 Research Limitations:

The first limitation is that research is for only Peshawar sector and cannot be

generalized as it is focusing the personal values of only this region and values differs

from region to region. The second limitation is that out of six values, only two values

are to be considered that are economic and social values due to the time limitation and

scope of this research in the context of Peshawar. Third one is due to the expense

limitation and again time limitation of the researcher and therefore a large sample

cannot be taken.

1.11 Research Structure:

Chapter one of this study focused on the topic, its introduction and background.

Then the Research or problem statement is derived and the purpose of this study is

discussed and along with it research objectives are derived. Then the scope and

rational of the research is discussed and the conceptual framework has been made and

along with it hypothesis is derived. Then the significance of this research is discussed

after a thorough review of literature. Limitations to this research are explored broadly.

Chapter 2 is about the variables where they are defined properly and in detail and

then a deep review of literature is discussed that what work has been done on these

6
dependent and independent variables. The literature has helped a lot in selecting the

scope of this research and in selecting the valued variables.

Chapter three has discussed the overall methodology to conduct this research

including techniques, designs, tools etc. by the researcher.

Chapter four is discussing the results and data analysis collected through a

questionnaire in detail.

Chapter 5 is giving the conclusion of the result of the overall research and

recommendations are given by a researcher.

7
Chapter 2: Literature review

2.1 Independent Variables:

2.1.1 Personal Values:

The committed values of the people which has a full command and strong

influence on their behaviors, attitudes and perceptions (Punniyamoorthy & Raj,

2007).

Personal values of the humans can be categorized in six different groups that are

theoretical values, economic values, aesthetic values, social values, political values

and religious values (Barnett & Karson, 1987).

Personal values of the shapes and effects the human nature, behavior and psyche

through a perceptual permanent framework (Bayus, 1992).

Personal values are usually the intrinsic part of human’s life and behavior

which is used as the criteria to make the conscious choice (Barnett & Karson, 1987).

They further classified the personal values into six categories named as aesthetic,

political, economic, religious, social and theoretical. Personal values have direct

influence on decision making (Shafer, Morris & Ketchand, 2000). According to the

scope of this research and time limitations, I will only be considering Social and

economic values of the people. In a support to above argument, Values that are covert

in any culture can affect the purchase pattern and the preference of which is valued or

not among the huge categories of brands (Erdom, Oumlil & Tuncalp. 1999). Wang,

Lo, Chi and Yang (2004) argued that knowing the customer values can be used as a

strategic weapon to attract the consumers and to retain them as well. Olfman, Ko, Koh

and Kim (2008) argued that the success of any brand is when customers are able to

match or express their values and characteristics through that brand.

8
Vinson, Scott and Lamont (1977), presented a model of Individual’s Belief System in

which they broadly explain the concept of personal values into three general

categories around the globe that are Global values, Domain-specific Values and

Evaluations of Product Attributes.

Bayus (1992), added that the personal values of each and every customer will differ

due to their different perceived values and individual personalities which will also

affect their purchase behavior. Recognition of the customer value is becoming the

most important factor nowadays for the service providers and for the manufacturing

businesses (Wang, Lo, Chi & Yang, 2004). Supporting the above arguments, Values

are the most significant part to study consumer behavior that is why they are called

the components of attitudes and behavior which are logically linked to them as well

(Erdem, Oumlil & Tuncalp, 1999). People have different values, norms and beliefs

and they are always looking for the elements which are of their interest so that they

can identify themselves in those beliefs (Punniyamoorthy & Raj, 2007).

A. Social Values:

Cultural issues have been discussed in many of the past researches and shown

that culture has a strong influence on the perceptions, actions and values depicted by a

consumer (Punniyamoorthy & Raj, 2007).

It can be defined as “the collective programming of the mind, which

distinguishes the members of one human group from another (Wang, Lo, Chi & Yang,

2004). Vinson, Scott and Lamont (1977), culture values mostly matters for the

marketers when they are focusing on Multinational brands in international markets,

where culture and social values of a people of a particular area or country can largely

effect firm’s overall strategies. This understanding is important for marketers,

9
especially those who operate in the international arena, where such culture can

significantly affect their way of doing business. Cultural values typically affect

decisions on product development, pricing, distribution and communications (Bayus,

1992).

Culture is really important when marketers are trying to understand the common

behaviors of a human because it is a part of every society and drives the perception of

each individual. This influence of culture differs from country to country which is

why marketers must have to be really alarmed in interpreting the culture of various

communities, regions and countries. Throughout the life of a human, he will be

effected and fascinated by his family, his friends, the environment where he will learn

some basic and complex values and all those cultural aspects of society he is living in.

All the cultural factors are really essential for the marketers and brands to develop the

competitive marketing strategy.

Culture has direct effect on actions that is why it has a relation wth customer’s

purchase decision and to stick onto one product. Culture is a difficult and very vast

researched subject (Inkeles and Levinson, 1969).

B. Economic Values:

Economic values of the people are those values which are associated with their

purchasing power that how much are they willing to pay for a specific product that

can be a good or service. These values are considered very essential by marketers

because all their strategies are constructed by taking a view of these values.

Rajgobal (2006), pointed out that the mere external features are measured by a

customer before paying for a commodity or a service. The buying power is based

upon the thrifty and economic management that demands for the consideration of

10
today and tomorrow’s needs and usage of the buyer with the salary point of view

(Redmond, 2000). Wang (2004), suggested that the Chinese people moved the

clothing items within manageable costs and gained worldwide entries in distinguished

fashionable styles. In addition to it, demand for imported things is being raised due to

the diversity in the customer’s way of dealing and growing purchasing power. Schoen

Bachler (2004), resolved to a loyal customer who intends to buy on the basis of

estimation and presentation of positive ideas representing their resoluteness that

enhances confidence in investing to a brand which clearly represents trust of the

clients. Many of the researches has suggested that company’s must have to understand

the economic values to create loyal customers and this can be done by cost

management but if the corporations go for the other side that can be a compromise on

quality to reduce cost so this will be harmful for the profits and to retain the loyal

customers.

C. Religious Values:

Religion it is a mechanism of symbols which performs to create permanent,

strong and consistent motivating set of minds of humans.

Essentially, faith-based marketing is a strategy that recognizes the importance of

religion to consumers and attempts to tie an organization or specific product to

religion. Religion cannot be neglected and cannot be considered a meagre influence

by the marketer rather it has continuous and long lasting effects on a person. Because

of it, it must be regarded essential while dealing with customers (Kim et al, 2004).

Religion and faith bears great influence on a personality of an individual. It controls

choices, selection, their way of living, dietary habits and all the interactions. We can

understand and predict the consumer's selection in any matter on the basis of his

11
particular religion and its impact upon him. His behavior with respect to consumption

is largely determined by his belief as it imposes limitations, prohibition and laws.

Being religious is an instinct that lasts long and shows itself in many ways so it is

regarded as an important element by the marketers. Some capabilities of conclusion,

decision and resolving power are strongly affected by religion. According to the

findings and research in religious attribution theory, religion influences the perceiving

quality that how someone thinks about many problems and how does he become loyal

to a specific brand. (Barnett & Karson, 1987).

2.1.2 Advertisement:

American Marketing Association defined Advertisement as non-personal way of

communicating and conveying message about the product to promote it by a sponsor

who is paying for it.

Advertising is a public notice for promotion or publicity (Burton & Lichtenstein,

1988).

Advertisements are the means of awareness to the people about the specific

product and to create an image of that product among the target audience (Philips,

1978).

The third definition has been taken as the operational definition according to the

scope and rational of this research.

Most probably the very first model of formal advertisement was AIDA that is

attention, interest, design and action which shows the hierarchy of effects (Vakratsas

& Ambler, 1999). They further explained that in response of advertisement, customer

can has some mental effect consciously or unconsciously that can be attitude, memory

and awareness before it hits the behavior. Most of the advertisers thinks that effective

12
ad can form the desire impression of the consumer which may further results into

competitive advantage for a specific brand over a long period of time (Burton &

Lichtenstein, 1988). Shum (2004) proposed that the important role of advertisement is

to inform customers whether directly or indirectly about the brand attributes or prices.

Arrington (1982) argued that the techniques used by the advertisers are

actually manipulating the customer’s autonomy such as rational desire, control,

autonomous desire and free choice. Crisp (1987) in a support argued that

advertisement manipulates the freedom of the customers without concerning them at

all and it also increases or creates artificial desires for consumers. Philips (1978)

argued against that even if advertisement creates desires or manipulates autonomy but

at the end it’s in the hands of a consumers who has to take the decision.

A. Awareness:

“Brand awareness is the probability that, consumers are familiar about the

availability and accessibility of a company’s product and service”.

Advertisements are primarily made for the awareness of a specific brand

in the market so it can be placed in the sub-conscious minds of the people that when

they are in need of any product and when they go for purchasing they at-least recall

that there is a specific brand available. If a brand is successful to aware his customers,

it will have a good reputation in a market and it will be easy for them to create loyal

customers but this can only happen when an organization advertisements are also

appealing (Shum, 2004). Successful brand awareness creates some great associations

in a customer’s mind but if he can not recognize the product, he is not aware of the

accessibility then it means he is never going to choose your product which clearly

13
explains how important it is for marketers to run successful advertisements (Burton &

Lichtenstein, 1988).

B. Brand Image:

Brand image is directly related to the brand equity and loyalty which is the name

of customer's thinking and views about the brand. It has a vast impact upon the

buyer's behavior. Besides the policies and plans put forward by the company, the

main aim of the marketer remains to effect the thinking and concept of the people

regarding the brand thus improving the brand image in the customers' consciousness

along with convincing their minds to buying with the results of enhancing the selling,

raising shares in the market and making consumers faithful to the brand

(Vakratsas & Ambler, 1999). The brand image among the people is essential for

expanding the brand equity and fidelity. Therefore, it has been pondered upon since

20th century. The customer's interaction and conduct must be considered and studied

to make a better place in accelerating market world. In addition to it, the company's

policy needs to include the education of its customers about the brand to maintain

them and to make them faithful (Punniyamoorthy and Raj, 2007).

2.2 Dependent Variable:

2.2.1 Brand Loyalty:

Olfman, KO, Koh and Kim (2008) defined Brand Loyalty as “enduring desire to

sustain a valuable relationship with the consumer”.

Fensen & Hansen (2006), pointed out that you can call brand loyalty a repurchase

behavior but it will always be influenced by psychological process and it will create

strong associations with a brand.

14
It’s a theory of leadership from a brand which is able to control new potential

customers and retain the old ones where customers repurchase, shows positive

behavior, strong associations and support towards that brand (Quester & Lim 2003).

According to the scope and concept of this research third definition has been

taken as the operational defination and then key words and aspects are discussed.

Brand Loyalty is a vital concept frequently used in marketing literature and it is

directly proportional to the sales of any particular brand (Chaudhary, 1996). Theile &

Mackay (2001) supported the above argument as increase in loyalty increases the

market share which further increases the return on investment and brand loyalty can

also save marketing costs for the firm by favorable words of mouth. Shum (2004)

added that in a consumer preference brand loyalty is the significant source of

competitive advantage in many markets containing differentiated products because of

the building up the switching costs which resists the consumers to go for other brands.

Bayus (1992) supported that this new customer-centric approach eventually became

the essential part of competitive strategy.

Chaudhary (1996) supported Fansen and Hansen that brand loyalty depends upon

both psychological and behavioral aspects and their effects induces the “true” brand

loyalty. The researchers and practitioners unanimously agrees that brand loyalty is an

important component of consumer psychology and along with psychological process

the repurchase behavior also depends upon emotional and situational factors (Jacoby

& Berning, 1974). Olfman, Ko, Koh and kim (2008) argued that the success of any

brand is when customers are able to match or express their values and characteristics

through that brand which further results in a “true” Brand Loyalty. Punniyamoorthy

and Raj (2007) added that brand loyalty is a very special element of relationship

15
marketing, when product or service is consumed it has some psychological effect or

attachment in consumer’s mind.

Quester and Lim (2003) added that consumer’s involvement in a product and

his loyalty to the brand are the most essential concepts that world believes in which

better explains the significant proportion in customer’s buying choice. They further

used specific terms for consumer involvement and loyalty that are “ego’s

involvement” and “brand commitment”. Olfman, Ko, Koh and kim (2008) supported

that brand loyalty is actually about creating a tendency which resists the change and

compels the consumer to stick to the particular brand. Punniyamoorthy and Raj

(2007) argued that it is a face that almost 75% of buying decision is depend upon by

consumer’s emotion and attitude. Theile & Mackay (2001) indicates that buying

decisions for loyal brands may become very easy and usual in nature due to the

satisfaction from the brand. Bayus (1992) along with some evidence argued that

buying behavior and personal values or characteristics of each and every customer

will differ which he further explained with the help of an example of national and

private label products.

In a consumer preference brand loyalty is the significant source of competitive

advantage in many markets containing differentiated products because of the building

up the switching costs which resists the consumers to go for other brands (Shum,

2004). Bayus, (1992) supported that this new customer-oriented approach eventually

became the important part of competitive strategy. Quester & Lim (2003) argued in a

support that consumer’s involvement in a product and his loyalty to the brand are the

most essential concepts that world believes in which better explains the significant

proportion in customer’s buying choice. Punniyamoorthy and Raj (2007), argued it is

16
a face that almost 75% of buying decision is depend upon by consumer’s emotion and

attitude. The researchers and practitioners unanimously agrees that brand loyalty is an

important component of consumer psychology and along with psychological process

the repurchase behavior also depends upon emotional and situational factors (Jacoby,

1971).

A. Consumer Behavior:
Brand loyalty has been expressed as the consumer’s positive feeling about the

same brand, consumer purchasing the brand more frequent than the others as well as

buying and using the same brand for a long time. Moreover, some tendencies and

common conditions have been stated in order to be able to talk about brand loyalty.

Brand loyalty needs to include psychological functions such as prejudice, behavioral

reaction, a certain time frame, certain decision making components, being about one

or two alternative brands other than many brands (Bayus, 1992). It could be said that

consumers prefer the product to be of a known brand rather than an unknown brand,

when buying goods and services in order to meet their needs. If the buying is for long

term usage and for an expensive product, in other words if the financial risk of the

product is high, the effects of known brands are greater in the buying process of

consumers. The reason for this is the benefits the brand provides to its consumers

(Fensen & Hansen, 2006).

B. Brand associations:

Brand associations ease the processing, organizing and internalizing the

information that could help consumers in the decision of buying. Comprehending the

brand perceptions of consumers is rather complicated due to the multidimensional

structures of brand associations being very similar to each other. Brand association,

17
which is a key component of brand image, contributes to the differentiation and

positioning of a brand as well as creating positive attitudes and opinions towards the

brand. Consumer based brand value necessitates the brand to have positive

associations. A company wanting to create a valuable brand also needs to create a

suitable, powerful and unique brand association system for the brand to be created

(Palumbo and Herberg, 2000). The qualities, benefits and identity of a brand along

with the association the brand will create on consumers will help the increase of brand

value on the memories of consumers which will increase their loyalty. According to

Aaker (1991), there are 11 brand association types including the brand qualities,

moral values, benefits it provides to the consumer, related price, usage, user, famous

people, lifestyle, product class, competitors and geographical environment.

that

18
Chapter 3: Methodology

3.1 Introduction:

The main purpose of this research is to find how personal values and

advertisements are effecting brand loyalty in a frozen food industry of Peshawar.

So far, many of the previous studies about the brand loyalty have used mostly the

qualitative techniques and few studies have only adopted the qualitative techniques.

According to the nature and demo-graphs of this research the researcher has used the

quantitative techniques. The methodology chapter of this research was discussing all

those methods and techniques that has been used to conduct this research including

data collection, sampling techniques and instruments that has used.

3.2 Research Technique:

The researcher used quantitative research techniques to analyze the data about the

impact of personal values including social and economic values along with the effect

of advertisements on brand loyalty. Due to the limitation of time, the data was

collected by convenience based sampling. Data was collected using a questionnaire

from those people who use frozen food brands in Peshawar. These Research

techniques was derived from the previous literature which has tried to find the same

relations between the variables of this study that are Personal Values including Social

and Economical values, Advertisements and Brand Loyalty (Kim, 2008).

3.3 Sampling Techniques and Procedures:

The sample has been collected from households, direct consumers of frozen food

industry in Peshawar. Different households belonging to different demographics of

Peshawar were asked about brand loyalty in terms of advertisement and their personal

19
values through a questionnaire. Convenience based sampling in non-probability has

been used for data collection.

3.4 Sample size:

The target sample of this research are the direct consumers of different frozen

food brands in Peshawar. About 100 respondents who were available to give proper

time and attention, were asked to fill the questionnaire for the data collection.

3.5 Sources of Data Collection:

In order to investigate that personal values and advertisement effecting brand

loyalty in frozen food industry of Peshawar, the data has been collected from people

of Peshawar of different areas. As no previous data is found regarding the philosophy

of research so customers are directly asked to answer the questionnaire to find those

effects.

3.6 Methods of Data collection:

The research that is quantitative in nature has the objective to develop

mathematical and statistical models for which questionnaire is used to collect data.

The researcher went direct to the consumers to fill the questionnaire. Other than

questionnaire, interviews, observations etc. are also available to collect data but

according to the nature of this research, previous studies suggests that questionnaire is

a better tool to ask people about their personal values to get reliable data (Bayus,

1992).

3.6.1 Research Instrument:

The questionnaire for this research was developed after a deep and thorough

analysis of literature regarding the personal values including social, religious and

economic values, advertisement effects and brand loyalty. The key words and
20
concepts were then derived from the literature and key aspects were derived then from

those keywords. Questions are then made regarding these key aspects to explore each

variable in a better and detailed way.

21
Chapter 4: Data Analysis

The data was collected to find the effect of personal values and advertisement on

brand loyalty through a questionnaire. The questionnaire was designed by dividing

equal proportion of questions for each variable to find the relationship between

dependent variable and independent variables.

4.1 Statistical Test:

Statistical tests used in this research are reliability analysis and linear regression
analysis.
4.1.1 Reliability Analysis:

Any research can never achieve its objectives until the data collected is not reliable

(Jacoby, 1971). So the very first test run was the reliability analysis to find the

credibility of the collected data. Following tables shows the results.

Scale Statistics

Mean Variance Std. Deviation N of Items

83.6791 183.679 12.452761 20

Table 1.1

Reliability Statistics

Cronbach's
Alpha N of Items

.813 20

Table 1.2

22
 As the Cronbach’s Alpha values is .813 in table 1.2 which is greater than 0.7,

which means the data collected for this study is reliable and we can run further tests to

finds the results of our hypothesis.

4.1.2 Regression Analysis:

Most of the previous studies has used linear regression analysis to find this nature

of relationship, so the researcher has also used linear regression to compute the data

about the effect of personal values and advertisement on brand loyalty in a frozen

food industry of Peshawar.

The statistical test that has been used in this study is Linear Regression. First

separate Means were taken for each independent variable and then for dependent

variable, SV for social values, EV for Economic values, Ad for advertisements which

are independent variables. Similarly, BL for Brand Loyalty which is a dependent

variable.

4.1.3 Personal Values Effecting brand loyalty:

To find the effect of Personal values on brand loyalty in frozen food industry of

Peshawar, a collective mean of SV and EV is compared with the mean of the BL

through linear regression. Results are shown in Table 1.3, 1.4 and 1.5.

23
 Table 1.3
Model Summary

Change Statistics
Std. Error
R Adjusted R of the R Square Sig. F
Model R Square Square Estimate Change F Change df1 df2 Change

1 .363a .132 .123 .98444 .132 14.853 1 98 .000

a. Predictors: (Constant), PV

Table 1.4

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 14.394 1 14.394 14.853 .000a

Residual 94.973 98 .969

Total 109.368 99

a. Predictors: (Constant), PV

b. Dependent Variable: BL

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Table 1.5

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .709 .572 1.239 .218

PV .561 .145 .363 3.854 .000

a. Dependent Variable: BL

H1: Personal values has an inverse relationship with brand loyalty.

As the values of model summary and Anova Table 1.3 and 1.4, adjusted R square

value is .132, which means that there is 13 percent impact of personal values on brand

loyalty. The Hypothesis 1 was assumed that people of Peshawar are more diverted

towards traditional and homemade foods rather than ready to cook frozen food items

due to their cultural and economic values that they are more price conscious and

traditional food lovers specially the female gender, as more of them are housewives

and they love to make food by their own at homes.

The Anova table shows the significance value that is 0.00 which is less than the

alpha value which is 0.05, which means that the proposed hypothesis is significant

that people of Peshawar are diverted towards traditional food, they are more price

conscious while selecting a frozen food brand due to which they are not loyal to these

brands and hence on the basis of these finding the hypothesis 1 is accepted.

25
 4.1.4 Advertisements influencing brand loyalty:

Similarly, to find the effect of Advertisements on Brand Loyalty in frozen food

industry of Peshawar the mean Ad is compared with the mean of BL through Linear

regression. Results are shown in Table 1.6, 1.7and 1.8.

Table 1.6

Model Summary

Change Statistics

Adjusted R Std. Error of the R Square

Model R R Square Square Estimate Change F Change df1 df2 Sig. F Change

1 .528a .279 .272 .89688 .279 37.964 1 98 .000

a. Predictors: (Constant), Ad

26
Table 1.7

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 30.538 1 30.538 37.964 .000a

Residual 78.830 98 .804

Total 109.368 99

a. Predictors: (Constant), Ad

b. Dependent Variable: BL

Table 1.8

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .328 .424 .774 .441

Ad .772 .125 .528 6.161 .000

a. Dependent Variable: BL

H2: Advertisement has negative impact on brand loyalty in frozen food

Industry of Peshawar.

As the values of model summary and Anova Table 1.6 and 1.8, adjusted R square

value is .279, which means that advertisements are effecting 27 percent the brand

loyalty towards frozen food industry brands.

27
 In Anova the significance value is 0.00 which is less than alpha value that is 0.05

which means that the proposed hypothesis is highly significant that advertisements

has positive relation with brand loyalty in frozen food industry of Peshawar.

28
Chapter 5: Conclusion

5.1 Introduction:

The chapter of conclusion is discussing up to what extent the objectives are

achieved of this research study that whether the impact of personal values and

advertisements on brand loyalty in a frozen food industry of Peshawar is determined

or not.

According to the findings of this research, the opportunities to work on in future

has also been discussed in this chapter.

Recommendations has also been suggested in this chapter for the frozen food

industry of Peshawar according to the findings and context of this research.

5.2 Achievements of objectives:

The first objective of this study was to explore the impact of personal values on

brand loyalty in the context of frozen food industry of Peshawar. This objective has

achieved accordingly and it has been found that the personal values of people

including social and economic values are not willing to be loyal towards a frozen food

industry brands. This impact has been found positive and people are preferring to go

for frozen food brands rather than only sticking to the traditional homemade food. It

has also been explored that people are not much price conscious in this industry and

they are willing to pay high prices and they are to stick to the specific brand based on

tastes, quality and other factors.

The second objective was to verify the role of advertisements in a frozen food

industry of Peshawar. This objective has also been achieved accordingly. The finding

suggests that people are now happier with the advertisement efforts by the brands of

frozen food industry and they are succeeded to develop proper Attention, Brand
29
recall, Interest and Loyalty which means that the advertisements are playing a good

positive pivotal role in driving people’s loyalty towards a specific brand.

5.3 Future Implications:

This research and its findings provides a large range of areas to work on in future.

Now it has been found that the people of Peshawar are not ready to be loyal to the

brands due to their personal values and advertisements have positive impact to create

loyal customers so these factors can be explored in a more detailed way to get things

better in future for frozen food industry of Peshawar. Other factors can be now

discussed in future specifically that will explore the negative impacts on brand loyalty

regarding the personal values of people of Peshawar.

5.4 Recommendations:

The frozen food industry brand now needs to more focus on the negative factors

that can influence the brand loyalty. They need to target more the personal values as

this is one of the important part to make strong positive relations. More

advertisements and more strong promotional strategies should be implemented in

future according to the personal values of people.

30
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 Annexure A

Research Questionnaire

Effect of Personal values and advertisement on brand loyalty

Full Name (Optional):

Gender: Male Female

Age : Less than 20 20-30 30-40

40-50 Above 20

Household Income: Less than 50k 50k to 100k

100k to 150k 150k to 200k
Above 200k

Following Statements describes your level of agreeableness about your personal values.

Please read each statement carefully, though some THE RESPONSE FOR THE ANSWERS INCLUDES
of them appear similar, and indicate the degree of
your disagreement or agreement by circling the
appropriate number using the directions: Strongly strongly
Disagree somewhat disagree somewhat
Disagree Agree agree Agree

1. I prefer ready to cook food over homemade.

2. I prefer traditional food over frozen food due to

its taste.

34
3. When a frozen food brand saying its halal, I trust
its credibility.

4. I prefer traditional food over frozen food because

my friends and family have the same preference.

5. Traditional food is more fresh and hygienic

because I make it at my home while I don’t believe
that frozen food could take the same care in
processing.

6.I am more loyal to local brand than international

in frozen food industry of Peshawar.

7. Frozen food items are usually more expensive

than homemade.

8. While considering a frozen food brand, my

decision is influenced by price.

9. Due to the high price of frozen food items I use

them occasionally.

10. I am price conscious.

Following Statements describes your level of agreeableness about your personal values.

Please read each statement carefully, though some THE RESPONSE FOR THE ANSWERS INCLUDES
of them appear similar, and indicate the degree of
your disagreement or agreement by circling the
appropriate number using the directions: Strongly strongly
Disagree somewhat disagree somewhat Agree
Disagree Agree agree

1.Advertisements of frozen food brands are

succeeded to grasp my attention.

35
2. My buying decision is influenced by the
advertisements by frozen food brands.

3. I can consciously evaluate different frozen food

items by means of information given in the
advertisements.

4.Frozen food industry brands are succeeded to

increase my interest towards a brand through
advertisements.

5. Advertisements of frozen food brands are able to

recall me a specific brand.

Show your level of agreement towards brand loyalty in frozen food industry.

6. I will prefer frozen food items to my friends and

family.

7. I have a positive word of mouth towards a frozen

food brands.

8. I have a strong association with frozen food

brands.

9. I will never switch from my current frozen food

brand.

10. I am ready to pay high prices to a frozen food

brand I am using.

36